Metal pipe manufacturer Welspun-Gujarat Stahl Rohren Ltd said on Wednesday it has formed a joint venture with Volzhsky Pipe Plant, a unit of Russia's largest pipe product makers the TMK Group.
The Gujarat-based company informed the Bombay Stock Exchange that it would acquire a 40 per cent stake in the joint venture that would provide a wide array of products for onshore and offshore line pipe requirements.
The company's board of directors today approved JV, Welspun said. "We look forward to consolidate our global presence through the formation of this joint venture.
This partnership will leverage our high-quality, submerged arc weld production capabilities with TMKs strong regional presence and extensive sales and marketing expertise," Welspun-Gujarat Stahl Rohren Vice Chairman and Managing Director B K Goenka said.
The transaction would provide the transfer of TMK's LD business and installation of hi tech Longitudinal Submerged Arc Welded pipe welding line, bending facility and external and internal coating lines on the site of Volzhsky Pipe Plant in Russia, delivered by Welspun.
The new capacities are intended for the production of LSA pipe. The start-up of LSAW is scheduled for the fourth quarter of 2007 by when the JV's total capacities are expected to be more than 1.2 million tons per annum of large-diameter welded pipes.
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