ChelPipe Group | 17 February 2017 г. | 12:15

ChelPipe Group sold over 1.7 million tons of pipes

In 2016, Chelyabinsk Pipe-Rolling and Pervouralsk New Pipe Plants - the pipe division of ChelPipe Group - shipped 1.713 million tons of pipes to consumers, which is 15% less than the volume of 2015 (-306 thousand tons). The volume decline was driven by changes in shipment schedules for Gazprom (The Power of Siberia and North European Gas Pipeline) projects, as well as a decrease in demand on domestic and foreign markets. The largest drop is recorded in the segment of large diameter pipes (-27%).

At the same time, the company increased its share in the segment of high-margin products. Thus, ChelPipe Group has increased the shipment of pipes with Premium threads by 10% - up to 9,000 tons - and has strengthened its positions in the market of industrial pipes. The largest increase in shipments in the Russian market was recorded in the segments of welded pipes of small diameters (+8 thousand tons), profile (+6.8 thousand tons) and cold-deformed tubes (+7.7 thousand tons).

At year-end 2016, ChelPipe Group's share in the total shipments of the Russian pipe producers amounted to 16.5%. The company took part in the largest Russian pipeline projects, such as The Power of Siberia, Ukhta-Torzhok 2, Gryazovets-Vyborg.

The volume of the company's export shipments increased by 31% to 263,000 tons. The volume increase became possible thanks to the participation in the Nord Stream-2 international project, as well as the expanded presence in the markets of the MENA region (Middle East and North Africa). The company also enlarged the share of deliveries to the markets of the United States, Belarus, Kazakhstan and Uzbekistan.

‘In 2017, ChelPipe Group is expecting a shipment volume equal to that of last year. Our strategic goals are to raise our exports in the conditions of increased competition in the domestic market for the purpose of regional diversification of sales. We are planning to increase ChelPipe Group's share in the market of seamless pipes both for the oil and gas industry and for general purposes, and develop our presence in the Middle East, North and South America’, - commented Alexander Grubman, ChelPipe CEO.

Moreover, in 2016, ChelPipe Group sold over 15,000 tons of pipeline fittings (PF). The main volume of deliveries constituted bends of hot flexure, curved bends and bends of cold flexure. ChelPipe Group's share in the key segments of the Russian market amounted to 16.3%. Moreover, the company launched production of split tees at the Eterno plant, the founders of which are ChelPipe Group and Rusnano. The release of a new line of products is a step to an almost full completion of import substitution in the production of cross-country pipelines. The plant is planning to release up to 150 units of new products.

In 2017, ChelPipe Group is planning to increase its share in the PF market by 3.9%, due to an increase in the supply to leading Russian oil companies.

Source: Metal Supply and Sale Magazine
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