EUROASIA: Russian duo Evraz, TMK share $2.3B U.S. pipe deal

Russian duo Evraz, TMK share $2.3B U.S. pipe dealRussian steekmaker Evraz has become a large supplier of steel pipe to the U.S. energy sector after a $2.3-billion deal announced Friday to buy the American pipe business of SSAB, Sweden’s biggest steel producer.

Evraz will then sell part of the newly acquired specialist pipe business to compatriot company TMK for $1.7 billion, the Financial Times has reported.

In February, reported Evraz agreed to pay $1.5 billion for 10 percent of China's Delong Holdings and incremental control of the steel-maker. A worlwide shortage of steel has long been felt by the offshore industry, especially by yards building rigs and ships. Steel prices have risen threefold in less than a decade.

While Russia’s steel supply is substantial, it has been underdeveloped as a business. Technical improvements in the country's workshops have, however, included the most advanced cutting technology and a host of other key innovations hurriedly acquired.

Source: Scandinavian Oil & Gas

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