Chelpipe group's press centre
On the site of Pervouralsk Pipe Plant (PNTZ, part of ChelPipe Group), AQA Genesis, a modern water refining system, has been launched to provide a “green” water supply circuit for pipe production processes and to significantly reduce the plant’s environmental footprint. RUB 520 million was invested in the facility commissioned as part of AQA, a multi-phase programme to upgrade water systems of ChelPipe Group’s assets.
Dmitry Kobylkin, Russian Minister of Natural Resources and Environment, and Vasily Osmakov, Deputy Russian Minister of Industry and Trade attended the ceremony online. The facility launched by Yevgeny Kuyvashev, Governor of the Sverdlovsk Region, Andrey Komarov, Chairman of ChelPipe Group’s Board of Directors, and Danila Shestakov, an activist of the City of Leaders social movement.
AQA Genesis is based on the best available technologies and uses Russian-made latest generation equipment – an automated process monitoring and control system, which records every parameter, related to water quality and consumption. Every hour, AQA Genesis withdraws water from PNTZ’s pipe rolling process, exposes it to multi-stage treatment – sedimentation, reagent treatment, clarification, cooling, removal of sediments and oil products – before returning it to the facility for reuse.
AQA Genesis will recycle 33,000 cubic metres of water per day, reduce the asset’s industrial effluents by 30%, the content of suspended solids in water sevenfold, iron – sixfold, and oil products – more than hundredfold. AQA Genesis provides a recycling water supply solution to minimise river water usage.
Minister of Natural Resources and Environment of the Russian Federation attends official launch of AQA Genesis, ChelPipe Group’s new METAllurgy facility
Pipe Division
Shipment by product types
ths. tons unless otherwise stated | 9M 2019 | 9M 2018 | Chg., % | Q3 2019 | Q2 2019 | Chg., % |
Seamless industrial pipes | 398 | 412 | (3,4%) | 128 | 146 | (12,3%) |
OCTG | 358 | 326 | 9.8% | 111 | 117 | (5,1%) |
Line pipes (O&G) | 101 | 153 | (34.0%) | 27 | 37 | (27,0%) |
LDP (large diameter pipes) | 699 | 603 | 15,8% | 322 | 237 | 35,6% |
Other welded pipes | 25 | 27 | (7,4%) | 10 | 10 | - |
TOTAL | 1 581 | 1 521 | 3,9% | 598 | 547 | 9,3% |
• In nine months of 2019, the demand for large diameter pipes increased by 56 ths. tons (+2%) compared to the same period last year, including: domestic market +104 ths. tons (+6% y-o-y), CIS countries +213 ths. tons (3.5 times y-o-y). Shipments to international projects for the non-CIS countries decreased by 246 ths. tons (-39% y-o-y) due to the completion of two major projects: Nord Stream 2 and Turkish Stream. In nine months of 2019, ChelPipe Group has become the largest supplier of large diameter pipes among Russian manufacturers with a market share of 29%. In nine months of 2019, LDP shipments of ChelPipe Group increased by 15.8% y-o-y and amounted to 699 ths. tons Growth is mainly attributed to higher delivery volumes to the CIS countries - ChelPipe Group supplied large diameter pipes for Saryarka (natural gas pipeline for gasification of Nur-Sultan, the Republic of Kazakhstan) and TAPI (natural gas pipeline Turkmenistan–Afghanistan–Pakistan–India). The Company became the only LDP supplier for the construction of gas pipeline in Turkmenistan under TAPI project.
• Total consumption of OCTG in the domestic market in the first nine months of 2019 increased by 6% y-o-y and amounted to 1.8 mln tons. The increase was due to higher demand for tubing. ChelPipe Group shipments increased by 9.8% y-o-y and amounted to 358 ths. tons. In the reporting period the Company's share in the OCTG market stood at 19%.
• In the seamless industrial pipe segment ChelPipe Group is the largest supplier in the domestic market. Total shipments in nine months of 2019 amounted to 398 ths. tons, a decrease of 3.4% y-o-y. The dynamics is caused by expectations of consumers on decrease in pipe prices in the third quarter of 2019 following a decrease in prices for pipe billets.
• In nine months of 2019, ChelPipe Group shipments of line pipes amounted to 101 ths. tons, a decrease of 34% y-o-y. Negative dynamics was due to decreasing market demand for line pipes as a result of their replacement by cheaper welded pipes.
Trunk Pipeline Division
• Major projects for which ChelPipe Group delivered pipeline fittings in the reporting period: natural gas pipeline Power of Siberia; Chayandinskoye oil, gas and condensate field; construction of the Gryazovets – Slavyanskaya compressor station, natural gas pipeline Saryarka. The total volume of product shipments (hot and cold bends, short-radius bends, stamp-welded fittings, etc.) from JSC "Pipeline Bends" and "ETERNO", LLC (part of ChelPipe Group) was 11.1 ths. tons, 8.5% less than in nine months of 2018 due to the reduction of market capacity. ChelPipe announces its operational results for the first nine months of 2019

Public Joint Stock Company "Chelyabinsk Pipe Plant" (PJSC "ChelPipe"), a leading manufacturer of pipe products and provider of integrated solutions for the fuel and energy industry companies, announces its operating results for the first nine months of 2019.
Public Joint-Stock Company Chelyabinsk Pipe Plant (Chelpipe PJSC), a leading Russian manufacturer of tubular products and provider of integrated solutions for companies of the fuel and energy industry, announces the successful placement of inaugural USD 300 million 4.5% Guaranteed Notes due 2024.
Good credit history of the company and favourable market conditions attracted a great number of investors within the framework of the five-day road show in Moscow, Zurich, Frankfurt, New York and London. Consequently, in the original price range of 4.75-5%, the order book exceeded 1 bn US dollars, which made it possible to cut the rate twice and close the deal at 4.5%.
The final order book lists around 100 names including investors from the United Kingdom (30%), Russia (28%), Сontinental Europe (23%), Asia (14%) and the United States (5%). Around 52% of the bonds issued were acquired by asset management companies, funds and insurance companies, and 48% by banks and private banking.
Citi, Gazprombank, J.P. Morgan and Société Générale acted as the Joint Bookrunners and Global Coordinators, Renaissance acted as Joint Bookrunner and Sovcombank as Co-manager. The USD 300 million 4.5% Guaranteed Notes due in September 2024 were issued by Chelpipe Finance DAC, an Irish company founded for the sole purpose of issuing debt instruments and financing loans to ChelPipe Group.
ChelPipe is planning to spend the revenue from bond issue to pay back ruble loans to optimize the debenture portfolio.
ChelPipe Group successfully issued debut Eurobonds worth $300 M
Students of the Future of White Metallurgy educational program created by ChelPipe Group won 10 medals at the Young Professionals, 7th Open Regional Championship (WorldSkills Russia), coming in ninth place overall out of the 79 educational institutions in the region that participated in the competition. The future white metallurgists performed in eight skill categories: Reverse Engineering, Industrial Robotics, Prototyping, CAD Engineering Design, Turning Work on CNC Machines, Industrial Automation, Industrial Mechanics and Installation, and Electrical Installation.
In the Industrial Robotics skill, gold medals were awarded to Lev Popov and the team of Timur Sadreev and Ilya Belokozovich in the Juniors category (14 to 16 years of age). For the Reverse Engineering skill, Nikita Kuznetsov was the winner, Andrei Tarasov won the silver medal, and Alexander Gimazetdinov and Ruslan Sultangaliev won bronze. In the Industrial Mechanics and Installation category, Andrei Efimov received the gold medal, and Nikolai Perminov received the silver medal. In addition, Ivan Semeyshchev won the gold medal in the Industrial Automation skill, and Vadim Gallyamov won the silver medal for Prototyping.
The winners of the regional championship will continue preparations for the next stage of the competition, the National Championship of Young Professionals (WorldSkills Russia), which will be held on May 20–24, 2019, in Kazan.
Future white metallurgists win 10 awards at the Young Professionals, 7th Open Regional Championship (WorldSkills Russia)
Students of the Future of White Metallurgy educational program created by ChelPipe Group won 10 medals at the Young Professionals, 7th Open Regional Championship (WorldSkills Russia), coming in ninth place overall out of the 79 educational institutions in the region that participated in the competition.