OREANDA-NEWS. As of year-end 2015, ChelPipe Group’s pipe division facilities - the Chelyabinsk Pipe plant and Pervouralsk Pipe plant - shipped 2,019 mln. tons of pipes, which makes 3% less versus 2014 sales volumes (-55 thous. t).  The insignificant decrease in shipments is related to the completion of a few major Transneft projects, deferred implementation of piping projects in CIS countries and reduced overall market demand for pipes from industrial enterprises, energy and construction sectors.

In 2015 versus the previous reported period, ChelPipe Group increased the volume of shipped seamless pipes by 4% to make up 1,081 thous. tons, where OCTG pipes amounted to 399 thous. tons, including 8.2  thous. tons with Premium connections. The OCTG shipments grown versus 2014 made up 49% (+132 thous. tons). This growth became possible through the upgrade of ChelPipe Group’s milling capacity and increased demand of Russian pipe consumers within the ongoing import substitution program. Over 12 months last year, ChelPipe Group shipped 938 thous. tons of electric-welded pipes, which is 11% less versus 2014, with large-bore pipes shipment going down by 13% to make 883 thous. tons.  This reduction was caused by Transneft’s accomplished construction of Kuyumba - Taishet and the Subarctic - Purpe oil mainlines and deferred Central Asia - China and Malay - Bagtayarlyk pipeline projects in the CIS.

As of year-end 2015, ChelPipe Group’s supplies to the domestic market insignificantly reduced by 0.3% to 1,818 thous. tons; the export shipments dropped by 19% (201 thous. tons). Notwithstanding the reduced export volumes, the company increased the number of customers in far-abroad countries - the USA, Columbia, Egypt and Turkey. As of year-end 2015, ChelPipe Group’s share in Russian pipe producers’ aggregate shipments amounted to 17.7%.

“In 2016, ChelPipe Group plans the production at the previous year’s level”, says Aleksander Grubman, General Director, ChelPipe Group. “Despite the economic situation, we hope to retain the volume of large-bore pipe consumption. ChelPipe Group’s pipe and oilfield service divisions are going to participate in all significant Fuel&Energy projects; we are ready for integrated supplies of pipes, valves, oil-producing equipment, and services.
Moreover, in 2016 the company will continue to enhance the business efficiency, with the increased labor productivity and improved costs among its major objectives.