"The products will allow Severstal to take part in tenders, conducted by large international oil companies in all regions", pointed outt Dmitry Goroshkov, Severstal's sales director, at a press conference in Cherepovets.

In August Severstal has already shipped test batches of 5,500 tonnes of x-types grades of steel to the United Metallurgical Company and Vyksa Steel Mill, as well as a test batch of 9,000 tonnes to Volgsk Pipe-making Plant. Severstal has signed long term contracts with these three plants.

According to an agreement with the United Metallurgical Company, the volume of monthly shipments to this company will total 60,000 tonnes. All shipments will be made on a decade schedule. This will allow pipe-making plants to better plan their manufacturing capacity.

Additionally, Severstal has recently signed an agreement with Europipe - a well-known manufacturer of spiral-seam pipes for gas an oil industry - for next year. This project has a potential of becoming a first step in Severstal winning foreign markets with its X52 grade of steel and other value-added products. A test batch of 900 tonnes of steel has satisfied Europipe in all respects.

"If we gain a solid market reputation through this project, we can further attain international recognition and become suppliers of a number of pipe-making companies and projects in the world", said Dmitry Goroshkov.