Severstal is presently making hot rolled coils for use in the make up of pipes of high durability by Volgsk Pipe-making plant for Kenkiyak-Aturau project. The plant ordered 50 tones of steel, half of it has been shipped already.

Besides that in August Severstal will start shipments of hot rolled coils to Volgsk Pipe-making plant for making of spiral pipes for Baltic Pipe System project of Transneft.

In spite of the breach in cooperation between Severstal and Volgsk Pipe-making plant (VTZ) which lasted for six months and was caused by changes in top management of VTZ, the latter is satisfied with the quality of Severstal-made steel.

Kenkiyak-Aturau pipeline is 448.8 km long and 24 inch in diameter. It will be put to operation in December of this year. However, all major jobs will be completed already by October 2002. The line's initial capacity is 6 million tones, its maximum capacity is up to 15 million tones of oil a year. The launch of the Kenkiyak-Aturau pipeline will provide oil companies of Aktyubinsk region with an attractive channel of accessing international oil markets through export pipeline of Aturau-Samara and Caspian Pipeline Consortium.