Pervouralsky Novotrubny Works was founded in Pervouralsk in 1934; it is a part of ChTPZ (Chelyabinsk Tube Rolling Plant) Group.

ChTPZ Group is a leading Russian producer of welded and seamless steel tubes and pipes; it was established in 2002. Its assets are structured according to a divisional principle and are consolidated by the Chelyabinsk Tube Rolling Plant. The enterprises comprising the Chelyabinsk Tube Rolling Plant Group are involved in producing and selling pipes.

The plant was continuously being developed during the Second World War and launched the production of new pipes for the defence industry. The plant continued to expand from 1953 to 1961. The tube rolling shops were under reconstruction from 1972 to 1981.

Today Pervouralsky Novotrubny Works is a modern enterprise that has four tube-rolling and four tube-drawing shops, a shop producing cylinders, electric welding pipe shops, which focus on producing seamless pipes with a diameter of 0.1-219 mm of stainless, high-alloy and alloy steel (designed for all types of mechanical engineering, as well as oil, gas and construction enterprises), electro-welded pipes with a diameter of 12-114 mm, lined and shaped tubes, large, medium and small seamless cylinders of stainless, alloy and carbon steel. Pervouralsky Novotrubny Works is Russia's leading producer of pipes. The enterprise's production volumes totalled to 826,000 tonnes in 2007; 701,400 tonnes in 2008; 558,600 tonnes in 2009; 520,500 tonnes in the first nine months of 2010 (while 401,600 tonnes were produced in the first nine months of 2009). The decrease in the production rate in 2008-2009 was caused by the reduction of effective demand for pipes, especially those of machine-building enterprises.

Some 133,000 tonnes (16.1% of the total production volume) were exported in 2007, 96,300 tonnes (13.7%) were exported in 2008 and 116,400 tonnes (20.8%) in 2009.

The average monthly income was 15,701 roubles in 2007, 18,581 roubles in 2008, 16,774 roubles in 2009 and 21,002 roubles in the first nine months of 2010 (17,687 roubles in the first nine months of 2009).

The average number of people employed at the factory stood at 11,970 in 2007, 11,300 in 2008, 8,600 in 2009 and 9,143 in 2010.

A finishing centre (the expansion of the pump-compressor tube department) was put into operation in April 2009. The project cost 132.2 million euros. The following units were set up: production line for thermal processing of tubes – 75,000 tonnes, production line for upsetting pump-compressor tubes – 20,000 tonnes and a shop for threading pipe casings and pump-compressor tubes – 75,000 tonnes.

Electric Steelmaking Facility

An electric steelmaking facility capable of producing up to 950,000 tonnes of cast tube stock has been constructed recently. The project is worth 19.2 billion roubles. The facility will be able to supply enough tube stock for most of Pervouralsky Novotrubny Works’ and the Chelyabinsk Tube Rolling Plant’s units producing seamless tubes. The facility’s launch will allow the outdated open-hearth furnace at the Chelyabinsk Tube Rolling Plant to be taken out of service; this will significantly reduce hazardous emissions into the atmosphere.

The electric steelmaking facility project is worth 421.5 million euros (without VAT and customs duties).

Germany’s SMS Demag supplies equipment; Turkey’s Gamma is a subcontractor and ChTPZ Group is its customer. A contract on constructing an electric steelmaking facility on a turnkey basis was concluded in November 2006. SMS Demag and Gamma established a consortium. The facility had to be completed in 23 months, and it was to be launched in November 2008. The majority of the equipment was supplied by Russian factories under the agreements with SMS Demag. As a result of complaints from both sides, the subcontractor was replaced during construction. Chelyabinsk-based company Shakhtoprokhodka continued to construct the complex. The project’s terms of completion were put off for the fourth quarter of 2010.

Pervouralsky Novotrubny Works (650,000 tonnes) and the Chelyabinsk Tube Rolling Plant (300,000) are the consumers of these goods.

Meta, a subsidiary of the Chelyabinsk Tube Rolling Plant, will supply scrap metal to the facility. Meta must supply scrap metal prepared for smelting and so Pervouralsky Novotrubny Works features no charge-preparation plant. The complex’s construction will provide 300 jobs.

Thanks to the government’s support, Sberbank of Russia has granted a loan worth 10 billion roubles for the completion of the facility’s construction. More than 300 builders from the Chelyabinsk and Sverdlovsk Regions have been involved in constructing the facility. Some 190 specialists (staffed out of 300) have been supervising installation works, been engaged in the construction of the integrated premises and the production of non-standardised equipment, and have assisted the builders.

According to Government Resolution No. 103 of February 14, 2009, the government issued state guarantees worth 5 billion roubles for obtaining loans in Russian banks to complete the electric steelmaking facility.