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On 3 July 2008, CENTRAVIS (Dnipropetrovsk, Ukraine), an international holding and one of the largest world producers of seamless stainless steel tubes and pipes announced its strategic partnership with Handy & Harman Tube Company (Camden, USA), the world producer of hi-tech products from stainless tubes.

Subject to the terms and conditions of this cooperation, CENTRAVIS will become a principal supplier of mother tubes for Handy & Harman Tube Company, including the production of special mother tubes meeting additional customer requirements. This agreement was reached at the meeting of companies, which was held in May 2008.

In 2008, CENTRAVIS is going to supply over 300 tonnes of mother tubes to Handy & Harman Tube Company, with this figure expected to triple next year. This will be possible by launching a new tube pressing line and an extrusion press (4,400 tonnes) at the industrial site of CENTRAVIS. CENTRAVIS is planning to complete installation of new equipment in the first quarter of 2009. Mother tubes produced by CENTRAVIS will be an intermediate product for the production of a wide range of hi-tech products (coiled tubes, unique thin-walled seamless stainless pipes for medical equipment, tool-making and other applications).

Besides, strategic partnership of the two companies includes as follows:

• Expansion of the product range of both companies (new steel grades and sizes)
• Cooperation in innovative product development
• Joint distribution of tubes produced by CENTRAVIS and Handy & Harman Tube Company
• Knowledge and experience sharing related to production process and technology

Joint company entry into the market of North America is among the most important aspects of cooperation. By the end of 2008, companies will hold a number of business meetings with the largest metal product distributors in the North American countries. International holding CENTRAVIS will, in turn, ensure product sales support to Handy & Harman Tube Company on the CIS markets where CENTRAVIS has a strong market position.

The representatives of companies commented on the prospects of the alliance:

Ilya Shirokobrod, Director of Strategy and Business Development, CENTRAVIS:

“Handy & Harman Tube Company has been our client since 2007. Following our principles, we strive to build the most favorable and far-reaching relations with our clients. Our relations with Handy & Harman Tube Company and our further cooperation plan serve as a good example of these efforts. Cooperation with Handy & Harman Tube Company is one of the best examples of our brand belief implementation “combining the best of all worlds”. This alliance will enable us to develop our business, share experience and cutting-edge knowledge.

North America is a strategic region for our business development. It is in this region that we are gradually intensifying our activities. For the time being, North American countries account for 3% of our company sales and this figure is expected to triple by 2010. I am sure that development of business in North America with a prominent partner such as Handy & Harman Tube Company will be twice as efficient.

John Coates, President and CEO of Handy & Harman Tube Company:

“Handy & Harman is very excited about the opportunity to become a partner with Centravis. The combined knowledge, technologies, trade networks and hi-tech tubular seamless products will enhance the collective abilities to provide outstanding solutions to customers worldwide.”

Additional information

CENTRAVIS

International holding CENTRAVIS is one of the world leaders of seamless stainless steel tube and pipe market. Based on the SMR report, CENTRAVIS is ranked fifth, in sales volumes, on the world market of seamless stainless steel tubes and pipes (holding a 5% market share), has a lead in the heat exchange tube segment (holding a 15% market share), and ranks forth in the boiler tube segment (holding a 12% market share).

CENTRAVIS product portfolio includes over 1,000 standard tube sizes from over 100 types of corrosion-resistant and heat-resistant steel grades in segments: general pipes, boiler tubes, heat exchange tubes, instrumentation tubes, furnace tubes, tubes intended for mechanical processing, and nickel alloy tubes.

In 2007, CENTRAVIS produced 17,900 tons of seamless stainless steel tubes and pipes. Company turnover was $250 million. The holding’s EBITDA was $40 million. Centravis world market share was as follows: Ukraine — 70%, the CIS countries — 42%, Western Europe — 9%.

Handy & Harman Tube Company

Handy & Harman Tube Company (Camdel Metals Corporation) specializes in the production of seamless stainless steel coiled and straight length tubing.

These tubes have been produced for numerous petrochemical applications, process construction, general control systems, instrumentation, medical, military, oil & gas, down hole and subsea umbilical applications. Handy & Harman prides itself on its ability to produce the world’s longest continuous seamless coils which can be in excess of 5,000 feet. All Handy & Harman tubing has excellent mechanical and corrosion resistant properties and is backed by exceptionally knowledgeable customer service.

Print version

CENTRAVIS defined new goals in sphere of quality (09.07.2008)

On the Day of Metallurgist “CENTRAVIS PRODUCTION UKRAINE” summarized the first half of 2008 (18.07.2008)