PJSC Severstal announces the signing of an agreement to purchase a stake in a joint venture with the German Lide AG for the production of spiral heat exchangers (SVTO) for use at enterprises using medium and large-scale liquefaction technologies and natural gas processing. Following the closing of the transaction, Severstal will control a 26% stake in the joint venture, Lide - 74%.
The enterprise was established in June 2017 as part of the localization of production of SVTO in Russia. The capacity of the enterprise is five or six SVTOs per year, including large-capacity ones. The company is expected to reach full production capacity in 2020-2021.
The company's acquisition of a stake in a joint venture is fully consistent with one of the key approaches of Severstal's updated strategy - closer cooperation with customers to provide customized solutions as part of the strategic priority implementation “Excellent customer experience.”
“Production, storage and transportation of LNG is one of the key trends in the development of energy in Russia and the world. In accordance with this, Severstal has made the decision to enter another segment of high value added products, which is new for the company, in a dynamically developing market. Lide's global experience in production, quality management and supply chain, together with Severstal's many years of experience in the production of products, including those specially designed for the client's requirements, will allow the joint venture to provide comprehensive solutions to our customers and increase its share in the domestic market, ”said the CEO of Severstal Alexander Shevelev.
