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Europipe Awarded Contract for Second Nord Stream Pipeline
Jan. 28, 2010 Europipe, a 50:50 joint subsidiary between Dillinger Hütte and Salzgitter AG, has been awarded a contract for supply of large-caliber welded linepipe for the second pipeline of the Nord Stream project.
Nord Stream is a 1220-km-long natural gas pipeline that will connect Russia and the European Union via the Baltic Sea. The second pipeline will also be routed from Vyborg, northwest of St. Petersburg, to Lubmin, Germany.
The contract has a total volume of approximately one billion euro, of which 65% has been awarded to Europipe, 25% to Russian pipe producer OMK, and 10% to Sumitomo, of Japan.
Dillinger Hütte will supply 50% of Europipe's linepipe plate needs for the new line.
"This is an important order for Dillinger Hütte and will assure a good portion of our basic capacity utilization level for a number of months," said Dillinger Hütte Chairman Dr. Paul Belche.