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Salzgitter : Suspension Of Supply Deal For South Stream Pipeline Project

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

Europipe GmbH, a 50/50 joint venture of the Salzgitter Group and AG der Dillinger Huttenwerke, received an instruction from Amsterdam-based South Stream Transport B.V. to halt the production of steel tubes for the South Stream pipeline until further notice, expected at least until February 19.

According to the company, the financial consequences for the Salzgitter Group cannot be quantified exactly yet. Europipe GmbH and wholly-owned subsidiary Salzgitter Mannesmann Grobblech GmbH, which supplies some of the plates, are endeavoring to minimize the reduction in capacity utilization that this creates.

The company said its current estimate nevertheless suggested that the charge on its consolidated earnings will comprise a low double-digit euro amount.

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