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Large Order from the US

19.01.01 | Press release of Salzgitter AG

01/19/01

Large Order from the US

450,000 t Large-Diameter Pipes for Gulfstream-Pipeline HSP The large-diameter pipe specialist Europipe GmbH, Ratingen, (a 50 % shareholding each of AG der Dillinger Hüttenwerke and of the Salzgitter subsidiary Mannesmannröhren-Werke AG) has booked one of the largest single orders in the companys history through the intermediary of its US-subsidiary. Europipe is to produce the entire steel pipe supply for the gas-pipeline project Gulfstream". This amounts to approximately 450,000 t of longitudinally welded large-diameter pipes with a total value of US$ 310 million.

The offshore-pipeline will be 1,200 km long and shall transport natural gas from Mobile, Alabama across the Gulf of Mexico to Manatec, Florida to serve the steadily increasing energy demand in Southern Florida.

The pipes with an outside diameter of 30 and 36 inches (abt. 750 and 900 mm) will be produced in the large-diameter pipe mill of the Europipe subsidiary Berg Steel Pipe in Panama City, Florida, and in the Europipe mills in Mülheim/Ruhr and Dunkirk, France. The coating company Eupec, a shareholding of Europipe, will apply a plastic insulation to the pipes for protection against corrosion and damage at the above three locations.

The semi-material for the pipes, plates of a highly sophisticated quality, will be supplied by Dillinger Hüttenwerke in Dillingen/Saar and the plate-mill of Mannesmannröhren-Werke in Mülheim.

Production of the large-diameter pipes for the Gulfstream Project will commence in March/April. As the pipeline should be operating in June 2002 already, Europipe must fulfil an ambitious production program for a timely supply of the finished pipes to the pipe-laying companies.

This large order ensures full capacity utilization of the Europipe mills for half a year. It also entails extra shifts and the creation of additional temporary and project-related jobs.

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