Tenaris and Severstal to form JV to build a welded pipe plant (772529)

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PAO Severstal (SVST)
Tenaris and Severstal to form JV to build a welded pipe plant

05-Feb-2019 / 13:30 MSK
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

Tenaris and Severstal to form joint venture to build a welded pipe plant

in West Siberia

This announcement contains inside information

Moscow, February 5, 2019 -Tenaris S.A. (NYSE, Buenos Aires and Mexico: TS
and MTA Italy: TEN) and PAO Severstal (MICEX-RTS: CHMF; LSE: SVST) announced
today that they will create a joint venture to build a welded pipe plant to
produce OCTG products in the Surgut area, West Siberia, Russian Federation.
Severstal will have a 51% interest in the joint venture company, with
Tenaris owning the remaining 49%. The commencement of the project is subject
to regulatory approvals and other customary conditions.

The plant, which is estimated to require an investment of USD240 million and
a two year construction period, is planned to have an annual production
capacity of 300,000 tons. Through this joint venture, Tenaris and Severstal
aim to serve the growing market for welded OCTG pipe products in Russia and
neighbouring countries, combining Tenaris's knowhow in OCTG pipe
manufacturing and sales with Severstal's expertise in producing high quality
steel products.

Alexey Mordashov, Chairman of the Board of Directors of Severstal,
commented: "Our strategic goal is to make Severstal the leader in the future
steel industry. And the future belongs to those companies that can provide
their clients with unique solutions based on excellent understanding of
their needs. To offer the oil and gas market best-in-class OCTG products and
a range of customized and innovative services we are happy to join forces
with a global leader in the manufacturing and supply of high-quality welded
and seamless steel pipes. The production will be located in close proximity
to the main oil and gas companies which will ensure cost efficiency both for
us and our customers' operations".

Paolo Rocca, Chairman and CEO of Tenaris, commented: " We are very pleased
to form this partnership today with Severstal. By combining our respective
strengths and our commitment to industrial excellence, we believe that we
can support the Russian and CIS oil and gas industry with a world-class and
very competitive alternative for high quality OCTG products and services. As
in all our operations around the world, we seek to deliver solutions that
help to make customer operations more efficient and cost-effective".

Severstal is a leading Russian steel producer of high value-added flat, long
and tubular steel products for the construction, automotive, machinery and
energy industries.

Tenaris is a leading global supplier of steel tubes and related services for
the world's energy industry and certain other industrial applications.

Some of the statements contained in this press release are "forward-looking
statements". Forward-looking statements are based on management's current
views and assumptions and involve known and unknown risks that could cause
actual results, performance or events to differ materially from those
expressed or implied by those statements.

***

P?? Severstal is one of the world's leading vertically-integrated steel and
steel related mining companies, with assets in Russia, Latvia and Poland.
Severstal is listed on RTS and MICEX and the company's GDRs are traded on
the LSE. Severstal reported revenue of $8,580 million and EBITDA of $3,142
million in 2018. Severstal's crude steel production in 2018 reached 12.0
million tonnes. www.severstal.com [1]

Tenaris manufactures and supplies welded and seamless steel pipe products,
and provides related services and accessories for the oil and gas, energy,
and mechanical industries. Using its worldwide manufacturing facilities and
service centers, Tenaris offers all stages of supply chain management:
manufacturing, procurement, distribution, and customer service in all active
regions of the world. In addition to the US facilities, the company has
manufacturing facilities in Argentina, Brazil, Canada, Colombia, Italy,
Japan, Mexico and Romania. With a worldwide capacity of 3.7 million tons of
seamless and 2.6 million tons of welded pipes, Tenaris commands nearly
one-third of the global OCTG seamless products market. www.tenaris.com [2]

ISIN: US8181503025
Category Code: UPD
TIDM: SVST
LEI Code: 213800OKDPTV6K4ONO53
Sequence No.: 7368
EQS News ID: 772529

End of Announcement EQS News Service

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(END) Dow Jones Newswires

February 05, 2019 05:30 ET (10:30 GMT)

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