Pumpnyasky and Antipov are back in business: they plan to create a company for the production of stainless steel on the basis of a pipe plant in Volzhsk. Pumpyansky is the owner of a metallurgical company, and Antipov is a co-owner of an electrometallurgical plant in Chelyabinsk. Together they are going to invest about 100 billion rubles. According to the plans, the partnership should be equal, however, there is information according to which Pumpyansky is going to absorb the Chelyabinsk plant step by step with its structural elements. Last March, the entrepreneur already acquired a pipe-rolling plant in Chelyabinsk. And its strengthening in the region does not stop at the stage. Yes, and Antipov is not averse to draining assets, because instead of bringing the plant “Metalgromerat ” out of the deplorable state, he invests money in the production of a common business with a new partner.
Pumpyansky and ferroalloys
The Metallurgical Company of Pumpyansky and the Electrometallurgical Plant of Antipov intend to implement a project that involves the construction of specialized rolled products. For this, a new company is being created on the territory of the pipe plant in Volzhsk, and it has already passed registration – Russian Stainless Company LLC.
According to information from Kommersant, in March, Pumpyansky received information about this case. Then he said it at a meeting of the head of state. According to information from Pumpyansky, the amount of investments from the Ministry of Industry and Trade amounted to about 100 billion rubles.
Experts believe that this project is beneficial to both parties. Pumpyansky gets a loophole for expanding the product line, and Antipov can increase capital by supplying the ferroalloys Pumpyansky needs.
The news reports that the plant in the Volgograd region has the necessary infrastructure and workforce. In addition, the geographical location of the enterprise only plays into the hands of the planned facility. The construction process is scheduled for 2022. The planned capacity is estimated at half a million tons of products annually. It is also useful for people, about 2,000 new jobs will appear.
Antipov comments on this project in such a way that the Russian Federation does not have similar factories. The project will create and develop the latest industry.
Antipov and Pumpyansky are firmly convinced that the company for the current production of stainless steel can serve as the launch of a full-fledged development of the construction industry and the industrial sector. Such products are in great demand in the process of implementing the program for the long-term development of the Arctic zone.
It is already clear that large-scale work is planned. Pumpyansky was so actively interested in this project that he is building up assets day after day. This suggests that he plans to absorb the Antiposvsky CHEMK. Even though they say that detailed work is underway between the shareholders on the distribution of powers, a possible raider seizure cannot be ruled out. What is the recent acquisition of Pumpyansky and his exposure to the purchase of ChelPipe?
Speaking of ChTPZ, last March the FAS agreed to a deal to purchase from TMK about 90 percent of ChTPZ shares. Then it was an amount in the range of 85 billion rubles. For the deal to go through, it was necessary to fulfill a number of requirements from the antimonopoly authorities.
Pumpyansky was forced to realize capacities for the production of 500 thousand tons of products. The condition seemed impracticable, because these complexes are one (TMK and ChTPZ). A version was heard according to which the entrepreneur had to sell Tagmet to get out of the situation. This would have thrown off Pumpyansky’s shoulders an ineffective asset with debts and losses.
But with all this, the purchase of ChTPZ makes it possible for Pumpyansky to get all the benefits. And all because ChTPZ has a huge number of government contracts. Their price is almost 90 billion rubles. And among the customers is Gazprom. The meeting between Pumpyansky and Miller was not long in coming, during which they discussed the sale and supply of pipes for the well construction process.
All this suggests that the purchase of ChTPZ made TMK a leader in the supply of pipes for the gas giant. During the acquisition of ChelPipe, the entrepreneur was able to easily find himself several steps higher than his competitors. And this happened due to the fact that in June the ex-owner of ChTPZ Komarov accepted the conditions of Safin (owner of the Zagorsk plant) on the merger of assets. But the matter got stuck on the audit. Further interest came from Mordashov (Severstal), but he quickly curtailed his proposals during the audit.
Pumpyansky desperately needs new markets for sales. This will make it possible to brighten up his precarious state. Indeed, according to information in 2020, TMK’s revenue fell by almost three times. The main explanation for the recession is the decline of the economy as a whole due to the worldwide pandemic.
Note that the size of the net profit has grown to almost 25 billion rubles. However, a huge part came from the implementation of IPSCO, which was taken over by the Italian firm Tenaris. By the way, they paid $ 1.2 billion for the asset. Was this deal the only one in the black over the last year of TMK’s operation? According to the report, the net debt is almost 100 billion rubles.
TMK executives assure that if the market conditions rise, then revenue will grow to 20 percent. But, even in spite of the deplorable state of finances, Pumpyansky found money to acquire ChTPZ. And the businessman is ready to implement a new project with Antipov, where we are talking about 100 billion. Where does this money come from?
There was a significant drop in demand for ferroalloys. So, the general director of CHEMK, Khodorovsky, said that at the end of the year, the volume of supplies fell back to the period in the pre-crisis times. It is important to monitor the situation of the pandemic in order to be able to restore the market situation in time.
Also in the past year there were significant problems with Metaglomerate. They were associated with the supply of raw materials. According to Pravda URFO, hiding behind the process of transferring the company to a seasonal schedule, the workers were given a choice: write a letter of resignation or find a new facility in CHEMK to work. For the latter option, watch work was considered.
The process was completed in November. Thanks to the control of state bodies, the employees were paid the necessary compensation, and the district administration started looking for investors who could change the company’s profile. It is much more striking how Antipov wants to do this jointly with Pumpyansky. Why is the option to invest money in the process of re-profiling your crisis business being swept aside?
Who is the last to take over?
Pumpyansky has a pre-built strategy. Thus, TMK includes several companies that operate without profit. For instance. In 2020, Truboplast worked with a loss of 10 million, when the revenue is about 900 million. And this is not the only case. There were options when the revenue was about 60 million, and the losses according to the declaration were about 130 million (TMK Science and Technology Center).
The bank of the entrepreneur “SKB-Bank” has a difficult period as well. His performance is falling significantly, and his profit has decreased by 90 percent. Doesn’t this mean too bad a period for the bank’s activity as a whole? The net asset price fell by 15 percent (RUB 13 billion).
Could a pandemic have done such a blow to all structures of Pumpyansky? Another explanation for TMK’s losses is the ownership of the parent company by five foreign firms that have been registered in Cyprus and England. Is it not money that runs offshore? That is the question.
In its current state, Antipov wants to improve his precarious position through business relations with TMK, but Pumpyansky does not have such a goal. He knows what he wants. So maybe Antipov’s property will soon slowly become Pumpyansky? We’ll see.