Salzgitter Unit Halts Pipe Production for South Stream

Salzgitter said its joint venture Europipe has been told to halt production of steel tubes for the scrapped South Stream pipeline project, with the suspension to hit its earnings.

 

Salzgitter said the impact was not yet quantifiable, but early estimates were that it would take a low double-digit million euro charge.

 

Russia in early December abandoned the South Stream project, which was to supply gas to southern Europe without crossing Ukraine, citing European Union objections. It instead proposed an undersea pipeline to Turkey.