Conclusion of a contract with OGP Gaz-System S.A. for the supply of insulated steel pipes for the construction of the DN700 Poland-Lithuania gas pipeline
With reference to the current report 9/2019 dated 6 March 2019, the Management Board of STALPROFIL S.A. informs that on 20 March 2019 the Company was notified of the reverse signing by OGP Gaz-System S.A. of a partial agreement between a consortium of companies consisting of: STALPROFIL S.A. and Izostal S.A. (Contractor), and OGP Gaz-System SA with its registered office in Warsaw (Ordering Party).
The subject of the contract is the manufacture, sale and supply of insulated and internally insulated steel pipes for the investment project carried out by OGP Gaz-System S.A.: Gas pipeline DN700 Poland-Lithuania order 2 with a length of about 72 km. As part of a consortium the subsidiary IZOSTAL S.A. (Consortium Leader) is responsible for the production and supply of the above-mentioned insulated steel pipes for the Ordering Party.
The partial agreement concluded will be implemented under and under the terms of the framework agreement of 17 April 2015, concluded between the Consortium of the following companies: Izostal S.A. and STALPROFIL S.A., and OGP Gaz-System SA
The value of deliveries covered by the concluded agreement is PLN 65,360 thousand net (PLN 80,393 thousand gross) and their implementation will take place from 1 January 2020 to 31 July 2020.
The Management Board of the Company considers the described contract to be significant due to its high value. The implementation of the aforementioned partial agreement will have a significant impact on the increase in the value of revenues of the subsidiary Izostal S.A. and STALPROFIL S.A. Capital Group.