OAO Severstal has won a tender to supply about 100,000 tons of 813mm diameter pipes for the South Stream offshore pipeline. The pipes are to be manufactured by the Izhora Pipe Mill, a part of Severstal's Russian Steel division. The combined efforts of specialists from the Russian Steel division's Technical development and Quality Centre, plate rolling shop No.3 and the Izhora Pipe Mill allowed Severstal to develop the market-leading technologies required to produce DNV450 SFDU grade plates with 39.0 mm wall thickness which required to produce pipes for the project.

Severstal's investment into its large diameter pipes production at the Izhora Pipe Mill amounted to RUB 1.3 billion.