Wasco Confirms €600M Nord Stream 2 Award
- Business & Finance
Wah Seong Corporation (WSC) informed that its pipe coating business unit, Wasco Coatings Europe (WCEu), an indirect wholly-owned subsidiary of WSC incorporated in The Netherlands, has finalised a deal regarding the Nord Stream 2 pipeline project.
Namely, WCEu signed a contract with Nord Stream 2 AG on September 6, 2016 valued at approximately €600 million (approximately $674 million).
The contract is for the provision of pipe coating services which is the core business of the WSC Group.
To remind, in July this year, Nord Stream 2 AG awarded a tender for the provision of concrete weight coating and storing of more than 200,000 pipes for Nord Stream 2 project, subject to final negotiations.
According to Nord Stream AG Wasco will operate an existing weight coating plant in Kotka, Finland, and a second plant in Mukran Germany, as well as three storage yards located around the Baltic Sea for storing the pipes. Hanko, Finland will be one of those three storage locations, with the two other ports to be located in Sweden at sites still to be confirmed.
The first pipes will be delivered from the pipe mills to the coating plant in Kotka end of September and to Mukran early November. Coating operations will start in the first quarter of 2017.
Wasco estimates that it will employ at its peak of production close to 300 persons in Kotka and 150 persons in Mukran coating plants during the project.
The Nord Stream 2 is a planned pipeline through the Baltic Sea, which involves two parallel 48 inch lines, roughly 1,200 km, each starting from south-west of St Petersburg and ending at German coast, Greifswald.