TMKS.L Regulatory News (TMKS)

9 Nov 2007 15:38

OAO TMK09 November 2007 -------------------------------------------------------------------------------- November 09, 2007 PRESS RELEASE Danieli to Supply FQM Hot Rolling Mill to Seversky Tube Works. TMK, one of the world's largest oil and gas pipe producers and the market leaderof the Russian pipe industry, today announces that it has signed an agreementfor the supply of a Fine Quality Mill (FQM) from Danieli, a world leader in thedesign, manufacturing and installation of equipment for the steel industry, tobe installed at its Seversky Tube Works (STW) subsidiary. The modernisation of one of STW's pipe rolling workshops with this new FQM (three-roll retained mandrel mill) is aimed at achieving cost savings, improvingquality, product mix, and enhancing production of the seamless high-performancepipes for the oil and gas industry. The new Seversky FQM system will have a capacity of 600,000 tonnes of pipes peryear and will produce hot-rolled seamless pipes with diameters ranging from 168to 365 mm and wall thickness of 6.28 to 37.3 mm. The new mill is scheduled to bebrought on line in the second quarter of 2010. A modern metallurgical complex is also being built in parallel to supply the newSTW mill with billets. In December 2006, a new continuous casting machine with acapacity of 950,000 tonnes per year was put into operation and an electric arcsteel melting furnace with a capacity of about 1 million tonnes per year will becommissioned next year. These new projects fall under the scope of TMK's Strategic Investment Programmerunning until 2010. "TMK's long-term modernisation programme relies on the most relevant and up todate technologies provided by the world's leading manufacturers of metallurgicalequipment. We are certain that cooperating with such cutting-edge andtechnologically pioneering companies will allow us to successfully implement theCompany's Strategic Investment Programme and strengthen our position in theglobal high-technology seamless pipe market", said TMK CEO, KonstantinSemerikov. OAO "TMK" Founded in 2001, TMK (LSE: TMKS) is the largest pipe producer in Russia and oneof the three global market leaders. In 2006, TMK sold approximately 3 million tonnes of pipes. TMK supplies tocompanies in more than 60 countries. TMK production facilities are located in Russia and Romania: • Volzhsky Pipe Plant; • Seversky Tube Works; • Taganrog Metallurgical Works; • Sinarsky Pipe Plant; • Orsky Machine Building Plant; • Truboplast • SC TMK-Artrom SA; • SC TMK-Resita SA. For further information please contact: TMK PR Department: Sergey Ilin Tel: +7 495 775 7600 ext. 2149 Email: pr@tmk-group.com Or visit: www.tmk-group.com This information is provided by RNS The company news service from the London Stock Exchange