TMKS.L Regulatory News (TMKS)

22 Jan 2007 07:02

OAO TMK22 January 2007 January 22, 2007 TMK Announces Production Results for 2006 OAO TMK ('TMK'), one of the world's largest oil and gas pipe producers, and themarket leader of the Russian pipe industry, today announces its productionresults for 2006. The total volume of pipes shipped(1) reached an all-time high of 3,018,000tonnes. Shipments of billets were 320,000 tonnes. Shipment Volumes in 2006 (Thousand Tonnes) 2006 2005 Change %----------------------- ----------- ----------- -----------Seamless pipes 1,944 1,877 +3.6%Including, OCTG 955 818 +16.7%Welded pipes 1,074 1,047 +2.6%----------------------- ----------- ----------- -----------Total, pipes 3,018 2,924 +3.2%----------------------- ----------- ----------- ----------- Pipe shipments increased by 94,000 tonnes or by 3.2% over 2005 with high-tech,seamless pipes experiencing the highest levels of growth. OCTG shipmentincreased by 16.7% on the previous 12 months and the total share of OCTGshipments in 2006 increased by 3.6% to 31.6%. Shipments of seamless pipes in2006 accounted for 64.4% of the Company total, compared with 64.2% in 2005. Despite lower shipment volumes of large-diameter welded pipes, as a result ofthe ongoing modernisation program, total sales of welded pipes increased in2006. TMK shipments of industrial welded pipes were 18.1% higher than in 2005. Amidst a favourable environment for the world pipe industry, TMK increased itsshare of the total number of pipes exported from Russia from 48.8% to 56.1%. Thetotal volume of pipes supplied by the Russian subsidiaries of the company in2006 to non-Russian customers was 806,000 tonnes, which exceeded the volume in2005 by 56,000 tonnes. Within the framework of TMK's program to achieve self-sufficiency in billets,TMK produced 2,150,000 tonnes of steel in 2006. The Company is continuing tosuccessfully implement its strategic investment program. In 2006 two continuouscasters of one million tonnes capacity each were put into operation at SeverskyPipe Plant and Taganrog Metallurgical Works. As a result of these measures,self-sufficiency in billets will reach 90% in 2007. In 2007 TMK will also continue upgrading its high value-added, seamless pipeproduction capacities. The share of Premium tubular goods of the total shipmentvolume in 2006 accounted for approximately 23%. Measures taken to upgrade production capacities during 2006 were performed ontime and in accordance with the approved budgets. Currently, approximately 30%of the strategic investment program, which runs until 2010, has been financed. TMK's CEO Mr. Konstantin Semerikov said, "In 2006, TMK undertook large-scaleworks aimed at upgrading production and mastering new technologies, andsimultaneously increased shipment volumes, particularly in the high value-addedsegment. We are confident that we have the capabilities and infrastructure inplace for further successful development". _____________________________ (1) Shipments are goods produced and shipped from the plants for the sale tothird parties (excl. intra-group deliveries)_____________________________ For Further Information: Gavin Anderson & Company Dick Millard/Robert Speed/Daniel Hunter/Michael TurnerTel: 020 7554 1400Email: tmk@gavinanderson.co.uk TMK PR Department:Tel: +7 495 775-7600Email: pr@tmk-group.com OAO TMK Founded in 2001, TMK (LSE: TMKS) is the largest pipe producer in Russia and oneof the three global market leaders. TMK GDRs and common shares are traded on theLondon Stock Exchange and Russian Trading System. TMK supplies pipes to companies in more than 60 countries. TMK production facilities are located in Russia and Romania: • Volzhsky Pipe Plant;• Seversky Pipe Plant;• Taganrog Metallurgical Works;• Sinarsky Pipe Plant;• SC TMK-ARTROM SA;• SC TMK-Resita SA. This information is provided by RNS The company news service from the London Stock Exchange