Production Results for 2007

29 Jan 2008 13:53

OAO TMK29 January 2008 -------------------------------------------------------------------------------- January 29, 2008 PRESS RELEASE TMK Announces Production Results for 2007 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 2007. For the year 2007, the total volume of shipped (1) pipe products amounted to3,074,000 tonnes. Volumes of shipped pipe products in 2007 (thousands of tonnes) Product 2007 2006 Change, % Seamless pipes 2,026 1,944 + 4.2%including OCTG 954 955 - 0.1%Welded pipes 1,048 1,074 - 2.4%Total, pipes 3,074 3,018 + 1.9% While implementing its investment programme and offsetting downtime due to theextensive upgrading of its mills, TMK nonetheless managed to increase pipeshipments by 56,000 tonnes to reach 3,074,000 tonnes, an increase of 1.9% on theprevious 12 months. The growth in shipment volumes for 2007 was mainly attributable to an increasein seamless pipe production, the company's core product. TMK fully loaded itsseamless capacities and increased shipments in this segment by 4.2% whileretaining its dominant position in the high-tech OCTG segment. Shipments ofseamless pipes in 2007 accounted for 65.9% of Company total, compared to 64.4%in 2006. Premium tubular goods represented 28% of total shipments in 2007. A sharp growth in imports from Ukraine and China resulted in slightly lowershipment volumes of welded pipes compared to the previous year. TMK's CEO Konstantin Semerikov said, ''Following a very successful year for thepipe industry in 2006, we managed to keep our market position and furtherincrease sales volumes thanks to TMK's competitive advantages: its dominantRussian market position, focus on the oil and gas sector, relatively low costsand efficient modernisation programme.Despite some slowdown in growth in 2007-2008 we still expect growth to pick upby 2009. The implementation of our Strategic Investment Programme is on scheduleand its effects should be felt by that time, significantly strengthening ourmarket position and establishing TMK as a world leader in pipe manufacturing." (1) "Shipped" refers to shipped from TMK plants for subsequent sale to customers. OAO "TMK" (www.tmk-group.com) 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 pipe coating company; • 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