Re Joint Venture

3 Dec 2007 10:12

OAO TMK03 December 2007 December 03, 2007 PRESS RELEASE TMK and SMS Demag Set Up Joint Venture. OAO "TMK", one of the world's largest oil and gas pipe producers and the Russianpipe industry market leader announces the signing of a joint venture agreementbetween its Seversky Tube Works (STW) subsidiary and SMS Demag AG (part of theSMS Group), one of the largest manufacturers of steelmaking equipment in theworld. The agreement establishing the "TMK-SMS Metallurgical Services" JointVenture was signed by Konstantin Semerikov, TMK CEO, and Pino Tese, SMS Demag AGExecutive Vice-President. This JV will provide STW with maintenance scheduling, analysis and monitoringservices and the means to implement SMS Demag's expertise and technologiesrelated to steelmaking equipment maintenance. Collaboration with such a partnerwill enable the plant to carry-out maintenance work on current and futureoperating equipment when required, improving operational performance and leadingto a reduction in maintenance costs. This JV's setting up falls under the Strategic Partnership Agreement between TMKand the SMS Group, which runs until 2015. The agreement foresees long-termcooperation on the development and implementation of the SMS Group's leadingequipment and technologies used in the production of seamless steel pipes at TMKplants. "Cooperating with highly professional service companies will allow TMK tosignificantly enhance maintenance quality and performance. The creation of the"TMK-SMS Metallurgical Services" Joint Venture will increase the utilization andefficiency of the equipment installed within the frame of our StrategicInvestment Programme. Likewise, we hope that the JV's activity will lead to thedevelopment of a highly professional services market in the field of productionequipment maintenance and spare parts manufacturing" said Konstantin Semerikov,TMK CEO. 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. SMS Group (www.sms-group.com) SMS GmbH is the holding for a group of companies internationally active in plantconstruction and mechanical engineering relating to the processing of steel,non-ferrous metals and plastics. The group is divided on the one hand into theBusiness Areas SMS Demag and SMS Meer under SMS metallurgy and, on the otherhand, into the Business Area SMS Plastics Technology. In the 2006 some 9,250 employees worldwide generated a turnover over EUR 3,0 bn. For further information please contact: TMK PR Department:Sergey IlinTel: +7 495 775 7600 ext. 2149Email: pr@tmk-group.comOr visit: www.tmk-group.com This information is provided by RNS The company news service from the London Stock Exchange