Signing a Credit Agreement

14 Apr 2008 12:59

OAO TMK14 April 2008 -------------------------------------------------------------------------------- April 14 2008 PRESS RELEASE TMK and Societe Generale Group Sign Credit Agreement TMK announces that a credit agreement was signed between Seversky Tube Works(STW) and the Societe Generale Group. The credit agreement of EUR 88.7 millionwill partially finance STW's acquisition of a Fine Quality Mill (FQM). The agreement between TMK and Societe Generale was proposed and approved by TMKshareholders on the December 25, 2007 Extraordinary General Meeting ofShareholders. The term of the loan is for 7 years at an annual interest rate of5.11% and export credit insurance is provided by the SACE agency (Italy). Payments under the transaction will be carried out by Yekaterinburg branch ofBank Societe Generale Vostok. This additional 600,000 tpa. capacity will enable STW to produce 168-365 mmhot-rolled seamless pipes with 6.28-37.3 mm wall thickness. Danieli, one of theworld's leading suppliers of equipment to the steel industry, will supply theFQM. Commissioning is scheduled for the second quarter of 2010. Upgrading of Seversky's pipe rolling equipment is carried out within theframework of TMK's Strategic Investment Programme, aimed at reducing costs,expanding product mix, increasing the efficiency of production processes, andraising product quality. "We are very satisfied with our agreement with Societe Generale as we attractedadvantageous financing for one of our key investment projects. 2008 is the peakyear for the implementation of our Investment Programme and we are confident itwill be carried out as scheduled", said TMK CEO, Konstantin Semerikov. Alexei Pavin, General Director of the Yekaterinburg branch of Bank SocieteGenerale Vostok, commented, "Given our parent company's resources andexperience, we can successfully compete with the largest Russian andinternational banking groups operating in the Russian financial lending sector.Long-term and large-scale facilities are a priority for the Bank SocieteGenerale Vostok." 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 2007, TMK shipped over 3 million tonnes of pipes. TMK supplies to companiesin 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; • SC TMK-Resita SA; • SC TMK-ARTROM SA; • TMK Oilfield Services: • Orsky Machine Building Plant; • Truboplast pipe coating company; • TMK Central Pipe Yard; • TMK Pipe Maintenance Department. For further information please contact: TMK PR Department: TMK IR DepartmentAlexey Sotskov Alexei RatnikovTel: +7 495 775 7600 ext. 2125 Tel: +7 495 775 7600 ext. 2078Email: PR@tmk-group.com Email: IR@tmk-group.com www.tmk-group.com This information is provided by RNS The company news service from the London Stock Exchange