TMK is Russia’s largest manufacturer and exporter of steel pipes and ranks among the global top three pipe producers. TMK GDRs and ordinary shares are traded on the London Stock Exchange, Russian Trading System and Moscow Interbank Currency Exchange.
Founded in 2001, OAO “TMK” (TMK) has become an established market leader with production plants in Russia and Romania. The Company’s Russian divisions include Volzhsky Pipe Plant, Seversky Tube Works, Sinarsky Pipe Plant, Taganrog Metallurgical Works, Orsky Machine Building Plant and Truboplast coating company. TMK’s Romanian assets include TMK-ARTROM pipe plant and TMK-Resita metallurgical works.
In 2006, TMK sold nearly 3 million tonnes of pipe products. TMK’s total consolidated net sales in 2006 grew to U.S.$3.38 billion, and EBITDA stood at U.S.$793.9 million, compared to U.S.$2.94 billion and U.S.$532.1 million respectively in 2005. In H1 2007, according to TMK’s unaudited financial reports, consolidated net sales totaled U.S.$2.03 billion and EBITDA amounted to U.S.$499.5 million, compared to U.S.$ 1.58 billion and U.S.$ 393.6 million respectively in H1 2006.
Through consolidation of its production assets, TMK has created a state-of-the-art technological group manufacturing high quality competitive products.
Products
The Company’s plants produce almost the entire range of existing pipes used in the oil and gas sector, the chemical and petrochemical industries, energy and machine-building, construction and municipal housing, ship-building, aviation, space and rocket equipment, and agriculture.
The Company’s pipe business is focused on five distinct product-market segments:
Seamless “OCTG" - Oil Country Tubular Goods, i.e. oil well casing, tubing and drill pipe,
Seamless line pipe – seamless products used for conveying gas, oil, liquified petroleum products, solids in water slurry and water over relatively large distances,
Seamless tubes and pipes for industrial uses– including machine building, automotive applications, mechanical engineering, boiler and process equipment engineering for energy and chemical industries and ball-bearing production,
Large-diameter welded pipes – used for construction of trunk pipeline systems for long-distance transportation of natural gas, crude oil, and petroleum products,
Welded pipes for industrial use public utilities – used for construction of water and gas supply systems and public utilities, general construction and infrastructure purposes and manufacture of consumer goods.
The pipes are manufactured from carbon steel, stainless and heat-resistant steels as well as from titanium and nickel alloys.
Clients
TMK’s clients include major oil and gas companies such as Gazprom, Transneft, Lukoil, Rosneft, TNK-BP, Surgutneftegaz, Shell, Total, Occidental Petroleum, Anadarko Petroleum, Saudi Aramco, AGIP, Wintershall, ONGC, Kuwait Oil Company, Repsol, and Statoil. TMK also supplied pipes in many Russian and international projects, including the Caspian Pipeline Consortium crude pipeline system, the Baltic Pipeline System, and the Yamal-Europe gas pipeline. Currently, TMK acts as a supplier in the expansion of the Central Asia-Centre gas pipeline project.
Investments
The Company is currently implementing a long term technical development programme, drawn up in collaboration with the industry’s leading institutions and consumers. The programme includes the comprehensive modernisation of operating capacities and improvements to all production stages: from steelmaking to finishing, product quality control, branding, and packing.
Corporate Governance
TMK consistently endeavours to ensure that its activities comply with global standards of financial openness and transparency. This approach promotes the Company's credibility in the eyes of investors, partners and state authorities. TMK’s corporate governance has considerably improved due to the reorganisation of the Company into an open joint-stock company and the compilation of consolidated financial statements in accordance with international standards.
Sales Network
TMK’s extensive network of sales outlets throughout the world supports its large-scale presence on the market. Trade operations are conducted by specialised divisions: Trade House TMK, which services customers in Russia and the CIS, and TMK Global AG (Switzerland), the Company’s official international distributor. Currently TMK’s branch offices and Trade House TMK are active in Azerbaijan, Kazakhstan, China, Singapore, the United States, and the UAE.
TMK has a diversified sales territory and supplies products to more than 60 countries. TMK’s main export markets are Europe, the Middle East, Northern Africa, Southern and South-East Asia, and the CIS countries.
Corporate Social Responsibility
At present TMK employs more than 49,000 people. TMK recognizes its social responsibilities and is actively developing its ecological, social, and charitable programmes. TMK is a regular member of the International Iron and Steel Institute and an active participant in Russian public organizations – the Russian Union of Industrialist and Entrepreneurs, the Chamber of Commerce and Industry, Russian Steel, and the Russian Union of Metal Products Suppliers.
