OAO TMK (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 (TMKS), the OTCQX (TMKXY), and the Russian Trading System (TRMK) and Moscow Interbank Currency Exchange (TRMK).
TMK was founded in 2001 and has production plants in Russia, the United States, Romania and Kazakhstan. TMK includes the Volzhsky, Seversky, Sinarsky, and Taganrog plants in Russia and TMK-Artrom and TMK-Resita in Romania. TMK IPSCO, the Company’s US division, includes eleven assets in the Eastern and Central United States. Kazakhstan-based TMK-Kaztrubprom specialises in finishing and threading operations.
In 2008, TMK consolidated Orsky Machine Building Plant, Truboplast, TMK Central Pipe Yard and TMK Pipe Maintenance Department into a specialised division - TMK Oilfield Services
In 2008, TMK sold over 3.2 million tonnes of pipe products. Total consolidated net sales in 2008 grew to U.S. $5.69 billion, and EBITDA stood at U.S. $1.01 billion, compared to U.S. $4.18 billion and U.S. $908 million, respectively in 2007.
In 2009, TMK became the world’s leading supplier of steel pipe products as sales volumes surpassed 3 million tonnes.
The return in demand observed in 2010 highlighted TMK’s success in North American unconventional drilling activity and its strategic investments in longitudinal large-diameter pipe production in Russia as large pipeline projects were given the go-ahead.
Following a difficult 2009, the Company had a solid performance in 2010, with sales of 4.0 million tonnes of pipe products, U.S. $5.58 billion in revenues and U.S. $942 million in EBITDA.
Through the consolidation of its production assets, TMK has created an up-to date technological complex based on advanced scientific research, manufacturing high-quality competitive products. Its unique production and service capabilities allow it to meet the orders and demands of a wide range of costumers and provide effective solutions to their operational and production needs.
PRODUCTS
TMK 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, shipbuilding, aviation and aerospace, and agriculture. The Company’s product range can be divided into five main types and sizes of pipes:
OCTG - Oil Country Tubular Goods - (seamless and welded); these are drill pipes, well casings, and tubing used in the drilling, equipping, and operation of oil and gas wells;
Line pipe (seamless and welded); used for infield pipelines, to deliver crude oil and natural gas from fields to refineries, storage tank farms, loading terminals and distribution points;
Seamless industrial pipe; used in machine-building, hydraulics, boiler and process equipment, in the chemical industry and in the production of bearings;
Large-diameter welded pipes. This product range is used in the construction of trunk pipeline systems for the long-distance transportation of natural gas, crude oil and petroleum products;
Welded industrial pipe; commodity product used in the construction, utilities and agricultural sectors.
TMK pipes are manufactured from carbon, stainless, and heat-resistant steels, titanium and nickel alloys.
CLIENTS
TMK’s clients include such leading Russian and foreign companies as, TNK-BP, Surgutneftegas, Gazprom, Lukoil, Rosneft, Shell, AGIP, Total, Exxon Mobil, Occidental Petroleum, ONGC, Saudi Aramco, Sonatrach, KOC, Chesapeake, Marathon, and many others.
The high quality of the products manufactured enables the Company to play a successful role in the implementation of many large-scale Russian and international pipeline projects. TMK has gained the reputation of a reliable supplier of pipes for the construction of the Sakhalin-Khabarovsk-Vladivostok, Baltic Pipeline System, NorsdStream and Yamal and Western Europe gas pipelines, as well as the Eastern Siberia Pacific Ocean, Caspian Pipeline Consortium, and the Kenkiyak-Atyrau oil pipelines.
INVESTMENTS
TMK is currently implementing its long-term Strategic Investment Program. Drawn up in collaboration with the industry’s leading institutions and customers, it is designed to increase the volume, improve the quality, as well as expand and optimise the structure of the products TMK manufactures.
In 2008 alone, TMK successfully launched a 600,000 tonne per annum (tpa) Premium Quality Finishing (PQF) seamless rolling mill at Tagmet, a 650,000 tpa large-diameter longitudinal welded pipe mill at Volzhsky and a 1 million tpa electric arc furnace (EAF) at Seversky. These investments were made in parallel to environmental protection investments in Romania and Russia and significant additions in finishing capacity (heat-treatment, coating, threading). The next projects to be completed include the launch of a 650,000 tpa Fine Quality Mill (FQM) seamless rolling mill at Seversky and a 1 million tpa EAF at TAGMET.
CORPORATE GOVERNANCE
TMK consistently strives to ensure that its activities respect best practices in the global standards of financial openness and transparency. This approach promotes the Company's credibility in the eyes of investors, partners and state authorities. In November 2010, Standard & Poor’s once again recognized TMK as one of the most transparent companies in Russia. The Company ranked 6-th in S&P's 2010 Transparency and Disclosure Survey of the 90 largest publicly listed companies in Russia. Representing an improvement of one notch over the previous year, it also highlighted the continued improvements since 2007, when in its first year as a public company, TMK ranked 18th.
SALES NETWORK
TMK’s global market presence is supported by its extensive international distribution network. Sales are made through TMK Trade House and a number of other distributors. TMK has an extensive sales territory and supplies products to more than 60 countries around the world. In addition to direct sales, the Company’s products are distributed by more than 80 official dealers in Russia and the CIS. To further expand its market presence, TMK opened commercial offices in South Africa (Cape Town) and Canada (Calgary) in 2010.
TMK’s main markets are Russia, the USA, the Middle East, Europe, North Africa, South and Southeast Asia, and the CIS.
CORPORATE & SOCIAL RESPONSIBILITY
TMK believes that being socially responsible is, above all, taking care of its workforce. Relations with employees are built on the principle of mutually beneficial cooperation: TMK creates stable working conditions and decent living conditions for its employees and their family members, and they, in turn, contribute to business development. TMK is one of the largest employers in Russia, uniting the potential of more than 42,000 highly qualified employees in the Russian Federation and about 4,000 employees in the USA, Romania, Kazakhstan, Turkmenistan, Azerbaijan, China, the UAE, Singapore and Switzerland.
