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 (ticker TMKS), Russian Trading System and Moscow Interbank Currency Exchange.

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. In 2008, TMK entered the US market with the acquisition of IPSCO Tubulars and NS Group. Renamed TMK IPSCO, it includes ten assets in the Eastern and Central United States. In July 2008, TMK strengthened its foothold in the CIS with the purchase of Kazakhstan-based TMK-Kaztrubprom, specialised 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. $1,006 million, compared to U.S. $4.18 billion and U.S. $908 million, respectively in 2007.

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 six main types and sizes of pipes:

• Seamless threaded pipes for oil and gas fields, also referred to as OCTG.  These are drill pipes, well casings, and tubing used in the drilling, equipping, and operation of oil and gas wells;
• Seamless line pipes for infield pipelines.  This product range is used to deliver crude oil and natural gas from fields to refineries, storage tank farms, loading terminals and distribution points;
• Seamless pipes for industrial use 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;
• Energy tubulars (welded OCTG), produced and used in North America, these are tubular goods used in the drilling, equipping, and operation of oil and gas wells;
• Welded pipes for industrial use.  These pipes are used for the construction of water and gas supply systems and the production of consumer goods

TMK pipes are manufactured from carbon steel, 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 projects. TMK has gained the reputation of a reliable supplier of pipes for the construction of the Baltic pipeline system, gas pipelines between Yamal and Western Europe, and between Central Asia and the Central part of Russia, the Caspian Pipeline Consortium, and the Kenkiyak-Atyrau oil pipeline. In 2008, TMK started shipments of pipes for the construction of the onshore section of the Nord Stream gas pipeline, the Kenkiyak-Kumkol oil pipeline in Kazakhstan and the Turkmenistan-China gas pipeline.

Investments

The Company is currently implementing a long-term strategic investment programme. 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 at Seversky.

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 2008, Standard & Poor’s ranked TMK 6th in its annual Transparency and Disclosure Survey of the 90 largest publicly listed companies in Russia, a significant improvement over the previous year. In 2007, in its first year as a public company, TMK ranked 18^th.

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 a commercial office in South Africa in 2010.

TMK’s main markets are Russia, the USA, the Middle East, Europe, North Africa, South and Southeast Asia, and the CIS. TMK entered new markets in 2007, including Australia, the UK, Jordan, Qatar, Mongolia, Serbia, Croatia and Mexico. In order to meet rising demand for pipes from the oil and gas sector in the Middle East, a finished product warehouse was opened in Dubai.

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.