Media Center

26.09.2006

TMK and Corinth Pipeworks S.A. Set Up Joint Venture

OAO TMK, a leading world producer of steel pipes, and Corinth Pipeworks S.A., the largest producer of steel pipes in Greece and one of the largest in Europe, have announced that one of TMK’s plants – Seversky Tube Works (STW) – and Corinth Pipeworks S.A. have agreed to set up a joint venture (JV) to be called “TMK-CPW”. The nominal capital of “ТМК-СPW” is distributed in the following way: STW owns 51% of the JV’s shares, and Corinth Pipeworks S.A. owns the remainder 49% of the stock.

Within the framework of the project it is planned to install high-performance pipe welding equipment at the premises of Seversky Tube Works (town of Polevskoy, Sverdlovsk region). “TMK-CPW” JV shall manufacture ERW pipes (d.168-530mm) and hollow sections (150х150mm-200х400mm) complying with the international quality standards. Such ERW pipes are used in oil and gas industry, while hollow sections are widely used in construction and machine industry.

The annual JV production capacity will make up to 300 thousand tons of pipes. TМК-СPW is planning to start production in the second quarter of 2007.

According to TMK CEO, Konstantin Semerikov, “this project is one of TMK joint projects with leading global pipe companies that will enable TMK to expand its range of pipes, offering its customers new unique types of products and to contribute to implementing TMK policy of active integration into the global market”.

\"This JV is a part of Corinth Pipeworks global strategy to strengthen and expand its presence in major markets, with rapidly increasing energy needs, which require access to high quality products and technical sophisticated energy solutions” said Sarados Milios, Chief Executive Officer of Corinth Pipeworks.