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TMK Contract HAEUSLER AG to Supply Large Diameter Longitudinal Pipe Production Line

OAO TMK (“TMK” or “the Company”), one of the world’s largest oil and gas pipe producers and the market leader of the Russian pipe industry, announced today that it has contracted HAEUSLER AG of Switzerland, one of the world’s biggest producers of welded pipe production equipment, to supply a new facility for the production of large diameter longitudinal welded pipes.

The new facility will produce longitudinal welded pipes with diameters of between 530mm and 1420mm, wall thickness of up to 42mm and strength groups of up to X100. These products are used in long distance oil and gas pipelines including offshore pipelines, oil field pipelines, general purpose pipelines and in the construction of heating systems and nuclear power stations.

The facility will utilise leading edge roll bending technology which is currently being used by the world’s leading pipe producers as it ensures high productivity and high quality production characteristics. The equipment is renowned for its operational reliability.

The facility will be installed at the Volzhsky Pipe Plant, a subsidiary of TMK situated in the Volgograd region of Russia. Production of large diameter longitudinal welded pipes is expected to start in Q3 2008. Following the installation, TMK’s total annual production capacity for large diameter pipes will exceed 1.3 million tonnes of pipes per year.

Konstantin Semerikov, CEO of TMK, stated: “The market for large diameter pipes in Russia and its neighboring countries is buoyant. The facility will allow TMK to sustain its position as the leader of Russian pipe industry in this segment and to provide for Gazprom and Transneft’s increasing demand for large diameter pipes for their long distance oil and gas pipelines in Russia and the CIS.”