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-2011- ТМК General Presentation 10 Year Anniversary

Tmk Presentation 2011

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Page 1: Tmk Presentation 2011

-2011-

ТМК General Presentation

10 Year Anniversary

Page 2: Tmk Presentation 2011

About the Company

TMK is one of the world’s leading manufacturers and suppliers of steel pipes for the oil and gas industry. TMK

operates 23 production sites in the United States, Russia, Romania and Kazakhstan. TMK has the world’s

largest steel pipe production capacity, of which about half is dedicated to the production of high margin oil

country tubular goods (OCTG). In 2010, total pipe sales amounted to approximately 4 million tonnes. TMK

supplied customers in more than 65 countries.

TMK’s ordinary shares are listed on the RTS and MICEX stock exchanges in Russia. Its GDRs are traded on the

London Stock Exchange and ADRs on the OTCQX International Premier trading platform in the US.

• Volzhsky Pipe Plant

• Seversky Tube Works

• Taganrog Metallurgical Works

• Sinarsky Pipe Plant

• TMK IPSCO

• TMK-Europe

• TMK-Kaztrubprom

• TMK Oilfield Services

• TMK-Premium Service

For further information please visit: www.tmk-group.com

Page 3: Tmk Presentation 2011

ТМК History

TMK was established in 2001.

At the beginning of 2002 TMK and two Russian pipe manufacturers (Volzhsky Pipe Plant and Seversky Tube

Works) concluded an agreement by which TMK rendered services (including strategic planning and coordination

of activities, production development, technical, marketing, sales, financial and economic policies) to these

enterprises.

TMK concluded a Management Agreement with Taganrog Metallurgical Works in July 2002

With Sinarsky Pipe Plant – In March 2003.

Early in 2004 TMK acquired controlling interests in all pipe plants that operate under its management.

In May 2005 TMK acquired a 100% ownership interest in SINARA Trading AG (now TMK Global AG).

In June 2005 CJSC TMK was reorganized into an Open Joint Stock Company.

In March 2006 ТМК acquired TMK Europe GmbH (Germany) which owns the controlling share holdings of two

Romanian enterprises – Steel Tubes Enterprise SC Artrom SA (now SC TMK-ARTROM SA) and Integrated Iron

and Steel Work SC Combinatul Siderurgic Resita (now SC TMK-Resita SA).

2001

2002

2003

2004

2005

2006

Page 4: Tmk Presentation 2011

Integration Track Record

TMK-Artrom, TMK-Resita

80% of the Russian

market for tool joints used

in drilling

Moving up the value chain

450k tonnes of steelmaking

capacity

250k tonnes of seamless pipes

capacity

JV with Corinth

Pipeworks

100k tonnes of welded

OCTG and line pipes

capacity

Further product

diversification

+ new technologies

Truboplast

Coating capacity 50k tonnes p.a.

New value-added products

Latest technologies in pipe

coating

TNK-BP Service Assets

Pipe storage, maintenance and repair,

and facilities in Western Siberia

Integration into supply chain of oil

and gas companies

IPSCO Tubulars

US-based leading producer

of seamless and welded pipes

Access to the world’s

biggest market for OCTG

and line pipes

Value-added finishing

services

Orsky Machine Building

Plant

Kaztrubprom

60k tonnes of OCTG pipes (finishing

services) capacity

Access to promising Kazakh market

2006 1Q2007 2Q2007 3Q2007 4Q2007 1H2008

Page 5: Tmk Presentation 2011

2009 Key Events

-Seversky completed the upgrading of its steelmaking facility by replacing the open hearth furnace

steelmaking process with high-tech electric arc furnace technology.

-Development of the production facilities at Taganrog Metallurgical Works (PQF mill) and Volzhsky Pipe Plant

(longitudinal LD mill).

- ТМК exercised its call option to acquire the remaining 49% of NS Group, Inc. shares from Evraz Group

S.A. in accordance with the option agreement.

- ТМК‘s Corporate Quality Management System was upgraded and certified to ISO 9001-2008 by Lloyd’s

Register Quality Assurance.

- TMK IPSCO commissioned a fully automated heat treatment facility with a projected annual capacity of 100

thousand tonnes at its Baytown mill.

-TMK IPSCO commissioned an ULTRA threading line at its Houston facility and ULTRA equipment in Tulsa as

part of its ULTRA production expansion

2009

Page 6: Tmk Presentation 2011

2010 Key Events

- ТМК certified its longitudinal welded large-diameter pipe production according to the DNV OS-F101

Submarine Pipeline Systems standard.

- Russian president Dmitry Medvedev visited TAGMET and its Premium Quality Finishing (PQF) seamless

continuous rolling mill.

-TMK IPSCO commissioned a new ULTRA premium threading facility in Brookfield, Ohio.

-TMK Africa established in Cape Town, South Africa for Sub-Saharan Africa operations.

-TMK IPSCO announced Opening a new Sales Office in Canada.

-TMK completed Volzhsky Pipe Plant’s seamless pipe rolling modernization program (rolling mill #3).

Upgrade permitted the switch to round billet, which nearly doubled the mill’s annual seamless pipe production

capacity to 630,000 tonnes. The use of round billets significantly improves pipe geometry, production yields

and mill efficiency.

-In parallel to the modernization of the rolling equipment, Volzhsky Pipe Plant launched 360,000 tonnes of

casing finishing capacity and expanded heat treating capacity to 640,000 tonnes per year.

-TMK Among Most Transparent Companies in Russia

2010

Page 7: Tmk Presentation 2011

ТМК Today

TMK’s share by product segment output, 2009

Russia World

Total, steel pipes

Seamless

Welded

1

1

2 Тор 15

Тор 3

Тор 3

Top-3 global player

47% of Russian pipe export in 2010

23 production sites globally

4 oilfield services companies

13 sales offices globally

Page 8: Tmk Presentation 2011

World Market of Steel Tubes & Pipes and

TMK Production Results

8

Seamless Pipes

Welded Pipes

Total Pipes

2009 2010 Change,

%

1 670

1 122

2 792

2 161

1 808

3 969

29%

61%

42%

2,6% 3,4%

2009 2010*

TMK’s share in world output, %

World Steel Tube & Pipe Market Dynamics, mln tonnes

Source: MBR, SBB, Stahl Rohr, Preston Pipe, ТМК estimates

* - TMK market estimates

ТМК Production Results

(Mln

tonnes)

(T

housa

nd t

onnes)

Page 9: Tmk Presentation 2011

Long Way to Leadership

9

2005 2006 2007 2008 2009 9M 2010

ТМК 2 858 3 034 3 073 3 227 2 785 2 860

Tenaris (Top 3) 3 371 3 497 4 309 4 509 2 650 2 279

Vallourec (Top 3) 2 400 2 880 2 838 2 766 1 503 1 335

0

1 000

2 000

3 000

4 000

5 000

2005 2006 2007 2008 2009 9M 2010

ТМК

Tenaris

Vallourec

ТМК №1 Among the

Recognized World Leaders

Thousand tonnes

(Thousa

nd t

onnes)

Source: Press Releases of the Companies

Page 10: Tmk Presentation 2011

TMK 2010 Production Results

Welded

Seamless

46%

54%

incl. OCTG (welded + seamless) – 36%

TMK 2010 shipments structure (3,969 mln tonnes = 100%)

TMK-IPSCO22%

TMK (Russian Mills)

74%

TMK-Artrom4%

TMK 2010 shipments structure by division,%

Page 11: Tmk Presentation 2011

TMK 2010 Results

TMK’s shipments 2006-2010, 000’ t

0

1 000

2 000

3 000

4 000

2006 2007 2008 2009 2010

36% 34% 38% 40%46%

64% 66% 62%60%

54%

3 018 3 0733 227

2 792

3 969

Welded Seamless

• During 2010, TMK shipped a total of 3,969 thousand tonnes of pipes to customers, a 42.2% increase on the amount

shipped in 2009.

Page 12: Tmk Presentation 2011

ТМК Company Structure

Production Sales and

Marketing

Oilfield

Services

Premium

Connections R&D

In Russia International

TMK

Middle East

ТМК Europe

TMK China

TMK-IPSCO

North America

TMK Kazakhstan

TMK

Azerbaijan

TMK Global

TMK Italia

TMK Singapore

TMK

Turkmenistan

TMK Pipe Repair

Department

TMK Central

Pipe Base

TMK-Premium

Service RosNITI

ТМК

IPSCO

Baytown

Camanche

Ambridge

Geneva

Blytheville

Houston Ultra

Odessa Ultra

Tulsa

Koppel

Wilder

Kaztrubprom

Trade House of TMK

TruboPlast

Brookfield

TMK-IPSCO

Canada

TMK Africa

Page 13: Tmk Presentation 2011

Global Operational and Sales Footprint

Twenty three production sites in Russia, CIS, Eastern Europe

and the United States supported by and extensive wholly-owned

sales and marketing network covering all key markets

TMK-Canada

Page 14: Tmk Presentation 2011

TMK IPSCO product offerings include both welded and seamless carbon and alloy grade pipes,

as well as various value-added services

TMK IPSCO – Production Assets

in the USA

0

Product Capacity (tons)

Heat Treating 96,000

Threading 130,000

Product Capacity (tons)

ERW HSS 150,000

0

Baytown, TX

Ambridge, PA

Wilder, KYHouston, TX

Koppel, PA

Geneva, NE

Tulsa, OK

Blytheville, AR

Odessa, TX

Camanche, IA

Product Capacity (tons)

ERW OCTG line pipe, standard pipe

250,000

Threading 280,000

Product Capacity (tons)

ERW OCTG, line pipe, standard pipe

225,000

Heat Treating 100,000

Threading 176,000

Product Capacity (tons)

ULTRA Premium connections

120,000

Product Capacity (tons)

ULTRA Premium connections

120,000

Product Capacity (tons)

Heat Treating 110,000

Threading 100,000

Product Capacity (tons)

Heat Treating 80,000

Billets 480,000

Product Capacity (tons)

ERW OCTG, standard pipe

480,000

Marcellus

Haynesville

Barnett

Major Shale Plays

Steel

Welded

Seamless

Finishing

Fayetteville

Product Capacity (tons)

Seamless OCTG line pipe, standard pipe

326,000

Heat Treating 80,000

Barnett-

Woodford

New Albany

Antrim

Eagle Ford

Woodford

Gammon

Hilliard-

Baxter-

Mancos

Product Capacity (tons)

ULTRA Premium connections

100,000

Brookfield, OH

Page 15: Tmk Presentation 2011

Operations in Russia,

the CIS and Europe

00

Product Capacity (tonnes)

Seamless OCTG 430,000

S. Line pipe & Industrial 350,000

Heat Treating 385,000

Welded Industrial 650,000

Steelmaking 600,000

Steel

Welded

Seamless

Finishing

Tagmet

Sinarsky

Product Capacity (tonnes)

Seamless OCTG 60,000

Seversky

Large-diameter

Product Capacity (tonnes)

Seamless OCTG 270,000

S. Line & Industrial 430,000

Heat Treating 640,000

Large-diameter 1,140,000

Steelmaking 900,000

Volzhsky

TMK Kaztrubprom

TMK Resita

TMK Artrom

Product Capacity (tonnes)

S. Line & Industrial 350,000

Product Capacity (tonnes)

Steelmaking 450,000

Moscow

Product Capacity (tonnes)

Seamless OCTG 378,000

S. Line & Industrial 222,000

Heat Treating 300,000

Product Capacity (tonnes)

Seamless OCTG 220,000

S. Line & Industrial 120,000

ERW OCTG 100,000

Heat Treating 175,000

Welded Industrial 520,000

Steelmaking 950,000

Page 16: Tmk Presentation 2011

TMK Production Assets in Russia & Europe

Sinarsky

Volzhsky

Tagmet

Seversky

ТМК-Resita

ТМК-Artrom

Kaztrubprom

TMK

Orsky Service

Тruboplast

Oil Field

Services

Assets in Europe

Assets in CIS

Page 17: Tmk Presentation 2011

Key Logistics Hubs to Support TMK

Shipments

St Petersburg

Ilichevsk Taganrog

Novorossiysk

Galveston

Volzhsky

Astrakhan

Viborg

Nahodka

Page 18: Tmk Presentation 2011

Financing of the Strategic Investment

Program

324

411

624

1 138 2 497

2004-06 2007 2008E 2009-12E Total

• Focus on production efficiency

and expanding of seamless

capacity

• More than US$ 975 mln. on

expanding seamless pipe

production capacities

(from 2.0 to 3.4 mln. tonnes)

• More than US$ 214 mln. on

large diameter longitudinal

welded pipe mill, capacity 650k

tonnes

• US$ 817 mln. for increasing

steel-making capacity for

seamless pipes (from 2.4 to 3.4

mln. tonnes)

• More than US$ 490 mln. for

heat treatment and finishing

lines

Key Investments Financing stages US$ mln

Growth of seamless pipes output

Modernization of steel production Quality control, testing

Other Expand large diameter pipes output

Total 2009-12E 2008 2004-2006 2007

Page 19: Tmk Presentation 2011

Investment projects implementation ensured the largest

pipe production platform in the world for TMK

Production facilities are located in the world's main regions of pipe consumption, they have

effective management system and potential for further technical and technological development

Steelmaking

Seamless pipe

rolling

Pipe welding

production

Heat treatment

OCTG finishing

operations

Premium

connections

~ 3 060 K tonnes

~ 2 240 K tonnes

~ 1 920 K tonnes

~ 2 050 K tonnes

~ 360 K joints

~ 3 670 K tonnes

Large diameter

pipes production ~ 1 200 K tonnes

Total pipes ~ 6 500 k tonnes

Steel making ~ 3 670 k tonnes

Page 20: Tmk Presentation 2011

ТМК’s Main Customers

Russian Oil & Gas Companies

• Gazprom

• Transneft

• Transneftproduct

• Lukoil

• Rosneft

• Sibneft

• Surgutneftegas

• Tatneft

• ТНК-BP

• Russneft

Major CIS Machine Building and

Energy Companies

• BelAz

• VAZ

• GAZ

• KamAz

• MAZ

• UAZ

• UralAz

• RAO UES

• Belenergomash

• Krasny Kotelshik

• ZIO-Podolsk

• Sibenergomash

• Penzahimmash

• EPK

Major International Oil & Gas Companies

• Statoil

• Total

• Agip

• Wintershall

• Maersk Oil

• Anadarko Petroleum

• SHELL

• Amerada Hess

• Woodside Petroleum

• Exxon Mobil

• Chesapeake

• Repsol

• OMV

• Marathon Oil

• XTO Energy

• Encana

International State Oil & Gas

Companies • ONGC

• OGDCL

• AGOCO

• SEPOC

• EGPC

• ADCO

• Petrovietnam

• Kuwait Oil Company

• National Iranian Oil Company

• South Oil Company

• Saudi Aramco

• PetroSA

• Syrian Petroleum Company

• Sonatrach

• Turkish Petroleum

• Groupement Berkine

• Socar

• CNPC

• KazMunayGas

• Neftegas of Ukraine

• Turkmenneftegas

• Uzbekneftegas

• Chevron Texaco

• Occidental Petroleum

• El Paso

• Al-Furat Petroleum

• PDO

• Eshpetco

• Petro-Canada

• Burlington Resources

Page 21: Tmk Presentation 2011

Certification

• TMK makes high-quality products compliant with Russian

standards as well as certified in accordance with international

API (API Spec 5L, API Spec 5CT, API Spec 5D), ASTM and

DIN/EN standards. The management system at all plants is

certified to comply with the requirements of ISO 9001 and АPI

Spec Q1, ISO 14001 and OHSAS 18001 standards.

• Volzhsky is Russia's first API-certified welded and seamless

pipe maker.

• The quality assurance system of all TMK plants has been

certified for compliance with international standards DIN ISO

9001/EN 29001 and SPEC API-Q1:2000.

• The quality assurance system is being further developed and

improved with the objective of transition towards the

implementation of total quality management (TQM) system.

• TMK has an on-going process of qualification by leading

global oil and gas and engineering companies to achieve

comprehensive total global market acceptance

Page 22: Tmk Presentation 2011

TMK’s Qualifications

ТМК qualified in more than 60 companies all over the world.

Main companies are:

• ARAMCO (Saudi Arabia)

• C4GAS (France)

• CNOOC (China)

• Exxon-Mobile (Nigeria)

• DODSAL (UAE)

• KNPC (Kuwait)

• KOC (Kuwait)

• MAERSK OIL (Denmark)

• MEDCO (Indonesia)

• NIOC (Iran)

• OXY (Global)

• ENI (Global)

• Petrosa (South Africa)

• RWE (Germany)

• SABIC (Saudi Arabia)

• SHELL (Global)

• SINOPEC (China)

• Syrian Gas Company (Syria)

• SKF (Sweden)

• SNC Lavalin (Canada)

• TOTAL (Global)

• Wintershall (Global)

• PDVSA (Venezuela)

• ADCO (UAE)

• REPSOL (Global)

Page 23: Tmk Presentation 2011

TMK’s Type & Range of Mills

Welded mills

DSAW

Large

Diameter

ERW

Page 24: Tmk Presentation 2011

TMK’s Type & Range of Mills

Seamless mills

Page 25: Tmk Presentation 2011

TMK Tubular Products OCTG – Drill Pipes

API Spec 5D/ API Spec 7

Recommended Practice API RP 7G

Custom specifications

29,5 – 41,0

(8,23 – 12,5)

E75; X95; G105; S1350.280 – 0.50

(7,1 – 12,7)

2.375 – 5.500

(60,3 – 139,7)

Length, Ft (m)GradeWT, in (mm)Diam, in (mm)

29,5 – 41,0

(8,23 – 12,5)

E75; X95; G105; S1350.280 – 0.50

(7,1 – 12,7)

2.375 – 5.500

(60,3 – 139,7)

Length, Ft (m)GradeWT, in (mm)Diam, in (mm)

Plastic coated

Hard banding

Page 26: Tmk Presentation 2011

TMK Tubular Products OCTG – Casing

API Spec 5CT / API Spec 5B

Custom specifications

ТМК-FMC; ТМК-GF

ТМК-PF

ТМК-ТТL01

TMK-CS

ТМК-1; ТМК-2

BC

STCJ55/K550.231 – 0.514

5,87 – 12,7

6 5/8 – 13 5/8

168-346

Welded

H40; J55; K55;

N80-1; N80Q; L80-1; C90; C95; P110

0.244 – 0.650

(6,2 – 16,5)

4.500 – 13.375

(114,3 – 339,7)

PremiumAPISeamless

Threading connectionGradeWT, in (mm)Diam, in (mm)

ТМК-FMC; ТМК-GF

ТМК-PF

ТМК-ТТL01

TMK-CS

ТМК-1; ТМК-2

BC

STCJ55/K550.231 – 0.514

5,87 – 12,7

6 5/8 – 13 5/8

168-346

Welded

H40; J55; K55;

N80-1; N80Q; L80-1; C90; C95; P110

0.244 – 0.650

(6,2 – 16,5)

4.500 – 13.375

(114,3 – 339,7)

PremiumAPISeamless

Threading connectionGradeWT, in (mm)Diam, in (mm)

Sour Service

Premium connection

High collapse

Low temperature

Page 27: Tmk Presentation 2011

TMK Tubular Products OCTG – Tubing

API Spec 5CT / API Spec 5B

Custom specifications

Premium NU

ЕU

J55; N80-1; N80Q;

L80-1; C-90; C-95;

P-110

0.190 – 0.276

(4,83 – 7,01)

2.375 – 4.500

(60,3 – 114,3)

Threading connectionGradeWT, in (mm)Diam, in (mm)

Premium NU

ЕU

J55; N80-1; N80Q;

L80-1; C-90; C-95;

P-110

0.190 – 0.276

(4,83 – 7,01)

2.375 – 4.500

(60,3 – 114,3)

Threading connectionGradeWT, in (mm)Diam, in (mm)

Low temperature

Plastic coated

Sour Service

Premium connection

Page 28: Tmk Presentation 2011

TMK Tubular Products Seamless/Welded Line Pipes

API Spec. 5L/ ISO 3183; DNV OF-S-101; ASTM A106

Custom specifications

A – X65 0.19 – 0.51

(4,8 – 13)

6 5/8 – 20

(168 – 530)

Welded

Seamless

А – X70 (X80)0.068 - 1.062

(1,7 – 27,0)

1.315 – 16.772

(10,3 – 426,0)

GradeWT, in (mm)Diam, in (mm)

A – X65 0.19 – 0.51

(4,8 – 13)

6 5/8 – 20

(168 – 530)

Welded

Seamless

А – X70 (X80)0.068 - 1.062

(1,7 – 27,0)

1.315 – 16.772

(10,3 – 426,0)

GradeWT, in (mm)Diam, in (mm)

Low temperature Sour Service (X60) Plastic coated (internal/external)

Page 29: Tmk Presentation 2011

TMK Tubular Products Large Diameter Pipes (SAW) API Spec 5L

EN 10208-2

ISO 3183

Custom specifications

up to X800.281 – 1.000

(7,14 – 25,4)

21 – 100

(530 – 2520)

up to X1000.312 – 1.650

(7,9 – 42,0)

20 – 56

(508 – 1420)

Longitudinal Welded

Spiral Welded

GradeWT, in (mm)Diam, in (mm)

up to X800.281 – 1.000

(7,14 – 25,4)

21 – 100

(530 – 2520)

up to X1000.312 – 1.650

(7,9 – 42,0)

20 – 56

(508 – 1420)

Longitudinal Welded

Spiral Welded

GradeWT, in (mm)Diam, in (mm)

Page 30: Tmk Presentation 2011

Anticorrosion Coating Characteristics

Operating its own coating facilities TMK supplies both external and internal coated

line pipes for onshore and offshore construction.

External

Internal

Two and three layer PE coatings 4½" – 56"

One and two layer FBE coatings 4½" – 56"

Two and three layer PP coatings 4½" – 56"

Internal Flow Epoxy coatings 4" – 56"

The temperature of the transported medium up to +80Сº

The ambient temperature in the course of operations is – 40Сº to +80Сº

The quality of pipeline coating assures their safety at underground laying for a minimum 30 years

Page 31: Tmk Presentation 2011

TMK Tubular Products Seamless Industrial Pipes

Boiler Pipes Boiler Pipes ØØ 1/21/2”” to 16to 16”” 3/4 (10 mm 3/4 (10 mm -- 426 mm)426 mm)

Pipes for Bearings Pipes for Bearings ØØ 26 mm 26 mm –– 179 mm179 mm

Stainless Steel Pipes Stainless Steel Pipes ØØ 1/41/4”” to 9 5/8to 9 5/8”” (5 mm (5 mm -- 245 mm)245 mm)

Pipes for Petrochemical Industry Pipes for Petrochemical Industry ØØ 3/43/4”” to 9 5/8to 9 5/8”” (19 mm (19 mm -- 245 mm)245 mm)

Pipes for Low Temperature Service Pipes for Low Temperature Service ØØ 1 1/41 1/4”” to 16to 16”” (42 mm (42 mm -- 406 mm)406 mm)

Page 32: Tmk Presentation 2011

TMK Tubular Products Welded Industrial Pipes (ERW)

Welded Pipes Welded Pipes ØØ 1/41/4”” to 21to 21”” (8 mm (8 mm –– 530 mm)530 mm)

Galvanized Welded Pipes Galvanized Welded Pipes ØØ 1/41/4”” to 4to 4”” (8 mm (8 mm –– 102 mm)102 mm)

Welded Square and Rectangular Sections 20 Welded Square and Rectangular Sections 20 x x 20 mm to 150 20 mm to 150 x x 150 mm150 mm

Page 33: Tmk Presentation 2011

34

Casing connection

designed for horizontal and

directional wells in oil, gas

and gas-condensate fields

ТМК GF ТМК FMC

ТМК

FМТ

Tubing connection for

use in vertical and

directional oil and

gas wells in fields

Designed for

casing liners and

well repair

ТМК 1 Casing & Tubing

Casing connection for use in

vertical controlled directional

and horizontal wells in oil and

gas in fields

Improved efficiency under

bending and compression

loading

TMK PF

Modification is used

in the case of high

bending and

compression loads

and superfluous

torque

TMK PF ET

TMK Premium Connections

Page 34: Tmk Presentation 2011

35

Drill Pipe connection is designed

for the construction of vertical,

deviated and horizontal wells of

oil and gas condensate fields.

The application of the joint

ensures the reliability of the drill

pipes operation within

challenging drilling environment;

when drilling sidetracks of

deviated and horizontal wells and

performing repair and

technological operations caused

by high torque value.

TMK Premium Connections

Drill Pipe

ТМК TDS DOUBLE-SHOULDERED

HIGH TORQUE CONNECTION

Tool joint with two shoulders to provide high make-up

torque if it is compared to tool joints of GOST 27834-95

and API Spec 7. The joint has a shoulder inside and

outside, and a taper thread.

Page 35: Tmk Presentation 2011

TMK ULTRA: Original Connections

ULTRA FJ flush joint

ULTRA SF semi flush joint

ULTRA FX upset tubing

connection

ULTRA FX lined upset tubing

ULTRA CX slim hole

ULTRA QX

Page 36: Tmk Presentation 2011

Premium Connections Global Supplies

ULTRA

TMK Premium-Service

ULTRA QX

2009

ULTRA CX

2008

ULTra-FX

2003

ULTra-FJ

2003

ULTra-SF

2003

TMK GF

2005

TMK PF

2007

TMK FMC

2005

TMK TTL 01

2005

TMK CS

2005

ТМК 1

2004

TMK FMT

2008

TMK PF ET

2008

Global Supplies & Services

Page 37: Tmk Presentation 2011

Strategic Development

of TMK Business Segments

Page 38: Tmk Presentation 2011

ТМК Technical Achievements

New Electric Arc Furnace (EAF) at Seversky

950k tonnes of steel billet capacity

50% less atmospheric emissions and carbon oxide emissions

92% of the water supply is recycled

Lower energy and gas consumption

Equipment Supplier: SMS Demag, Germany

Page 39: Tmk Presentation 2011

ТМК Technical Achievements

3 Continuous Casters installation:

Tagmet (Russia), 950 k tonnes

Seversky (Russia), 950 k tonnes

TMK-Resita (Romania), 450 k tonnes

Degasation Equipment installation:

TMK-Resita (Romania)

Tagmet (Russia)

Seversky (Russia)

Page 40: Tmk Presentation 2011

ТМК Technical Achievements

Additional 650k tonnes of longitudinal welded pipe capacity

Large-Diameter pipe production in accordance with the requirements of largest oil

and gas pipeline projects (Gasprom, Transneft), incl. DNV Certification

New Large-Diameter Longitudinal Welded Pipe Mill at Volzhsky

Equipment Supplier: HAEUSLER, Switzerland

Page 41: Tmk Presentation 2011

ТМК Technical Achievements

New Large-Diameter Longitudinal Welded Pipe Mill at Volzhsky

Equipment Supplier: HAEUSLER, Switzerland

Page 42: Tmk Presentation 2011

Premium Quality Finishing (PQF) Continuous Mill at Tagmet

Additional 600k tonnes of premium-performance OCTG, line pipe and mechanical

pipe production capacity in accordance with international standards

Equipment Supplier: SMS Meer, Germany

ТМК Technical Achievements

Page 43: Tmk Presentation 2011

Premium Quality Finishing (PQF) Continuous Mill at Tagmet

ТМК Technical Achievements

Equipment Supplier: SMS Meer, Germany

Page 44: Tmk Presentation 2011

3 Additional Heat Treatment Lines

ТМК Technical Achievements

Equipment Supplier: Olivotto Ferré, Italy

Total Capacity: 740k tonnes

Tagmet (Russia),

Sinarsky (Russia),

Volzhsky (Russia).

Quenching, Tempering and Normalization are available at

all new heat treatment capacities.

Page 45: Tmk Presentation 2011

3 Additional Heat Treatment Lines Equipment Supplier: Olivotto Ferré, Italy

ТМК Technical Achievements

Page 46: Tmk Presentation 2011

Testing Equipment Installed

High Collapse Equipment NACE Test Equipment

Page 47: Tmk Presentation 2011

Committed to Quality

TMK is committed to quality and holds Quality Management

System certificate ISO 9001:2000 for all manufacturing

operations. Strict quality control systems are applied at all TMK

facilities.

Each TMK employee is focused on producing high quality

products. The quality control procedures include step by step

quality control, daily process and production audits, as well as

pipe traceability systems during manufacturing.

In addition to its highly qualified production and technical

specialists, TMK has a group of experienced engineers that are

always ready to assist the customers.

Page 48: Tmk Presentation 2011

Customer Service

• Our customers have choices.

• TMK is needed by our customers as long as we provide value, quality and customer service.

• Purchasing is a habit. We want our customers to get in the habit of calling TMK.

• Meeting their expectations is not good enough. We must exceed their expectations.

• “Customer Service” can and will differentiate TMK from the rest of the pack.

• Technical Support

• New Product Development

• Providing value, On time deliveries, high quality, ease of doing business, convenience, problem solving and reducing our customers “Total Cost of Ownership” will increase that value.

Page 49: Tmk Presentation 2011

New Project – TMK-INOX

Products Application:

• Pressure Purpose

• High Temperature Service

• Alloy-Steel Boiler, Heat-Exchanger

• Mechanical and General Engineering

• Nuclear-Power Engineering

• Chemical and Petrochemical

• Power Generation

• Aerospace

Page 50: Tmk Presentation 2011

TMK Trading Subsidiaries and

Representatives HEADQUARTERS of «TMK» and «Trade House «TMK» 40 Bld. 2a, Pokrovka street, Moscow, 105062, Russia

Tel: +7 495 7757600, Fax: +7 495 7757601

E-mail: [email protected] www.tmk-group.com

TMK IPSCO offices TMK IPSCO, Houston

8300 FM 1960 West

Suite 350, Houston,

Texas 77070

Tel: 281-949-1023

Toll Free: 888-258-2000

TMK IPSCO, Camanche

2011 7th Avenue

Camanche, Iowa 52730

Tel: 563-242-0000

Toll Free: 800-950-4772

TMK IPSCO (Headquarters)

2650 Warrenville Road, Suite 700, Downers Grove, Illinois 60515

Tel: 630-874-0078, Fax: 630-874-6431

Toll Free: 866-654-0078

www.tmk-ipsco.com

TMK IPSCO, Beaver Falls

P.O. Box 750

Beaver Falls,

Pennsylvania 15010

Tel: 724-843-7100

Toll Free: 800-992-3702

TMK Global AG

2, Bldv. Du Theatre, CH-1211 Geneva, CP 5019, Switzerland

Tel: +41 (22) 818-64-66

Fax: +41 (22) 818-64-60

E-mail: [email protected]

TMK Europe GmbH

Hohenstaufenring 62, D-50674 Koln, Germany

Tel/Fax: +49 (221) 27-23-89-0, +49 (221) 272-00-81

E-mail: [email protected]

TMK Italia s.r.l.

Piazza degli Affari, 12, 23900 Lecco, Italy

Tel/Fax: +39 (0341) 36-51-51, + 39 (0341) 36-00-44

E-mail: [email protected]

TMK North America Inc

8300 FM 1960 West, Suite 350, Houston, TX 77070, USA

Tel: +1 713 961 0701, Fax: +1 713 961 0475

E-mail: [email protected]

ТМК Middle East FZE

P.O. Box 293534

Office 118, Block 5EA, Dubai Airport Free Zone

Dubai, United Arab Emirates

Tel: +971 (4) 609-11-30, Fax: +971 (4) 609-11-40

E-mail: [email protected]

Representative office of Trade House TMK in Azerbaijan

22, Karabaha street, Baku, Azerbaijan, AZ1008

Tel./Fax: + 994 (12) 496-19-18

E-mail: [email protected]

TMK-Kazakhstan

38/1, Zheltoksan st., office 5, Astana, Kazakhstan, 01000

Tel/Fax: +7 172 31-56-08, 31-56-38

E-mail: [email protected]

Representative office of Trade House TMK in China

APT19 I, NO. 48 DONGZHIMENWAI Street,

Dongcheng District, Beijing, China ZIP. 100027

Tel: +86 (10) 84-54-95-81, +86 (10) 84-54-95-82

Fax: +86 (10) 84-54-95-80

E-mail: [email protected]

Representative office of Trade House TMK in Turkmenistan

Hotel "Nebitchi", 29, Archabil shaely, 1939, Ashgabat, Turkmenistan

Tel./Fax: +993 (12) 48-87-98

E-mail: [email protected]

Representative office of Trade House TMK in Singapore

10 Anson Road #33-06A International Plaza, Singapore 079903

Tel.: +65 (622) 33-015 Fax: +65 (622) 33-512

E-mail: [email protected]

TMK Africa Tubulars

1st Floor, Convention Tower, Cnr. Heerengracht Str. & Coen Steytler

Ave.Foreshore, Cape Town 8001, South Africa

Tel.: + 27 21 403-63-78 Fax: + 27 21 403-63-01

E-mail: [email protected]

Page 51: Tmk Presentation 2011

WWW.TMK-GROUP.COM

THANK YOU