TPT May 2007

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10 May/June 2007
Industry News
TMK, Russia, has signed an agreement
on strategic cooperation with the SMS
Group, Germany, which extends to 2015.
The strategic partnership will involve the
coordination of long-term joint activities
to develop and implement SMS Group’s
equipment for the production of steel and
seamless steel pipes at TMK’s mills.
TMK is implementing a US$1.2 billion
strategic investment program to be
completed by 2010. This program will
involve the most advanced technologies
and increase the output of hi-tech pipe
products.
In 2006, TMK and SMS Group signed
agreements for the delivery of a pipe rolling
mill with a Premium Quality Finishing (PQF)
line for Taganrog Metallurgical Works
(Tagmet, part of TMK) and an electric arc
furnace for Seversky Pipe Plant (SPP, also
a part of TMK).
The new pipe rolling mill will allow Tagmet
to increase production capacity, and be
launched in the first half of 2008. It will be
capable of producing 600,000t of pipes per
year. Pipes for oil and gas (casing, tubing,
drilling pipes) as well as seamless pipes for
engineering will be produced in accordance
with international standards.
The electric arc furnace for Seversky Pipe
Plant will be capable of producing 990,000t
of steel per year and will be launched in
late 2007. The installation of the furnace
will culminate in the creation of a modern
steel-producing complex for Seversky Pipe
Plant.
TMK and SMS also plan to create a joint
venture on the basis of Seversky Pipe Plant
that will involve the service and repair of
equipment used in the production of steel
and seamless pipes.
TMK – Russia
Fax: +7 095 775 7601
Email:
Website:
SMS Group – Germany
Fax: +49 211 881 4386
Website:
Arcelor Mittal & Bin Jarallah
announce Saudi JV for
seamless tube mill
Arcelor Mittal has signed a joint venture
agreement with the Bin Jarallah Group of
companies for the design and construction
of a seamless tube mill in Saudi Arabia.
Arcelor Mittal will hold a 51 per cent share
in the company established for this project,
with the Bin Jarallah Group holding the
remaining 49 per cent.
This advanced facility will be located in
Jubail Industrial City, north of Al Jubail
on the Persian Gulf. The mill will have a
capacity of 500,000t per year, with about
two thirds capacity used for tubes in the
oil industry (OCTG). The remainder will
be used for linepipe in sizes ranging from
4-14". Semi-products for the mill will be
sourced from Arcelor Mittal steel plants.
Mr Sudhir Maheshwari, executive VP,
finance and M&A and member of Arcelor
Mittal’s group executive committee,
commented: “This project gives us a
strategic opportunity to enter the Middle
East’s, and in particular Saudi Arabia’s,
thriving markets. The Al Jubail project will
allow us to strengthen our relationship with
Saudi Aramco, who will be one of the key
customers of the mill.”
Construction is planned to commence at
the end of 2008, with completion due by the
last quarter of 2009.
Arcelor SA – Luxembourg
Fax: +352 4792 2675
Website:
Mittal Steel Company NV –
The Netherlands
Fax: +31 10 217 8850
Website:
TMK and SMS Group sign strategic
partnership agreement
› TMK’s chairman of the board of directors, Mr Dmitriy Pumpyanskiy (left), and SMS group president,
Mr Heinrich Weiss (right), at the signing of the agreement