TPT May 2007

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62 May/June 2007
Viewpoint
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Maintaining a consistent policy throughout
the entire supply chain, the conclusion of
long-term cooperation agreements with the
biggest consumers of tube products is also
vital. In doing so, the companies can secure
the correct operational characteristics at
an acceptable price. The tube companies
in return receive the guaranteed volumes
of distribution of their products within the
home market.
Russia’s 2020 energy
development strategy
The quality improvement and increasing
competitiveness of products has been
achieved within the program framework
of Russia’s 2020 energy development
strategy.
The expansion at Vyksa Metallurgical
Works and the introduction of new
equipment at Izhora tube plant has
led to state-of-the-art capabilities for
the production of 3.2 million tons of
competitive large diameter pipes per year.
This will ensure an additional production
increase of up to 4.4 million tons per year
in 2008. There have been further quality
improvement plans at Vyksa Metallurgical
Works, with the production of tubes
according to the international standards for
underwater pipelines DNV.
Several investment projects have also been
completed at metallurgical complexes. Special
manufacturing equipment for the improvement
of liquid steel quality has been installed at
SeverStal, NTMK, and Magnitogorsk Iron
and Steel Works. The reconstruction of ingot
continuous casting machines has also been
achieved. A new slab casting machine with
a capacity of 1.8 million tons was put into
operation at NTMK.
Metallurgists have thus achieved a radical
improvement of liquid steel quality. Casting
technology is now highly advanced for
the production of the required size billets
and strip, with adherence to the strictest
standard requirements for production of
high quality large diameter pipes.
The specialists of Russia’s tube industry have
faced the challenge of solving the technical
issues of tube products for fuel and energy
applications. A great deal of volatility has
been caused by the absence of a reliable
construction schedule for the ground-based
and underwater components of the North-
European Gas Pipeline, East Siberian
– Pacific Ocean, and Shtokman field.
However, the consumption of large diameter
pipes is sure to increase in the coming
years. This is why in 2006 several leading
Russian metallurgical and tube companies
began the large-scale construction of
‘5000’ rolling mills. These continuous mills
with PQF technology are intended for the
production of highly precise seamless
tubes.
Protective and proactive
role of the Fund
The Development Fund of the Tube Industry
of Russia, a non-profit organisation,
was established in 1999 by nine tube
enterprises, among them Taganrog and
Vyksa metallurgical plants, Volzhsky,
Seversky, Sinarsky and Pervouralsk tube
plants, and Chelyabinsk tube rolling plant.
The Fund’s objectives are to represent
the interests of tube enterprises in the
state authorities, non-government
organisations, and professional
associations. The fund also aims
to coordinate the activity of the
metallurgical and tube divisions of
the industry to increase product
competitiveness. Furthermore, the
Fund operates to improve and develop
market relations within the Russian
network of mining and smelting.
In particular, the Fund operates to provide
the conditions for consolidation of all
enterprises’ manufacturing, financial,
technical and intellectual potential. The
Fund’s endeavours are directed at the
creation of a corporate management
structure according to world standards.
The Fund’s top priority is to protect
Russia’s tube market from the conditions
of unprincipled competition from foreign
producers, with the necessary regulation of
access into the Russian market.
The Fund participates in the definition
of regulations according to the Federal
statute ‘About the technical regulation’.
This involves joint meetings of Russia’s
tube sector and fuel/energy industry
representatives, with an agenda to identify
and consolidate cooperative measures
across the board. The representatives
of the fuel and energy organisations (the
main consumers of tube products) are the
members of the Fund’s working group.
The Development Fund is a member
of the Chamber of commerce of the
Russian Federation and the International
Metallurgical Guild. The Fund takes
an active part in the work of corporate
authorities as well as the Russian
manufacturers’ and employers’ guild, and
specialised scientific-research institutes.
The Development Fund of the Tube
Industry of Russia (FRTP) – Russia
Tel/fax: +7 495 955 00 72/73
Email:
Website:
The Fund’s top
priority is to protect
Russia’s tube market
from the conditions
of unprincipled
competition from
foreign producers
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fi Smoking out the competition: the Russian tube industry has benefitted from a unified approach, combining
R&D and technical improvements with strategic agreements and protectionism
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