TPT May 2007

Industry News

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.

TMK and SMS Group sign strategic partnership agreement

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

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’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

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

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

Arcelor SA – Luxembourg Fax : +352 4792 2675 Website : www.arcelor.com Mittal Steel Company NV – The Netherlands Fax : +31 10 217 8850 Website : www.mittalsteel.com

Email : tmk@tmk-group.com Website : www.tmk-group.com SMS Group – Germany Fax : +49 211 881 4386 Website : www.sms-demag.com

10

M ay /J une 2007