TPT May 2007

This consolidation of the assets of the biggest Russian tube companies has resulted in a top ten entry for ESTAR in the listing of world producers

ESTAR: a top ten world producer

The ESTAR, established in July 2005, comprises the Novosibirskiy Metallurgical Works, Zlatousovskiy Metallurgical Works, Nitvenskiy Metallurgical Works, Volgogradskiy Small Diameter Pipe Plant, Engelskiy Pipe Plant, Stalnoy profil, Estar, and Lomprom. This consolidation of the assets of the biggest Russian tube companies has resulted in a top ten entry for ESTAR in the listing of world producers. Consequently, ESTAR has gained a competitive edge over other global producers on the international market. The volume of exports has trebled during the last 5 years, with the geography of exports also expanding from 15 to 68 countries. Tube research departments have recently been established at a number of the leading Russian metallurgical companies, such as SeverStal, Magnitogors Iron & Steel Works and others, whose products had traditionally been geared towards regional requirements managing company Advancing technology and product quality through R&D The development strategy of the Russian tube industry is designed to increase the share of hi-tech, science-intensive, competitive products in overall tube production. This target of innovation forms the manufacturing and technical policy of all companies. A number of issues lie at the heart of these developments, including special steel grades for pipeline components, the expansion of product diameter and wall thickness range, and the introduction of inside smooth and outside protective coating for safety during product storage and transportation. Also of great concern

› One broad aim of the Russian tube industry is developing technology for an increased product range of diameter and wall thickness

Strategic long term agreements for better efficiency Another priority of the Russian tube industry is the conclusion of strategic long term agreements with big metallurgical companies, particularly the suppliers of strip and tube billets. For instance, within the framework of TMK’s agreements with TMK, the new steel grades for tube production have been mastered at Magnitogorsk Iron and Steel Works. The long term agreements for quality improvements and sheet metal product supply have been concluded between OMK, SeverStal, Magnitogorsk and UralSteel. The partnership established between the ChTPZ Group and EvrazHolding Ltd has enabled the efficient regulation of the volume delivery of tube billets. This agreement was made in order to avoid potential difficulties in the supply of these products to the enterprises of the Group, as well as to reduce delivery costs and improve the logistics as a whole. Such agreements are profitable for enterprises that belong to metallurgical holdings as they reduce the dependence of the plants on the instability of the metal product export market. This leads to new opportunities and the creation of considerable areas of consumption within the home market. These strict partnership agreements are therefore designed to guarantee advance prices and accurate volumes of high-quality metal deliveries with relevant physical- mechanical properties.

is the development of new technologies and scientific-technical documentation, and machinery design for production of new pipe-bend and flange size ranges. The new method of ballast tube production (concrete solidification) in polyethylene jacket has recently been undertaken at the Moscow Experimental Pipeprocurement Plant, designed for use in construction of oil and gas pipelines. Two shops – ‘summer’ and ‘winter’ – have been established at the plant for ballasting steel tubes, with the technology of ballasting having been perfected and commercial production of the ballast tubes already underway. Considerable research has been conducted in order to study tube properties with ballast coating, resulting in developments and patents. This research includes the testing of tube specimens for compression and shift of the ballast coating relative to the tube body, shift of the jacket relative to the concrete, and several combinations of sealing of tube couplings with ballast coating. Following the German Lloyd audit of November 2005, the Certificate of Qualification of Producer was issued to Moscow Experimental Pipeprocurement Plant, with DNV standard certification almost complete. The products of Moscow Experimental Pipeprocurement Plant have since been successfully used for construction of an underwater section of the Varandeysk oil-loading terminal. This leading technology enables Russian tube producers to convert the advanced system of tube products into the construction and service support of pipeline systems.

88

61

M ay /J une 2007

Made with