Synergy

The U.S. market is the world’s largest consumer of OCTG and is showing a trend toward growth due to development of shale oil and gas drilling. At the same time, the capacity of North American pipe manufacturers satisfy no more than 50% of the volume demanded. Thus, TMK’s entry into the North American market and the steady positioning of its products was a priority for the company. The acquisition of the IPSCO Tubulars Inc. and NS Group Inc., businesses in 2008, which were later renamed TMK IPSCO, was the first step toward accomplishing this task. In more recent years, the main priority has been to maximize the synergy effect of interaction between the American, European and Russian divisions in the following areas:

  1. Increased shipments of Russian and Romanian pipe products to TMK IPSCO, which not only allow for sales of TMK pipe in North America, but also significantly expands TMK IPSCO’s product range. TMK products exported to the U.S. are manufactured using the most modern technology and undergo additional quality control upon arrival at TMK IPSCO. Thus, TMK’s lack of corresponding seamless pipe production capacities in the U.S. is offset by shipments from TMK’s plants in Russia and Europe.
  2. Exchange of advanced Russian technologies with TMK IPSCO. The company’s U.S. facilities have access to the Russian division’s modern technologies through the establishment of close relations with the Russian scientific community: research institutes and universities, including cooperation with RosNITI, which performs the role of a corporate research center responsible for the formation and implementation of the TMK Group’s R&D plans.
    In addition, an example of successful technological cooperation can be found in the cooperation between TMK IPSCO and TMK-Premium Service, which has resulted in TMK IPSCO being granted a license to cut TMK PF, TMK GF, and TMK FMC premium connections on downhole equipment used by companies like Weatherford, Schlumberger, Halliburton, Davis-Lynch, and Topco.
  3. The use of advanced American technology at Russian facilities. Exports of U.S. technology are reflected in the demand for ULTRA Premium Connections in Russia, which was exemplified by the delivery of casing with ULTRA SF Premium Connections in April 2011 to Gazprom Neft for use in the Urmanskoye field. In addition, in October 2011, TMK commissioned a shop to manufacture casing with premium connections, including ULTRA, at the Orsky Machine-Building Plant.
  4. Through close cooperation with the American division, the European and Russian divisions have successfully implemented and continue to improve a program to adopt Six Sigma business practices, which are widely used in the U.S. and have helped the company to increase its operational efficiency.

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