Capital expenditure

A comprehensive renovation of production facilities has resulted in a considerable increase in the efficiency of seamless and large-diameter welded production processes and advanced product quality.

Our key projects planned for the next several years include:

  • replacement of the open hearth furnaces with EAF steelmaking facilities at TAGMET in order to reduce steel-making costs and increase an annual billet-production capacity to 950 thousand tonnes; the project is planned to be completed in 2014;
  • construction of a new Fine Quality Mill (“FQM”) at STZ with an annual seamless pipe production capacity of 550 thousand tonnes and completion in 2014-2015;
  • installation of additional non-destructive testing instrumentation, construction of the new hydro-press, new pipe-threading and coupling-threading facilities at SinTZ to further improve the quality of OCTG; the project is planned to be completed in 2013.

In 2011, we completed the modernization of a hot-rolled section and a continuous casting machine at VTZ. It will significantly enhance production capacity for hot-rolled pipe at VTZ and increase the quality of pipe produced.

A new line to produce premium threaded casing was constructed at our Orsk Machine-Building Plant, with a 30 thousand tonne annual capacity. The line was commissioned in 2011. In 2012, we plan to install a hydro-press to run quality tests.

The following projects will enable TMK IPSCO to strengthen its position in the segment of premium connections for horizontal and directional drilling in North America:

  • the threadshop line at the plant located in Wilder, KY became operational in October 2011;
  • consolidation of threading operations at the production facility located in Odessa, TX is also underway.

As a part of an environmental protection programme, TMK-ARTROM and TMK-RESITA commenced renovation of gas cleaner facilities. The projects will be completed in 2012.

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