TMK (Pipe Metallurgical Company) said the equipment would be installed at its Sinara metallurgical plant in the Urals, and its Taganrog and Volzhsky plants in southern Russia, to boost annual production of high-standard heat-strengthened pipes to 740,000 metric tons.
The supply deal with the Italian firm is part of the Russian pipe producer's $1.27-bln medium-term modernization program,
TMK Director General Konstantin Semeryakov said over $800 million would be spent on improving seamless pipe production facilities under the company's 2005-2010 modernization program.
Olivotto Ferre's general services manager, Davide Dogliani, said seamless pipe production lines would be operational at the Sinara and Volzhsky plants in 2007, and at the Taganrog plant in early 2008.
Established in 2001, TMK accounts for about 44% of Russia's pipe output. The company produced 2.86 million metric tons of pipes in 2005, of which exports totaled 750,000 metric tons.
TMK supplies products to more than 60 countries, with clients including oil majors Royal Dutch Shell and Total, and Spanish energy company Repsol. Domestically, the company produces pipes for natural gas monopoly Gazprom, crude producers Rosneft, TNK-BP, Lukoil, Gazprom Neft, and others. In addition to the oil and gas industries, TMK supplies pipes to the chemical and petrochemical, machine-building, power, and construction sectors.
TMK Steel Limited and Dalecone Limited are the company's core shareholders.
Olivotto Ferre, part of Olivotto Industries S.p.A. holding, is a leading Italian company in engineering, manufacturing and installing turn-key plants for industrial heating and heat treatment.
