15th Feb 2008 08:42
OAO TMK15 February 2008 -------------------------------------------------------------------------------- February 15, 2008 PRESS RELEASE Strong 2007 Results at TMK Romanian Subsidiaries and TMK-Resita PrivatisationFinalised OAO "TMK" (TMK) announces significant improvements in the financial andoperating performance of its Romanian subsidiaries for the year 2007. TMK-Artromrevenues1 jumped 79% up to USD 214.3 million and EBITDA rose by 20% to reach USD25.8 million compared to 2006 results. Revenues at TMK-Resita increased by 43%to reach USD 205.6 million and EBITDA grew to USD 21 million, a 79% jump on 2006results. In 2007, the TMK-Artrom pipe mill shipped 155,800 tonnes of seamless pipes toits customers, representing a 61% increase on previous year shipments. TMK'sRomanian steelmaking subsidiary, TMK-Resita, shipped 314,200 tonnes of billetsto third parties, a 21% increase over FY2006. The strong improvement in results was mostly due to ongoing technical upgradingprogrammes. In early 2007, a new cross piercing elongator (CPE) pipe rollingmill was commissioned at TMK-Artrom and a continuous caster was put intooperation at TMK-Resita, the latter cutting down production costs and increasingproduction yields. Furthermore, TMK announces the finalisation of TMK-Resita's privatisation. TheRomanian Authority for State Assets Recovery (AVAS) officially confirmed thatTMK had met all privatisation requirements following its acquisition of thesteelmaking plant. With investments totalling USD 44.7 million by late 2007, TMKhad already exceeded its investment requirements for TMK-Resita, includingequipment upgrading and environmental measures. As a result, the privatisationcontract was finalised 2 years ahead of schedule. The upgrading of TMK-Artrom's annual pipe capacity to 375,000 tonnes and ofTMK-Resita's annual billet capacity to 450,000 tonnes both fall under the scopeof TMK's Strategic Investment Programme running until 2010 "The early finalisation of the TMK-Resita privatisation contract shows that theRomanian authorities see TMK as both a reliable partner and a serious investor.The impressive performance of our Romanian mills underlines the efficiency ofour Strategic Investment Programme, aimed at strengthening our position in theglobal seamless pipe market, increasing the efficiency of production processes,and raising product quality. Our Romanian plants have achieved great results inthis direction, creating a state-of-the-art vertically integrated pipemanufacturing complex within the EU, positioning itself as a reliable supplierof pipes for industrial applications, including for the mechanical engineeringand automotive components industries", said TMK's CEO, Mr. Konstantin Semerikov. 1 All financial data is based on national accounting standards and was notaudited. OAO "TMK" (www.tmk-group.com) Founded in 2001, TMK (LSE: TMKS) is the largest pipe producer in Russia and oneof the three global market leaders. In 2007, TMK shipped over 3 million tonnes of pipes. TMK supplies to companiesin more than 60 countries. TMK production facilities are located in Russia and Romania: • Volzhsky Pipe Plant; • Seversky Tube Works; • Taganrog Metallurgical Works; • Sinarsky Pipe Plant; • Orsky Machine Building Plant; • Truboplast pipe coating company; • SC TMK-ARTROM SA; • SC TMK-Resita SA For further information please contact: TMK PR Department: Sergey Ilin Tel: +7 495 775 7600 ext. 2149 Email: [email protected] TMK IR DepartmentAlexei RatnikovTel: +7 495 775 7600 ext. 2719Email: [email protected] www.tmk-group.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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