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Home / Issue Archive / 2007 / June #6 / Uraltrubmash - The New Stage of Development

№ 6 (June 2007)

Uraltrubmash - The New Stage of Development

By Material Supplied by Uraltrubmash

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In 2005 "Trading House LUKOIL" Co Ltd (the  "LUKOIL" subsidiary unit), within the bounds of program implementation of non-core assets, has made a decision to sell 99,98 percent of Uraltrubmash (Chelyabinsk) shares.

During the competitive tendering in April 2006, the holding of shares has been sold to National Pipe Company (JSC NPC, Moscow). Proceeds from the sale reached more than 1 billion rubles in the first quarter of 2007. Thus, JSC Trading House National Pipe Company diversifies its business and thereby prove the existing tendency among metal-trading companies - the purchasing of core productive assets.

The change of owners has positive results for Uraltrubmash - at the first stage raw material flows were optimized and market channels were adjusted with both regular customers and new clients.
However the most important result was the technical re-equipment program accepted for the first time until recently. This program is confirmed and financed in 2007.

The first stage of the program is directed to the development of production technique of electric-welded cold - deformed tubes. The improvement includes equipment replacement and reconstruction, the quality increase of welding, chemicothermal treatment, cold rolling and tube finishing. The pickling zone equipment is already purchased and is assembling; the substitution of a welding unit on the tube-welding mill for the most modern equipment of THERMATOOL company, the world leader in equipment production for welding and heat treatment, is provided; the installation of high-production line of facing and heat treatment is also stipulated. This improvement will result the expansion of production volume and the quality increase of steel electric-welded cold-drawn tubes for the trunks of down-hole motors and bore-hole pumps, tubes for production of rod deep well pump barrels for oil extraction and precision honing tubes for hydraulic cylinders.

The second stage of the program is directed to the technology development and quality increase of coiled tubing up to API level. All efforts are focused on purchasing of a top-quality steel strip similar to foreign analogues.  It is planned to purchase modern heat treatment equipment of THERMATOOL company with the feedback, equipment complex of nondestructive check (including steel strip), improvement of strip accumulation areas and tube rolling, including changes in scheme with rolling on horizontal axis. The realization of there arrangements will permit domestic coiled tubing to reach the quality level corresponding to foreign analogues and to embody the ambitious program of Uraltrubmash share increase up to 80 percent in domestic market and up to 30 percent in the world market.

Coincidentally with technical re-equipment on the Works the program of diversification and delivery expansion to economic sector non-connected with oil-and-gas production is implemented.

The supplies of precision electric-welded tubing spool for aluminum industry will be increased in current year by 20 to 25 percent; their production  will reach 700 ton per year. Fabrication and disposal of unstainable cold - deformed tubes has increased by 10 percent; their consumers are instrument engineering, aircraft construction businesses and medical equipment manufacturers.

In 2007 the first sample quantity of precision honing tubes for production of hydraulic cylinders according to international standards DIN were delivered. This production is self-sufficient on the Russian market and the first good references of the first-rate manufacturers of hydraulics are being received.

Uraltrubmash is planning to augment the production volume of honing tubes and to capture not less than 20 percent of the domestic market.

Thereby, with the change of owners the Chelyabinsk works Uraltrubmash is entering to the new  stage of development by improving the production technology, increasing production quality level, developing new types of tubing, which are in market demand and focusing on top requirements of domestic and foreign standards.

This course of development gives assurance that in the nearest future Russian oil and gas producing, metallurgical and engineering enterprises will get tubing of the world level and will cover the requirements under qualitative and price characteristics.

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