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Pipe Metallurgical Co.

Pipe Metallurgical Co. is the largest holding in the Russian piping manufacturing, bringing together leading enterprises from the Volzhskiy, Sinarskiy and Severskiy piping factories, the Taganrogskiy Metallurgy Factory, and one of the largest European piping producers, the Romanian piping factory Artrom.

PMC is a leader in pipe manufacture in Russia, producing some 40 percent of Russia.s pipes. Its factories currently produce 4 million tons of pipes per year. The company is also a leader in supplying pipe to foreign partners. Half of Russian pipe exports comes from PMC which maintained production volumes in 2002 despite an 8 percent drop in the overall industry.

The company produces a wide variety of pipes for many industries including: oil and gas, energy, engineering, petrochemical and domestic and municipal construction. The company makes welded pipes of diameters between eight and 2520 mm, with walls from one to 25 mm thick, and seamless pipes with diameters between one and 426 mm, with walls from 0.5 to 60 mm thick. At all factories quality is tested and conforms to ISO 9000 and TUV standards. Pipes meeting Russian and international API, DIN, ASTM and other standards are produced.

PMC offers oil companies a "one stop shop" for drill pipe, casing, pump-compression pipes and large-diameter trunk pipelines.

PMC pursues an aggressive policy to improve the quality of its production, providing a broadening range of characteristics, incorporating new sizes and gauges into the production range. For this reason, much attention is being paid to investment in PMC's manufacturing base and the integration of the newest technology available. PMC invested over $60 million in 2001 and will invest a further $50 million in 2002.

PMC's customers and partners Russia's largest oil companies: Gazprom, Transneft, LUKoil, YUKOS, Surgutneftegas, TNK, Rosneft, Sibneft, Slavneft and others. Foreign partners include: Exxon, AGIP, Itochu, Conoco, Mitsui, Tengiz Shevroil, Saudi Aramco, Kuwait Oil Company, Indian Oil and others. PMC products have been used in construction of the Caspian Pipeline Consortium, the Baltic Pipeline System and the Ukrainian Sukhodolnaya-Rodionovskaya by-pass pipeline.

In 2001-02, PMC participated in the delivery of more than 26 thousand tons of thick-walled piping with a polyurethane-foam covering to the Karachaganak field. PMC was the only Russian supplier that met all the client.s demands. Currently, PMC is supplying 48 thousand tons, filling 100 percent of the demand for X-65 class spiral-bearing pipe with a triple anti-corrosive layer used to construct the 450 km Kenkiyak-Atyrau pipeline. The quality of the piping and its protective layer is being tested both by the client and by independent experts from the international audit firm, Moody International.

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