TMK plans to invest $1.4 bln in up grade

TMK remains committed to its investment program which calls for $1.4 bn by 2010, the company’s CEO Constantine Semerikov said. Implementation of this long-term rollout strategy will enable TMK to double pipe output from current 3 mln tn to 6 mln tn as early as within the next four years. The company will focus on large diameter pipes  at Volzhsky Pipe Plant and premium-grade pipes (OCTG) used to tap oil and gasfields in harsh climatic conditions.

In addition to incremental output, the company targets improving production efficiency which could positively impact its margins and cash flow.

However, according to Semerikov, the headcount at TMK’s enterprises could be reduced by around 30% (from 49,000 to 35,000).