OREANDA-NEWS. December 4, 2007. TMK, one of the world's largest oil and gas pipe producers and the Russian pipe industry market leader announces the signing of a joint venture agreement between its Seversky Tube Works (STW) subsidiary and SMS Demag AG (part of the SMS Group), one of the largest manufacturers of steelmaking equipment in the world. The agreement establishing the TMK-SMS Metallurgical Services Joint Venture was signed by Konstantin Semerikov, TMK CEO, and Pino Tese, SMS Demag AG Executive Vice-President.

This JV will provide STW with maintenance scheduling, analysis and monitoring services and the means to implement SMS Demag's expertise and technologies related to steelmaking equipment maintenance. Collaboration with such a partner will enable the plant to carry-out maintenance work on current and future operating equipment when required, improving operational performance and leading to a reduction in maintenance costs.

This JV's setting up falls under the Strategic Partnership Agreement between TMK and the SMS Group, which runs until 2015. The agreement foresees long-term cooperation on the development and implementation of the SMS Group's leading equipment and technologies used in the production of seamless steel pipes at TMK plants.

Cooperating with highly professional service companies will allow TMK to significantly enhance maintenance quality and performance. The creation of the TMK-SMS Metallurgical Services Joint Venture will increase the utilization and efficiency of the equipment installed within the frame of our Strategic Investment Programme. Likewise, we hope that the JV's activity will lead to the development of a highly professional services market in the field of production equipment maintenance and spare parts manufacturing said Konstantin Semerikov, TMK CEO.