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MMK, TMK Extend Partnership
01/20/2010 - MMK and TMK have extended their partnership until 2015 in agreement with a memorandum on strategic cooperation signed in February 2007. Further cooperation was also discussed during a recent meeting, including collaboration regarding Mill 5000 products.
MMK and TMK have extended their partnership until 2015 in agreement with the memorandum on strategic cooperation that was signed on February 8, 2007.
TMK chairmanDmitry Pumpyansky recently visited new production facilities of MMK—the continuous slab casting machine No. 6, which was commissioned on December 30, 2009, and Mill 5000. During the visit, MMK Chairman Victor Rashnikov and Pumpyansky discussed the results of cooperation over the last few years.
TMK is one of the largest customers of MMK, accounting for more than 40% of the overall sales of MMK to pipe-makers in 2009.
The volume of MMK shipments to TMK grew by 9% in 2009 year-over-year, to 648,000 tonnes. This amount includes 69,000 tonnes of plates produced at Mill 5000, which was commissioned at MMK in July 2009.
Further cooperation was also discussed during the meeting, including collaboration regarding Mill 5000 products. The parties signed a supplementary agreement to the memorandum for MMK and TMK to take part in the projects of Gazprom and Transneft on construction of new oil and gas pipelines.
MMK notes that it has historically been focused on production of steel products for the pipe industry. Pipe-producing companies account for the largest share of MMK domestic sales. Their share in the overall shipments to the Russian market amounted to 36% in 2009, up from 28% in 2008.
OJSC MMK is among the world's largest steel producers and one of the leaders of Russia's steel industry. The company's operations in Russia include a large steel-producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. In 2008, the company produced 12 million tonnes of crude steel and 11 million tonnes of commercial products. MMK Group revenues in 2008 stood at USD 10.55 billion.
