July 2006 — SMS Meer GmbH, Germany, recently signed a contract with OAO Pipe Metallurgical Company (TMK), Russia, for the supply of a PQF^® seamless tube plant for the Tagmet Metallurgical Works in Taganrog.

The new plant will incorporate the latest developments in SMS Meer’s Premium Quality Finishing (PQF) technology developed, the world’s most modern technology for the production of seamless steel pipes and tubes. The plant will replace two pilger mills and boost the annual capacity by more than three times with a significant increase in profitability.

The plant, which will produce tubes in the size range from 2?- to 10¾-inch, will be designed for an annual capacity of 600,000 tonnes. The product spectrum includes oil-and gas-field tubulars and structurals of the highest grades to meet all international standards.

SMS Meer’s scope of supplies and services includes supply of the complete equipment and technology, erection supervision, commissioning and training of the buyer’s personnel.

The start of production of the plant is scheduled for the beginning of 2008.

SMS Meer GmbH forms part of the Tube, Long Product and Forging Technology Business Area of the SMS group. SMS GmbH is the holding for a group of companies internationally active in plant construction and mechanical engineering relating to the processing of steel, non-ferrous metals and plastics. The group is divided into the Business Areas of Metallurgical Plant and Rolling Mill Technology, Tube, Long Product and Forging Technology and Plastics Technology. In the year 2005 some 9,250 employees worldwide generated a turnover of about EUR 2.33 billion.