The Russian pipe producer TMK Group (TMK) has announced the conclusion of a supply agreement with Italian company Danieli for the delivery of a new fine quality mill (FQM) to be installed at TMK's subsidiary, Seversky Tube Works (Seversky).
The new FQM will have an annual production capacity of 600,000 metric tons of pipes and will produce hot rolled seamless pipes with diameters ranging from 168 to 356 mm and wall thicknesses of 6.28 to 37.3 mm.
The commencement of production at Seversky's new FQM is scheduled for the second quarter of 2010.
The installation of the new FQM at Seversky is in line with TMK's modernization program for its subsidiary, which is aimed at achieving cost savings, improving quality and product mix, and enhancing production of seamless high-performance pipes for the oil and gas industry.
In addition to the new FQM, a new modern metallurgical complex is being constructed at Seversky as a part of its modernization program, to satisfy the mill's needs in billets. A new continuous billet caster with annual production capacity of 950,000 metric tons was put into operation in December 2006, while a new electric arc furnace (EAF) with annual production capacity of one million metric tons is to be commissioned in 2008.