David Mitch, President and CEO of TMK’s American Division, Comments on Friday’s
Determination by the U.S. Department of Commerce
HOUSTON - Monday, July 14th 2014 [ME NewsWire]
The following contains forward looking statements concerning future events. These
statements are based on current information and assumptions of TMK management
concerning known and unknown risks and uncertainties.
(BUSINESS WIRE)-- “We are encouraged by the Department of Commerce’s findings
regarding duties on low priced imported Oil Country Tubular Goods (OCTG) from Korea of
between 9.89% and 15.75%, as well as the duties assessed against the other eight countries.
We are optimistic that these findings will be supported by the final ruling of the International
Trade Commission, David Mitch, president and CEO of TMK IPSCO, the American division of
TMK, said today. “As this result was anticipated, and because welded OCTG, the product
category mostly affected by Korean imports, represents a small portion of TMK’s overall
EBITDA, the company is not making any adjustments to its sales and profitability forecasts.”
Over the past year, the American division has been shifting sales toward greater value-added
products, and working to develop products for the offshore and other premium market
segments. In parallel, the division has continued to scale back production of lower margin
products and increase operating efficiencies. Other factors contributing to this unchanged
outlook are planned reductions in capital expenditures and anticipated lower raw material
“We believe the trade case sets a precedent which will have a positive impact on future
import prices, as the affected countries will want to avoid any further trade case
investigations. There will be annual reviews in all these cases, especially Korea, if the ITC
upholds the DOC decision,” Mitch continued.
Longer term, TMK remains optimistic as several indicators point to increased gas demand,
which will result in greater application of TMK UP premium connections.
Note to Editors: See the Department of Commerce’s announcement in the OCTG trade case
TMK (LSE: TMKS) is a leading global manufacturer and supplier of steel pipe for the oil and
gas industry, operating 28 production sites in the United States, Russia, Canada, Romania,
Oman, UAE, and Kazakhstan and two R&D centers in Russia and the USA. In 2013, TMK’s
pipe shipments totaled 4.3 million tonnes. The largest share of TMK’s sales belongs to high
margin oil country tubular goods (OCTG) shipped to customers in over 80 countries. TMK
delivers its products as well as an extensive package of services in heat treating, protective
coating, premium connections threading, warehousing and pipe repair.
TMK’s securities are listed on the London Stock Exchange, the OTCQX International Premier
trading platform in the U.S. and on the Moscow Exchange MICEX-RTS.
TMK’s assets structure by division:
Russian division Volzhsky Pipe Plant Seversky Tube Works Taganrog Metallurgical Works
Sinarsky Pipe Plant TMK-CPW TMK-Kaztrubprom TMK-INOX TMK-Premium Service TMK
American division 12 plants of TMK IPSCO OFS International LLC European division
TMK-ARTROM TMK-RESITA Middle East Division TMK GIPI (Oman) Threading &
Mechanical Key Premium LLC (Abu-Dhabi
TMK IR Department:
Marina Badudina, +7 (495) 775-7600
TMK PR Department:
Ilya Zhitomirsky, +7 (495) 775-7600
TMK IPSCO Communications:
Roger Bentley, +1 832-678-5064