Capital Expenditures

The following table provides information on TMK’s capital expenditures in each segment for the twelve-month periods ended 31 December:

  2010 2009 Change Change
  in millions of U.S. dollars in %
12Capital expenditures are defined as additions to property, plant and equipment
Russia 229 371 (142) (38)%
America 36 27 9 33%
Europe 5 14 (9) (64)%
TOTAL CAPITAL EXPENDITURES12 270 412 (142) (34)%

Given the difficult financial and economic situation that began in late 2008, TMK adjusted its strategic capital expenditure programme for the period from 2004 to 2011 and, accordingly, put on hold certain spending under the programme. Consequently, in 2010, TMK’s capital expenditures decreased by 34% as compared to 2009.

Throughout the year, TMK completed a modernisation of a continuous casting machine as well as a seamless rolling mill (MPM) at the Volzhsky plant. As a result, production of seamless pipe at the Volzhsky plant increased by 210,000 tonnes.

In 2010, TMK successfully commissioned a degassing mill and on-going construction of an EAF at TAGMET.

TMK IPSCO opened new facilities in 2010 which carried out premium threading in Brookfield and Catoosa, USA. The new production facilities strengthened TMK IPSCO market position in the premium products segment.

In 2010, TMK implemented environmental protection projects focused on reducing atmospheric emissions at TMK-ARTROM and TMK-RESITA. As a result, these production facilities managed to comply with strict environmental legislation in the European Union.

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