ChTPZ Group Ferrous Division Ships 1,758,000 Tn of Product to Customers in January-November of 2007

Chelyabinsk Tube-Rolling Plant and Pervouralsk New Pipe Plant, both in ChTPZ Group, shipped 1,758,000 tn of pipe products to customers over eleven months of the current year, an increase of 11% as compared to the same period of 2006 (1,577,000 tn).

January through November of 2007, ChTPZ sold 973,800 tn of pipes, 11% more than for the same period of 2006 (877,200 tn). The company shipped 546.3 thousand tn of large-diameter pipes, 18% more than for January-November a year ago (463,600 tn).

In November 2007, Chelyabinsk Tube-Rolling Plant shipped 85,300 tn of pipe products to customers, an increase of 3% as compared to November 2006 (82,900 tn). For this period the plant shipped 54.3 thousand tn of large-diameter pipes, 23% more than for the same month a year ago (44 thousand tn).

In November 2007 PNTZ shipped 48,616 tn of pipe products to its customers, a decrease of 30% as compared to November 2006 (69,400 tn). The decrease has occurred primarily due to overhaul of Mill “220” producing general-purpose and special seamless hot-rolled pipes. Company’s experts mention an increasing – most speedily from China – import of stainless and bearing pipes as a negative factor affecting PNTZ sales. This trend results in cutting down shipments of the highly profitable type of products from PNTZ and, respectively, decreases total profitability of enterprise’s sales. In November, overall decline in sales on regional markets has also resulted in decrease of pipe shipments from PNTZ.

Since early 2007, the plant shipped 784,600 tn of products, 12% more than for the same period of 2006 (700.1 thousand tn).