ChTPZ Group Ferrous Division Ships 107.9 thou tn of Product to Customers in January 2008

Chelyabinsk Tube-Rolling Plant and Pervouralsk New Pipe Plant shipped 107.9 thousand tn of pipe products to customers in January 2008, a decrease of 27% as compared to January 2007 results (148.4 thousand tn).

In January 2008, Chelyabinsk Tube-Rolling Plant shipped 58.2 thousand tn of pipe products to customers, 29% less than for the same period of 2007 (81.8 thousand tn). For this period the plant shipped 34.2 thousand tn of large-diameter pipes, 34% less than for the same month a year ago (51.6 thousand tn).

In January 2008 PNTZ shipped 49.7 thousand tn of pipe products to its customers, a decrease of 25% as compared to January 2007 (66.6 thousand tn).

The decrease in shipping volumes by ChTPZ Group compared to the same period of previous year was caused by high market activity in January of 2007 due to implementation of large pipeline projects by the major domestic oil companies, especially by supplies of LDPs to Oil Transporting JSC ‘Transneft’ for the construction of ‘East Siberia – Pacific Ocean’ pipeline.

This year CHTPZ Group expects a slight decline in the output level compared to 2007. The main reason is decrease in demand in LDP segment caused by the postponement of the implementation of major pipeline projects. However, the expected growth in demand from consumers of tubing, casing, boiler and cold-formed pipes will enable the company to increase production in these segments.