Chelpipe Group

May 2014

2

Chelpipe Group

Sales, annual $4 bln

Investments in 2005-2013 $3 bln

Number of employees 32 ths. people

Production volume, annual 1,8 mln. ton.

Russian pipe market share 16%

Steel making 750 kt

White metallurgy – new standards of production,

labour and ecological safety.

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Dudinka

Pervouralsk

Nefteyugansk

Strezhevoy

Izhevsk Almetyevsk

Magnitogorsk

Moscow

Kazakhstan

Russia

Chelyabinsk

Almaty

Czech

Republic

Business structure

Network of scrap

collection sites

Scrap collection and

processing

Pipe fittings

Stop valves

Trunk Pipeline

equipment

Sales network

Sales branches in

Russia and Kazakhstan

Production of steel pipes

Pumping units

Oil production

equipment

Round and square

billets

Steelmaking

Pumping

equipment service

Pipe service

Geophysics

Oilfield services Development of

comprehensive

solutions

Engineering

Pipe fitting production

Oilfield services

Central branches

Pipe production

Oilfield service

LDP

OCTG

Industrial pipes

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JSC “ChTPZ”

Production of LDP and seamless pipes

“Vysota 239”

- state of the art LDP-producing mill

- up to X100 steel grade pipes

Tubular Division

JSC “PNTZ” Production of seamless pipes and OCTG

“Finishing center” - corrosion-resistant OCTG - premium connections threading

EAF «Ferrous Ozone 32»

- production of steel billets

Locations

Chelyabinsk

CHTPZ PNTZ

Pervouralsk

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Trunk pipeline equipment

CJSC “SOT”

Production of pipeline bends and

elbows.

Plants in Chelyabinsk and

Magnitogorsk.

MSA a.s. (Czech Republic)

One of largest producers of valves

in Europe.

SOT Chelyabinsk

Locations

SOT Magnitogorsk

MSA

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Oil Production Equipment

JSC “Izhneftemash”

Largest Russian producer of

- sucker rod pumps

- mud pumps

- suspended tongs

JSC “Alnas”

First Russian producer of electrical

submersible pump units (ESPU)

one of three largest producers of

(ESPU) in Russia

Izhneftemash

Locations

Alnas

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Engineering

“CHTPZ-Engineering” Ltd.

Research&Development support of the

production activities of Chelpipe Group

Specialization:

Development of complex solutions for

companies Metallurgy, Oil & Gas and Energy

sectors

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Investments 2005-2012

Vysota 239

Innovative LDP Plant

Capacity 900 kt/year

Investments: $880 mln.

Finishing Centre

Production of OCTG

Capacity: 125 kt/year

Investments: $210 mln.

Ferrous Ozone 32

Steelmaking

Capacity: 900 kt/year

Investments: $670 mln

College of the Future

Metallurgy staff training

Number of students: 400 persons

Investments: 25$ mln.

SOT

Pipeline fittings

Capacity: 23 kt/year

Investments: $80 mln

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“Vysota 239” LDP mill

Year of commissioning – 2010;

Investments - $880 mln.;

Capacity – 900 kt of large diameter

pipes per annum

Range: Ø20-56 inches

WT: 6,4-48 mm

Length: 10,6-18 м

Steel grade: X42-X100

3 sections for internal antifriction

coating and external 3-layer coating

Vysota 239 is the largest “greenfield”

LDP-producing mill in Europe and in

the world;

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Reference list

Customer Project Pipeline length, km Ø, mm

Shipments of large diameter pipes, bends and stop valves

for pipeline projects in Russia and CIS countries

Transneft ESPO 2 694 1020, 1067,

1220

Gazprom Bovanenkovo-Ukhta 1 100 1420

Ukhta-Torzhok 1 300 1420

CPC Caspian Pipeline Consortium 1 510 1020-1220

Kaztransgaz Beineu-Bozoi-Shymkent 1 475 1067

KazTransOil Atasu-Alashankou 962 813

South Stream AG South Stream

(Russian land section) 2 446 1420

CNPC Central Asia-China

(Kazakhstan), line D 1 300 1067

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“White Metallurgy” — a new

industry created in Russia in 2010

with the commissioning of mills:

–Vysota 239

–Ferrous Ozone 32

–Finishing Center

White Metallurgy

Advanced standards –Quality of products

–Qualification of employees

–Ecological safety

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Pervouralsk Metallurgical College –

a talent foundry of the plants of White

Metallurgy

College of the Future

Goal – to prepare qualified specialists who

meet the modern requirements of high-tech

production.

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Chelpipe – Complex Tubular Solutions for

Oil&Gas Sector

Pipes for Oil & Gas

Large diameter welded

pipes

Seamless line pipes

Oil Country Tubular

Goods

Casing

Tubing

Trunk pipeline equipment

Pipe Bends and Fittings

Valves

Oilfield equipment

Pumping units

Sucker rods