Shiryaev Alexander Georgievich. Biography Alexander Georgievich Shiryaev TMK

Graduated from the Sverdlovsk Institute of National Economy.

Biography

Alexander Georgievich Shiryaev was born on January 1, 1952. In 1974 he entered the Verkh-Isetsky Metallurgical Plant JSC, where he worked for 23 years and went from engineer to financial director. From 1998 to 2000, he headed Uralshina JSC. In 2001 he worked as Deputy General Director for strategic development JSC " Trading house Sinarsky Pipe Plant. From 2002 to 2005, he was Deputy General Director for Finance and Economics of OAO TMK (ZAO TMK). In 2005, he took the post of vice president of Sinara Group CJSC. Since February 1, 2006 - General Director of Sinara Group CJSC.

On new position he replaced Konstantin Semerikov, who will remain in the company as the general director of the TMK Trading House and first deputy Alexander Shiryaev. “We plan to focus our work on the financial levers of managing the company’s activities. I am confident that the professionalism and experience of Alexander Shiryaev in the financial field and the commercial talent of Konstantin Semerikov will allow TMK to successfully cope with its tasks,” said Dmitry Pumpyansky, Chairman of the Board of Directors of OJSC TMK. OJSC TMK is Russia's largest manufacturer and exporter of pipe products (about 44% of the domestic market steel pipes). The main shareholder is Dmitry Pumpyansky (controls about 77% of the shares), about 23% of the shares are in free float. Net profit TMK in the first half of 2008 amounted to $158.2 million. EBITDA margin - 16% (at the end of 2007, EBITDA - 22.3%).

Based on preliminary results for 2013, Trubnaya metallurgical company(TMK) for the fifth time became the world's largest manufacturer of steel pipes in terms of shipment volumes, showing results at the level of 2012, which was much more favorable for pipe manufacturers. TMK General Director Alexander Shiryaev spoke about how this was achieved, the company’s plans for 2014 and the prospects for the pipe market.

- Alexander Georgievich, with what results did TMK complete 2013?

The final results for the year are still being compiled, but, according to preliminary data, TMK's shipment volume corresponds to the level of the record figure for 2012 and even slightly exceeds it. The greatest growth was achieved in the high-tech sector seamless pipes. These are the company's key products, accounting for more than half of TMK's total sales.

The enterprises of the Russian division of TMK finished the year with good results, which is explained by the activity of domestic oil and gas companies in the field of exploration and production of hydrocarbons. As a result, the company retained its leading position in the Russian pipe market. On the other hand, due to macroeconomic factors, the situation in our American and European divisions remains quite difficult.

- How do you assess the situation on the global pipe market in 2013?

In 2012, a decline began in the metallurgical sector, which continued in 2013. The fall in demand led to a decrease in prices for metal products, which, in turn, affected production and economic indicators companies in the metallurgical industry, including pipe companies.

For pipe makers, a tangible consequence of instability is a shrinking market. Taking into account the changing market situation and budget sequestration, pipe consumers are adjusting their investment plans, reducing purchasing programs, and reorienting towards cheaper assortments, which naturally affects the financial and economic indicators of the activities of pipe manufacturers. And taking into account import supplies to our main “home” regions (Russia and the USA), it can be stated that both global and local competition in the steel pipe market is seriously increasing.

- How might this affect the implementation of TMK’s investment plans?

To date, we have almost completed the implementation of TMK's strategic investment program. Since 2004, the total volume of investments aimed at these purposes has exceeded US$3 billion. A large-scale ten-year program for the modernization and reconstruction of all TMK production sites serves as a powerful technical foundation and technological foundation for the company’s successful activities for the next 15-20 years. From major projects We just have to complete the reconstruction of the pipe rolling production at the Seversky Pipe Plant with the construction of a continuous FQM mill. Most of the work at the facility has already been completed, and it will be put into operation in 2014.

The key project of 2013 was the launch of an arc steel furnace (AFF) at TAGMET with the participation of Russian President Vladimir Vladimirovich Putin, who highly appreciated our work. The launch of the furnace marked the completion of the modernization of the entire steelmaking and rolling complex of the enterprise. Moreover, as a result of the launch of EAF, TMK was able to completely abandon the outdated open-hearth method of steel production. As a result of replacing open-hearth production with electric steelmaking, unit costs are significantly reduced and quality is improved final products, and pipe billet production capacity increased by 400 thousand tons year on year.

TMK does not yet plan any other major investment projects, but our financial situation more stable and comfortable.

How do they develop? foreign enterprises TMK, given the current market situation? Which international markets are most important to you?

TMK is a global company. We try to offer our products in all major hydrocarbon production regions. Some of the markets are “home” for us. Manufacturing plants Russian, American, European and Middle Eastern divisions of TMK have stable positions and are recognized players in their country markets, leading active work by gradually expanding their borders. At the same time, the Russian and North American markets remain the most significant for us.

At the beginning of 2013, construction was completed and a new enterprise was launched for the production of pipes with premium threaded connections and service in Edmonton (Canada). Consistently developing our priority oilfield service business, in April 2013 our subsidiary The TMK company - OFS International (USA) - acquired assets for the service of pipe products and the production of accessories for the oil and gas industry in Houston (Texas, USA).

There were also important events in the Middle East division. In December 2012, we acquired a controlling stake in the Gulf International Pipe Industry (TMK GIPI) pipe plant located in Oman and are now actively developing production there. Then we registered in Abu Dhabi (UAE) a joint service company with EMDAD, Threading and Mechanical Key Premium LLC, which will specialize in repairing pipes and downhole equipment, as well as cutting threads on elements of pipe strings. This will allow us to strengthen our position in the Middle East pipe market.

We expect that this year the volumes of products and services offered by the division’s enterprises will grow, and the geography of supplies will not be limited to the regional market and will expand.

In addition, we are developing own network sales representatives that operate in all major oil and gas regions of the planet. Today, the geography of shipments of our products includes 80 countries, and we do not plan to stop there.

- How instability in the international market for pipe products caninfluence the general condition of TMK? Will your foreign assets drag the company back?

Today we do not see such a threat. Moreover, it was geographic diversification that helped the company survive the 2008-2009 crisis quite painlessly due to the fact that the consequences of the decline in one market where our products are represented were offset by relatively stable sales in another.

In general, the structure of our company is an absolute plus. We have excellent opportunities for cooperation between divisions. For example, a pipe produced in Taganrog can be shipped to the USA and, after finishing operations at the enterprises of the American division, delivered to the consumer in the USA or Canada. At the same time, products receive added value precisely when processed in American factories, which is valued significantly higher by the client.

And this applies not only to pipes. There is an intensive exchange of technologies, developments, and business practices between divisions. This allows you to get a synergistic effect. It manifested itself most clearly in the premium segment of TMK’s business. The American and Russian divisions developed two of their own lines of premium products with different properties and technical characteristics. Now they are united under one brand. As a result collaboration Americans got the opportunity to produce premium compounds Russian development, and the developments of our American colleagues have been introduced into production in Russia and are successfully supplied to domestic consumers. Everyone benefits from such interaction - not only TMK’s Russian and American plants and the company as a whole, but also our consumers around the world.

What other reserves do you have to increase competitiveness and profitability in conditions of turbulence in the market? ?

The key to increasing profitability is to produce premium products with high added value. In 2013, TMK supplied its customers with more than 360 thousand tons of OCTG pipes with premium threaded connections. It is no secret that companies in the oil and gas sector, our key clients, require more and more such products to produce hydrocarbons in difficult conditions.

In order to offer consumers the most modern developments, engineers companies conduct extensive research work. A year ago, employees of the American division of TMK IPSCO opened a research center in Houston (Texas, USA). The center's equipment allows for the development of new types of products, pilot and evaluation tests, and certification of pipes.

In the spring of 2013, TMK entered into an agreement with the Skolkovo Foundation to create and locate a TMK R&D center in the foundation's technology park. It will become the third research division of the company, together with the RosNITI Institute in Chelyabinsk and the R&D center in Houston. We expect that the innovation center in Skolkovo will open up new opportunities for development and implementation promising technologies and types of products.

As a result of our efforts aimed at creating, producing and promoting our own premium developments, the shipment of pipes with premium threaded connections has increased by more than a third. Currently, premium products account for about 20% of TMK’s EBITDA. In 2013, about 100 new types of products with unique properties were introduced.

By the way, a significant event took place last year - the birth of a new brand in our product line. Two already proven premium families threaded connections(Russian TMK Premium and American TMK Ultra) are now produced under a single name - TMK Ultra Premium or TMK UP. This step will significantly expand the company’s ability to participate in international tenders, will help unify TMK’s global comprehensive offer and increase recognition of the company’s premium products on the global market.

In the direction of increasing the company’s profitability, the development of TMK’s oilfield services business is also no less important for us.

- If we talk about oil and gas services, how strong is your position in this segment?

The enterprises of our TMK Neftegazservice division provide services for heat treatment, application of protective coatings, repair and storage of pipes. Our specialists assist in the configuration, assembly and lowering of pipe strings into wells, and provide training technical staff consumer companies. Selling products in combination with services gives companies competitive advantages and supports sales of oil and gas grade pipes ament.

Some services provided by TMK to Russian consumers are unique. For example, in August TMK acted as a supplier of pipe products and services to prepare a well at the field of the Orenburgneft company (part of Rosneft) for hydraulic fracturing. This technology is one of the unconventional drilling methods that is widely used in the United States in the development of shale gas fields, and TMK is one of the main suppliers of pipes for such tasks. This project with Orenburgneft is very significant for us, since for the first time in Russia, premium TMK products were used in the technological operation of hydraulic fracturing.

"Biography"

Graduated from the Sverdlovsk Institute of National Economy.

In 1974, he entered the Verkh-Isetsky Metallurgical Plant JSC, where he worked for 23 years and rose from engineer to financial director.

"Ratings"

"News"

Over the first half of the year, the Russian pipe market fell by 6% due to the completion of construction of the largest pipelines

TMK increased sales of seamless pipes, but revenue from LDP decreased.

“In Russia, one of our main priorities remains the development innovative solutions, for example, unique corrosion-resistant casing pipes made of TMK-S alloy and the country's first electronic platform retail pipes,” said the company’s general director, Alexander Shiryaev.

Vyacheslav Popkov was appointed First Deputy General Director of TMK for the production and technical block

“Working successfully for many years at one of key plants of our company, Vyacheslav Popkov has proven himself to be a competent, demanding leader and specialist the highest level. This experience is a reliable help in deciding strategic objectives to improve production efficiency, technical development and the introduction of new technologies to strengthen TMK’s global leadership position,” commented TMK CEO Alexander Shiryaev.

TMK intends to raise 10.41 billion rubles during the secondary placement of shares.

TMK General Director Alexander Shiryaev expressed confidence that the SPO will increase the liquidity of the company's securities, which will have a positive impact on its shareholders.

“We consider the secondary public offering to be successful, since the shares were priced above the initially expected level,” Shiryaev explained.

Volzhsky Pipe Plant received the Russian Federation Government Award in the field of quality

“Awarding VTZ the Government Prize Russian Federation in the field of quality, this is a high assessment of the work of the enterprise’s many thousands of employees,” says TMK General Director Alexander Shiryaev. – Working in new economic conditions“TMK successfully solves the problems of import advance, creates new high-tech, highly efficient and comprehensive pipe solutions that allow us to most fully satisfy the needs of our consumers.”

Alexander Shiryaev, Chairman of the Board of TMK

TMK ANNOUNCES PERSONNEL CHANGES

Pipe Metallurgical Company (TMK) announces the appointment of Alexander Lyalkov as Managing Director of OJSC Volzhsky Pipe Plant (VTZ) as of February 14, 2013, working as First Deputy General Director of TMK. Elena Blagova, who has held the position of Managing Director of VTZ since 2007, is moving to the TMK management company, where she will be involved in the development of new projects.

“We are not a bank to turn on the meter,” - Alexander Shiryaev, General Director of the Pipe Metallurgical Company

TMK managers are regular participants in anti-crisis meetings of the government and industry. The new CEO of TMK believes that so far the state is doing everything right

This year, Pipe Metallurgical Company (TMK) became the largest pipe company in the world in terms of capacity. It was allowed to take first place by the purchase of American plants of the company Ipsco, for which TMK paid with $1.2 billion borrowed on credit. Investors perceive large debt during the crisis as a negative, and TMK’s capitalization fell because of it. But the company has already managed to refinance short-term loans for $400 million, and negotiations are underway with banks on the remaining debt. In addition, TMK submitted an application to Vnesheconombank for a loan. VEB recently allocated $1.8 billion to Evraz Group to refinance loans taken, including for the purchase of Canadian assets of Ipsco, and so far there is no reason to think that the state will refuse TMK a similar transaction. Alexander Shiryaev, who was appointed CEO of TMK at the end of November, tells Vedomosti about how the company plans to develop in the context of the global crisis.

Alexander Shiryaev: TMK relies on premium products and oil and gas services

According to the preliminary results of 2013, the Pipe Metallurgical Company (TMK) for the fifth time became the world's largest manufacturer of steel pipes in terms of shipment volumes, showing results at the level of 2012, which was much more favorable for pipe manufacturers. TMK General Director Alexander Shiryaev spoke about how this was achieved, the company’s plans for 2014 and the prospects for the pipe market.

Deeper into the fuel and energy complex

General Director of OJSC TMK Alexander Shiryaev: “ Russian market steel pipes have shown significant growth, reaching record volumes over the past 20 years"

Alexander Shiryaev, TMK: “Even in the USA, electricity is cheaper than in Russia”

The General Director of the Pipe Metallurgical Company in an interview with Portal 66.ru - about new production, the dangers of the WTO and the market situation.

This week, Evgeny Kuyvashev personally opened two new lines at the Sinarsky Pipe Plant. One will produce pipes with a diameter of 12 to 35 millimeters, the other - from 30 to 120 millimeters. After the governor left, General Director of the Pipe Metallurgical Company Alexander Shiryaev answered several questions from Portal 66.ru.

Chubais joined the board of directors of TMK

Moscow. June 23. INTERFAX.RU – The head of Rusnano, Anatoly Chubais, joined the board of directors of Pipe Metallurgical Company (TMK), as follows from the company’s message. Meanwhile, the manager management company TMK Elena Blagova left the board of directors.

The remaining members of the company's former board of directors were re-elected to the new board. This, in particular, is the largest beneficiary of the group Dmitry Pumpyansky, TMK General Director Alexander Shiryaev and his deputies Andrey Kaplunov, Sergey Papin, Igor Khmelevsky. Independent directors also retained their positions: former Vice President of Rosneft OJSC for Finance Peter O'Brien, former First Vice President of RussNeft (MOEX: RUSN) Oleg Shchegolev, President of Barclays Capital Russia Bob Foresman, Chairman of the Board of UniCredit Mikhail Alekseev , President of the Russian Union of Industrialists and Entrepreneurs Alexander Shokhin.

There have been personnel changes in the management of TMK. Alexander Shiryaev became the General Director of OJSC TMK.

At a meeting of the TMK Board of Directors, a number of organizational and personnel decisions were made. As reported in the press service of TMK, a member of the board of directors of the company, Alexander Shiryaev, who was the General Director of ZAO Sinara Group and previously Deputy General Director for Finance and Economics of OAO TMK, was appointed to the position of General Director of OJSC TMK. Konstantin Semerikov will continue to work in the company as General Director of CJSC Trading House TMK and First Deputy General Director of OJSC TMK.

Another first deputy general director of OAO TMK was Andrey Kaplunov, a member of the company’s board of directors. His place on the nomination and remuneration committee of the board of directors of OAO TMK was taken by member of the board of directors Igor Khmelevsky. “With the completion of the main stage of the Strategic Investment Program, thanks to which TMK today has the world’s largest pipe production capacity, we are faced with the task of strengthening our position in traditional markets and strengthening our efforts to enter new markets. I am confident that the professionalism and experience of Alexander Shiryaev in the financial field and the commercial talent of Konstantin Semerikov will allow TMK to successfully cope with its tasks,” said Dmitry Pumpyansky, Chairman of the Board of Directors of OJSC TMK. - The day before

TMK: metallurgists of the Russian Federation can provide the fuel and energy complex with almost all the necessary products

“We approached the conditions of sanctions with such economic and technical equipment that we can provide almost all the products needed for the extraction of hard-to-recover, complicated reserves,” said Alexander Shiryaev, General Director of OJSC Pipe Metallurgical Company (TMK).

TMK and Gazprom signed a scientific and technical cooperation program

Pipe Metallurgical Company, one of the world's largest manufacturers of pipe products for the oil and gas complex, signed an agreement on scientific and technical cooperation with Gazprom for 2015-2020. The document was signed by TMK General Director Alexander Shiryaev and Head of the Gazprom Prospective Development Department Dmitry Lyugai.

The program provides for solving, on a mutually beneficial basis, the tasks of meeting Gazprom’s needs with pipe products. She identifies three areas of scientific and technical cooperation as priorities: the development of new types of pipe products, import substitution measures, as well as the exchange of experience and research.

MMK and TMK have determined the price formula for sheet metal for LDP production

At the International Industrial Exhibition “Metal-Expo’2014” in Moscow, Magnitogorsk metallurgical plant(MMK) and Pipe Metallurgical Company (TMK) signed an agreement to apply a formula for calculating the price of wide-format hot-rolled sheets when delivered to TMK enterprises. The agreement determines the price formula for metal products until the end of 2015 and takes into account the interests of both parties. The document was signed by MMK General Director Pavel Shilyaev and TMK General Director Alexander Shiryaev.

Pipe products for the Power of Siberia gas pipeline

TMK became one of the suppliers of pipe products for the Power of Siberia project following the results of a Gazprom tender held in March 2015.

The company won one of the large lots for the supply of LDP in 2015 and 2016 in the amount of about 12.6 billion rubles. The range of products shipped is pipes with a diameter of 1420 mm, a wall thickness of 21.7 mm, made of steel of strength class K60 with a working pressure above 9.8 MPa, with external anti-corrosion and internal smooth coatings, produced by the Volzhsky Pipe Plant (VTZ). In total, in 2015 and January-February 2016, TMK plans to ship 152 thousand tons of pipes as part of the Power of Siberia project.

TMK CEO Alexander Shiryaev, Interview with Vedomosti

“The state could purchase raw materials and supplies that can be stored and that will be in demand. If demand recovers, these products could be quickly sold. The state, unfortunately, does not offer such measures...”

“We are not a bank to turn on the meter,” - Alexander Shiryaev, General Director of the Pipe Metallurgical Company

TMK managers are regular participants in anti-crisis meetings of government and industry. The new CEO of TMK believes that so far the state is doing everything right

Newspaper "Vedomosti", No. 227 (2249) dated 12/01/2008
Yulia Fedorinova

Biography
Alexander Georgievich Shiryaev was born on January 1, 1952 in the Kurgan region. In 1991 he graduated from the Sverdlovsk Institute of National Economy. In 1974, he began his career at the Verkh-Isetsky Metallurgical Plant, and in 24 years he worked his way up from an electrician to a financial director.

1998 - General Director of OJSC "Uralshina"
2001 - Deputy General Director of the Trading House of the Sinarsky Pipe Plant
2002 - Deputy General Director for Finance and Economics of TMK
2005 - Vice President of the Sinara group
2006 - General Director of the Sinara group
2008 - General Director of TMK

Pipe Metallurgical Company (TMK)

The largest pipe manufacturer in Russia

Sales of pipes – 2.75 million tons (10 months, 2008).
Financial indicators (IFRS, first half of 2008):
revenue – $2.37 billion,
net profit – $158.2 million.

The company was founded in 2001. It unites the Volzhsky, Sinarsky and Seversky pipe plants, the Taganrog Metallurgical Plant, the TMK-Artrom pipe plant and the TMK-Resita metallurgical plant (both in Romania).

The main owner is TMK Steel Limited (74.83%), owned by the Chairman of the Board of Directors of TMK Dmitry Pumpyansky. TMK's capitalization on the LSE is $1.2 billion; since the beginning of the year it has fallen almost 8 times.

What is the reason for your appointment at TMK? Are you a crisis manager? Konstantin Semerikov, who led the company before you, was unable to cope with the assigned tasks?

Of course, I have experience working in crisis situations in the turbulent 1990s or in 1998 in conditions of severe non-payments. But my appointment has nothing to do with this. The fact is that this year, with the purchase of American pipe factories, TMK finally turned into a global company. In this regard, there was a need to change approaches to management. TMK will become the center for making strategic and financial decisions, and local operational management will be transferred to the heads of the divisions that we plan to create. For now there will be three of them: Russian, including the CIS, European and North American. The formation of the latter has already been completed: it is headed by Petr Golitsyn (former member of the board of directors of TMK and head of the Russian representative office of BASF. - Vedomosti). Formation new structure, and then I will deal with management. My appointment does not mean that my predecessor, Konstantin Semerikov, failed to cope with anything. He is a great professional with extensive experience in the industry. He is now simply entrusted with new tasks and functions - as the general director of the TMK Trading House.

Is your contract signed for a long time?

- For a year. According to TMK's charter, the powers of the general director must be confirmed annually.

How did the crisis affect TMK?

The pipe market has narrowed. This is especially true for the general purpose pipes segment: demand from mechanical engineering, housing and communal services and construction enterprises has fallen. In October (compared to September), this segment for welded pipes decreased by 28%, for seamless pipes - by 5%. And if we compare it with October last year, the drop was 21% and 16%, respectively. In the segment of oil and gas pipes, mainly for us, demand by the end of the year, according to our estimates, will fall by 10%, but overall it will be stable. In the segment of large-diameter pipes, consumption decreased by more than 40% over 10 months due to the postponement of major projects such as Nord Stream and ESPO.

The production of general purpose pipes, where there is a decline, is a low-income segment; in the production of pipes in the oil and gas segment, the decline is not so large. Of course, we have to reduce production in Russia, but to a lesser extent than our competitors. In October Russian enterprises TMK produced 12% less than in October last year, but 5% more than in the previous month. We benefit from this - in October, TMK's share of the Russian market increased to 29% from 27.8% in September. As for large-diameter pipes, our negotiations with Gazprom and Transneft give reason to believe that there will be more orders next year.

Finally, we compensate for the decreasing volumes in Russia through the work of TMK Ipsco, the results of which turned out to be higher than planned. In August 2008, 70,000 tons were shipped, in September - more than 86,000 tons, and in October - 95,000 tons. Pipe production at TMK as a whole in 2009 will also increase by 20-25% from 3.2 million tons this year. In addition to TMK Ipsco, the investment projects we have implemented will also make a contribution: a continuous pipe-rolling unit complex for the production of seamless pipes (PQF) at the Taganrog Metallurgical Plant and a line for the production of straight-seam large-diameter pipes at the Volzhsky Pipe Plant.

In the US, it turns out that demand has not fallen at all if Ipsco is increasing production?

Of course, the crisis also affected the American oil and gas industry. We predict a certain reduction in demand as the decline in oil prices and natural gas makes production from unconventional wells unprofitable. Some small players will be forced to freeze their projects or leave the market altogether. But the structure of the American market is diversified - there are a large number of pipe consumers and a well-developed distribution network, which makes it possible to stop the decline and avoid sharp jumps. Besides American market oil and gas pipes is the largest in the world. At the same time, it has a large share of imports, especially Chinese. And we predict increased competition. But we feel quite confident in the competition, since TMK Ipsco is a traditional pipe supplier for a number of American oil and gas companies. We forecast that the market for our segments will decline by no more than 15%.

And in Russia, are your main clients - Gazprom, the oil industry - now paying for pipes?

- Gazprom is a first-class client with a 100% payment reputation. Its receivables are a normal phenomenon associated with the peculiarities of planning and implementation of Gazprom investment projects. We are constantly in contact with Gazprom and are trying to resolve the accumulated issues. Accounts receivable our Russian clients now amount to about 11 billion rubles.

How much of this amount is due to overdue debt?

- We are not a bank, so we can clearly say: that’s it, starting tomorrow we will turn on the meter and charge interest. We are flexible in our relationships with clients and know how to negotiate with them.

Do you pay your suppliers yourself?

TMK's debt to suppliers is less than our accounts receivable. We are connected with our suppliers, we have been cooperating for a long time and always find a common language, including on such complex issues.

What anti-crisis measures are being introduced at TMK?

This is not the first crisis that we are going through, and what to do is, in principle, clear. The measures are standard: we are auditing operating and capital costs, reducing and postponing non-priority ones, and optimizing management personnel. Our strategy was developed in 2005 and included the implementation of a large investment program worth $2.5 billion. This program was largely completed - fortunately, even before the crisis began. We spent $1.7 billion on modernization. In addition to the PQF continuous mill, a new thermal department was introduced at Tagmet; a mill complex for the production of straight-seam large-diameter pipes and a finishing processing section for oil and gas pipes (a line for finishing casing pipes and a thermal department) were launched at the Volzhsky Pipe Plant. an electric furnace melting complex at the Seversky Pipe Plant, a thermal department at the Sinarsky Pipe Plant and many other smaller, but no less important projects. As a result, we increased pipe production capacity by 1.3 million tons, heat treatment capabilities by 740,000 tons per year, and electric steel production by 1 million tons per year. And we got all this this year. Starting from 2009, we will significantly reduce external purchases of blanks, which is especially important during a crisis of liquidity and confidence. The remaining part of the investment program is the construction of an electric furnace melting complex at Tagmet and an FQM continuous rolling mill complex at the Seversk plant. We will not implement these projects in 2009. We plan to postpone the active phase of their implementation to 2010. But we will definitely do it. We also do not change our plans for the development of the service area. We can already be said to be partly a company in the mechanical engineering industry - we produce products at the intersection of mechanical engineering and metallurgy. After all, the machining of pipes we carry out is closer to mechanical engineering. We already have the Orsky Machine-Building Plant, which has been repurposed to produce locks for drill pipes. Now it is part of the TMK Neftegazservice division. We also created the TMK - Premium Service division, which specializes in pipes with premium threaded connections.

You cut costs. Will you now buy back 49% of the shares of the NS Group plant (owned by Ipsco) from Evraz Group? The transaction amount was fixed at $500 million, which is quite a lot now.

Certainly. We always fulfill our obligations.

How many employees does TMK fire?

There are no targeted reductions planned at the company's factories. However, optimization of personnel by limiting admission and further implementation of the outsourcing program will lead to a significant reduction in numbers. By the way, over the past four years, as part of an outsourcing program, we have reduced our workforce by about 10,000 people. At the same time, everyone is provided with work and we have maintained normal relations with trade unions. The introduction of new capacities will allow the redistribution of people between enterprise departments, which will contribute to the smooth implementation of optimization.

TMK has quite a large debt - about $3 billion. In a crisis, this is a problem. It is believed that the company's capitalization is falling largely because of this. Do investors have reason to worry?

Currently the debt to EBITDA ratio is approximately 3. But the situation is not critical. We successfully refinanced short-term debt that was due this year. Next year we plan to gradually reduce the level of debt. We will also shift the debt into a longer one. Negotiations on this matter are already underway, and they are successful.

How much will EBITDA grow?

Now any estimates and forecasts are conditional. But for now we think it [will grow] by 10-20%. This will happen thanks to the consolidation of TMK Ipsco and completed investment activities.

Have you applied to VEB for money?

Yes. There is now generally a “people's path” to VEB. (Smiles.) (Shiryaev refused to name the size of the application. - Vedomosti)

In general, from your point of view, is it not dangerous to take loans from the state now? Is this not the first step towards nationalization?

No. This is real government support for business, and for us it is one of the opportunities to get money where it is. The government's actions to support basic sectors of the economy, which include the oil and gas complex and metallurgy, are logical and justified. Stability in these industries insures against a general economic collapse, and therefore prevents negative social consequences.

In your opinion, how fair is it that state banks give money to the real sector for market conditions? After all, there are no preferential rates.

There will be no such interest rates on loans as before. Everyone understands this. Yes, the state allocated cheap money to banks. But it will also demand that the banks return them. Therefore, banks take risks when issuing loans to companies. This risk turns into a bet.

You recently received a loan from VTB. What are state banks asking for as collateral now?

From borrower to borrower, I think it varies. For us these are fixed assets and working capital.

Thanks to the crisis, all assets fell in price. Do you see any merger opportunities for TMK now?

No other company in the world currently has such capacities as TMK. We are improving what we already have. And although everything is cheap now, this is not the time for shopping. If something really falls, we are ready to raise it, but we’ll think about it too. (Smiles.)

Have you already started negotiations on long-term contracts for next year with suppliers and clients? What price formula and timing for its revision do you consider optimal?

We have a long agreement with MMK, and we expect to conclude one with others. Optimal, from our point of view, would be contracts for three years with price revisions quarterly depending on changes in various indices. They must be tied to inflation, changes in prices for primary raw materials, etc. The Ministry of Economy and the Federal Antimonopoly Service want to develop a universal formula. But so far we have difficulty imagining how this can be done.

Do you think it’s time to introduce government procurement to support the metallurgy and pipe industries?

- The formation of state reserves could be one of the measures to stabilize the economy. The state could purchase pipes, copper, aluminum, cast iron from enterprises, i.e., raw materials and supplies that can be stored and that will be in demand. If markets open and demand recovers, these products could be quickly sold. True, the state, unfortunately, does not offer such measures.

Was it a pity to leave the Sinara group, which you led for several years, for TMK?

- “Sinara” is a very interesting project. But, on the other hand, which hand is more valuable to you? Right or left? Both are needed. In recent years, we have brought Sinara to a certain level, formed and approved a development strategy. An ambitious and professional management. Sinara has several main areas of investment that it will develop. One of them is transport engineering. We have created a small but very promising holding company - Sinara Transport Machines (STM). It includes the Ural Railway Engineering Plant, the Lyudinovsky Diesel Locomotive Plant - perhaps the Ural Diesel Engine Plant will soon [enter]. STM created a new electric locomotive from scratch and put it into production. In the locomotive building market of Russia and the CIS countries, the holding's goal is to gain a share of up to 40% in electric freight locomotives and up to 50% in shunting diesel locomotives, as well as enter new markets. Over time, I think this company can become a serious competitor to Transmashholding. The second strategic direction for Sinara is development; the company has projects in Yekaterinburg, Volgograd, and Sochi. And finally, the third direction is financial, SKB Bank. Among the largest banks in Russia, according to various indicators, it occupies positions from 70th to 60th. We are successfully developing this bank, here we have reliable partner- EBRD with a 25% share. Sinara recently acquired the Sverdlovsk Provincial Bank, which will be merged with SKB.

Have the group's assets ever been valued?

We did it for ourselves. According to our estimates, the Sinara group is five times smaller than TMK.

14 years with Pumpyansky

Shiryaev met the future owner of TMK Dmitry Pumpyansky in 1994 at the Verkh-Isetsky Metallurgical Plant: then Pumpyansky was its commercial director. Shiryaev also participated in the creation of the Pipe Metallurgical Company - in 2001, he negotiated with the MDM group on behalf of the Sinara group on the integration of assets based on TMK. But Shiryaev did not become a major shareholder of these companies. In TMK, according to official data, Shiryaev owns 0.0162% of shares, and in the Sinara group he participates in an option program for management. “My package [there] is small, but good,” smiles the TMK CEO.