Tenaris NKK Tubes to Expand 13% Cr Seamless Output by 30%

Tenaris NKK Tubes will expand the 13% chrome steel seamless tube output capacity by around 30% from around 32,000 tonnes to more than 40,000 tonnes to meet growing demand for oil well tube as a part of Tenaris group’s strategy to shift to higher valued products. The firm finishes the expansion, which started in fiscal 2005 ended March 2006, in October 2006. The firm expands the 13% chrome steel seamless tube capacity, which is the only high valued product, as the Tenaris’ strategy to improve competitiveness by increasing higher valued products. The firm improved the bottle necks step by step including expansion of shot blast. Mr. Marcelo Ramos CEO said the firm plans capital expenditure for higher valued oil well tube in fiscal 2006. He said the firm can increase the output with additional capacity of heat treatment by minor investment. He said the firm will increase the 13% chrome steel seamless tube output by 25-30% from now by step-by-step expansion to finish in October. He said the firm will increase the output by importing billet from Europe. The firm adds new line to make TenarisBlue Dopeless, which don’t use grease and has advantage in extreme condition including gas development in North Sea. The firm tries to improve the profitability to expand the strategic items including 13% chrome steel seamless tube and special screw meeting oil well users’ needs.