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. Last Updated: 07/27/2016

TMK Secures Credit Line for Pipe Mill

Pipe maker TMK has secured a credit line from France's Societe Generale to finance most of a project to build a new pipe mill, chief executive Konstantin Semerikov said Friday.

The loan would cover 85 percent of the cost of a seamless pipe mill being installed at its Seversky Pipe Plant, while the company would fund the remaining 15 percent itself, Semerikov said.

He declined to reveal the size of the loan or the cost of the new mill. TMK would open the nonrenewable credit line in the first quarter of 2008, he said.

Semerikov was speaking after signing a contract with Italian foundry equipment maker Danieli, which will supply the 600,000-ton-per-year seamless pipe-rolling mill to TMK.

The mill will take 27 months to install, a schedule that will allow it to start production in the first quarter of 2010.

Renaissance Capital metals analyst Yury Vlasov estimated that the contract could be valued at $330 million to $350 million.