TMK is the world’s second-largest steel pipe producer. Its main production facilities are located in Russia (4.0 mln tpy) and the US (1.3 mln tpy). The company’s focus is the oil and gas pipe (OCTG, line pipe) segment, where it enjoys a dominant position on the Russian market. In 2008, TMK stepped into North America by purchasing some assets of the former IPSCO, financing the deal with a $1.2 bln bridge loan. The North American division is one of the company’s main hopes for an earnings turnaround, given the promising prospects of the fledgling US shale gas industry. In Russia, one particular line of business that has been doing well recently is LDP production. Demand for LDP is currently strong, buoyed by the pipeline capex of Gazprom and Transneft, and the company’s order book stretches well into 3Q11. TMK also enjoys solid growth in demand for OCTG pipes on the back of accelerating drilling by Russian oil majors.