Capital expenditure
Throughout 2014, we continued our capital expenditure projects, which are focused on increasing our share of high value-added products, enhancing our production capacity for premium products, and reducing unit costs.
| 2014 | 2013 | Change | Change | |
|---|---|---|---|---|
| in millions dollars | in millions dollars | in % | ||
| Russia | 293 | 450 | (157) | (35) % |
| America | 41 | 44 | (3) | (7) % |
| Europe | 17 | 22 | (5) | (21) % |
| CAPITAL EXPENDITURE | 351 | 516 | (165) | (32) % |
Our key projects are the following:
- construction of a new Fine Quality Mill (“FQM”) at STZ: main equipment of the mill was commissioned in the 4th quarter of 2014, currently the construction and commissioning of auxiliary facilities are continued;
- implementation of complex Pipe Rolling Shop-3 development program at VTZ which aims to meet increasing customers’ requirements for product quality control and to increase the share of OCTG pipes with premium connections;
- installation of the threading equipment and modern hydraulic press installation as a part of the program to improve the quality of OCTG at SinTZ;
- completion of the main phase of the modernization of the production of seamless and welded pipes of stainless steels at ТМК-INOX;
- organization of the site for the production of pipes for hydraulic cylinders on TMK-ARTROM as framework of development of production for mechanical engineering;
- expanding finishing capacities at Koppel plant of TMKIPSCO, PA, including heat treatment capacity increase and installation of additional non-destructive testing equipment.