OAO TMK (TMK) announces today that it successfully completed the implementation of an SAP ERP based corporate information system at its Russian mills and proceeded to its industrial use.

The implementation of the SAP ERP based corporate information system will allow TMK to control and manage, in real-time, its sales, production, supplies, finances, accounting, and human resources. TMK customers will benefit from increased production quality, a unified billing platform, and real-time order and shipment tracking.

TMK information technology specialists worked together with management and identified the need for a corporate information system that would integrate a majority of the company’s activities. Manufacturing, supply chain management, tax compliance and accounting to IFRS best practice, human resources, and customer relationship management are some issues and activities that needed to be streamlined in one system. TMK awarded the SAP ERP implementation project to SAP CIS.

The system was implemented at Volzhsky, Seversky, Sinarsky and TAGMET mills.

The implementation of the SAP ERP based corporate information system, given its scope and complexity, was undertaken in different stages. On January 1, 2006, the SAP ERP system was launched at Volzhsky Pipe Plant and integrated the operations and production areas. Seven integrated modules – sales, production, supplies, accounting, finance, automation, and human resources were consolidated in one system. For the first time in the Russian metallurgical sector, a just-in-time production environment was established.

Earlier this year, “Maintenance and Equipment Repair” and “Project Management” functionalities were added to Volzhsky’s corporate information system. The second stage consisted of implementing the system at the group’s other facilities. From January 1, 2008, all of TMK’s Russian mills have been integrated in the ERP system industrial use.

“The implementation of our corporate information system was designed to consolidate and streamline the company’s strategies and operations, putting the company one step ahead of its peers. Moreover, we believe that facilitating cooperation and communication within the group will greatly benefit our customers and suppliers”, noted TMK’s CEO, Konstantin Semerikov.

“We hope that this SAP implementation, which is based on global corporate experience and production efficiency standards, will further enhance TMK’s competitiveness by giving it unique production advantages.”, said Mr. Iovan Maryanovich, CEO of SAP CIS. He also commented on the execution of the project, paying special attention to the implementation schedule and quality.