Metal One Metal One Coporation
September 5, 2003
Metal One Wins "Sakhalin 2" Project Line Pipe Order
-- For Natural Gas Development --

Metal One Corporation (president, Masashi Mizutani), headquartered in Minato Ward, Tokyo, was recently awarded a contract from Sakhalin Energy Investment Company Ltd. for line pipe for the "Sakhalin 2" natural gas development project in Russia.

This pipeline will reach a total length of 1,600 km (two 800-km sections running north to south). Metal One has been awarded an order for approximately 900 km of pipe. The total value of the order is approximately U.S.$280 million and the weight of the pipe will be some 330,000 tonnes. The order is the largest pipeline project ever landed by a Japanese company.

Metal Trans Far East, an equal-equity joint venture between Metal One and Russian trading company, Transpromresurs, will build a new pipe-coating plant on a site adjacent to i/o Vostochny Port in the Russian Far East. The finished facility will be supplied with pipe purchased by Metal One from JFE Steel Corporation, Sumitomo Metal Industries, Ltd., and Nippon Steel Corporation.

The pipe obtained through this system will undergo coating domestically in Russia and then be delivered to Sakhalin Energy Investment Company Ltd. via Metal Trans Far East.

To facilitate the smooth launch and efficient operation of the coating plant, equipment and technical guidance will be furnished by Garneau Inc., a major Canadian pipe-coating concern with which Metal One has a tie-up. The plant is expected to become a key base in the Russian Far East for future Metal One pipeline projects and is expected to make a significant contribution to the development of the local economy.

* Metal One Corporation was established in January of this year as a corporate venture aimed at integrating the steel product businesses of Mitsubishi Corporation and Nissho Iwai Corporation.
* Sakhalin Energy Investment Company Ltd. is a joint-venture company with the following equity breakdown: Royal Dutch/Shell Group of Companies, 55%; Mitsui & Co., Ltd., 25%; Mitsubishi Corporation 20%.
* Pipe deliveries to Sakhalin Energy Investment Company Ltd. are scheduled for the 18-month period from September 2003 through February 2005.

 <Reference Materials>

1. Sakhalin Energy Investment Company Ltd. -- Profile
      - Established: April 1994
      - Location: Yuzhno-Sakhalinsk, Russia

2. Transpromresurs -- Profile
      - Established: July 1998
      - Location: Head office, Moscow, Russia; branch office, Vostochny, Russia

3. Metal Trans Far East -- Profile
      - Established: June 2003
      - Location: Head office, Moscow, Russia; branch office, Vostochny, Russia

4. Garneau Inc.
-- Profile
      - Established: June 1968
      - Location: Edmonton, Canada

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