TMK requires a joint venture in order to increase its stainless tube and pipe capacities. Currently, the capacities amount to 200tns of HR and 170tns of CR tubes and pipes per month. A decision regarding the new joint venture will be determined by December 2010 as the parties are presently undergoing negotiations with the project details. Stainless seamless and casing tubes used for drilling in oil and gas sectors are ineffective after 1 to 1.5 years as the carbon steel tubes are applied in an acid environment. As a result, oil and gas companies are more inclined to purchase premium class tubes with better reliability characteristics. The main consumer of this JV will be military industry enterprises and state corporation Rosatom.