Which increased confidence in the markets and stimulated further growth in oil and gas prices. Oil and gas drilling activity rose significantly as a result, primarily in North America. Pipe demand in Russia was supported by a strong domestic oil and gas market, while pipe markets in the CIS, Europe, and Middle East also demonstrated growth.
In this environment, TMK was able to boost production. The Group sold 3.8 million tonnes of steel pipe, a 9% year-on-year increase, and maintained its position as the world’s largest producer of tubular products for the ninth consecutive year. 2017 was a landmark year for our American division. Rising oil prices saw oil producers consistently increase their E&P budgets and extend their drilling activity.
The American division was able to fully capitalize on these favorable market conditions, growing sales of tubular products, including OCTG, by 2.4 times year-on-year, and significantly improving its financial performance. A relaunch of the Camanche and Catoosa plants and the introduction of additional work shifts at Blytheville, Wilder, and Geneva boosted the division’s production.
The Russian pipe market was stable overall. Increased drilling by the oil and gas majors enabled TMK to boost sales of itskey seamless OCTG pipe. That said, due to weaker demand and sales of welded large diameter pipe (down almost 50% year-on-year) shipments of tubular products from TMK’s Russian division remained broadly flat year-on-year.
In 2017, our European division achieved efficiency improvements, increased sales by 6% and improved its financial performance year-on-year. We believe that launching a new heat treatment facility at TMK-ARTROM will increase the share of premium products in its total tubular product sales this year.
The Middle East division demonstrated record-high sales in 2017, having become the preferred supplier for a number of major players in the region, including ONGC, Saudi Aramco, and PDO.
The Company’s concerted and efficient efforts translated into solid growth across key financial indicators, with revenue and adjusted EBITDA increasing by 32% and 14% year-on-year, respectively. A corporate highlight of 2017 was the launch of TMK’s new Long-Term Strategy to 2027. We believe that by delivering on this Strategy the Company will reinforce its position as a leading supplier to the global OCTG market and as the dominant supplier of tubular products to the Russian market. The Strategy foresees TMK target growth of high-tech product sales, which will constitute 50% of the Russian division’s revenue. It will also see TMK remain the largest producer of premium connections in the Russian market. The Company consistently aims to enhance its R&D potential through its new R&D Center in Skolkovo and to secure further partnerships with major global oil and gas companies in the development of breakthrough products and solutions. We will continue to enhance TMK’s sales platform and leverage our global operations.
For last several years, TMK has been investing in capacity upgrades and developing our R&D centers to support a shift towards the production of high-quality premium products. As a leader of both the Russian and global pipe industries, every year we introduce numerous new products which are widely purchased by major oil and gas companies. This demand increases as the technical requirements for hydrocarbon production have become more complex. We remain committed to expanding our cooperation with the key global oil and gas companies, strengthening our business for continued success, and developing new products and effective solutions. Our priority is to focus on innovative tubular products, including pipes made from the unique corrosion-resistant chromium-nickel alloy TMK-C, pipes with TMK UP premium threaded connections, and pipes with GREENWELL lubricant-free coating.
We expect 2018 to be an even more prosperous year for TMK. We estimate that demand for tubular products, primarily OCTG, in our key North American and Russian markets will be strong, supported by favorable market environment across the Company’s global footprint. As a leading supplier of tubular products for the oil and gas industry globally, TMK remains very well-positioned to leverage this opportunity. Our continued success will be supported by our focus on state-of-the-art production, high R&D potential, and financial efficiency.