In order to reduce the machining time and increase the material utilization, the rolling-extrusion technique for the mass production of variable wall thickness cylinder parts were put forward. In this process material is formed by means of three passive rotational tools. The charge is provided by means of a pusher pushing the billet in a working space between the profiled rolls. A FEM model for rolling-extrusion was developed based on the DEFORM-3D software. Then coupled heat transferring and material flow were simulated and the effects of process parameters on them were analyzed. The results show that the deformation nonuniformity of billet increases with the increase of the punch speed and friction factor or the decrease of initial temperature of billet. In order to verify results of simulation, tests of forming were made. The results of these tests confirmed the rightness of the FEM model.