Metalloinvest and United Metallurgical Company (OMK, Moscow) have held the latest meeting of the two companies' Coordination Committee. The meeting took place in Vyksa, in the Nizhny Novgorod region, where Vyksa Steel Works (VMZ, part of OMK) is located.
The meeting was attended by Andrey Varichev, CEO of Management Company Metalloinvest; Vladimir Markin, President of OMK; Andrey Ugarov, First Deputy CEO, Chief Operating Officer of Management Company Metalloinvest; Andrey Prosyanik, Director of Domestic Sales, Management Company Metalloinvest; Sergey Zubov, Technical Director of Ural Steel (part of Metalloinvest); Eduard Stepantsov, Head of the Commercial Department of OMK; and Dmitry Chernyshev, Director of Asset Development and Investment Department, as well as other representatives of the companies.
In January 2017, Metalloinvest and OMK announced that they had signed a long-term contract for Ural Steel to supply round cast billets with a diameter of 455mm to VMZ for the production of seamless railway wheels. Ural Steel modernised Continuous Casting Machine #1 in its electric arc furnace specifically for this project, while VMZ renovated the preparation section of its railway wheel production facility. Work has already begun at two modern sawing facilities, which ensure high productivity and enable the company to achieve perfect geometric shapes and quantities of round billets; this has a positive effect on the quality of finished products. Industrial deliveries of billets to VMZ will start in the second half of 2017, but Ural Steel has already been supplying trial batches for over six months, which have allowed the partner enterprises to collaborate effectively on this project. During the Coordination Committee meeting, both parties summarised their views on the experience gained over the course of the project. Those who attended the meeting also discussed development prospects for the companies' strategic partnership.
As well as participating in the meeting of the Coordination Committee, Metalloinvest and Ural Steel representatives were shown VMZ's modern production capacities, including the Casting and Rolling Complex, Heavy Plate Mill 5000 and the railway wheel production facility). Metalloinvest representatives also learned about the advanced expertise of the enterprise in the development of its production system, which is designed for the maximum reduction of waste and the continuous improvement of production processes.
Andrey Varichev, CEO of Metalloinvest, emphasised: "OMK has been our strategic partner for many years. This close collaboration has enabled us to respond flexibly to the demands of OMK, ensure that we supply products that correspond exactly to OMK's needs, and guarantee a stable, high level of service."
"We are very thankful to our colleagues for a successful and productive discussion. It is very important for us to hold meetings with strategic partners to address current issues quickly and jointly to define future development. This is an additional guarantee of project implementation and sustainable product quality, railway wheels in this particular case", commented OMK President Vladimir Markin speaking of meeting outcomes.
Ural Steel and OMK have been partners these past 20 years. A joint program to acquire capability for additional products has been underway since 2004. As part of this program, Ural Steel developed and implemented a process to make K60 grade flat rolled goods to make large-diameter oil and gas line pipe.
The parties hold steering board meetings on an annual basis to analyze product quality, develop joint product capability expansion products, and discuss collaboration outlooks.
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