OMK Proceeding with Seamless Facility Construction in Nizhniy Novgorod Region

The United Metallurgical Company (AO OMK, Moscow) is proceeding steadily with the project to build a seamless pipe mill in the Vyksa Municipal District, Nizhniy Novgorod Region, which is home to OMK's largest plant Vyksa Steel Works (AO VSW).

The design package has already cleared permitting, and a construction permit has been issued. At the present time, site preparation has been completed, and the principal facility building is under construction with the first column installed on April 12, 2019.

The primary process equipment is being supplied by Danieli (Italy) which is completing equipment engineering at this time and proceeding with equipment manufacture. The building is being designed by AO Uralgipromez (Yekaterinburg).

When the new pipe mill is commissioned in 2021, VSW will begin manufacturing seamless casing, tubing, and line pipe 73 to 273 mm in diameter with semi-premium and premium connections.

The facility's contemplated design capacity is over 500,000 tons of seamless pipe year. The amount to be invested into the new facility is RUB 50 billion of the company's own and borrowed funds. Commissioning the new facility in Vyksa will create over 1,000 new high-tech jobs.

"The objective of the project is to meet current and future demand for line and threaded seamless pipe, including pipe for challenging production and angle drilling applications, from oil and gas companies as well as companies in power generation, engineering, etc. When it comes on stream, we are hoping to extend out product offering considerably and gain access to new markets both in and outside Russia", pointed out OMK Chief Investment and Asset Development Officer Dmitri Chernyshev.

Background

Seamless pipe that is resistant to pressure and loads is required to produce energy resources under difficult weather conditions. Even though it has extensive facilities to manufacture longitudinally welded pipe, the plant does not manufacture seamless pipe at this time. As it commissions new capacity, VSW will focus on making premium seamless products.

OMK has invested over US $6,000,000,000 in facility upgrades with over $3,000,000,000 invested in the last 10 years. Most of the money has been invested in Vyksa Steel Works. This is where Russia's first line to make 1420-mm LSAW pipe was commissioned (2005) as well as an integrated casting and rolling facility (2008), Wide Plate Mill-5000 (2012), Russia's first line to make wheels for high-speed trains (2014), etc.

Currently, OMK is investing record amounts in VSW: with RUB 167,000,000,000 in upgrades planned for the site by the parent company. Based on the investment program, OMK is expecting to improve its competitive standing, focus on making technologically advanced product, and achieve leadership in product quality and manufacturing cost. In particular, a project to upgrade line pipe production launched in 2016 is in full swing right now. The project will upgrade all existing lines to make OCTG pipe and expand the line of electrically welded pipe for well construction by making pipe in the range from 139.7 to 426 mm and acquiring the capability for tubing.