First Batch of Equipment Arrives for OMK's Future Seamless Mill

The United Metallurgical Company (AO OMK, Moscow) has received the first 2 500 tons of cutting-edge process equipment from Danieli (Italy) to be installed in the new seamless facility at Vyksa Steel Works (AO VSW, Nizhniy Novgorod Region).

The construction of this mill is one of OMK's largest projects that is being implemented under a current investment program of 200 billion rubles. The mill will have a capacity of over 500,000 tons of seamless pipe per year. Once it is commissioned, OMK will be able to deliver to customers seamless casing, tubing, and line pipe 73 to 273 mm in diameter with semi-premium and premium connections. The plan is to commission the facility in 2021 which will help create over 1,700 high-technology jobs at VSW, and hiring will start shortly.

Incoming inspection procedures are being applied to the equipment being received jointly by VSW and Danieli personnel. A total of 21,000 tons of assemblies and machinery will be delivered on site: a piercer mill and a heating furnace, quality control lines, finishing equipment for tubing and line pipe and a heat treat section.

Currently, installation personnel are completing the installation of wall paneling with a total area of 130,000 square meters while the building frame was completed in the spring. Over 90% of the roof has been installed, and the facility infrastructure is being put up. Some 20 of the 40 overhead cranes have been installed. Builders are proceeding with the pouring of the foundations for the primary process equipment which will require about 100,000 cubic meters of concrete. OMK is proceeding with the construction without a third-party general contractor, i. e. the company is monitoring the progress of the construction on its own and hiring contractors capable of meeting stated objectives in as efficient a manner as possible. The project employs some 30 contractors.

"The commissioning of the seamless facility where OMK is investing over 50 billion rubles will help meet the oil and gas sector's growing demand for seamless pipe for domestic oil production and reduce dependence on imports. The project also has some export potential. This is the Company's major contribution to this country's industrial development", noted OMK Chief Investment and Asset Development Officer Dmitri Chernyshev.