OMK to invest 12 billion rubles into pipe production.

Valery Shantsev, Governor of the Nizhny Novgorod region, and Anatoly Sedykh, Chairman of the Board of United Metallurgical Company (OMK Joint Stock Company, based in Moscow), signed a cooperation agreement between the regional government and Vyksa Steel Works (VSW Joint Stock Company, part of OMK) on March 17, 2016. According to the document, OMK is set to invest up to 12 billion rubles into developing pipe production in Vyksa (Nizhny Novgorod region).

In particular, OMK is planning to equip a high-tech center that will facilitate finishing coating for casings and coupling production. The finishing center will process pipes made at VSW. The agreement also includes expanding the production of oil well tubing at the Vyksa factory.

These investment projects will help OMK expand the range of its products for the oil and gas sector, create up to 500 new jobs, and ensure the growth of assignments to the budget. The pipes, which will be produced under the new investment projects, are widely used today and enjoy a demand even with the current oil prices.

“As an investor, OMK has long established constructive relationships with the government of the Nizhny Novgorod region. Based on that, we have been making planned equipment upgrades and commissioning new production facilities in the past decade. The company has set up the production of steel, rolled stock and high-tech pipes, which are used in Russia’s strategic pipe projects. Today, OMK’s investment strategy is aimed at providing maximum development of existing production facilities, as well as raising the quality of the products to ensure stability in sales and profitability in these challenging market conditions,” said Anatoly Sedykh, Chairman of the Board at OMK, after signing the agreement.

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