Metalloinvest and ChelPipe Group discuss ways to boost OEMK steel supply for pipe production

Metalloinvest (“the Company”), a leading global iron ore and HBI producer and supplier, and one of the regional producers of high-quality steel, and ChelPipe Group have held a Coordination Committee meeting at OEMK (part of Metalloinvest). During the meeting the parties discussed options to increase supplies of high quality steel grades from OEMK to Pervouralsk New Pipe Plant (part of ChelPipe Group).

Experts from ChelPipe Group visited the main departments of the OEMK plant, learned about technologies for casting complex steel grades, and reviewed quality control and testing procedures of pipe production.

OEMK supplies to Pervouralsk New Pipe Plant up to 10,000 tonnes of pipe billets per month, which are predominantly used in the production of pipes for the oil industry, mechanical engineering and nuclear sector. The partnership between the enterprises started after the commissioning of Rolling Mill 700 at OEMK in 1987. Ural Steel (part of Metalloinvest) supplies significant volumes of strips to the Company to produce large diameter pipes.

Nazim Efendiev, First Deputy CEO, Sales Director of Management Company Metalloinvest said: “Metalloinvest and ChelPipe Group are long-term strategic partners. Regular meetings between our extended specialist teams enable us to find solutions to a broad range of matters quickly and efficiently, as well as to agree on new partnership directions.”

Denis Prikhodko, Sales Director, ChelPipe Group, commented: "We continue to actively develop our cooperation with Metalloinvest and are planning joint projects together. Right now at Pervouralsk Pipe Plant we are testing an idea of using hot briquetted iron in steel making. We have considerable opportunities for collaboration with Metalloinvest and the Coordinated Committee meetings serve as a continuation of the dialogue which has already been taking place between the companies for many years."

Igor Sych, Director of Steel Product Sales of Management Company Metalloinvest, added: "One of the questions we discussed at the meeting was the possibility of experimental supplies of steel for making bars, which are used to make cast billets at Pervouralsk New Pipe Plant. OEMK ensures the high quality of products and regular supply – the plant supplies its orders within one month of being placed. Our partners were very impressed by the steel making plant and I hope that we can increase the volume of supplies of cast billets in the coming year."

Alexei Dronov, Managing Director of Pervouralsk New Pipe Plant, remarked: "We very much respect the people who create Oskol steel and we came to see their expertise in this. I would like to add that our pipe makers value OEMK metals with a high level of quality, and I have always been interested in how they produce their steel, which technologies they use, and who works for them."