Chusovoy Metallurgical Works and the Government of the Perm Territory sign a memorandum on cooperation

Governor of the Perm Territory Viktor Basargin, Chairman of the Board of Directors of CJSC OMK Anatoly Sedykh and General Director of OJSC CMW Anatoly Karpov signed a memorandum on cooperation timed to the launch of a project to construct a steel-smelting facility.

There was a presentation of the steel-smelting facility project before the solemn signing of the memorandum.

The production capacity of the facility, which will be built in the town of Chusovoy, is 875 tons of steel a year for manufacturing up to 500,000 tons of seamless oil and gas pipes and up to 400,000 tons of rolled products each year.

The new enterprise will create 2,000 new jobs and preserve 3,700 jobs that would have been eliminated without this project. The construction of the new facility will cost a total of about 50 billion rubles. Once the new factory is commissioned, the amount of taxes paid to budgets of all levels will grow eight-fold, and there will be a five-fold reduction in pollutant emissions.

To implement this project, Sberbank will provide OMK with a 33.8-billion-ruble credit for up to 12 years. Collateral for the credit facility will be a state guarantee worth 21 billion rubles, which was approved by Russian Prime Minister Dmitry Medvedev on July 4.

“The steel-smelting facility in Chusovoy is one of the largest projects in Russian ferrous metallurgy in recent years. Besides that, it is the largest investment project in the Perm Territory. This project is important for the town, the region and OMK. It continues the company’s root business. The commissioning of this facility will allow us to make seamless premium pipes and rolled steel products. We will begin the construction process once all the procedures associated with project justification and the development of technical documentation are complete. According to preliminary estimates, this will happen in 2014. The construction of the steel-smelting facility and the first stage of the pipe-rolling facility are planned for completion at the end of 2016,” - says Anatoly Sedykh, Chairman of the Board of Directors of CJSC OMK.

“The launch of the steel-smelting facility’s construction is an important event for the entire Perm Territory. The new facility is unique and connected with the production of in-demand, competitive products. It will not only replenish the budget of the Perm Territory, but will also solve a range of important social issues. I think that this project will give a strong impetus to the development of the whole region,” - emphasizes Viktor Basargin, Perm Territory Governor.