NLMK supplies OMK with 1 million tonnes of slabs for large-diameter pipes

Since 2012, as part of a long-term contract, NLMK Group (LSE: NLMK), a major Russian steelmaker, has supplied OMK Group (Unified Metallurgical Company), a leader in the Russian large-diameter pipe market, with over 1 million tonnes of slabs for the production of large-diameter pipes.

The figures were announced at a working meeting between NLMK Group President Oleg Bagrin and OMK Group President Vladimir Markin, held on 20 June 2014 in Novolipetsk.

The contract between NLMK and OMK was signed in August 2012. In November 2013, the companies signed a Long-Term Cooperation Agreement. Under the Agreement, in 2014–2016 NLMK will supply Vyksa Steel Works with more than 2 million tonnes of slabs with superior chemical composition and steel structure standards, and in dimensions that are unique for the Russian market.

NLMK Group President Oleg Bagrin said: “This partnership between NLMK and OMK is strategically important in the effort to reduce imports by manufacturing high-quality steel domestically. Almost two years of successful collaboration between us have proved the efficiency and viability of an all-Russian high-tech production chain for large-diameter tubes: from mining and steelmaking to the end product, we have created a solid foundation for further cooperation.”

OMK Group President Vladimir Markin added: “We are able to keep our process chain in central Russia compact and efficient, from mining to manufacturing large-diameter tubes, thanks to OMK’s use of the latest wide plate and pipe manufacturing technology and to our partnership with NLMK Group. In turn, this has allowed us to consistently reduce the amount of imported tube plates while maintaining the consistently high quality with the help of end-to-end monitoring of all production stages. The next step for OMK is to certify our plates rolled from Lipetsk slabs for the second string of the underwater portion of the South Stream. We expect this to allow us to stop importing high-quality plates and generate substantial value for the Russian budget”