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Publish Date : 12-Nov-2013

A new Agreement on long-term cooperation renewing the contract for the supply of slabs until and inclusive of 2016 is signed by the NLMK Group, Russia's biggest steelmaker, and OMK Group, Russia's leading pipe manufacturer.

At the new Vyksa Steel Works Mill-5000 (MKS-5000) these slabs will be rolled into plates to be further used for the production of large-diameter pipes.

NLMK Group President Mr Oleg Bagrin and OMK Group President Mr Vladimir Markin signed the agreement at the Vyksa Steel Works as part of a ceremony to mark the supply of the half millionth tonne of slabs from NLMK to VMZ. The initial contract was signed by the companies in 2012.

As per the agreement, in 2014 to 2016 NLMK will supply Vyksa Steel Works with about 2 million tonnes of slabs with superior chemical composition and steel structure standards, and in dimensions that are unique for the Russian market.

NLMK slabs will be rolled into wide plates at the VMZ Mill-5000 to be additional used for the production of large-diameter pipes at the VMZ Electric-Weld Pipe Workshop No. 4. Introduced in 2011, VMZ Mill-5000 supplies the plant's large-diameter pipe production capacities with 4.85 meter wide plates.

Deliveries to OMK's Vyksa plant form a substantial part of NLMK's total third party sales of slabs. Between the launch of the VMZ Mill-5000 in November 2011 and September 2013, about 460,000 tonnes of plates were created from NLMK slabs.

Cooperation between NLMK and OMK permitted substituting imported plates, considerably enchancing OMK's logistics and production processes, and made sure a consistently high quality of products for oil and gas companies through end-to-end monitoring of all production stages.

Though, the Agreement plays a strategically significant role in the process of substituting imported HVA products, specifically pipes and substrate neede for their production, by high-quality domestically produced goods.

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