NLMK and OMK Sign 5-Year Slab Contract Extension
01/30/2015 - NLMK Group, Russia’s largest steelmaker, and OMK Group (United Metallurgical Company), Russia’s leading pipe manufacturer, have extended their contract for the supply of Novolipetsk slabs for the production of large diameter pipes at the Vyksa Steel Works up to and including 2019.
Under the contract, NLMK will continue to supply the continuously cast steel slabs featuring superior chemical composition and steel structure standards that are rolled into plates for the production of large diameter pipes at the Vyksa Steel Works (part of OMK Group).
The initial contract between NLMK and OMK was signed in August 2012; and in November 2013 the companies signed an agreement of long-term cooperation for 2014-2017.
NLMK Group President Oleg Bagrin said: “Today we can confidently state that our partnership hasn’t just passed the test of time, but has acquired particular significance in the current economic context. Our decision to set up a high-tech Russian chain to produce large diameter pipes has turned out to be strategically correct. The successful partnership between NLMK and OMK can serve as an example not just for steelmaking companies, but for companies in other industries of the Russian economy.”
OMK Group President Vladimir Markin added: “We are glad to have NLMK Group as our reliable long-term partner for the third year running. I hope that our mutually beneficial cooperation grows even stronger in the future. Guaranteed supplies of high-quality slabs for rolling into plates at our Mill-5000 for the subsequent production of large diameter pipes at Vyksa at one of the most modern large diameter pipe complexes in the world will provide Russian and international pipe projects with the highest quality products.”
NLMK slabs are used to produce wide plates at the VMZ Mill-5000 to be further used for the production of large-diameter pipes at the VMZ Electric-Weld Pipe Workshop No. 4. Since the launch of Mill-5000 at the end of 2011, it produced over 1 million tonnes of plates from NLMK slabs.
In 2012–2014, VMZ produced 2.5 million metric tons of large-diameter pipes. These products were supplied to Russian and international pipeline projects such as Bovanenkovo–Ukhta, Ukhta–Torzhok, Central Asia–China, Arctic Circle – Purpe, the Southern Corridor, and a number of others. OMK is currently a global leader in supplying pipes for the underwater parts of gas pipelines owing to its participation in such projects as Nord Stream; Varandey Oil Export Terminal; the Baydaratskaya Guba and Dzhubga-Lazarevskoe-Sochi gas pipelines and the Nevelsky Strait in the Sakhalin-Khabarovsk-Vladivostok project. In the international South Stream project OMK was awarded 35% of orders for the underground parts of the first two strings.
The initial contract between NLMK and OMK was signed in August 2012; and in November 2013 the companies signed an agreement of long-term cooperation for 2014-2017.
NLMK Group President Oleg Bagrin said: “Today we can confidently state that our partnership hasn’t just passed the test of time, but has acquired particular significance in the current economic context. Our decision to set up a high-tech Russian chain to produce large diameter pipes has turned out to be strategically correct. The successful partnership between NLMK and OMK can serve as an example not just for steelmaking companies, but for companies in other industries of the Russian economy.”
OMK Group President Vladimir Markin added: “We are glad to have NLMK Group as our reliable long-term partner for the third year running. I hope that our mutually beneficial cooperation grows even stronger in the future. Guaranteed supplies of high-quality slabs for rolling into plates at our Mill-5000 for the subsequent production of large diameter pipes at Vyksa at one of the most modern large diameter pipe complexes in the world will provide Russian and international pipe projects with the highest quality products.”
NLMK slabs are used to produce wide plates at the VMZ Mill-5000 to be further used for the production of large-diameter pipes at the VMZ Electric-Weld Pipe Workshop No. 4. Since the launch of Mill-5000 at the end of 2011, it produced over 1 million tonnes of plates from NLMK slabs.
In 2012–2014, VMZ produced 2.5 million metric tons of large-diameter pipes. These products were supplied to Russian and international pipeline projects such as Bovanenkovo–Ukhta, Ukhta–Torzhok, Central Asia–China, Arctic Circle – Purpe, the Southern Corridor, and a number of others. OMK is currently a global leader in supplying pipes for the underwater parts of gas pipelines owing to its participation in such projects as Nord Stream; Varandey Oil Export Terminal; the Baydaratskaya Guba and Dzhubga-Lazarevskoe-Sochi gas pipelines and the Nevelsky Strait in the Sakhalin-Khabarovsk-Vladivostok project. In the international South Stream project OMK was awarded 35% of orders for the underground parts of the first two strings.
