OMK cancels construction of new seamless pipe plant

Russian pipe producing company United Metallurgical Company (OMK) has announced that it has cancelled the construction of a complex for the production of seamless oil and gas pipes in Chusovoy in the Perm region of Russia due to sharp changes in the macroeconomical situation in the region.
 
According to the company's statement, all preparatory works have been stopped and all concluded contracts on equipment supplies and construction have been cancelled. The contract regarding a credit line between Sberbank of Russia and OJSC Trubodetal was cancelled before actual implementation, meaning that costs of all preparatory works were  by OMK.
 
OMK will continue all necessary steps to support production at its Chusovo steel mill. In 2015, it plans to produce around 50,000 mt of springs, the same as last year.