OMK invests in capacity expansion at new mill

The Russian pipe producer United Metallurgical Company (OMK) is to invest a total of $140 million in the expansion of the first stage capacity of its new mill, the construction of which is under way in the Nizhny Novgorod region. In particular OMK has announced that it signed an agreement worth €14.1 million with Spain-based company FAGOR for the supply of a coil cutting line to be installed at the new mill. In February OMK signed a contract worth €3.5 million with Italian company Danieli for the supply of spare rolling mill parts. In addition, OMK is planning to implement projects to increase its new mill's crude steel production and create scrap storage facilities. These investments are aimed at increasing the mill's first stage capacity from 1.2 million metric tons to 1.5 million metric tons of hot rolled steel and at expanding its products range. The mill will be able to produce coils and 8-12.7 mm thick and 800-1,800 mm wide sheets. The first stage of the mill is planned to be commissioned at the beginning of 2008.