The Russian steel and pipe producer OMK plans in 2010 to increase its investments for the construction of the mill 5000 at its Novgorod-based pipemaking subsidiary Vyksa Steel Works (Vyksa) by 2.9 times year on year to Ruble 16.627 billion (about $549.5 million), the Russian information agency Prime-Tass has reported citing OMK vice president Vladimir Kochetkov.
Accordingly, in July 2010 OMK is scheduled to begin the installation of the mill's main technological equipment, in March 2011 it will start pre-commissioning preparatory work for all equipment, and in July 2011 the first output will be produced at the new mill 5000.
According to Mr. Kochetkov, from June 2007, when implementation of the project for the new mill started, up to January 2010, the investments in the unit's construction have amounted to Ruble 16.5 billion (about $545.3 million).
OMK's new mill 5000 will have an annual production capacity of 1.5 million mt of wide sheets with up to X120 strength grade, up to 4,800 mm wide, up to 12.5 m long and up to 48 mm thick, and will allow the replacement of imports of high-quality wide sheets, which are required for the pipe industry, nuclear industry, shipbuilding, and military-industrial complex.
In 2010, the total investments in Vyksa will amount to Ruble 20.742 billion (approx. $685.5 million), of which about Ruble 4 billion (about $132.2 million) will be directed towards the reconstruction and modernization of Vyksa's workshops.
As SteelOrbis previously reported, in late January 2010 Vyksa received a €347 million loan to finance the purchase of equipment from German plantmaker SMS Siemag AG for its new mill 5000. The loan has been granted up to February 2022.