The Russian steel and pipe producer United Metallurgical Company (OMK) has announced that by February 3, 2009 its Novgorod-based pipe producer Vyksa Steel Works (Vyksa) had delivered 100,000 mt of large diameter pipes for the underwater section of the Nord Stream pipeline, which will link Russia and the European Union via the Baltic Sea. Production and pipe deliveries commenced at the end of May 2008.
Under the scope of the order, up to October 2009 Vyksa is to produce and supply to Nord Stream about 267,000 mt of pipes with diameter of 1,219 mm, wall thicknesses of 30.9 mm and 34.6 mm, strength class of K60 (X70), with external pre-painted anti-corrosive coating and internal anti-corrosive and smooth coating. In addition, Vyksa is to start producing for Nord Stream pipes with a maximum wall thickness of 41 mm.
The pipe supply contract between Nord Stream AG and OMK was signed on November 6, 2007.
Vyksa's overall production of pipes during the first month of 2009 amounted to 95,944 metric tons - down 6.7 percent year on year, including 64,675 metric tons of large diameter pipes - up 32.6 percent.
During the month in question, Vyksa produced 18,642 railroad wheels, registering a decrease of almost 75 percent compared to January 2008, due to the reduced demand from its main customer Russian Railways (RZhD).
Moreover, due to the economic crisis, in January 2009 Vyksa registered a 50 percent decrease in its railroad freight activity.