OMK’s Vyksa secures €347 million loan for mill 5000 construction

Vyksa Steel Works (Vyksa), a subsidiary of Russian steel and pipe producer OMK, has announced that it has received a €347 million loan to finance the purchase of equipment from German plantmaker SMS Siemag AG for its new mill 5000, which is scheduled to be commissioned in 2011.  The mill is to complete the company's vertical integration in pipe production.
 
Accordingly, the €347 million loan has been granted up to February 2022 by a pool of Western banks, including Bayerische Landesbank Munchen (Germany), BNP Paribas SA Paris (France), Commerzbank Aktiengesellschaft Frankfurt am Main (Germany), Landesbank Baden-Worttemberg Stuttgart (Germany ), Landesbank Hessen-Thuringen Girozentrale Frankfurt am Main (Germany), Societe Generale Paris (France), and WestLB AG Dusseldorf (Germany).
 
As SteelOrbis previously reported, 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, to be used for large diameter pipe production. The construction of the mill was started in 2007.