NLMK Group, Russia’s largest steelmaker, and OMK Group, Russia’s leading pipe manufacturer, signed a new agreement on long-term cooperation renewing the contract for the supply of slabs until and inclusive of 2016. These slabs will be rolled into plates at the new Vyksa Steel Works (VMZ) Mill-5000 (MKS-5000) to be further used for the production of large-diameter pipes.
According to the agreement, NLMK will supply Vyksa Steel Works with approximately 2Mt of slabs with superior chemical composition and steel structure standards and in dimensions that are unique for the Russian market between 2014 and 2016. NLMK slabs will be rolled into wide plates at the VMZ Mill-5000 to be further used for the production of large-diameter pipes at the VMZ Electric-Weld Pipe Workshop No. 4.
Deliveries to OMK’s Vyksa plant form a substantial part of NLMK’s total third-party sales of slabs. Between the launch of the VMZ Mill-5000 in November 2011 and September 2013, approximately 460,000t of plates were produced from NLMK slabs.
Cooperation between NLMK and OMK allowed replacing imported plates, significantly improving OMK’s logistics and production processes, and ensured a consistently high quality of products for oil and gas companies through end-to-end monitoring of all production stages.
