OMK will suspend investment projects at the initial stage until the situation in the industry stabilizes.
One of these projects is the construction of a seamless pipe production facility in Almetyevsk, for which an agreement on the protection and promotion of investments (NWPC) was concluded.
In one of the workshops of the company. Illustrative photo: Almetyevsk OMK Plant community on Vkontakte.
The termination of the agreement has no negative consequences for the company, the United Metallurgical Company told Interfax. They added that the company plans to "restart the project" in Tatarstan with "positive changes in the metallurgical market."
"The Russian metallurgical industry is experiencing difficulties both due to export restrictions and due to the high key interest rate and the associated cooling of the economy, an additional factor is pressure from Chinese manufacturers. In this situation, OMK needs to ensure the fulfillment of its obligations, including social ones, and focus resources on maintaining and developing existing production facilities."Almetyevsk plant has been a part of OMK since 2002. It produces electric-welded pipes of small and medium diameter, with a capacity of about 300 thousand tons of products per year.
Currently, production volumes at the enterprise have been reduced due to a general drop in demand for pipe products, OMK noted.
"The growth in demand for pipe products will be driven by the stabilization of the situation in related markets, primarily in the oil and gas industry and construction, and lower interest rates on the capital market," the company noted.Interfax reported in the summer of 2024 that OMK could build new facilities in Tatarstan for the production of seamless steel pipes up to 273 mm in diameter, with capital investments estimated at more than 50 billion rubles.
In 2024, OMK launched a new seamless pipe production facility in Vyksa, with a capacity of about 500,000 tons.