The largest investment project in the metallurgical industry since the 2008 crisis starts in Russia
The main owner of the United Metallurgical Company (OMK), Anatoly Sedykh, will invest 150 billion rubles in the construction of a steel production complex in Vyksa based on direct reduction iron (DRI) technology.
The project includes the production of metallized pellets using DRI technology with a capacity of up to 2.5 million tons per year and an electrometallurgical complex for steel production with a capacity of up to 1.8 million tons per year.
This is the largest project in the Russian iron and steel industry since the 2008 crisis.
The new production facility will allow OMK to increase its steel supply up to 80% amid tougher competition in the pipe market and a reduction in the margins of this business.
The new complex will make it possible to produce thick slabs, round wheel and pipe billets for the needs of the Vyksa Metallurgical Plant (VMZ), which is part of OMK.
According to experts, the presence of its own steel processing may allow OMK to reduce the cost of pipes by 10%.
Production is planned to be commissioned in the second half of 2024.