OREANDA-NEWS. OMZ (Uralmash-Izhora Group) (RTS: OMZZ; LSE: OMZD; OTC: UHMVY) plans equipment repairs worth $56,5 million and capital expenditures to the same amount in 2007, following decisions by the company’s Investment Committee.

According to the press service of OMZ, in 2006 OMZ recorded US$28.2 million in capital expenditures, and invested around $1.1 million in scientific and research engineering developments.

The company’s development strategy outlines basic guidelines for capital expenditures and scientific and research engineering developments in 2007. It is planned to complete current investment projects and to raise investments in OMZ production facilities’ development and modernization by more than 50%. Approximately 70% of total investments will be spent on improvements to metallurgical facilities. A further $56,5 million is to be spent on repairs to metallurgical, processing and assembly equipment.

The company intends to begin construction of a DSP-120 arc steel smelting furnace at OMZ-SpecStal. A series of projects, including modernization of ASEA-SKF out-of-furnace steel processing plant and thermal furnace at OMZ-SpecStal, purchase of mechano-processing equipment and self-powered welding heads, and modernization of Schiss machine at Izhorskiye Zavody, will allow OMZ to produce the newest equipment for nuclear power plants planned under the Federal Program for Development of the Russian Nuclear Energy Industrial Complex.

In 2007 the company will continue research on production related to new mining equipment development including ESH-15.90V and EKG-3000 excavators, DK-2000 extraction complex and crushing and milling equipment. The company will also develop new production technologies and will improve existing technologies.

In future OMZ departments responsible for innovation and intellectual property issues will be focused on legal protection of OMZ scientific and research engineering developments. The departments will also work on the development of auxiliary business processes aimed at registration of engineering developments, technical documentation, PR support for engineering development issues, and countering unfair competition in the market for hydraulic mine excavators.

OMZ (Uralmash-Izhora Group) is one of the largest Russian heavy industry enterprises. It specializes in engineering, production, sales and maintenance of equipment and machines for the nuclear power industry, and also in the production of special steels and rendering of industrial services. The company includes OMZ NPPEQ, OMZ-Specstal, OMZ-Mining Equipment and Engineering, OMZ-Uralmash and OMZ-Non-Core Business divisions. OMZ divisions’ facilities are located in Russia (Uralmash and Izhorskiye Zavody) and the Czech Republic (Skoda Steel and Skoda JS).

Currently OMZ is focused on a program related to the optimization of its business processes. The program is aimed at raising the company’s efficiency and investment attractiveness. Implementation of the program was one of the key factors in the positive trend of OMZ performance in 2005.