OREANDA-NEWS. United Metallurgical Company has announced that Chusovoy Steel Works (JSC ChSW, Chusovoy, Perm Krai), one of Europe's largest producers of car springs, has joined the OMK Group. The company manufactures 400 types of springs. It is the Russian leader in this sector, covering over 60% of the market share. The plant's products are delivered to all of Russia's largest car manufacturing plants, and are exported abroad.

ChSW was bought by OMK as part of the announced plans to create an integrated pipe and steel making complex (PSC) to produce seamless pipes, spring plates, and billets for railcar wheels in Chusovoy. The complex is one of the largest metallurgical projects in Russia. The total volume of investments into the project for 2014-2017 is to amount to 50 bln RUB. The project's loan financing is being conducted by Sberbank, which will lend up to 34 bln RUB for up to 12 years. OMK received a 21 bln RUB government guarantee to secure fulfillment of its credit line obligations. The project includes the construction of an arc-furnace shop with an annual capacity of 1 mln tons of steel and a pipe making production facility with an annual capacity of up to 50,000 tons. The key innovative products of the pipe and steel making complex will be premium seamless castings and tubings of high strength class with premium-threaded joints. Additionally, Mill 370 will be upgraded, allowing the production of spring plates to a reach a new quality level. Also in planning is the manufacture of billets for Europe's largest production facility for all-rolled railcar wheels at Vyksa Steel Works in Vyksa (a part of OMK).

The OMK investment project is crucial for both the plant's and Chusovoy's future. At present, ChSW, which employs about 4,500 people, is not turning a profit due to depreciation of the plant. After PSC achieves the declared capacity, the number of staff at this production facility might exceed the present figures. During construction, OMK plans to employ people for temporary work positions and to retrain temporarily unemployed staff from dismantled departments.

In 2013, an outdated last furnace was shut down. In 2014, the open hearth and some rolling production facilities will be shut down. Putting outdated equipment out of action will reduce air pollution by up to 70% and water pollution - almost three times. Water consumption from the Chusovaya River for technical needs will decrease manifold as well.

“ChSW joining the OMK Group is a logical step in the implementation of our plans to diversify the market and to develop production of premium pipe types. This will provide more efficient implementation of investment projects due to the use of ChSW infrastructure. OMK investments will breathe new life into Chusovoy Steel Works, create new highly paid jobs, and become a stimulus for development in the city and the region,” said OMK President Vladimir Markin.