Vyksa Steel Works to Invest 2.3 bln rubles in Modernization of Oil and Gas Tubes Mill

The project includes setting up of a charging unit by SMS Meer (Germany), a pre-forming mill by Nakata (Japan), a tube-cutting machine, an edge cutting machine by Linsinger (Austrias) and other types of new equipment, as well as modernization of a finishing line. By the middle of 2008 the works plans to choose contractors to do the work. Equipment supplies are scheduled for the beginning of February, 2009, whereas the start up of the mill is planned for the middle of 2009.

After the modernization the mill will produce oil and gas tubes of Х70 (К60) strength class with wall thickness of up to 12.7 mm and diameter range of 203 to 530 mm, including corrosion resistant and cold resistant tubes. Besides, Vyksa Steel Works will for the first time master production of shaped rectangular and square tubes of 160х160 mm up to 400х400 mm, which are in special demand in the market. Today the works produces shaped tubes with section dimension no more than 80х80 mm.

Modernization of the equipment, extending of products range and improvement of qualitative characteristics will enable to produce up to 700 thou tons of tubes a year at electric welding tubes plant #3 (shaped tubes inclusive), and to optimize transportation and logistics scheme in the production chain. In 2007 the plan produced more than 350 thou tons of tubes.

Due to carrying out of the project UMC will strengthen its positions in a dynamically developing pipeline tubes and shaped tubes markets, meet requirements of companies of fuel and energy complex as regards to strength, corrosion resistance, cold resistance and other characteristics.