OMK Reports Its Operating Results for April 2008

Chusovoy Metallurgical Works’s output of finished rolled products was 38.6 thousand tn in the reporting period. Its output of rolled products reached 159.5 thousand tn from the beginning of 2008, or 16,8 thousand tn more than in the equivalent period in 2007.

Steel production was 44.7 thousand tn. In total, Chusovoy Metallurgical Works made 176.6 thousand tn of steel from the beginning of 2008, which is 6.7 thousand tn more compared with the corresponding period in 2007.

Gubakha Coke (Perm Territory) produced 45.6 thousand tn of bulk coke and processed 4.9 thousand tn of coal pitch. Coke output exceeded the results achieved in the comparable period last year by 33% (11.3 thousand tn).

Last April, Vyksa Steel Works produced 137,72 tn of pipes, or 13% less than in April 2007 (158,924 tn). VSW produced 499,28 tn of pipes of various grades from the beginning of the year, which is 21% lower than in the comparable period last year (634,53 tn). VSW manufactured 73,86 tn of large-diameter pipes (LDP) in April, or 16% less compared with April 2007 (88,00 tn). LDP output in January–April was 250,54 tn, which is 31% less than in the equivalent period in 2007.

A reduction in pipe production resulted from lower demand in the Russian market of medium- and large-diameter pipes for oil and gas pipelines compared with last year. However, production decline rates in April were much lower than in the previous months. As was reported earlier, VSW launched the manufacture and delivery of LDP for two large projects: the construction of the Bovanenkovo-Ukhta gas pipeline in the north of Russia and the Kenkiyak-Kumkol oil pipeline in Kazakhstan.

The VSW Wheel Rolling Facility produced 68,00 railroad wheels last April, or 18% more than in the corresponding period in 2007 (57,413 wheels). VSW produced 281,642 wheels from the beginning of 2008, which is a 22% increase compared with January–April 2007 (230,043 wheels).

Almetyevsk Pipe Plant produced 14,97 tn of pipes of various grades in the reporting period, which surpasses the planned targets by 7%. Compared with the equivalent period last year, output rose by 26.7% (11,818 tn). Output of externally polyethylene coated pipes reached 2,502 tonnes.

APP shipped 17,254 tonnes of pipes of various grades, which is 11.5% more than in the corresponding period in 2007 (15,475 tn).