Metalloinvest and OMK sign long-term contract

Round cast billets with a diameter of 455mm will be produced at Ural Steel, part of Metalloinvest, and will be delivered to the Vyksa Steel Works, (VMZ, Nizhny Novgorod region, part of OMK). According to the terms of the contract, the pricing will be based on current market indicators, taking into account global price trends. The contract lasts until the end of 2027.

Andrey Varichev, CEO of Management Company Metalloinvest, commented: "Careful study of our clients’ needs, reliability of supplies and the high quality of our iron ore and steel products lie at the heart of Metalloinvest’s client-oriented approach. This new long-term contract will strengthen our relationship with OMK, a key Metalloinvest customer."

Vladimir Markin, President of OMK, remarked at the contract signing: "This agreement with our reliable and trusted partner is the longest raw materials purchase contract in OMK’s history. We can be sure that over the next ten years, the railway wheel rolling facility at Vyksa Steel Works will be supplied with quality steel billets. This guarantees that we will be able to fulfil any orders and create wheel products in line with the most advanced modern standards and the high demands of our clients."

In 2015-2016, extensive work has been undertaken at VMZ to prepare for the transition from using its own open-hearth products to acquiring continuous casting billets from Metalloinvest in railway wheel rolling. Test batches of wheels have been produced, compulsory certification has been carried out, and repairs on modern sawing facilities are continuing. This year, a decision will be taken on the future of the open-hearth production at VMZ in accordance with the earlier announced plans to increase production efficiency and reduce its environmental impact.