OREANDA-NEWS. January 18, 2008. OMZ (Uralmash-Izhora Group) (RTS: OMZZ; LSE: OMZD; OTC: UHMVY) announced today that the Board of Directors of Izhorskiye Zavody, a part of OMZ, has approved basic directions for Izhorskiye Zavody development and investments for 2008-2012.

As authorized by the Board on 15 Jan., Izhorskiye Zavody's investment policy is aimed at improvement of power plant engineering technologies, comprehensive modernization of facilities and infrastructure and the building of new facilities, and also at the attraction and education of personnel. All this is expected to allow Izhorskiye Zavody to strengthen its position in the nuclear power plant engineering and oil and gas engineering markets. Total investment for the period is expected to reach RUR2.4 billion.

Izhorskiye Zavody plans to invest RUR1 billion into modernization of its production facilities for 2008. Most of the sum will be spent for modernization of its welding equipment, implementation of new technologies and the purchase of new machines and machining centers.

After comprehensive technical modernization, Izhorskiye Zavody will be able to produce more equipment for nuclear power plants, from the two units per year being produced currently to four units to be produced annually by 2012 in compliance with the Federal Target Program aimed at Russia's energy sector development in 2007-2015.