OREANDA-NEWS. On 07 June 2008 was announced, that Vladimir Markin, OMK President, has participated in the 6th Metallurgical Summit held by the magazines Metal Bulletin and Eurasian Metals in Moscow. In the context of the session "Changes in the Iron and Steel Industry – Problems, Trends, and Opportunities," Mr. Markin presented a report titled "Modernization of Production and Investments in Innovative Technologies: Goals, Stages, and Risks."

The OMK President placed special emphasis on the Company Strategy and high-priority projects for the near future. "Unlike many other metallurgical companies, OMK does not acquire new assets abroad. We invest our profit in creation of own facilities, research and development centers, modernization and reconstruction of operating facilities with the idea of obtaining new unique products that can compete with those of the best international manufacturers," said Mr. Markin about the OMK Strategy.

Speaking of the Company’s investment projects, Mr. Markin focused on the following three ones: creation of the Large-Diameter Pipe Facilities and construction of the Foundry and Rolling Facility and Mill-5000. "As a result of implementation of these projects, OMK will create Russia's first global pipe and metallurgical cluster based on state-of-the-art technologies with a capacity of 3 million pipes a year," emphasized the OMK President.

Among potential risks for the Russian metallurgical and pipe markets, Mr. Markin accentuates the real threat of overinvestment in the sector. "We can see that a great number of investment projects are implemented in the metallurgical and pipe industries, which process is oftentimes lacks coordination," said Vladimir Markin. "Before 2010, investments in technical upgrading of Russian pipe facilities will reach at least \\\\$4 billion.  On the one hand, the main producers in the Russian market will increase their large-diameter pipe capacity from the current 4.5 million tonnes to 7 million tonnes, which figure excludes the capacity of the Khartsyzsk Tube Works."

"The main trends to be observed in the near future are an increasingly strong competition for sales markets and an opposition to cheap imports," summarized the OMK President. "This will make Russian companies to simultaneously enhance their product quality and reduce manufacturing costs. And that is what the OMK Strategy is about. We are ready to face those threats, while developing together with market and satisfying the growing demand, as well as developing new sales markets in non-CIS countries."