OREANDA-NEWS  On 27 November OMZ OJSC (Uralmash-Izhora Group) (RTS: OMZZ; LSE: OMZD; OTC: UHMVY) announced that OMZ Special Steels, a part of OMZ Group, begun installation of basic equipment for a 120-ton electric arc furnace – DSP-120.

Construction of the DSP-120, being implemented as part of OMZ’s investment program, was launched in December 2007. Its first stage involved construction of a new electric steel smelting section in steel smelting workshop #8. Gazprombank is financing the program.

The foundation is now completed, and the installation of the furnace’s equipment has been begun. The installation is being carried out by SMS Demag AG, Germany. A site for the furnace maintenance has been completed. A gas flue tunnel for a waste gas purification system to counter contamination problems is being built.

Construction of the new furnace is being undertaken in strict conformity with established terms. The first smelting of steel in the new furnace is scheduled to take place in 1Q 2009. The furnace will smelt metal for large-sized semi-finished products including nuclear reactor shells, petrochemical equipment, heavy rotors for generators and steam turbines, hydraulic shafts and mill rolls. Placing the new furnace into operation will allow the company not only to increase production but also to improve the quality of large-sized ingots.