OREANDA-NEWS. On 10 June 2009 OMZ (Uralmash-Izhora Group) (RTS: OMZZ; LSE: OMZD; OTC: UHMVY), a leading heavy machinery company with assets located in Russia and the Czech Republic, announced that it has completed work on the construction of a new super-powered next-generation steel melting complex. Construction was completed on schedule. The new facility’s annual production capacity is over 250,000 tons of special steels. The construction of the complex was supported financially and organizationally by Gazprombank.

The new complex will form the basis of a unified production and technological chain at the Izhora industrial site. It allows the manufacture of unique forging ingots of up to 600 tons weight, the production of forging shells up to 5.5 meters in diameter for nuclear reactors and oil and gas refining equipment and the manufacture of large-sized two- and three-layered clad sheets and plates of up to 450 millimeters gauge. It also provides for final thermal processing in unique furnaces having no analogues in Russia and CIS countries.

The project’s purpose was to modernize and reconstruct production in strict compliance with Rosatom State Nuclear Energy Corporation’s long-term Activities Program, the Program of the Russian Federation’s Chemical and Petrochemical Industry Development, Russia’s Energy Strategy and General Scheme of Electrical Energy Facilities Deployment.

The launch is a first stage of Izhorskiye Zavody’s preparation for an increase in equipment production for the nuclear islands of nuclear power units from two to four units per year. Moreover it will allow a significant expansion of production and technological opportunities for the manufacture of reactors and oil and gas refining equipment for OMZ strategic partners including Naftan, Tatneft, LUKoil, Surgutneftegaz, Gazprom, Rosneft and Novatek. The company’s ability to manufacture unique forging ingots of up to 600 tons in weight will put an end to foreign producers’ monopoly in the production of rotors for low speed turbines and generators.

The steel smelting complex includes a DSP-120 heavy-duty arc melting furnace, gas purifying plant, lime roasting section, automated system of metering of doping materials, a plant for drying scrap metal and ferrous-based alloys. In addition to the construction of the DSP-120 furnace, the company has been working on full modernization and reconstruction of production and technological facilities at the Izhora industrial site.

This major project was implemented in line with OMZ Group’s strategy for the creation of Russia’s most progressive machine building complex based on its own modern metallurgical facilities for the manufacture of long cycle equipment for the nuclear energy, oil and gas industry, mining sector, energy industry, shipbuilding and other industries.

Farid Kantserov, Chairman of the Board of Directors, OMZ OJSC, said: “Putting into operation of super-power steel melting complex reflects a consistent strategy of Gazprombank aimed at turning OMZ Group into the newest highly efficient machine building corporation in Russia. This is a momentous event for the entire Russian machine building industry as it confirms our willingness to take an active part in the development of the domestic nuclear energy sector and to compete successfully with leading Western companies in the foreign market.”