OREANDA-NEWS. November 02, 2009. SOGAZ Insurance Group and OJSC Vyksa Metallurgical Plant (VMP) have signed an Insurance Agreement for the construction of a plate mill (Mill-5000), Russia's first metallurgical facility for the manufacture of wide sheets used to produce pipes, reported the press-centre of SOGAZ.

Construction and assembly work under the Agreement is insured by SOGAZ against all risks. The Agreement also provides for the Company’s general liability insurance, including environmental and third-party life, health and property damage liability coverage. Besides, OJSC Vyksa Metallurgical Plant is insured against losses due to possible delay in commissioning of Mill-5000.

The Insurance Agreement will remain in effect until the end of 2014. The total amount of insurance is EUR 977 million. VMP’s risks will be reinsured by SOGAZ in the leading western reinsurance companies.

OJSC Vyksa Metallurgical Plant is part of United Metallurgical Company (UMC), which is one of Russia’s largest industrial companies.

The Mill-5000 construction at VMP commenced in 2007. The total area of the industrial complex with ancillary facilities will be 150 thousand square meters, and the mill line length – 1.1km. There will be more than 60 facilities constructed, 300 thousand cubic meters of concrete cast, 40 thousand tons of metal structures and 40 thousand tons of equipment assembled at its site. Investments in this project will amount to USD 2 billion. The general contractor is CJSC Strabag, a subsidiary of the Austrian group Strabag SE.

Mill-5000 will produce wide sheets of high-strength steels, up to X-120, that are not manufactured in Russia now. Its design capacity will reach 1.5 million tones a year, which will make it possible to fully provide VMP with wide sheets with enhanced application properties for the production of new-generation, large-diameter pipes, as well as to supply the sheets to other companies operating in the metallurgy, machine-building, shipbuilding and nuclear industries. Mill-5000 is planned to be commissioned in mid 2011.