Member of the
and Head of the Human
Achieving our sustainable development objectives is one of the priorities of our business strategy, and a commitment that all of OMK’s subdivisions share. Since the adoption of OMK’s Corporate Social Responsibility Policy in 2017, our CSR objectives and CSR management system have extended to our work with staff, our interactions with suppliers and clients, and our efforts to protect the environment and develop local communities.
Informing stakeholders about these objectives is a key element of our sustainable development work, and I am pleased to report that our efforts in this area have been recognized by the professional community. An assessment of public accountability at OMK placed it among the leading companies in the Responsibility and Transparency and Focus on Sustainability indices calculated by the Russian Union of Industrialists and Entrepreneurs and the Moscow Exchange. We also achieved second place among Russian steel and mining companies in АК&М’s social effectiveness ranking.
By decision of the CSR Committee, assessment of suppliers and subcontractors in 2019 included a new criterion: their employment of socially responsible practices. When they submit their initial applications, potential contractors are also made familiar with OMK’s guiding principles for working with suppliers of goods, labour, and services, which are based on the provisions of OMK’s CSR and anticorruption policies. These measures are helping to spread socially responsible practices within our business circle.
A key focus for OMK during the reporting year was improving the efficiency of general and administrative functions, seeking to create in-house staffing pools at Vyksa Steel Works, and developing our corporate university.
We embedded company values more firmly into our corporate culture by developing a skills model for various grades based on our values. The new skills were integrated into our training programmes.
We also began a project at our managing company in 2019 to centralize staff recruitment. Thanks to this, OMK is now able to link its HR strategy with sociodemographic changes in the regions where it operates and introduce new, modern recruitment tools, thereby enabling it to ensure an inflow of qualified employees to its sites over the long term.
We continued to provide material support for our employees, including our most sought-after benefits. The company rigorously fulfilled its obligations under collective agreements. In accordance with obligations assumed voluntarily by OMK, wages either corresponded to regional averages or exceeded them.
In December, the Moscow office of our managing company launched a pilot project introducing partial remote working. We analysed best practices, sought out optimal solutions, and tested new approaches with the objective of introducing new options for creating a pleasant working environment. This experience has been extremely helpful in the COVID-19 epidemic, during which we have urgently introduced remote working for administrative staff.
Social projects and charity work
In collaboration with the OMK Uchastie Foundation, the company organized the ninth Art-Ovrag urban culture festival in Vyksa, which drew more than 22,000 participants. 2019 also saw the launch of the Theatre Seasons programme, which brought together 20 performances at regional and metropolitan theatres in Vyksa and Chusovoy. The performance of Passions on an Open Hearth, which marked the closure of the Open-Hearth Furnace Shop at Vyksa, won the State Innovation Prize in the Project of the Year category, and was awarded the Grand Prix at the Sergey Kuryokhin Contemporary Art Awards. We continued our OMK Partnership and Start Your Business programmes, which are designed to promote the development of local communities. Total donations and social investment amounted to RUB 861 million.
OMK is one of the safest companies in the ferrous metals industry. Recent years have seen a consistent fall in the number of industrial injuries and in injuries overall, thanks in part to the introduction of an integrated safety management system, the adoption of best international practices for recording industrial and non-work injuries, and the cultivation of a modern production culture. The number of audits conducted at OMK sites by managers at all levels is increasing, work is being carried out to improve employee awareness, and all incidents, without exception, are being investigated. No fatal injuries have occurred at OMK plants since 2015, and our LTIFR for 2019 was 0.72, which is significantly lower than the limit value of 1.25 established by the CSR committee for the year.
As a result of our systematic work with our employees, our employee engagement indicator rose by three percentage points to 68%.
OMK follows the principles of corporate social responsibility and the global Sustainable Development Goals to solve current problems facing modern society. The company contributes to improving quality of life and socioeconomic development in the regions where its enterprises are located, and where employees, their families, and several hundred thousand people live. OMK consistently implements its chosen sustainable development strategy in dialogue with stakeholders and taking global best practices into account.
ОMK has created a management system that allows it to set and monitor fulfilment of the social responsibility goals established in the OMK Corporate Social Responsibility Policy. This is a document of action that defines both strategic CSR goals and priorities and, within them, objectives for particular OMK subdivisions.
Our policy is based on the GOST ISO 26000 and SA8000 social responsibility standards, and on stakeholder requirements. Setting interrelated CSR goals in a single document enables us to systematically manage our impact on society and on the environment, providing an effective tool for harmonizing our relationships with diverse groups.
In addition to the goals, our policy also sets out the system for managing aspects of sustainable development, a central element of which is the OMK Corporate Social Responsibility Committee, which is led by Chair of the OMK Management Board Natalya Eremina.
Three sessions of the CSR Committee were held during the reporting year, at which committee members:
- Heard regular reports on the execution of the Corporate Healthy Living Programme for 2019, which was adopted at the end of 2018.
- Recommended that OMK’s Management Board adopt a revised version of the OMK Corporate Social Responsibility Policy (approved on 28/11/2019).
- Approved a revised version of the Regulations on the OMK CSR Committee.
- Approved OMK’s Annual Report for 2018.
- Approved a report on the achievement of CSR goals for 2018.
- Approved CSR goals for 2019, 2020, and 2021.
- Approved a revised procedure for the preparation of the Annual Report for 2019.
- Approved a Corporate Healthy Living Programme for 2020.
During the reporting period, HR management was carried out on the basis of OMK’s 2018–2020 functional strategy. The company’s Human Resources Department continued to improve its HR and engagement practices, which are essential for achieving good, sustainable performance.
OMK’s Human Resources Department contributed to achieving the following corporate goals in 2019:
Improving the efficiency of general and administrative functions (procurement, economics and finance, HR management and social development, and sales support) by transforming processes through centralizing mass operations within a Unified Service Centre. We developed target maps for end-to-end business processes, a KPI system and metrics, a skills model, and an incentive system for the employees of a new division.
Identifying potential among existing staff as part of the Total Optimization of Production 2 (TOP 2) project at Vyksa Steel Works. Potential equal to 2,154 full-time staff was identified. Employees will be given the opportunity to transfer to new VSW production facilities as processes are streamlined, automated, and robotized.
Transforming the sales management system. We developed a functional skills model and launched a comprehensive development programme entitled ‘Transforming the sales department: new requirements for sales staff’.
Another key task has been the development of our corporate university. We formulated an employee training and development programme for managers at levels B, C, and D* based on a managerial skills model, together with basic development programmes covering interpersonal and business skills for managers, specialists, and employees.
Total corresponds to plant objectives.
A – senior executives: the Chair and members
of the Management Board
B – senior executives: the Managing Director
and other senior executives
C – divisional heads reporting to a senior
E1 – employees without subordinates but who
are managers under Russia-wide classifiers
E2 – specialists
F – office workers
G – manual workers
The existing gender balance in the various categories is determined by the nature of the roles and is optimal. The number of staff in each category is consistent with operational needs.
University in 2019:
2711 employees trained
178 training activities
106 training sessions
32 unique business sessions developed at client request
2 team-building events
1861 training hours
2,7 – average score in satisfaction surveys (out of a maximum 3)
OMK operates its own Corporate University, which was established in 2018. This unified educational centre provides effective training programmes to support employees’ development.
The programmes at the university are designed to achieve the company’s strategic objectives, and its activities reflect OMK’s values. One of its key aims is to ensure that internal and external employee development programmes conform to a unified quality standard which is rooted in our corporate culture.
All training programmes set out clear objectives, have a clearly specified purpose in alignment with our business strategy, and have the following distinguishing features:
- They employ a combined approach to training (on-site and using the latest technology) and include modelling of real workrelated situations
- They have a clear and carefully developed strategy for engaging both in-house and external instructors
- They measure the progress of employees in training and the business impact (indicators for exceeding or failing to reach anticipated performance)
At the beginning of 2019, our Corporate University conducted comprehensive research into OMK’s corporate culture. Through dialogue with our employees, we identified the values that our team share and demonstrate in their working lives. We aligned the results of these dialogues with OMK’s strategic goals. This enabled us to create an OMK skills model, which includes general skills, skills for managers at various levels, and functional skills for employees in specific areas.
The OMK skills model is a comprehensive set of behaviours that are essential if our employees are to achieve our strategic goals – a unified system of reference points for employees at all levels. The model makes clear to every employee what OMK and their manager expect from them. It contains clear and transparent performance criteria for hiring, training, and evaluation. This integration of skills at different levels of decision-making and shared fundamental skills forms a holistic and transparent model of employee behaviour based on OMK’s corporate values.
- Welcome to OMK information seminar f • or new employees, covering the history of the company, its leaders, products, culture, and development opportunities. In 2019, 22 seminars were held for 357 people.
- Basic Management Skills training course. The goal is to help new leaders understand the essence of their role and master key managerial skills. In 2019, 46 training courses were conducted for 487 people.
- New Leader seminar. The goal is to introduce the company’s business processes and to inform new leaders about the areas of influence and accountability in these processes.
All employee training and development programmes are targeted and designed to develop the competencies adopted by the company.
The following training sessions have been added to the catalogue for competency development:
- Motivational Leadership
- Planning and Organization of Work
- Decision Analysis
- Development of Systems Thinking
- Development of Business Mindset
- Process Management
The OMK Corporate University implements comprehensive staffing pool development programmes. Each is designed for participants at a specific managerial level and has different goals.
- The Leadership Fundamentals programme is aimed at developing a talent pool for middle management and line management. The goal is to shape managerial and personal attitudes that will enable effective team management.
- Leadership Energy programme for mid-level management, covering how to manage yourself, your team, and processes to achieve more in an ever-changing business environment. Programme participants are middle managers.
In 2019, 170 employees took part in staffing pool development programmes.
- The Role of the Leader in the Annual Cycle Process seminar
- The Role of the Leader in Developing Subordinates seminar
- Employee focus groups: a qualitative stage in the study of engagement.
In 2019, a specially designed session, Over the Horizon, was held for senior executives, focused on working with the goals at the top level of the company.
- Development of Internal Experts programme
(Directorate of Legal Affairs)
- Presentation Approach to Sales (Regional Sales Directorate)
- Negotiations in Procurement: In the Crossfire
(CSW Procurement Department)
- Effective Communications with Sales Support
(CSW Sales Support Department)
- Training session as part of a scientific and practical conference (VSW)
- Communication – Easy! programme (VSW Repairs Directorate)
- Presentation Workshop (Campus – employee development)
- Project Managers’ Academy (Directorate for Investment and New Projects)
- Focus group with students from Vyksa Metallurgical College who completed internships at VSW
- Focus group with OMK Unified Service Centre employees
- Effective Communications (Increasing Efficiency project team)
- Fundamentals of Communication programme
(Engineering and Technology Centre)
In 2019, we developed and conducted five unique strategic sessions, tailored to the customer’s request, functions, and directorate using the latest team building and strategic planning technologies. These sessions were attended by 148 managers and key specialists.
In 2019, there was an increase in man-hours spent on courses as a result of the introduction of new development programmes for managers in the staffing pool: Leadership Energy and Leadership Fundamentals. The company increased the amount of training as part of individual development plans.
The increased time spent on training by office and manual workers in 2019 is associated with advanced training on new production for employees at CSW and VSW. At the Trubodetal plant, qualification profiles for various roles were reviewed in 2019, leading to an increase in training.
CSW implemented the Basics of Lean Production programme to develop the production system.
OMK enterprises have traditionally cooperated with a number of the best universities, giving it advantages when it comes to selecting the most promising young specialists. In some cases, these collaborations have been in place for more than ten years.
OMK invested RUB 32.9 million in education in 2019.
Of this amount, financial assistance to schools accounted
for RUB 13.7 million,
The costs of higher education amounted to RUB 12.1 million,
Promotion of educational activities cost RUB 7.1 million.
- National University of Science and Technology MISIS
- MISIS Vyksa branch.
- Alexeyev State Technical University
- Murom Institute of Stoletovs State University
- Lobachevsky State University, Nizhny Novgorod
- Kozeradsky Metallurgical College, Vyksa
- Bauman State Technical University, Moscow
- Navashino Polytechnic School
- Kulebaki Polytechnic School
- Murom College of Electronic Instrument Engineering
- Samara State Transport University
- Boris Yeltsin Ural Federal University
- Perm National Research Polytechnic University, Lysva Branch
- Perm State University
- Chusovoy Industrial School
- Lysva Polytechnic College
- Ufa State Aviation Technical University
- Ufa State Petroleum Technical University
- Almetyevsk State Oil Institute
- Kazan Aviation Institute
- Kazan State Energy University
- Kazan (Volga) Federal University
- TISBI University of Management, Kazan
The decrease in the admission of young specialists is associated with the general trend of secondary school and university graduates moving away to large cities. The company is addressing this problem by strengthening its brand as an employer, implementing programmes to raise the profile of sought-after professions in the company, and taking an integrated approach to working with educational institutions, in accordance with which it is planned to integrate curricula with OMK production programmes.
The basic principle of staff recruitment at OMK is equal opportunity. The company strictly complies with all employment legislation in the Russian Federation and with its obligations to society. OMK uses advanced technologies to search for and attract specialists, based on global best practices.
1. Basic (classic) recruiting: employee search, selection based on the results of interviews, tests, etc., as well as monitoring recommendations.
2. Executive search or ‘special search’ for employees. Selection of rare specialists or managers.
3. Screening or selection of staff according to requirements. Comparison of the manager’s requests against the CVs of applicants available in the agency database. This assumes the involvement of a significant number of candidates.
4. Networking: a new employee search system, the idea of which is associated with active events on the Internet. The purpose of networking is to strengthen the position of the company’s HR brand and create an external staffing pool by increasing recognition and loyalty to the company’s brand. Networking is closely linked to the concept of HR marketing, but in contrast to the latter, networking is ‘tailored’ to searching for employees online.
5. Preliminaring: engaging promising young professionals (students and graduates) who will become the key to the company's success in the future through work experience and internships. This technology is actively used by the HR department as part of the Industrial Tourism project. OMK enterprises cooperate with a number of the best universities, giving them advantages when it comes to selecting the most promising young specialists.
Currently, tools such as video interviews or Skype interviews are increasingly being used in the selection process.
We invited 337 highly qualified specialists in seamless production, electrometallurgy, maintenance, and construction to help implement OMK projects. We anticipate engaging 150 highly qualified specialists in 2020.
- determine the degree to which the professional, business, and personal qualities of an employee meet the requirements for the proposed or occupied position
- identify potential and determine prospects for employee advancement
- identify training and development needs
- support management decisions on hiring, promotion, or demotion
- when applying for a job
- at the end of the probation period
- regular annual assessment as part of the annual cycle
- for a business task / at the request of the manager (potential assessment)
- during selection for the staffing pool
Evaluation tools vary by employee level. In accordance with the goals and objectives of the assessment, the OMK Corporate University determines the appropriateness of applying specific assessment methods and develops, procures, or adapts existing methods to the selected assessment methods.
- We selected a remote assessment tool (questionnaire) for corporate competencies.
- We chose an external provider (SellWell) to assess the functional competencies of the sales department.
- We developed a package of exercises for assessing managerial competencies using the ‘assessment centre’ method at levels C and D.
- Functional competencies were developed.
- The functional competencies of 147 employees were assessed.
- The results of the assessment were analysed and an employee development plan developed.
- A session was held with sales directors.
- Candidates were selected to move from production to sales: 13 out of 25 people who passed the remote assessment.
- 17 external candidates were assessed.
I n 2019, we implemented projects to improve the performance of our general production and administrative staff at our Trubodetal plant, and of our maintenance staff (managers and specialists) at VSW. The potential efficiency improvements identified in these divisions totalled RUB 294.9 million. Workforce productivity increased by 14.5%.
As part of measures to meet our requirements for qualified staff for investment projects, staffing pools amounting to approximately 2,500 full-time equivalent (FTE) employees were identified at Vyksa (including 2,158 FTEs as part of TOP 2). Of these, approximately 600 full-time posts (247 for TOP 2) were allocated to fulfil the staffing needs of current investment projects.
Employee wages at OMK consist of a base salary and a variable component. The base salary includes payments reflecting staff qualifications (salary/rate), payments for working conditions (harmful working conditions, day and night work, etc.) and other payments (professional skill, foremanship, etc.).
The variable component is guided by the following principles: objectivity, predictability, appropriateness, timeliness, relevance, fairness, and lawfulness.
It includes regular bonuses and one-time bonuses. Regular bonuses are cyclical (month, quarter, year), and are awarded in accordance with agreed rules. These are used to establish specific expectations regarding total remuneration dependent on the fulfilment of relevant indicators.
One-time bonuses are one-time awards made for achieving specific results outside the context of day-to-day activities. Onetime bonuses are awarded for contributing to the achievement of project goals, and for implementing optimization initiatives intended to bring about practical impacts for OMK. One-time bonuses are intended to recognize the contribution made by an employee to OMK’s achievements. Advance expectations with respect to amounts are not established in these cases. Bonus amounts reflect the value of the contribution made by the employee to the result obtained by OMK.
OMK is a socially responsible company. In developing our social support package, we are strongly focused on the wellbeing of our employees. The package includes support measures such as material assistance provided on various grounds; allowances and remuneration for food; additional paid and unpaid leave; medical care (insurance and sanatorium/spa treatment); and presents for employees’ children during the festive season.
Non-state pension (NSP) provision is an issue of great importance to OMK. We are committed to ensuring that our employees enjoy a decent standard of living following their retirement. More than 5,700 of our employees are enrolled in NSP programmes, and more than 3,700 in a voluntary cofinancing programme. NSP programmes are operated through the Gefest non-state pension fund.
For employees who have been participating in the programme for more than 10 years, monthly supplements to their state pension rise to RUB 17,000, compared to an average Russian state pension in 2019 of RUB 14,900.
An engaged workforce is key to OMK’s success as a company. Since 2013, OMK has conducted annual engagement studies as part of the OMK Dialogue programme to encourage dialogue with our stakeholders. The 2019 survey was completed by 17,425 employees, or more than 75% of our team.
Increased engagement is associated with higher quality and more frequent interactions between senior managers at production sites and employees (at shift meetings, during rounds, at shop meetings, etc.) and with the gradual improvement of interaction processes and increased transparency of bonus payments.
The following projects were carried out to improve engagement at a corporate level:
- implementation of corporate values through a new skills model
- management training via a new Corporate University ‘Core management skills’ session
- ‘Face to face with people’ – improving the quality of standard service provision to our employees (issuing of certificates, processing of applications, etc.) and promoting a healthy lifestyle
2019 also saw the pilot launch of a new method for studying engagement, Compass of Changes, at the managing company, APP, and the Unified Service Centre. This method excludes the possibility of social desirability bias, assesses the extent to which employees and the company think alike, and identifies not only opinions, but problem areas. Compass of Changes is proving effective thanks to its employment of ipsative surveying techniques, and the OMK Management Board has declared the pilot a success. OMK plans to launch the method across the company in 2020.
The existing non-material employee incentive programmes at the company are aimed at recognizing the merits and importance of employees, forming a single cohesive team of like-minded people who share OMK's values.
The non-material incentive system includes programmes to incentivize employees by means of state, departmental, regional, municipal, and corporate awards, and awards presented by OMK enterprises.
In 2019, 92 employees received departmental awards, 41 received regional awards, 72 – municipal awards, and 193 – corporate awards, including awards from the Batashev Brothers Foundation, named after the founders of VSW, as well as corporate awards from the best functional managers and specialists. About 1,000 people received enterprise awards (letters of appreciation from management, certificates of honour).
All OMK enterprises have approved provisions on incentivizing employees through state, departmental, regional, and municipal awards. Honour boards are in operation at plants. At the end of 2019, 57 finalists were shortlisted for the main corporate award named after Ivan and Andrey Batashev. The winners in 11 categories will be announced in July on the Metallurgists’ Day professional holiday.
For the second time, the Best in Function corporate award was presented at OMK. The goal of this award is to recognize the best functional managers and specialists and create an environment where employees can share experience. At the end of 2019, 56 of the best employees in various functional areas were announced as the winners.
During the reporting period, the OMK Ethics Committee received 15 complaints from employees, all of which were reviewed.
OMK supports the trade union movement. Trade union organizations operate at all OMK sites and are supplied with everything they need in order to do so.
Social partnership at OMK is built around principles agreed by both sides that make it possible to ensure, via dialogue, that both employer and employee interests are taken into account.
This partnership takes three forms:
The OMK Social Council, which comprises site HR directors, trade union leaders, and senior executives. The Council is a platform for the discussion of social partnership and systemic cooperation issues.
Social dialogue at site level, involving trade union heads, managing directors, and HR directors. Collective bargaining agreements are concluded at this level.
Ongoing cooperation at shop-level.
Collective bargaining agreements regulate social and labour relations at OMK sites. They do not contain any conditions which limit employee rights or reduce employee guarantees to a level below that established by employment legislation or other legal instruments containing employment law regulations.
Collective bargaining agreements are reviewed in the event of changes to legislation.
In accordance with the Labour Code of the Russian Federation, labour relations between an employer and employee are only permitted on the basis of a written employment contract. OMK adheres strictly to employment legislation, and 100% of its employees are protected by written employment contracts.
At the end of 2019, a new industry-wide wage rate agreement for the Russian Federation’s mining and metallurgical sector was signed for 2020–2022. OMK was heavily involved in developing this new agreement.
Significant changes were made to section 5, ‘Remuneration of labour’. The revised section raises the minimum wage where an employee is fulfilling employment duties and working his/her agreed monthly hours to 1.8 times the subsistence minimum for the working population in the relevant area of the Russian Federation, and to no lower than 1.45 times the subsistence minimum for the working population established at the federal level for employees in non-core areas of activity.
on occupational safety
The OMK Production Safety Committee is responsible for initiating, steering, coordinating, and monitoring production safety measures, and for addressing issues of company-wide importance.
The Committee comprises OMK’s Head of Production Safety, Head of the Commercial Department, Head of the HR Department, Director of Business Systems Development, and plant managing directors, and is led by the Chair of the Management Board..
The key aims of management with respect to developing workplace safety and protecting the environment in the context of OMK’s strategic priorities are as follows:
1. Completing the construction of a vertically integrated workplace
safety management system that encompasses current activities
and long-term development projects.
2. Harnessing the potential of the transition to a risk-oriented approach to all areas of production activity. Cultivating a workplace safety culture while constantly improving the management system.
3. Developing an automated safety management system at all OMK sites.
4. Ensuring that staff work in optimal and acceptable conditions (based on a specially designed assessment of working conditions), thereby reducing compensation payments for harmful working conditions.
5. Making all machinery and equipment safe and ensuring it is used in safe settings.
6. Participating in the development of a regulatory framework for production safety in the Russian Federation.
** LTIFR = N / T * 1,000,000 (N – number of recorded production site accidents during reporting period resulting in disability for one or more days, T – total man-hours worked)
*** Confirmed cases х 10,000 / annual average total employees
not leading to disability
in 2019 compared with
The procedure for arranging and carrying out internal investigations
and for recording occupational and environmental safety incidents
is defined by standard STK.12-66.1.
This standard determines the procedures for reporting incidents, conducting internal incident investigations, sharing information about the findings of internal investigations, implementing measures based on these findings, and tracking and archiving internal investigation materials.
The standard applies to all divisions of the organization as they investigate, document, and track incidents. Depending on the circumstances, incidents are classified as severe, significant, or not significant.
- We improved the quality of managerial rounds at the majority of OMK sites.
- We noted high levels of staff engagement concerning production safety issues; when surveyed, employees demonstrated a good knowledge of cardinal occupational safety rules and guidelines and recalled issues discussed by managers at shift meetings.
- We are implementing a programme to replace and upgrade machinery at hazardous production sites (modular boiler plant, cranes, pressure vessels, gas-utilizing machinery).
- We have acquired portable lifting devices with self-locking hooks.
- We integrated updated safety devices into our cranes, including remote shutdown sensors, red lights beneath loading beds indicating a hazardous zone, rail lubricators, braking systems, limit switches, video cameras, and other devices.
- We fitted our gas-utilizing machinery with stationary gas analysers, and with safety and shut-off valves.
- We have introduced a Defensive Driving training course, which is also open to managers and drivers from contractor organizations (VSW).
- We fitted our forklift trucks with blue and red warning lights for hazardous zone visualization (VSW).
- We laid footpaths on high-use pathways and added roofing to flights of stairs (Trubodetal).
- Visual indications of non-hazardous settings when using critical machinery.
- Evaluation of the safety status of critical machinery upon commissioning.
- Implementation of pilot projects using a LOTO safety system for blocking hazardous energy sources.
- APP no longer has ‘civil defence category’ status (applied to potentially hazardous sites).
- All measures recommended following assessment by the oversight body of the Moscow Office of the managing company and VSW were carried out.
- Our plants were licensed to maintain automatic fire systems (we now carry out maintenance ourselves).
- Development of a segregated waste collection system.
- Inclusion of environmental topics in mini-briefings during every shift.
- Integration of information about environmental issues into occupational safety guidelines.
The automated safety management system has now been
introduced and successfully established at all OMK plants. The
system includes a convenient mobile app for Android and iOS.
Contractors have a personal user account.
The system features functions for conducting behavioural safety audits as well as industrial safety monitoring at production sites. The platform gathers data on audits and checks, and makes it possible to monitor the elimination of irregularities and violations and to analyse violations by type, cause, and other factors. It is used to maintain a register of all hazardous sites and machinery and to keep track of expert assessments. In the future we plan to add functionality for investigating incidents, reporting on all areas of production safety, assessing risks, and supplying personal protective equipment.
- Effective Safety Management Methods for Managers, Specialists
and Office Staff, Including Training in Conducting a Behavioural
Safety Audit seminar.
All managers, specialists, office staff, deputies and members of the staffing pool take this seminar. Duration: 16 hours (two work shifts).
- Development of a Conscious Attitude to Safety for Manual Workers seminar. All manual workers at the company’s enterprises undergo this training. Duration: 8 hours (one work shift).
- Internal Incident Investigation seminar. Managers, specialists and office and manual employees who are involved in investigating incidents undergo training. Duration: 8 hours (one work shift).
- Safety of Production Processes seminar. Run in accordance with corporate standards on the mechanical integrity of equipment, pre-start safety checks, and technical change management. All managers, specialists, office and manual staff who operate, service, and repair critical equipment undergo training. The production safety officer is present at the seminar. Duration: 4 hours (0.5 shifts).
- Defensive Driving seminar. All drivers at the company’s enterprises and managers, employees and office staff who operate personal or official vehicles as part of their roles undergo training. There is a theory component lasting 8 hours (including the test). All those who take and pass the theory component then move onto a practical component, Driving with Feedback, lasting 1 hour.
We conduct introductory briefings for visitors to our enterprises, and inform them about all hazards and dangers, and the rules of safe behaviour in the workplace. We provide personal protective equipment and accompany visitors while on the production site.
A procedure has been established to prepare workers to prevent accidents (incidents) associated with plant activities, actions to ensure industrial, fire, and environmental safety in the event that incidents occur, and to locate and mitigate the consequences of accidents (incidents) and fires. The procedure involves creating an emergency commission, developing emergency and emergency response plans, training employees according to these plans, and providing resources and regular training.
Corporate document M.12-35.2, ‘Risk Assessment and Ranking’
defines a method and tools for assessing and ranking risks in order
to manage risks within the company's management system.
We apply the methodology when assessing and ranking risks to manage risks in the areas of quality, safety, and environmental management, energy efficiency, and social responsibility (in the areas of management covered by the corporate integrated management system) in accordance with the requirements of relevant regulatory documents on risk management.
The methodology is mandatory within OMK and makes it possible to determine the level of risk significance for planning subsequent actions in accordance with the chosen risk management method.
In accordance with the STK.12-54.2 standard, on ‘Occupational, environmental, and fire safety management of contractor organizations’, occupational safety requirements extend to OMK’s structural divisions and beyond, to contractor and subcontractor organizations. All contractors must follow the same production safety regulations as OMK employees. Compliance monitoring is conducted by the head of the division procuring the contractor labour, services, or materials.
VSW made the most significant contribution to reducing the company’s environmental footprint. VSW has reduced steel production atmospheric emissions by more than a third, as a result of terminating operation of the obsolete open-hearth shop and other events. The enterprise spends more than RUB 1 billion on environmental protection per year. Over the past three years, VSW has reduced atmospheric emissions by more than 2.5 times.
** There was an increase at CSW due to higher production by Mill 550 and heavy rainfall during summer and autumn. VSW – maintenance of the salt balance of the system.
*** Trubodetal – increase in the amount of waste associated with an increase in production volumes.
APP - Certificate No. 18.0136.026, 4 October 2018. The plant’s environmental management system has been verified and found to comply with the requirements of ISO 14001:2015 (GOST R ISO 14001- 2016) in relation to the production of steel ERW pipes. The certificate is valid until 30 January 2021.
CSW – ISO 14001:2015. The certificate of conformity was obtained in June 2018.
«Trubodetal» – Environmental safety systems are certified according to the ISO 14001:2015 standard.
In 2019, VSW conducted the first supervisory audit of the integrated management system for compliance with the requirements of ISO 14001:2015 and OHSAS 18001:2007. The plant as a whole has demonstrated compliance with ISO 14001:2015 and OHSAS 18001:2007
BVP conducted an inspection audit of its environmental management system and occupational health and safety management for compliance with the requirements of ISO 14001:2015 and OHSAS 18001:2007. Two inconsistencies and three observations were issued, for which a corrective action plan and a report were prepared. The plant obtained certificates: ISO 14001 2015 No.: 19.1332.026 from 01/08/2019 and OHSAS 18001:2007 Certificate No.: 19.1388.026 from 01/08/2019.
recycled by Trubodetal
We have adopted a production safety policy which affirms that OMK complies with Russian legislation, is guided by international standards and best practice in production safety, and is committed to integrating these into its business processes. We are putting in place conditions that ensure a safe working environment for our employees and contractors, and are continuing our efforts to improve the environmental safety of our activities. The lives and health of our employees and the protection of the environment are OMK’s highest priorities.
VSW – Establishing a single sanitary buffer zone around three VSW sites near the village of Motmos. The zone will encompass the current casting and rolling complex, the seamless pipe shop, which is presently under construction, and the planned electrometallurgical complex.
CSW– Ensuring that pollutant discharges at outlets are in compliance with legislation. Establishing a sanitary buffer zone.
BVP – Reequipping Steelworks Shop No. 3 (installation of induction furnace with gas purification system). Upgrading of water recycling system. Reducing water consumption by 1,231 m3 and electricity consumption by 868,251 kWh.
Trubodetal and APP – Replacing lightbulbs containing mercury with LED lighting.
CSW – Upgrades will be included in a programme to improve environmental performance as part of the process of attaining a comprehensive environmental permit for a facility exerting a category I negative impact on the environment (Ferroalloy Shop). A comprehensive environmental solution will be achieved by 2025.
«Trubodetal» and APP – Replacement of lightbulbs containing mercury with LED lighting. Replacement of two large hot water boilers with small RS-D1000 gas hot water boilers, which reduce natural gas consumption.
VSW – Production safety management programme.
CSW We eliminated discharge of wastewater into the River Usva (wastewater rerouted to outlet 2).
We acquired and installed a skimmer in the water recycling system to purify process water by removing petroleum products.
We developed and agreed a plan with the Russian Federal Service for Supervision of Natural Resources to reduce discharges from outlet 2 in 2020–2026. As part of a project to establish a sanitary buffer zone, we confirmed a plan to reduce atmospheric pollutant emissions in 2020–2026 which includes improvements to the performance of dust and gas purification equipment and the construction of a gas purification system for the batch firing furnaces in the Ferroalloy Shop.
A set of waste segregation measures have been in use at OMK sites for a number of years, with the primary objective of reducing the volume of waste sent for disposal. For example, at VSW alone, the volume of municipal solid waste produced has been reduced by two thirds over the last seven years. Meanwhile, total waste has been reduced by almost 90%.
CSWThere is no comprehensive programme to implement a waste segregation system at CSW at the present time. Waste is temporarily stored in compliance with sanitary rules and regulations. Waste with a material value (scrap and ferrous and non-ferrous metal waste) is additionally managed by our Economic Security Service. Consumption waste sent for disposal excludes waste prohibited from disposal by Russian Government Directive No. 1589-R dated 25.07.2017 (as of 2019, glass containers, polyethylene, polypropylene, and PET waste, and waste paper).
«Trubodetal» The plant segregates the following types of waste: mercury bulbs, waste oils, paint and lacquer materials, cardboard, polyethylene, slag, scale, flux, shot waste, fixer solutions, waste abrasive discs, sand contaminated with oil products, cartridges, cutting fluid, wooden packaging, and scrap metal.
BVP – There is no comprehensive programme at present. Segregated and recycled waste includes paper and cardboard from office activities, non-contaminated cardboard packaging waste, scrap metal, and unsorted steel waste. Non-contaminated ferrous metal scrap, non-contaminated steel swarf, clean natural wood trim
APP – Environmental management system in compliance with international standard ISO 14001:2015 (GOST R ISO 14001-2016) – 1 person
CSW – Shop and structural division heads responsible for the environmental management system in shops and divisions were trained in environmental management system terms, definitions, and key sections (via testing in the SAP system).
Two out of three environmental protection specialists were trained in ISO 14001:2015 requirements at an external specialist company and issued with training certificates.
VSW – 2,646 employees were trained:
Ensuring environmental safety for managers and specialists working with general management systems – 12 people. Professional training in waste management regulations, hazard classes 1–4 – 146 people
Testing in the automated training system – 2,488 people
BVP – Managing Director Andrei Eliseev took the training course ‘Ensuring environmental safety for managers and specialists working with general management systems’ on 01.10.2019, reg. No. 19-3019-01.
saving and energy efficiency
O ur five-year programme to save energy and increase energy efficiency at VSW over the 2017–2021 period includes the following measures:
- measures to prevent increased expenditure following closure of the open-hearth furnace – exclusion of the use of steam and closure of steam boiler plants while upgrading hot water production
- measures to decommission VSW steam heating boiler plant machinery by modernizing the thermal complex at VSW and Vyksateploenergo
- measures relating to constructing an oxygen production pipeline from the casting and rolling complex to VSW and ceasing oxygen production at VSW
- measures to optimize laminar cooling of rolled sheets at the casting and rolling complex
- measures as part of current divisional activities
- measures developed using the A3 technique
and increasing energy efficiency
VSW complies with consumer product certification requirements that ensure that its products are safe to use.
- Compliance certificate ТR TS 032/2013 – for process pipelines within the Eurasian Customs Union
- Expert industrial safety report – applies to hazardous production sites in the Russian Federation
- Compliance certificate GOST R – for all industries
- Compliance certificate GAZSERT – for interregional gas pipelines (Gazprom Mezhregiongaz)
- Compliance certificate INTERGAZSERT – for supply and industrial pipelines (Gazprom Transgaz)
- Disease control report – for drinking and hot water supply networks
- Compliance certificate TR RB 2009/013/BY – for the construction sector in the Republic of Belarus
- Gospromnadzor permit – applies to potentially hazardous facilities in the Republic of Belarus
VSW railway wheels undergo mandatory certification for compliance with Eurasian Customs Union technical regulation TR.TS 001/2011, and with European Parliament and Council Directive 2008/57/EC.
Hazardous materials are used during production. Welding and coating materials have a safety passport containing information essential for protecting the lives and health of people, property, and the environment.
For carriage shipments, reusable composite fittings manufactured from secondary raw materials are widely used instead of conventional wooden fittings. In addition to ensuring the quality of the delivered product, this solution also enables us to reduce our environmental impact by avoiding the use of wood.
To ensure that customers have free access to essential information about product specifications, the VSW website (omk. ru) is kept updated with the latest editions of catalogues for all product categories, with all product nomenclature included. Annual customer conferences are held, and members of the company regularly give reports and presentations at exhibitions and forums, distributing product catalogues and information CDs to other attendees. Customers conduct audits at VSW to obtain information about the compliance of products and manufacturing processes with their requirements.
VSW employs the Business Studio electronic process management and modelling system. Risk management and corrective/preventative action is carried out via an electronic system for tracking and analysing irregularities. Internal and supplier audits are conducted on a scheduled basis in accordance with an annual programme. The quality control system covers the product design and production stages, in addition to all divisional activities.
Senior executives define key targets on an annual basis: production/operational indicators, manufacturing performance, commercial performance portfolio in GDP, redistribution effects, and environmental and restriction indicators.
Plant directors are informed of the achievement of these targets, reasons for any deviations, and actions taken on a weekly and monthly basis. In compliance with STO.20-660.6, a system analysis is carried out on an annual basis and approved by the managing director. The report includes survey-based data on customer satisfaction.
The success of the VSW management system was recognized in the competition for the prestigious Government of the Russian Federation Prize for Quality, which was won by the plant.
- API Q1 specification – valid licences to imprint monogram on products produced to 5 L and 5 CT specifications
- ISO 9001:2015 (inspection audit) – certificate confirms compliance of management system with standard requirements
- STO Gazprom 9001-2012 (inspection audit) – certificate confirms compliance of management system with standard requirements
- ISO/TS 22163:2017 (inspection audit) – certificate confirms compliance of management system with standard requirements
- AAR M-1003 (recertification audit) – compliance certificate obtained
- KRTS-CO-Part7-2016 (Korea) (inspection audit) – certificate confirms compliance of management system with standard requirements
- Directive 2014/68/EU and in accordance with EN 764-5 and AD 2000 – Merkblatt W0 (inspection audit) – certificate confirms compliance of management system with standard requirements
We analysed the reasons for consumer complaints in 2019, and developed measures to improve the quality of our casts. We decided to hold a weekly quality day at our shops, analyse reasons for complaints, and identify measures to improve quality. Projects aimed at boosting quality have been planned.
Plant products are used at hazardous production sites. A mandatory certification system ensures that our customers can exercise their right to purchase and use products that do not cause harm to human health or the environment. BVP products have undergone certification testing for compliance with TR TS 10 (machinery and equipment safety), TR TS 32 (safety of equipment operated at extreme pressure), TR TS 12 (safety of equipment for operation in conjunction with explosive substances), tests for fire resistance, earthquake resistance, climatic testing, testing for material substance resistance (СО2, Н2S), and other tests.
BVP uses materials with the relevant quality certification and safety passports. Materials are procured, temporarily stored, used, and disposed of in accordance with the requirements of I.53-540.4 ‘Managing hazardous substances (materials) at BVP JSC’.
Control points are defined for all stages in the product manufacturing process. Certificates confirming that monitoring of parts has been carried out at all stages of product manufacturing are registered and stored in electronic and paper logs.
To improve casting quality at the steel casting shop in 2019, we installed the following:
- a gas-fired heat-treating furnace with rollout base (15-tonne charge)
- an Х-МЕТ 8000 portable metal and alloy analyser for rapid adjustment of the chemical composition of steel
To manufacture casting model equipment for casting at our instrumentation shop we installed a BIGZEE PRO ATC 1620 threeaxis portable machining centre.
To improve the quality of surfacing of wedges, discs, spools, and other components at our mechanical assembly shop, we procured and commissioned a machine for automatic surfacing beneath a layer of flux and automatic surfacing with a fusible electrode in a protective gas environment for pipeline valve parts with a nominal diameter DN of 50–300mm and an operating pressure PN of 1.6 to 25 MPa. Installation model: USN 50-300 SAW/GMAW.
- ISO 9001:2015
- API Q1 Specification
- ISO 9001:2015;
- Licence to manufacture products in compliance with API 6D specification
- STO Gazprom 9001-2012 in Intergazsert system
- Certification of business reputation evaluation
The relationship between PPM and the share of defective parts is 1% = 10,000 PPM.
The CSW environmental management system is certified for compliance with ISO 14001. Audits are conducted on an annual basis. The plant target includes an integral environmental indicator on reducing the anthropogenic impact on the environment.
The plant’s spring products are certified in compliance with the requirements of Eurasian Customs Union technical regulation TR TS 018/2011 ‘On vehicle safety’. Rolled products are certified for compliance with GOST 14959 ‘Metal products manufactured from unalloyed and alloyed spring steel’.
The OMK online store provides details of product parameters: key technical requirements, steel grade, geometry and dimensions, elastic characteristics, external appearance, and the GOST 14959 standard in accordance with which the product is manufactured.
The plant complies with the requirements of current international standard IATF 16949, applying the following quality planning and product manufacturing methods:
- APQP – advanced p • roduct quality planning
- PPAP – production part approval process
- PFMEA – process failure mode and effects analysis
- SPC – statistical process control
- MSA – measurement system analyses
- 8D – method for preventing problems applied in the event of customer reports of irregularities in CSW products
- Lean production – a concept based around an ongoing commitment to eliminating waste of all kinds
- Spring products are subjected to durability tests and periodic testing
- The quality management system landscape includes key and supporting processes which are subject to performance and efficiency criteria
The plant conducts internal risk assessment audits in three areas: the quality management system in accordance with the CSW QMS landscape, technological processes, and products. It develops corrective measures, applying the 5 Whys and Ishikawa diagram methods.
CSW operates an internal quality management system. Entry control of incoming materials, built-in quality (operations are independently checked by parameters and SPC for special characteristics), inspection control (periodic quality control department checks at every shift), rendering 100% control unnecessary. Where customers identify deviations, a system of mutual checks is applied (each subsequent operation identifies defects in the previous one).
CSW maintains a monthly record of defects in an electronic database that includes photographic data and an analysis of deviations by workers and foremen applying the 5 Whys method, and the level of internal defects is monitored.
Efficiency teams work to solve systemic problems and improve processes at production sites, applying the Ishikawa diagram method. Customers are asked to evaluate CSW as a supplier.
The functioning of the quality management system is monitored on a quarterly basis, and production processes report on quality indicators, successes, and failures on a monthly basis. A quality management system improvement programme is developed on an annual basis. The work of contractors and suppliers is also monitored.
T he plant certifies products for compliance with equipment safety requirements during development (design) and production (manufacture), in addition to requirements for the marking of equipment to protect human lives, health, and property and prevent actions that would deceive customers in accordance with the technical requirements of the Eurasian Customs Union.
The Trubodetal website includes a current product nomenclature list, a list of technical specifications for the manufacture of the products, technical and operational characteristics of the products, and information about plant certification and products produced.
The quality management system takes account of stakeholder requirements and the impact of internal and external environmental factors on the plant, and enables the plant to demonstrate to customers its ability to ensure that consumer products meet their requirements.
- ISO 9001:2015;
- GOST R ISO 9001:2015
- ISO /ТS 29001:2010;
- STO Gazprom 9001-2018
- API SPECIFICATION Q1 – 9th edition
T he share of products subject to consumer complaints was greater in 2019 than in 2018 due to metal defects identified by the end consumer following blast cleaning of the internal surface of pipes, complaints concerning issues with welded seams of a performance-affecting nature, and faults in the functioning of a flaw detector at Mill 10-60. All complaints were investigated, and measures developed and implemented to prevent future issues.
We carried out inspection control for compliance with the requirements of ISO14001-2015, which confirms that the APP management system conforms to environmental requirements.
Information about the plant’s products is publicly available on the OMK and APP websites, and on the OMK online store. When requested by customers, the plant distributes product information and provides advice.
All APP products are certified under the GOST R voluntary certification system. Materials undergo entry inspection on production lines at every stage, and products are accepted only if they comply with the requirements of regulatory technical documentation (GOST, TU, etc.).
Information on the achievement of divisional quality targets is publicly available at the Quality Corner stand. Quality data are analysed and discussed at meetings and quality circles, and during shop and plant quality hours. Measures in response to consumer feedback have been developed and put into practice.
- ISO 9001:2015;
- ISO 14001:2015;
- ISO 45001:2018;
- A first external inspection audit was carried out in 2019; no irregularities were identified.
I n line with the decision adopted by the CSR Committee in November 2018 on fostering social change and socially responsible practices throughout the supply chain, in 2019 OMK updated its procurement policy. Our procurement strategy now ensures that our supply chain exerts a positive influence on the sustainable development of the company, including social and environmental aspects.
The updated strategy ensures that OMK endeavours to work predominantly with suppliers and contractors who support the provisions of OMK’s corporate social responsibility policy. To confirm their adherence to these provisions, suppliers and contractors are asked to sign an appendix to agreements on compliance with social responsibility principles; refusal to sign an appendix is taken into consideration during supplier selection or when deciding whether to continue cooperation with that supplier.
Risks associated with procurement activities include corporate social responsibility risks, and OMK is committed to ensuring that procurement processes are transparent, in line with the following standards: ISO 26000 (Social Responsibility), AA1000 on Stakeholder Engagement, and IFRS and GRI in relation to the relevant financial and non-financial reporting.
1. The following sections have been added to the supplier screening form:
- Information on injury rates over the preceding five years
- Operation of a certified management system for occupational, industrial, and environmental safety
- Operation of a continuous improvement system
- Implementation of practices to prevent corruption, bribery, and collusion
- Operation of a system for gathering, consolidating, and publishing regular reporting on sustainable development activities (SDA)
Screening points for the last section are allocated as follows:
More than 1,000 potential suppliers underwent assessment using the new screening form during the reporting period.
2. The SAP SRM registration system for suppliers and contractors on the official ОМК website was updated with information familiarizing potential contractors with OMK’s guiding principles. Contractors must confirm that they have read this information in order to complete a screening form.
The OMK procurement system aims to foster innovation and improvements in the business environment.
In the context of import substitution measures and with the support of OMK, the Russian supplier Metaclay has developed, successfully tested, and begun supplying a new material for the anticorrosive coating of pipes: a monolayer which eliminates the need for adhesive, thereby saving on materials and application processes in comparison with the standard three-layer coating, while coating the pipe to the same technical specifications.
In connection with new production needs at its plants, the OMK procurement system quickly identified suppliers able to launch production of 710 mm diameter graphitized electrodes (in place of standard-use 610 mm electrodes).
Strategic product management for Trubodetal
The length of the pipe billets used by Trubodetal to produce bends and T-bends is not of key importance. OMK Procurement decided to obtain shorter pipes from VSW for these purposes. This has had the effect of reducing the amount of unused trim which had to be dispatched as scrap, and cutting expenditure on transporting ‘surplus’ metal.
charitable activities, projects,
OMK’s external social activities are
in several areas:
- Supporting company strategy by creating a favourable social environment
- Making long-term investments in the development of local communities
By cooperating with a wide circle of stakeholders in the sustainable development of the towns and cities where OMK sites operate, we can enable positive social change. OMK’s committed approach to social projects helps the company to solve specific social problems and grow its business and social potential.
Over the course of 2019, OMK allocated a total of RUB 861 million to social and charitable activities, projects, and schemes to implement creative and educational initiatives, support children, young people, and the elderly, and develop sport in the regions where the company operates.
The OMK Partnership competition is traditionally held in Vyksa (Nizhny Novgorod Region), Almetyevsk (Republic of Tatarstan), Chusovoy (Perm Territory), the village of Novosineglazovo (Chelyabinsk), and Moscow (volunteer projects). The grant pool was RUB 9.15 million.
The winners receive grants to make their projects a reality. Organizations receive up to RUB 250,000, and company employees’ projects receive up to RUB 50,000. In 2019 the competition received 73 applications from volunteers and 113 from non-commercial and municipal organizations. Grants were awarded to 48 projects developed by organizations and 46 developed by volunteers.
A key focus of the fifth anniversary competition was the development of community volunteering. Among the winners
were volunteer initiatives aimed at supporting pensioners and veterans, helping disadvantaged citizens, the homeless, and people with disabilities, and getting people in their ‘silver years’ involved in volunteering.
Twenty winners and competition participants were awarded grants from the Presidential Grants Fund. Grants totalling RUB 35.5 million were awarded to non-commercial organizations in Vyksa, Chusovoy, Blagoveshchensk, and Chelyabinsk. The Fund recognized projects aimed at supporting women in crisis situations, children with disabilities, and elderly people, and initiatives focused on working with young people, strengthening cultural ties, and patriotic education.
In Blagoveshchensk (Republic of Bashkortostan), OMK resources focus on developing social entrepreneurship. For this reason, Blagoveshchensk Valves Plant does not participate in the OMK Partnership competition.
Two projects received RUB 1.3 million in support from the Timchenko Foundation.
OMK has been developing social entrepreneurship since 2016. The Start Your Business scheme was first implemented in Chusovoy. In 2017, it was launched in Blagoveshchensk, and in 2018, it was extended to Vyksa.
By 2019, the scheme covered three regions and had a fund of RUB 9 million. The grant pool totalled RUB 6.6 million, which was shared among the 40 winning projects.
Blagoveshchensk Valves Plant supported 13 social entrepreneurs. Each received up to RUB 200,000 to help them start their own business, and they were also registered with the social projects accelerator of the Republic of Bashkortostan Centre for Social Innovation.
of funds raised
OMK supported 11 initiatives in Vyksa. Entrepreneurs received up to RUB 200,000 to start their own businesses and joined the Business Start accelerator of the Nizhny Novgorod Region Centre for Social Innovation, a business initiative support programme where, under the guidance of experienced trainers, they learn to develop and promote their own businesses.
Chusovoy supported 16 projects. Grants of up to RUB 150,000 were awarded to startups focused on developing rural tourism, leisure opportunities for local residents, and an accessible environment for people with limited mobility. The winners undertook a mandatory three-month training course, following the accelerator programme at the School of Social Entrepreneurship. Accelerator participants studied the target audience for their project, drafted a business plan, determined a promotion and sales strategy, and learned to present their project.
The winners of the Start Your Business programme have attracted additional funding for their projects. Vyacheslav Chuyev , the creator of robotics school Vector , received a subsidy of over RUB 1 million from a state programme in Blagoveshchensk. The creators behind the Career Changes for Pensioners project, Alena Makulova and Alfiya Galiullina, won the Timchenko Foundation’s Active Generation competition and received a grant of RUB 100,000. The project also won the Silver Age contest.
The For Good wellness centre received a municipal subsidy of RUB 450,000 under a scheme entitled ‘Developing and supporting small and medium-sized enterprises in the urban settlement of Blagoveshchensk’.
Maria Usas won the national Business Success prize with her speech therapy studio project Insight and attracted RUB 400,000 in additional funding.
in the company
- cultural and spiritual development;
- promoting patriotism;
- veterans and vulnerable groups;
- religious institutions;
- corporate volunteering;
- promoting modern standards of corporate social responsibility;
- support of socially responsible entrepreneurship.
Specific targets in these areas should be in the medium and long term targets in accordance with the strategic guidelines of the company and taking into account the development priorities of the regions.
Charity and sponsorship activities are coordinated by OMK's public relations team leaders and business unit managers. The company adopted a regulation on sponsorship and charitable activities. For example, an internal team with city administrations, regional ministries, and central organizations for the development of socially oriented non-profit organizations stage the OMK Partnership grant competition for social and charity projects.
OMK enterprises implement the Start Your Business social entrepreneurship programme in conjunction with external operators – the Nizhny Novgorod Region and the Republic of Bashkortostan Centres for Social Innovation, and the Perm Fund for the Development of Entrepreneurship.
The social partnership mechanisms form the basis for longterm charitable programmes, giving them additional stability and enabling the results achieved in the social environment to be recorded.
- Chusovoy. Perspective Centre f • or the Development of Social Projects, Perm Territory Ministry of Industry and Trade, Chusovoy Municipal District Administration.
- Blagoveshchensk. State Committee for Entrepreneurship and Tourism and Republic of Bashkortostan Centre for Social Innovation, Blagoveshchensk Municipal District Administration.
- Vyksa. Nizhny Novgorod Region Centre for Social Innovation, Vyksa Administration, Nizhny Novgorod Region Ministry of Industry and Trade.
The Centres for Social Innovation and the Perspective Centre for the Development of Social Projects implement the programme on the ground, run the educational component and the acceleration programme, organize the grant competition, and provide reporting and monitoring.
In all regions, regional and federal media organizations support the Start Your Business programme as information partners.
- Regional resource centres for socially oriented non-profit organizations in Nizhny Novgorod, Perm, Ufa, and Naberezhnye Chelny
- specialized ministries and departments
- regional and federal media organizations
- local governments in the cities where OMK operates
- business partners who agree to co-finance the best projects submitted by non-profit organizations or volunteers
- Association of Volunteer Centres
- regional volunteer centres
- business partners, contractors, relatives, and friends of employees, residents in the cities where OMK operates
Projects submitted to the competition are evaluated by an expert commission, which is formed in each region where the company operates. Commissions include representatives from our enterprises, the Directorate for Government Relations and CSR, the regional resource centre for socially oriented nonprofit organizations, local authority representatives, and regional specialized ministries and departments.
The evaluation criteria are described in the terms and conditions, which are posted on the official omk.ru website, in the Social Responsibility section.
Projects for the Start Your Business social entrepreneurship programme are also evaluated by an expert commission, which, in addition to OMK and factories, includes representatives of the following organizations:
- Chusovoy Municipal District Administration
- Our Future Foundation for Regional and Social Programmes
- Perspective Centre for the Development of Social Projects
- Russian State Social University Centre for the Development of Social Entrepreneurship
- Chusovoy City Fund for the Support and Development of Entrepreneurship (microloans company)
- Blagoveshchensk Municipal District Administration
- Republic of Bashkortostan Centre for Social Innovation
- Our Future Foundation for Regional and Social Programmes
- Russian State Social University Centre for the Development of Social Entrepreneurship
- Nizhny Novgorod Region Centre for Social Innovation
- Vyksa Administration
- Our Future Foundation for Regional and Social Programmes
- Head of the federal You Are an Entrepreneur programme in Nizhny Novgorod Region;
- Vyksa Business Incubator
- Nizhny Novgorod Region Ministry of Industry, Trade and Entrepreneurship
Projects are selected based on the evaluation criteria for experts. These are listed in the grant competition terms and conditions for the Start Your Business programme.
Individuals permanently residing in the city of Chusovoy, Chusovoy District in Perm Territory; individual entrepreneurs, legal entities, and socially oriented non-profit organizations registered in the manner established by the legislation of the Russian Federation, operating in the city of Chusovoy and Chusovoy District in Perm Territory, who have applied to participate in the competition.
Non-profit organizations registered in the Blagoveshchensk District of the Republic of Bashkortostan which have been operating for more than a year; commercial organizations and individual entrepreneurs (assigned to small or medium-sized enterprises in accordance with the conditions established by
Federal Law No. 209-FZ, dated 24 July 2007, ‘Оn the development of small and medium-sized enterprises in the Russian Federation’, and included in the unified register of small and medium-sized enterprises of the Federal Tax Service of the Russian Federation), registered and carrying out entrepreneurial activity within the municipal region of Blagoveshchensk District in the Republic of Bashkortostan; individuals who permanently reside in the municipal region of Blagoveshchensk District in the Republic of Bashkortostan (provided that such individuals are registered as individual entrepreneurs until the moment they apply for a prize in the event that they win), who have applied to participate in the competition.
Individuals permanently residing in the city of Vyksa; individual entrepreneurs, legal entities, and socially oriented non-profit organizations registered in the manner established by the legislation of the Russian Federation, operating in the city of Vyksa, who have applied to participate in the competition.
took part in the
initiatives in 2019
The Charities Aid Foundation (CAF) assesses the socioeconomic impact using the social return on investment (SROI) approach. An assessment of the OMK Partnership contest was carried out in 2017. The contest will be reassessed in 2021, following a three-year cycle. The Start Your Business social entrepreneurship development program will be undergo assessment in 2020.
For OMK, corporate volunteering is an engagement, retention, creativity and professional development tool that helps to improve employee motivation. Willingness to participate in volunteer projects and actually carrying out such projects has a positive effect on engagement. More than 30% of OMK’s workforce – a total of 8,056 employees – are volunteers.
The company has been developing its corporate volunteering programme since 2015. In 2019, four types of voluntary initiative were successfully implemented:
- Event volunteering. Participation in corporate volunteer campaigns in conjunction with the OMK Participation Foundation (‘Every Little Christmas Tree Helps’, ‘Let's Get Children to School’, the ‘Who Runs? Everyone Runs!’ sports marathon, volunteer help).
In total, more than 2,500 OMK employees took part in the foundation's initiatives in 2019.
- Conscious volunteering. OMK employees independently work on social projects, receiving small grants from the company and involving other volunteers in their initiatives.
In December 2019, OMK acted as a partner for the ‘Volunteers in the social sphere: successful case studies and promising startups’ section at the 7th Moscow International Corporate Volunteering: Business and Society Forum.
In 2019, employees from all of the company’s production sites took part in the first rally of OMK volunteers. The event was held in Vyksa to help further replicate best practices in the regions where the company operates, and to involve OMK employees in social volunteering.
- Volunteer projects undertaken by councils of young
metallurgists at the company’s enterprises: planting forests,
cleaning rivers, helping retired company employees, and
residents of nursing homes (‘Generous Garden’ in Chusovoy,
which has been running for more than 10 years), improvement
of factory sites (‘environmental landing party’), volunteer stand
at the Magic Mitten charity fair in Vyksa.
- Blood donation. OMK actively supports blood donation. In 2019, four blood drives were held at the Moscow office, and 214 people took part. In total, company employees donated about 100 litres of blood over the course of the year. OMK blood drives are also open to partners – Metallinvestbank employees.
OMK supported the opening of the For Service and Courage: 250 Years of the Order of St. George exhibition at the State Historical Museum.
The exhibition was dedicated to the anniversary of the highest military honour of the Russian Empire. The history of the award became a history of the victories of Russian weaponry from the second half of the century to the early twentieth century, and the Order itself became a symbol of the Russian army’s courage and endurance.
It is hugely important to OMK to protect and preserve historical memory. The names of the Knights of the Order of St. George are inscribed in the history of the steel plants that now form part of OMK. SUSTAIN ABLE DEVEL OPMENT Social projects
OMK was included as one of the top three Corporate Philanthropy Leaders 2019 in Russia. The company was also awarded a special prize in the ‘Best Gender Equality Programme’ category for its ‘Men and Women Together Against Domestic Violence’ programme.
OMK was awarded the RUIE award for regional social development as part of the Russian Business Leaders: Dynamics, Accountability, Sustainability 2018 competition. The RUIE included OMK among the leaders in sustainable development indices (‘Accountability and Openness’ and ‘Sustainable Development Trajectory’).
OMK ranked second among Russian metal and mining companies in the AK & M social performance ranking. The ranking included 35 Russian companies which had contributed the most to social development per unit of environmental impact.
The State Historical Museum recognized OMK for its productive cooperation in the field of culture.
The Start Your Business social entrepreneurship programme in Vyksa was recognized as demonstrating best practice in the Business Support and Export Development category at the regional stage of the All-Russian Competition of Best Practices and Social Economic Development Initiatives in the Regions of the Russian Federation.
The programme also reached the final of the All-Russian Competition in the same category.
Ivan Vaganov, who was behind the Theatre on the Water project, was a finalist in the Volunteer of Russia 2019 national contest to find the best volunteer initiatives.
Trubodetal took second place in the Social Activity of Organizations in Regions Where They Operate category for businesses with more than 1,000 employees.
Blagoveshchensk Valves Plant won the regional Asset of the Republic prize in the Social Partner category for its Start Your Business programme.
The For Good wellness centre, which won the Start Your Business programme, received a municipal subsidy of RUB 450,000 as part of the ‘Development and support of small and medium enterprises’ programme.
Vyksa Steel Works won the Champions of Good Deeds corporate volunteering prize in 2019, in the ‘Integrated Volunteering’ category.
The ‘Warmth to Your Home 2’ project won the Active People competition run by the Agency for Social Information and Public Television of Russia.
The winner of the Champions of Good Deeds corporate volunteering competition was a project by a volunteer at OMK’s Vyksa plant. The main prize in the ‘Integrated Volunteering’ category was awarded to Olga Pogodina, who won the OMK Partnership grant contest, and created the Rainbow World art square project.
Alfiya Galiullina’s project, Career Changes for Pensioners, which was supported by the Start Your Business programme in Blagoveshchensk, won a special prize in the national Best Social Project of the Year contest.
The OMK Uchastie (Participation) charity foundation to support parents, children and families was created at the initiative of OMK’s management and staff.
OMK Uchastie operates in two key areas. Firstly, it works to effect systemic change in the quality of life available to children with disabilities or who have no parental care, and creates an inclusive environment. Secondly, it develops culture and art and creates opportunities for enlightenment, education, and creativity in local communities. The foundation also provides targeted assistance to families and children in need.
The foundation tackles large-scale social problems and is among the top 30 corporate and private charitable non-profit organizations in terms of partnership potential, according to RAEX.
Since it was established 12 years ago, the OMK Uchastie Foundation has supported more than 1,300 families. The benefactors and founders of the foundation have collected and donated RUB 54 million in targeted assistance to their beneficiaries; a further RUB 18 million have been allocated for the purchase of medical equipment.
In 2019, the foundation organized a traditional inclusive festival at Nikulin Circus on Tsvetnoy Boulevard, a New Year rally for its young beneficiaries at the Moscow Cancer Centre, a series of charity races in Russian regions, and other events.
OMK and the OMK Uchastie Foundation co-hosted the 9th Art-Ovrag Urban Culture Festival in Vyksa. In 2019, the theme of the festival was ‘When today turns into tomorrow’. It was spread across over 10 sites in the district, including OMK's Vyksa plant. The festival’s events were attended by 22,000 people.
Nizhniy Novgorod Regional Governor Gleb Nikitin, together with OMK Chair of the Board of Directors Anatoly Sedykh and local Chief Executive Vladimir Kochetkov, cut the ribbon on a skate park with a total area in excess of 400 square metres. The project initiated by the Governor was successfully completed in record time with OMK support.
The main focus of the festival was the inauguration of Russia's first industrial street art park at the Vyksa Steel Works site. The park will become a unique collection of art by leading contemporary artists located at an existing industrial site. It consists of two works by the artists Alexey Luka and Misha Most. The plan is to add a new work of art to the facility collection every year, and each mural will follow the style of an art trend prevalent in the twentieth century.
The town inaugurated a new work of art created from sketches by Vyksa resident Andrey Matchin, who had won the parallel programme competition in 2018. The Binary Clock sculpture combines innovation with the town’s tradition metal working skills.
A Pavilion of the Future, designed by the Novoye Architectural Studio, opened in the town park. This new site will host master classes, lectures, movie screenings, shows, and dance classes. Art-Ravine was the stage for the first showing of the OK in Imperfect Time dance performance by Theatrical Program Curator Yuri Kviatkovsky. The performance is about the evolution of the dance and is a fusion of classical and contemporary styles. Attendees also watched a street performance based on Foam of the Daze, a book by French author Boris Vian, staged by the AXE Engineering Theatre. The performance has won numerous awards, including a Golden Mask.
A special place on the program was reserved for the premiere of a musical performance by disabled children based on Korney Chukovsky’s Mukha-Tsokotukha, presented by the OMK Uchastie Charity Foundation. The park hosted a performance by the Nizhniy Novgorod Piano Theatre called Wings for Clowns, in which the entire company was made up of hearing-impaired children.
Thanks to the Accessible Vyksa project sponsored through the Presidential Grant Foundation, part of this year’s Art-Ovrag programme was adapted for visitors with disabilities: tours featuring sign-language interpretation, presentations using tactile models, and special tours for visitors in wheelchairs.
The OMK Uchastie Charity Foundation implemented the Accessible Vyksa inclusive project in conjunction with the Presidential Grant Foundation and the Vyksa Steel Works History Museum. The VSW Museum is using accessibility tools and has tours for people with disabilities. Vyksa also operates a platform to disseminate best practices for cultural site accessibility.
The VSW Museum has created an environment that has enabled cultural events and areas in Vyksa to be made accessible to all visitors. Foundation and museum staff have developed tours in Russian sign language and trained tour guides. Tactile models of the exhibits have been created, and special visual materials have been developed for people with learning disabilities. In addition, visitors have access to sign language video guides and wheelchair equipment to enable better mobility around town: there are over 70 accessibility tools in all. The museum has hosted over 140 pilot tours attended by more than 1,000 people, including Vyksa residents and visitors from Nizhniy Novgorod and Vladimir Regions. Vyksa will continue adding accessibility options to its environment.
The other objective of the Accessible Vyksa project is to create a centre for best inclusive practices in Vyksa. In 2019, the foundation held a major conference involving cultural institutions and regional ministries on developing accessibility tools to enable people with disabilities to visit cultural sites.
OMK and the OMK Uchastie Foundation hosted the OMK Theatre Seasons programme in 2019. In two small cities where the company operates – Chusovoy (Perm Territory) and Vyksa (Nizhny Novgorod Region) – from March to November 2019, they organized tours of 15 regional and capital theatres and showed 20 performances and concerts. Participants included Perm Academic Theatre, Nizhny Novgorod’s Gorky State Drama Theatre, Perm’s Tchaikovsky Opera and Ballet Theatre, Moscow’s Oleg Tabakov Theatre, and others.
The OMK Theatre Seasons program also included an educational component for representatives of local cultural communities. During master classes, theatre school teachers, artists, and musicians shared their professional experience with leaders and members of amateur theatre associations for children and adults. After the performances, meetings with theatre groups and open discussions were held.
The OMK Uchastie Foundation, OMK, the 8 Lines project group and the Artmossfera creative association published the first and only encyclopaedia of Russian street art. The presentation was held in Moscow at the main Non/fiction intellectual literature fair in Russia and in the Cube creative space.
The book traces the short but vivid history of Russian street art from the Latvian pioneer Krys to the industrial street art park at OMK’s Vyksa plant.
The OMK Uchastie Foundation and OMK won two awards presented by Kommersant Publishing House. The jury selected the foundation and company as winners for their successful social projects in Vyksa. The second award was the Reader’s Prize or Audience Choice Award. Over a period of two weeks, readers voted via the award website and chose the initiatives by the foundation and OMK as the best in the Culture category.
The Accessible Vyksa tour route for wheelchair users took first place at the All-Russian Tourist Awards.
2019 Sergey Kuryokhin Independent Contemporary Art Award Anna Abalikhina's Passions on an Open Hearth at the 2018 Art- Ravine festival was awarded the Grand Prix. The performance took place in the unique historical open-hearth shop at Vyksa Steel Works to mark its closure. The shop was one of the last large open-hearth shops in Russia.
Winner of the Development of Local Communities category at the People Investor 2018: Development of Internal Resources corporate project contest for the effective resolution of both corporate and socially significant tasks.
Winner of the Civil Society Project of the Year category for the creation, development, and promotion of civil projects and communities, and the organization of events and projects in the fields of education, culture, and art.
Grand Prix, winner of the award for Best Direction and the Audience Choice Award for Passions on an Open Hearth.
Second place in the Youth Tourist Event category at the finals of the Russian Event Awards 2017. First place in the same category in the regional finals, for the best events in the Ural and Volga Federal Districts.
Architect Peter Vinogradov won the Art in Public Spaces category for his work Pro Elka, created in Vyksa as part of the fourth Art-Ravine festival.
Peter Vinogradov received second prize in the Landscape Architecture, Street Design, and Monumental Art category for his work Pro Elka.
Winner of the Event of the Year category at the Street Contribution International Forum of Street Art.
Winner of the Best Programme to Support Contemporary Art category.