from the Chair of the
Dear colleagues and partners,
Economic growth in Russia slowed in 2019, reaching just 1.3%. Accordingly, we witnessed a downturn in OMK’s markets.
In our key sector, pipe production, there was an imbalance between total capacity and capacity utilization. Production of large-diameter pipes at OMK fell for the third year in a row; last year we produced fewer than 600,000 tonnes of large-diameter pipes. This reduction is directly related to the completion of shipments for the major pipeline projects Nord Stream 2 and TurkStream, for which we were the leading Russian supplier.
Production of small- and medium-diameter pipes fell by 8%. Oil and gas pipe production at OMK remained at 2018 levels, while indicators for water and gas pipes rose. We are successfully expanding our range, introducing new, in-demand product types, and developing sales to increase their efficiency. Capacity utilization at our Vyksa casting and rolling complex, which produces metal sheet and steel coils for our pipes, remained unchanged.
Our Trubodetal plant increased production volumes by 8% in 2019. At our Chelyabinsk plant, we became the first Russian company to produce modular gas stripping facilities and thermal casings for the extraction of oil in permafrost conditions.
Output at Blagoveshchensk Valves Plant was up 12% on the previous year; this was due, among other factors, to increased production of high-pressure and large-diameter pipeline valves.
With demand for railway wheels rising, Vyksa Steel Works increased its production compared with 2018, manufacturing a record 951,000 wheels. OMK supplied 918,000 (97%) of these to the domestic market. Automotive spring production rose by 10%. Chusovoy Steel Works expanded its product line, began shipments to major new clients, and also opened its own spring sales divisions in 20 Russian cities.
Safety and environmental protection
We continue to make steady progress towards our strategic objective of zero workplace accidents. In 2019 the key indicator for this – the lost time injury frequency rate (LTIFR) – fell to 0.72. This rate corresponds to best global practice levels. We are also taking measures to protect the environment, by implementing a programme to reduce our impact on our natural surroundings that confirms OMK’s status as one of the safest and most environmentally conscious companies in the steelmaking industry.
2019 saw us commit RUB 861 million to social and charitable activities, projects, and programmes; implementing creative and educational initiatives; supporting children, young people, and the elderly; and sports development. We would like to express our thanks to federal and regional governmental bodies and to our partners for their support.
Outlook and objectives
We are publishing this annual report at an immensely difficult time for the entire international community. The COVID- 19 pandemic is causing suffering for millions of people, and has left no company’s business unaffected. While experts offer differing forecasts for economic recovery, the consequences of the present situation remain to be assessed. In the meantime, OMK is continuing to pursue its strategic objectives: to improve the service that we provide to our clients, develop new products, improve production and organizational efficiency, take care of our employees, and support the regions in which we operate.
I would like to thank the OMK team for the excellent results that we have achieved.
of railway wheels
- Thick-Plate Mill 5000 (Mill 5000): production of hot-rolled thick sheet
- VSW Electric Pipe Welding Shop No. 4: production of large diameter pipes
- Pipe Anti-Corrosion Coating Shop
Straight-seam and single-seam ERW pipes for oil and gas
export pipelines with inner and outer anti-friction or anticorrosion
Strength class: up to Х80.
Diameter: 508–1420 mm.
Maximum capacity: up to 2 million tonnes per year.
Wide sheet steel for production of large diameter pipes,
machine building, shipbuilding, and construction.
Width: 900–4850 mm.
Thickness: 10–150 mm.
Maximum capacity: up to 1.3 million tonnes per year.
OMK pipes are used in the construction of major oil and gas pipelines (total volumes supplied since 2007).
Deliveries in 2019:
Nord Stream gas pipeline.
Pacific Ocean thousand tonnes
Gas Pipeline thousand tonnes
Vladivostok thousand tonnes
- Casting and rolling mill: production of hot-rolled sheet
- VSW Electric Pipe Welding Shop No. 2: production of water and gas pipes and small sections
- VSW Electric Pipe Welding Shop No. 3: production of oil and gas pipes and large sections
- VSW Electric Pipe Welding Shop No. 5: production of casing pipes
- VSW Electric Pipe Welding Shop No. 1: casing finishing centre and production of tubing
- Seamless Pipe Shop (opening in 2021)
Hot-rolled flat sheet steel in rolls and sheets for small and
medium diameter pipes, also used in machine building,
shipbuilding, and construction. Width: 30–1750 mm.
Thickness: 1–12.7 mm.
Maximum capacity: up to 1.3 million tonnes per year.
Straight-seam and single-seam ERW pipes for gas, crude oil,
refined product, and water pipelines, heating systems, and
development of oil and gas fields.
Strength class: up to X70.
Diameter: 159–530 mm.
Wall thickness: 2.5–12.7 mm.
Maximum capacity: up to 1 million tonnes per year.
Water and gas pipes and general-purpose pipes for water and
gas pipelines, heating systems, construction, and agriculture.
Diameter: 12–133 mm.
Wall thickness: 0.8–6.0 mm.
Maximum capacity: up to 300,000 tonnes per year.
Shaped pipes for construction, machine building, furniture
manufacturing, and other industries.
Cross section: from 10х10 to 300х300 mm and from 15х10 to 300х200 mm.
Casing pipes for development of oil and gas fields and well
Diameter: 140–245 mm.
Wall thickness: 5.2–11.1 mm
Maximum capacity: up to 400,000 tonnes per year.
From 2021 - seamless casing, tubing, and oil and gas pipes
with semi-premium and premium connections.
Diameter: 73-273 mm.
Maximum projected capacity: 500,000 tonnes per year.
- Almetyevsk Pipe Plant: production of oil and gas pipes, water and gas pipes, and shaped pipes.
Water and gas pipes and tubes, oil and gas pipes and tubes –
straight-seam ERW, including with two- and three-layer outer
Applications: oil and gas industry, water supply and heating, construction, and agriculture.
Diameter: 21.3–219 mm. Wall thickness: 1.5–8 mm.
Length: 6–12 m.
Square hollow sections. Used in machinery and tractor
production, construction, furniture manufacturing,
and other industries.
Cross section: 15х15–180х180.
Wall thickness: 0.8–6 mm.
- Trubodetal Plant: production of pipe fittings.
Pipeline nodes, cold and hot bent branches, and stamped and
welded pipeline parts: bends, T-bends, reducers, and ends.
Used in the construction of long-distance pipelines, oil and
gas field infrastructure pipelines, distribution and pumping
stations, oil refineries and gas processing facilities, nuclear
power plants,, and cogeneration plants.
Diameter: 57–1420 mm.
Maximum capacity: up to 30,000 tonnes per year.
Thermal cases (heat-insulating casing pipes), gas topping installations, and other equipment in modular block design.
- Blagoveshchensk Valves Plant: production of pipeline valves.
Cast wedge gate valves, spring-loaded safety relief valves,
rotary check valves, changeover valves, safety relief valve
assemblies, wellhead and shutoff valves, etc.
Applications: oil and gas extraction, oil and gas processing,
petrochemicals, power generation.
Diameter: 25–800 mm.
Maximum capacity: up to 13,900 tonnes per year.
- VSW Wheel Plant: production
of railway wheels.
One-piece rolled railway wheels and wheel centres for freight
and passenger trains, including Lastochka high-speed trains.
Diameter: 760–1098 mm. 140 sizes.
Maximum capacity (achieved in 2019): 951,000 units per year.
One-piece rolled railway wheels for fast
and high-speed trains.
Maximum capacity: 10,000 units per year
- Chusovoy Steel Works:
production of automotive springs.
Multi-leaf and parabolic springs using the latest designs, as well as half-springs for air suspension. Over 1,000 standard sizes of spring products for light commercial vehicles, trucks, buses, trailers, and pickups produced by Russian and foreign brands. The plant regularly expands its product range. It supplies the largest domestic (KamAZ, Ural, NefAZ, UAZ, GAZ, etc.) and foreign manufacturers. Capacity: 110,000 tonnes per year.