as a model of effective
omkis a Russian manufacturer of high-quality steel products and integrated solutions designed to meet the most exacting consumer specifications in the fuel energy, transport, construction, and other industries.
omk is a major investor in Russia and a reliable partner for national and international projects. We build new production facilities, develop innovative high-tech products, and create jobs.
Our unique corporate culture omk is built on professional, social, and personal values that are shared by every member of our team.
omk is a socially responsible company that helps to improve living standards in the regions where we operate, and that supports infrastructure projects aimed at creating a comfortable environment as well as intellectual, cultural, and spiritual development programmes.
omk is a team of high-level professionals. Our people are our most important asset. We respect our country’s steelmaking traditions and continue to hone our workmanship with every passing year. The quality of our work is recognized by the international community.
- Entrepreneurial spirit
- Clearly defined goals
- Systematic approach
- Focus on the client
- Corporate traditions
- Commitment to constant improvement
- Personal development
- Initiative and leadership
- ТHigh standards
- Effective performance
- Vision of the future
An annual global benchmarking analysis of OMK enterprises, based on the principles of Toyota’s 12-criteria universal Production System, has been conducted since 2016. Experts assess the quality of our products, stock, logistics, and occupational health and safety measures, the condition of our equipment and workplaces, our staff development system, the effectiveness of interaction between management and employees at our production sites, the quality of our governance and goal-setting, our system for submitting proposals, the effectiveness of our small innovation groups, and other criteria.
Based on their 2019 results, the production systems of no fewer than three OMK plants were awarded Toyota Engineering Corporation (TEC) medals. The production system at VSW received a final maturity level score of 4.03 points out of 5 – a gold medal. Meanwhile, our Trubodetal plant and Chusovoy Steel Works were awarded 3.11 and 3.06 points respectively, each earning a bronze medal. Previously, in 2018, Almetyevsk Pipe Plant was also awarded a TEC bronze medal.
The audit revealed a significant increase in innovation, together with a rise in the number of proposals to improve corporate culture from shop employees and junior managers at all OMK plants; our score for this criterion almost tripled. The number of quality groups increased by 80%. Plant teams were able to see the results of their proposals and contributions to the successful achievement of plant objectives.
- We hot-tested pipe with a diameter of 168 mm and a wall thickness of 7.3 mm at a new mill in Vyksa Steel Works’ Pipe Shop No. 5, and commissioned a Japanese mill from Mitsubishi without shutting down existing production. The new machinery is being used to introduce production of high-potential grades of steel, casings, and oil and gas pipes with a diameter of 114.3 to 244.5 mm and a wall thickness of 4.0 to 15.9 mm.
- At VSW we began producing casing pipes with diameters of 324 and 426 mm and strength grades LS and MS. We also manufactured our first industrial batches of R95- and P110-grade pipe.
- OMK’s Almetyevsk Pipe Plant can now offer clients smallsection shaped pipes manufactured from cold rolled steel with wall thicknesses of 0.8, 1, and 1.2 mm. These metal thicknesses are ideally suited to furniture frames, significantly reducing their weight without compromising on strength. Almetyevsk Pipe Plant enhanced its product line with galvanized pipes: round pipes with diameters from 15 to 57 mm and shaped pipes from 15x15 to 60x40 mm.
- We introduced polyethylene anti-corrosive coating for pipes requiring cold-resistant properties with a diameter of 57–530mm in accordance with TU 1394-012-01284695-2012 to meet the needs of Gazprom.
- Blagoveshchensk Valves Plant expanded its standard series of spring-loaded safety release valves with increased throughput capacity (sixth-generation valves), wedge gate valves, and check valves. It developed and introduced more than 40 types of high-pressure valve. Serial production launch deadlines for the products were brought forward at the plant in order to meet client needs.
- The Trubodetal plant successfully introduced pipeline fittings with a silicate-enamel coating for a new product line.
- OMK’s Chelyabinsk plant also produced Russia’s first domestic gas-stripping installation in modular form. The machinery is being manufactured using patents and licences from Gazprom Neft’s Science and Technology Centre, and was developed in collaboration with Bauman Moscow State Technical University. This is the first Russian domestic project designed to improve the efficiency of oil extraction using new technology and to make more cost-effective use of raw hydrocarbons. Russia did not previously produce any machinery of this kind; it was formerly made by only three manufacturers worldwide, in the USA and Canada.
- The Chelyabinsk plant developed a design for stamping equipment that uses a “jacket” to reduce the walls of pipeline fittings. Trubodetal also developed technology for producing 57–630mm pipeline fittings with an internal insulation coating.
- Vyksa Steel Works conducted a range of research projects which improved the productivity of its wheel rolling operations, enabling the plant to achieve record production results.
- VSW began production of solid-rolled 957 mm wheels with a low-stress disc design that uses L-grade steel with an axle load of up to 23.5 t/f, in addition to solid-rolled 920 mm wheels for Indian Railways.
- At Chusovoy Steel Works, OMK adopted more than 70 new types of spring for domestic automotive plants, including new designs for the KAMAZ-master sports truck team. It also began manufacturing import substitution products, primarily halfsprings for pneumatic suspension.
- OMK and Bardin Central Research Institute of Ferrous Metals (TsNIIChermet) signed an agreement on scientific, technical and strategic collaboration for the period 2020–2025. The five-year programme includes activities in 27 areas such as steel-making technologies, advanced development of promising materials and technologies, including digital technologies, and processing and recycling of steel making by-products and waste. The programme also provides for collaboration in acquiring new manufacturing capabilities, training highly skilled employees, and upgrading the skills of engineers and technicians, as well as in making shared use of unique equipment.
- The Urals Special Valve Plant (USVP), a joint venture between OMK and Gazprom, has commenced regular production of special ball valves that will domestic manufacture of advanced pipeline valves that are currently imported. The ball valves for corrosive environments with high concentrations of hydrogen sulphide, methanol, etc. are designed to be used in process equipment at natural gas production, processing, storage, and transportation facilities. The latest developments of USVP were presented at the St. Petersburg International Gas Forum in October 2019.
- Trubodetal has manufactured a high-tech import substitution product known as gas stripping modules, the first of its kind in Russia. The equipment is being manufactured under licence from the Gazpromneft Research and Development Centre, which partnered with Bauman State Technical University and selected Trubodetal to manufacture the fully factory-assembled modular equipment, which will be shipped to the customer (Gazpromneft-Orenburg). The skids were tested at the Tsarichany and Filatovo fields.
- Vyksa Steel Works and TVEL expanded their collaboration to introduce power storage systems. A Hangcha 5-tonne electric forklift at VSW has been equipped with a power storage system using Li-ion batteries.
- OMK and the Russian Export Centre (REC) have entered into a mutually beneficial collaboration agreement to support and develop exports of high-tech products from OMK facilities. The REC will help to develop OMK's capabilities to expand and launch competitive new high-tech products into foreign markets.
- OMK and Gazprom discussed a draft cooperation programme for the period 2020–2024 and acceptance of new types of tubular goods for oil and gas projects. Specialists from Gazprom VNIIGAZ and OMK presented a specification covering VSW and Trubodetal products. In particular, large diameter pipes for the off- and onshore sections of the Yuzhno-Kirinskoye oil and gas field to the south-east of Sakhalin Island in the Sea of Okhotsk, and pipes with extra-tight threaded connections and electric resistance welded casing with enhanced low-temperature properties.
In 2019, OMK carried out several major investment projects aimed at expanding production, improving the efficiency of plant operations, and introducing new products.
projects in 2019:
- Comprehensive development programme for small- and medium-diameter pipes division
- Construction of pipe-rolling facilities
- Construction of an electrometallurgical plant
- Upgrading of billet production facilities at CSW
- Upgrading of Trubodetal plant
- Construction of two small-leaf spring mills at CSW
- Renovation of wheel rolling facilities
OMK’s plants are seeing a consistent year-on-year increase in the submission of proposals for streamlining operations. This is thanks to the high degree of engagement shown by our divisional directors in improving employee efficiency and applying best practices in their areas of responsibility.
Over the course of 2019, OMK employees submitted 1,750 proposals for streamlining operations. Implementation of these proposals generated RUB 315 million in savings. Across the board, more than 50,000 proposals were made for various improvements.
The majority of our R&D projects are of an applied nature, and are generally related to the development of new products to meet the needs of our clients, or else are aimed at perfecting technological processes and improving quality and performance.
- transitioning to a model in which technological changes are considered in an open and practical manner
- a tool for developing the OMK ecosystem to enable expanded cooperation with partners and clients
- synergy between OMK plants
ОMK’s innovation activities focus primarily on developing production facilities intended to ensure the company’s strategic leadership status on the Russian and global markets.
- innovations to improve energy efficiency
- innovations to introduce new production technology
- innovations to upgrade our quality control system
- innovations to modernize existing capacity
- R&D in partnership with universities and scientific organizations
- R&D at our own facilities
- Development and implementation of a method for determining the corrosion resistance of pipes and pipe metal by measuring saturation current density. This method is used in acceptance testing of pipes and pipe metal and is intended to replace testing for corrosive non-metallic inclusions.
- Installation of equipment for monitoring corrosive non-metallic inclusions.
- Implementation of a project to automate GOST 1437 tension testing (at implementation stage).
- Introduction of technology for the manufacture of impact specimens at vertical milling development centres (at the implementation stage).
production in 2019
According to a report by the World Steel Association (worldsteel), world steel production has been growing for five consecutive years. In 2019, a total of almost 1.9 billion tonnes of steel was smelted by all countries. This is 3.4% higher than the previous year, and 20% more than in 2015. Steel production declined in all regions except Asia and the Middle East.
China remains the undisputed leader in steel production, accounting for more than half of the total market. India comes in second, while Russia is in fifth place. Iran is experiencing the highest growth rates in the top 10, with production increasing by almost 1.5 times in two years.
capacity of pipe
manufacturers in Russia
The total production capacity of pipe manufacturers in Russia is 23 million tonnes (according to a December 2019 study by the Russian Foundation for the Development of the Pipe Industry (FRTP)). Capacity utilization is approximately 50%. Total production in 2019 was 11.5 million tonnes. Imports account for less than 5% of the pipe market.
The volume of the domestic market for large diameter pipes remained at the same level as in 2018 and amounted to 2 million tonnes. The main projects focused on new construction for Gazprom (Sakhalin-Khabarovsk-Vladivostok, Power of Siberia) and repair of existing oil and gas pipelines belonging to Gazprom, Transneft and oil companies. For the fifth year in a row, there was a rise in the surplus capacity of large diameter pipe manufacturers. In 2015, under-utilization of large diameter pipes amounted to 1.5 million tonnes; in 2019 this figure reached 3 million tonnes.
A consistently high level of demand from the domestic oil and gas industry has been observed In the OCTG pipe markets over the past three years. In the casing segment, annual pipe consumption in the Russian market varies between 1.46 and 1.48 million tonnes.
In the market for water and gas and thin-walled pipes for general industry purposes, there has been a slight increase in consumption, which is due to steady demand in the housing and communal services and social infrastructure construction industry.
In the Russian railway wheels market, high demand was again recorded in both the train car building and repair segments. Capacity utilization reached 100% among manufacturers in the 1520 space and a new manufacturer entered the market: Prommashkomplekt from Kazakhstan.
pipes in Russia
The auto springs market remained at the same level as in 2018. Demand from car factories decreased. There are still high import volumes on the market, especially from China, resulting in strong price competition.
In 2019, the Russian pipeline valves market experienced a 15% increase (in the segments where BVP has a presence). This was due to an increase in manned facilities in the oil and gas refining sector. Demand from the oil and gas production sectors was also stable. Imports continue to account for a high share of the market – 48%.
The fittings and assemblies market decreased by 4%. The consumption of parts for assembling trunk pipelines is decreasing, while the consumption of on-site facilities has increased, the largest of these being Gazprom’s Amur Gas Processing Plant project.