November 21, 2008

OMK VMZ update on production

It is reported that Mining Metallurgical Plant OAO "VMZ", Nizhny Novgorod region, a part of the United Metallurgical Company, summed up the results of production activities for February and the beginning of 2008.

In February, it produced 123,576 tonnes of pipes of different assortment, which is 20.3% less than in February 2007. Production of large diameter pipes amounted to 60,627.

Since the beginning of the year, VMZ produced 226,455 tonnes of pipes. TDB in January and February were produced 109,420 tonnes which is 36.5% less than in the same period last year.

Mr Vladimir Marquina president of United Metallurgical Company said that a reduction in the demand for large diameter pipes and the average diameter pipes neftegazoprovodnye linked to the completion of shipments for a number of major projects for the construction of trunk pipelines and the postponement of the start of new projects OAO Gazprom to a later as well as the fact that oil and gas companies failed to neftegazoprovodnyh tenders for the supply of pipes for the current year.