OMK is an integrated high-tech producer of steel, rolled sheet, pipes, pipeline valves and fittings, railway wheels, and automotive springs. Our products enable safe and efficient transportation of freight and passengers.
OMK’S BUSINESS INCLUDES SEVEN DIVISIONS
LARGE DIAMETER PIPE DIVISION,.VYKSA
RAILWAY WHEELS DIVISION,.VYKSA
OIL AND GAS PIPE DIVISION,.VYKSA
APP DIVISION, .
BVP DIVISION, . BLAGOVESHCHENSK
OMK is the largest supplier of pipes for trunk oil and gas pipelines. We supply almost half of all railway wheels and just under two thirds of all truck springs in Russia.
OMK’s strategic partners include leading Russian and foreign oil and gas, transportation, and machine building companies: Gazprom, Transneft, Gazprom Neft, Lukoil, Rosneft, NOVATEK, Sibir, Shell, ExxonMobil, Russian Railways, Kamaz, GAZ, UAZ, MAZ, etc.
RUSSIAN MARKET POSITION AND SHARE1
In production of large diameter pipes, railway wheels and automotive springs OMK is no. 1 not only in Russia, but throughout Europe.
Сompany share of domestic tubular goods market
Large diameter pipes
Water and gas pipes
Oil and gas pipes
1Unless otherwise noted, all data published in the annual report, including the company’s market shares, supply
and production volumes, etc., are based on OMK’s expert estimates.
OMK PIPES ARE USED IN THE CONSTRUCTION OF THE LARGEST OIL AND GAS PIPELINES (total deliveries since 2005)
Total tubular goods
Large diameter pipes
Rolled products (rolls and sheets)
Share of engaged emplyees
Social programmes for personnel
Lost time injury frequency rate
Social and charity projects
DEAR FRIENDS, COLLEAGUES AND PARTNERS,
In 2016, United Metallurgical Company operated successfully in line with a strategy at the heart of which lies the development of modern products that meet our customers’ strictest requirements. Increased efficiency, reduced operating costs and the coordinated, professional work of the OMK team were the key drivers behind this success.
Despite the difficult macroeconomic climate, OMK concluded 2016 on a confident note. The company has retained its leading positions in the most important markets. We remain the largest manufacturer of large diameter pipes, railway wheels and automotive springs in Russia. We also hold a significant share of other market segments: casings, oil and gas pipes and tubes, water and gas pipes, hollow sections, pipeline fittings, and pipeline valves. This shows that we have chosen the right direction for development and are producing competitive products that are in demand.
We have reorganized corporate management to strengthen our position in the industry. The structure of the Group is more transparent and easier to understand, document workflow has been reduced, and decision-making is now faster. We are reacting more quickly to changes, and this is opening up new prospects for further development.
In order to concentrate on improving the efficiency of our core business and implementing new projects, a decision was taken to sell off some non-core and unprofitable assets. Due to continuing uncertainty in the American market, OMK sold OMK Tube in Houston (USA) to the South Korean company SeAH Steel. We also finalized a deal to sell the Baltic metals terminal at the port of Ust-Luga. The revenue received from the sale has been earmarked for expanding production and reducing corporate debt.
It is very pleasing to note that during this reporting year customers have once again, for the fourth time in the past five years, recognized OMK as the best manufacturer of tubular goods for oil and gas companies in the Oil Country Tubular Goods category. The study is based on the results of questionnaires sent to more than 30 companies in the industry, including Gazprom, Gazprom Neft, Surgutneftegaz, Sibur and other leading energy firms. We would like to thank our partners and customers for their support and their faith in us!
Expanding our comprehensive production offering for clients is a key part of OMK’s strategy, and that is why we have planned an extensive investment programme. Over the next few years we intend to invest more than RUB 40 billion in modernizing the VSW pipe production plant. This will enable us to offer our strategic partners casings, tubing, and oil and gas pipes with improved properties and to meet their strictest quality requirements.
In my view, the greatest potential for growth lies in further developing our production system, improving our corporate culture, and increasing efficiency in each individual department.
I am very grateful to all our employees and management staff for the work they have done and their contribution to the success of OMK. I am confident that the combined efforts of our highly professional team can handle the most complex tasks and projects!
times in the last 5 years, clients have named OMK the best pipes producer in Russia
invested in modernizing pipe production at VSW, 2016-2022