The United Metal Company (OMK) is going to invest $500m in the development of Vyksa Steel Works over the next five years, OMK specified. It was previously reported that the volume of investments in the works' production development would be $1.5bn.
As OMK President Anatoly Sedykh stated to RBC, a part of these resources is to be allocated for the implementation of the "1,420" project for producing pipes with diameters ranging from 1,067 to 1,420 mm beginning 2005. The production of these pipes will be launched first of all for supplying them to the Gazprom gas holding. "Mutual understanding with its strategic partner, Gazprom, is very important for OMK," Sedykh pointed out. "We hope that Gazprom will strengthen its intentions and will further cooperate with Russian producers."