United Metallurgical Company (OMK) and Metalloinvest have signed a long-term contract for the supply of steel billets for the production of seamless railway wheels.
Round cast billets with a diameter of 455 mm will be produced at Ural Steel, part of Metalloinvest, and will be delivered to the Vyksa Steel Works (VMZ), part of OMK. In 2015-2016, extensive work has been undertaken at VMZ to prepare for the transition from using its own open-hearth products to acquiring continuous casting billets from Metalloinvest in railway wheel rolling. Test batches of wheels have been produced, compulsory certification has been carried out, and repairs on modern sawing facilities are continuing.
According to the terms of the contract, the pricing will be based on current market indicators, taking into account global price trends. The contract lasts until the end of 2027.
“This agreement with our reliable and trusted partner is the longest raw materials purchase contract in OMK’s history. We can be sure that over the next ten years, the railway wheel rolling facility at Vyksa Steel Works will be supplied with quality steel billets. This guarantees that we will be able to fulfil any orders and create wheel products in line with the most advanced modern standards and the high demands of our clients,” Vladimir Markin, President of OMK, said.
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