Macroeconomic situation forces OMK to give up diversification in seamless pipe segment

摘要

Given depreciation of the rouble, a lack of loan capital and a decrease in oil prices, OMK has temporarily stoppeddiversification of production in the seamless pipe segment.The company has decided to stop construction of the pipe and steelmaking complex in Chusovoy (designed capacity –1 million tpy of steel, up to 450,000 t of seamless casing and tubing for the oil and gas industry). According to thecompany’s annual report, “its value doubled because of currency fluctuations. Besides, the output was intendedprimarily for exploration and extraction of oil. The drop in oil prices led to worse forecast demand and prospects forpaybacks and obtaining loans.”