United Metallurgical Company (OMK) and Rosneft Open Joint Stock Company, both based in Moscow, Russia, have signed a partnership agreement in the area of petroleum products.
OMK is one of Russia’s largest producers of pipes, railway wheels and other steel products for energy, transport and industrial companies. OMK unites seven large metallurgical enterprises: Vyksa Steel Works (Nizhny Novgorod region), Chusovoy Metallurgical Works (Perm region), Almetyevsk Pipe Plant (Tatarstan), Trubodetal Plant (Chelyabinsk region), the Casting and Rolling Complex (Nizhny Novgorod region), Blagoveshchensk Valve Plant (Bashkortostan) and OMK Tube plant (Texas, USA).
The agreement outlines the partnership between the two companies in terms of developing, testing, and launching lubricants and other Rosneft oil products for OMK factories. The companies are expected to hold a joint technical audit to optimize the costs and increase the benefits of the partnership.
One of the main provisions in the agreement involves the drafting of joint import replacement programs, which will open new horizons for the national economy and increase its competitiveness. The parties also agreed to conduct an analysis of the infrastructure for the manufacturing and distribution of lubricants and other oil products to come up with joint investment programs.
Commenting on the newly signed agreement, Head of Rosneft, Igor Sechin, said, “In the current economic and geopolitical conditions, our companies need to combine their efforts to increase the competitiveness of domestic production facilities.”
The terms of the agreement with Rosneft is five years. The provisions will enable OMK to considerably optimize its costs by using high-quality innovative materials and technologies.