Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Russian steel pipe and railway wheel manufacturer, OMK has planned to build a new pellet-based plant at its steel production complex. The steelmaker targets to lower CO2 footprint by upto 70pc than the traditional basic oxygen furnace. The steelmaker flags green steelmaking with this new proposed facility.

 

This would be the first facility in Russia having iron ore feed and steelmaking operations in the single complex. As per estimates, this complex is expected to be commissioned in the second half of 2024. Using DRI technology, it will produce pellets upto 2.5mn mt per annum. The EAF will have upto 1.8mn mt per year capacity.  

 

It will allow the plant to expand its product mix to pipe, railway wheel, heavy slab, round wheel blooms and round pipe billet. The company announced a total investment of Rb150bn ($2bn), including VAT, in this project.

 

Most finished and semi-finished products out of this facility would be supplied to Vyksa Metallurgical Plant (VMZ), in the Nizhniy Novgorod region. Italian engineering company Danieli would supply worth $474mn machinery for this facility.

  

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