OREANDA-NEWS. On August 29, 2007 MOSCOW - OMZ (Uralmash-Izhora Group) (RTS: OMZZ; LSE: OMZD; OTC: UHMVY) announced that its OMZ-SpecStal subsidiary has begun construction of a next-generation high-powered 120 ton heavy-duty electric arc steelmaking furnace, reported the press-centre of OMZ.

The construction was begun with the building of a new electric steel making section located near OMZ-SpecStal’s workshop #8. General designer is Institute Orgenergostroy CJSC and operational design is the responsibility of Ukrgipromez, Ukraine. Stroitelnoye Upravleniye #326, St. Petersburg, is a subcontractor. SMS Demag, Germany, will supply the equipment and build the furnace.

The new furnace will smelt metal for large-sized ingots including for the shells of reactor vessels for nuclear power plants. The construction of the furnace is needed for the fulfillment of the Federal Program “Development of Russia’s Nuclear Energy Industrial Complex for 2007-2015”. OMZ-SpecStal plans not only to increase production with the new furnace but also to improve the quality of large-sized ingots.

Gazprombank is financing the construction of the furnace under OMZ’s long-term investment program. Among the ordering parties commissioning the construction program is Forpost-Management CJSC.