OREANDA-NEWS. December 4, 2007. Sergei Ivanov, Russia's First Deputy Prime Minister, on a recent visit to OMZ (Uralmash-Izhora Group) (RTS: OMZZ; LSE: OMZD; OTC: UHMVY) operating units located at the Izhora industrial site (St. Petersburg, Kolpino), was informed of the progress on the construction of the DSP-120 arc steel smelting furnace, OMZ's press service reports. The 120-ton furnace is designed for smelting metal for large-sized semi-finished products, including nuclear power plant reactor shells. The furnace's construction is essential for implementation of the Federal Target Program "Development of Russia's Nuclear Energy Complex for 2007-2015." The new furnace is expected to contribute to increased production and quality improvements for large-sized ingots.

Mr. Ivanov also reviewed the metallurgical complex and power plant engineering facility at OMZ's Izhora industrial site.

In the course of talks between Mr. Ivanov and Izhorskiye Zavody management, it was pointed out that the companies located at the Izhora industrial site have unique production facilities, and occupy strategic and in some aspects even monopolistic positions in Russia's markets, including markets in such sectors as power plant engineering and petrochemical machine building, production of mining equipment, large-sized forgings and ingots made from special steels.

OMZ management presented a strategic plan of the corporation's development which provides for large-scale modernization of basic production facilities and development of an efficient complex of machine building companies at the Izhora site. Implementation of the strategic plan guarantees the fulfillment of the Federal Target Program of nuclear energy sector development based on the domestic machine building industry. Investments in basic OMZ companies participating in the Program are expected to be made within the next five years. The total sum of investment planned is more than RUR11 billion

Mr. Ivanov said: "Approved plans for the construction of nuclear power plants are extraordinary. Large scale modernization of the key enterprises in the sector such as Izhorskiye Zavody will allow us to accomplish these tasks."