OREANDA-NEWS. On 15 July 2009 was announced, that Chusovoy Metallurgical Works (CMW, Perm Territory), part of United Metallurgical Company (OMK) had held its Annual General Meeting.

At the Meeting, the CMW Annual Report for 2008 was presented. CMW’s revenue in 2008 reached 15,862 million rubles, or 5.5 billion rubles more than in 2007. Gross profit increased from 2.5 billion rubles in 2007 to 3.8 billion rubles. In 2007, the Company’s sales profit nearly doubled as compared with 2007: from 1.2 billion rubles to 2.2 billion rubles. CMW’s profit tax was 234 million rubles. As a result, the Company’s net profit was 485 million rubles, as compared with 486 million rubles in 2007.

The Annual General Meeting approved the CMW Annual Report for 2008 and the Annual Financial Statements, including the Profit and Loss Statement for 2008. The shareholders decided to leave the retained earnings undistributed and not to announce or pay dividends on CMW shares.

The shareholders elected the following members of the CMW Board of Directors: Natalya Yeryomina (OMK Vice President, Deputy Chairperson of the OMK Management Board), Anatoly Karpov (CMW Executive Director), Vladimir Markin (OMK President and Chairman the OMK Management Board), Anatoly Sedykh (Chairman of the OMK Board of Directors), Eduard Stepantsov (OMK Vice President and Member of the OMK Management Board), Yevgeny Shevelyov (Member of the OMK Board of Directors), Yulia Shkhiyants (OMK Director for Economy and Finance and Member the OMK Management Board).

The new Board of Directors does not include Valery Anisimov. As Deputy of the Legislative Assembly of the Nizhni Novgorod Region, Valery Anisimov intends to focus on political and lawmaking activities, as well as issues related to the development of the Vyksa District and the Nizhni Novgorod Region (specifically, the reformation of the self-government system and the implementation of antirecessionary programs).

The CMW Internal Audit Commission, as elected by the Meeting, comprises the following three members: Yelena Ivanina, Aleksey Stuzhan, and Marina Shichkina.

The independent auditor elected for CMW by the shareholders is FinExpertiza.

In connection with the forthcoming expiry of the agreement for transfer of power of CMW’s sole executive body to the management company (United Metallurgical Company) and in connection with the relevant motion by the CMW Board of Directors, the Annual General Meeting resolved to transfer the power of CMW’s sole executive body to OMK for a new term of five years. In addition, several related party transactions were approved.

United Metallurgical Company (OMK) is one of Russia's largest producers of pipes, railroad wheels, and other metal products for energy, transport, and industrial companies. OMK comprises six largest enterprises in the metallurgical sector. The OMK Pipe-Rolling Division comprises Vyksa Steel Works (Nizhni Novgorod Region), Almetyevsk Pipe Plant (Republic of Tatarstan), and Trubodetal (Chelyabinsk Region); the OMK Steel Works Division comprises Chusovoy Metallurgical Works and Gubakha Coke (Perm Territory), and Shchelkovo Steel Works (Moscow Region).

In 2007, OMK products accounted for 18% of pipes consumed in Russia, including 34% of large diameter pipes, 62% of railroad wheels, and 75% of automobile springs. In 2007, the OMK enterprises produced 1.8 million tonnes of pipes of various sizes and 820 thousand railroad wheels. The main consumers of OMK products include such leading Russian and foreign companies as Gazprom, Russian Railways, LUKOIL, Transneft, Surgutneftegas, Rosneft, TNK-BP, ExxonMobil, Royal Dutch/Shell, General Electric, and Samsung. OMK supplies its products to 20 countries.