OREANDA-NEWS. Vyksa Steel Works (VSW Open Joint Stock Company, based in the Nizhny Novgorod Region, part of United Metallurgical Company, OMK CJSC, Moscow) increased its pipe production by 2.4% in the first half of this year, as compared to a similar period in 2013, reaching a total of 810,000 tons. This includes a 10% rise in the production of large diameter pipes to a total of 444,000 tons.

There was a 37.7% drop in the production of railways wheels in the period under review against a similar period last year, down to 244,000 wheels. The production of plate steel amounted to 270,000 in the first half of 2014, with no changes as compared to the level of the previous year.

“The rise in pipe production is due to the full-capacity operation of the modernized mill 203-530 at VSW's third shop, and the increase of pipe deliveries to OMK's strategic partners, Russia's largest oil and gas companies,” said Sergey Filippov, Executive Director at VSW. “We are delivering pipes for such projects as Southern Corridor, Bovanenkovo-Ukhta, Filanovsky Field and the construction of the off-shore branch of the South Stream gas pipeline. The lowering of railway wheels production is explained by cuts in the purchases by our key consumer, Russian Railways. As was the case last year, this is linked to a rise in the number of new rail cars operating in the network that so far require no maintenance. We expect the demand for wheels to grow in the fourth quarter of this year".