CJSC United Metallurgical Company (OMK) acquired 99.34% in OJSC Blagoveschensk Valves Plant (OJSC BASES), OMK informed.
Blagoveschensk Valves Plant located in the Republic of Bashkortostan is one of the largest Russian producers of pipeline accessories. This asset will enable OMK to enter a new market segment, expand its product range and ensure packaged supplies to oil and gas companies. The acquisition will mean a stronger market position for OMK, the company emphasized.
Blagoveschensk Valves Plant produces pipeline accessories from carbon, low-alloy and stainless steels for industrial purposes. The pipeline accessories come into use for oil and gas transportation applications, in the oil and gas, chemical, electric power, construction, housing and utilities sectors in Russia and the CIS countries. The company's major consumers are Gazprom, Rosneft, LUKOIL, Bashneft, Surgutneftegas, Transneft.
Blagoveschensk Valves Plant has developed an integrated production sequence from production and assembly of workpieces to testing and quality control of finished products. Its main production facilities comprise foundry, forge-and-pressing, welding, heat-treatment, processing and machine assembly shops. The enterprise has an internal engineering center to ensure faster R&D improvements, comprehensive technical support of the production process and higher quality of products.
"Making Blagoveschensk Valves Plant part of OMK, our company grows into a highly integrated producer of oil and gas pipeline accessories including pipes, fittings and valves. The acquisition will enable us to considerably expand our product range and to take up production of pipeline accessories, a new segment for OMK. This creates opportunities to fully meet the requirements of oil and gas companies, our key customers," Vladimir Markin, President of OMK, was quoted in the company's statement as commenting on the deal.
United Metallurgical Company (OMK, tax number: 7736030085) is one of the largest domestic producers of pipes, railway wheels and other metal products for power, transport and industrial enterprises. OMK unites four large metallurgical enterprises: Vyksa Steel Works (Nizhny Novgorod region), Almetyevsk Pipe Plant (Republic of Tatarstan), Trubodetal (Chelyabinsk region) and the casting and rolling complex (OMK-STEEL, Nizhny Novgorod region).
Among the principal consumers of OMK goods are the leading Russian and foreign companies: Gazprom, Russian Railways, LUKOIL, Transneft, Surgutneftegas, Rosneft, TNK-BP, ExxonMobil, Royal Dutch/Shell, General Electric, Samsung. OMK goods are delivered to 20 countries of the world.
Net profit (RAS) of CJSC United Metallurgical Company for H1 2012 was RUB 273.434 million against a loss of RUB 121.591 million for H1 2011. Revenue increased by 12.1% to RUB 1.07 billion from RUB 954.9 million, sales profit was RUB 168.617 million against a loss of RUB 138.451 million, pre-tax profit was RUB 352.633 million against a loss of RUB 146.741 million.