OMK Group

completed

The project is to assist the United Metallurgical Company (OMK), one of the leading privately held Russian groups, in the ongoing expansion, modernization and environmental improvement program of two OMK’s plants – namely OAO Vyksa Steel Works (Vyksa) and OAO Gubakha Coke Plant (Gubakha). In this respect, OMK has requested IFC to provide a total financing of up to $70 million comprising of:- a $ 60 million loan to Vyksa; and - a $10 million loan to Gubakha. Vyksa is a producer of steel pipes and railway wheels, whereas Gubakha produces metallurgical coke, an important input in steel production. During the 1990’s, OMK has emerged as one of the leading groups in the downstream Russian metals industry. Its key customers are the most important domestic players in the oil &gas, energy, transport and heavy industry sectors. OMK and its associated companies employ about 30,000 people across several regions in Russia. As an integral part of the IFC financing, OMK has undertaken a comprehensive Environmental, Social, Health and Safety Audit of the main entities of OMK. The recommendation and suggested improvements to ensure the Project’s compliance with Russian laws and regulation as well as the IFC requirements are included in an Environmental and Social Action Plan (ESAP), which is also available for public disclosure. This plan also includes a third company within the OMK group, Chusovskoy Steel Works (“Chusovskoy”).