VTB Bank has opened a revolving credit line with a limit of RUB 6 billion (US$ 190.6 million) for Vyksa Steel Works, part of Russia’s United Metallurgical Company (OMK), for a period of three years.
The company will use the funds to finance its current operations and increase its working capital.
“A loan facility from VTB is an important landmark in building long-term cooperation between OMK and the bank,” OMK President Vladimir Markin said. “The cash will be extended on convenient terms, which is in line with our strategy of keeping our debt burden low.”
“VTB is successfully cooperating with Russia’s leading steel pipe producers,” said Yuri Soloviev, First Deputy President and Chairman of the Management Board at VTB Bank. “It is very important for the bank to develop a partnership with OMK. The agreement with the Vyksa plant opens up new opportunities for long-term mutually advantageous cooperation with OMK as a whole,” he added.
United Metallurgical Company (OMK) is one of the leading Russian manufacturers of steel pipes, railway wheels and other metal products for energy, transport and industrial applications. The group has four major operations, including Vyksa Steel Works in the Nizhny Novgorod Region, Almetyevsk Pipe Plant in Tatarstan, the Trubodetal plant in the Chelyabinsk Region and OMK Steel, a casting and rolling plant in the Nizhny Novgorod Region.
OMK supplies products to major Russian and foreign customers including: Gazprom, Russian Railways, LUKoil, Transneft, Surgutneftegas, Rosneft, TNK-BP, ExxonMobil, Royal Dutch/Shell, General Electric and Samsung. OMK products are exported to 30 countries.