×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Optimistic OMK Seeks U.S. Assets

United Metallurgical Company, supplier of pipes for the Nord Stream pipeline, is studying acquisitions in the United States, even as competitors scale back North American operations.

"We are interested in the U.S. tubular market, the world's second-largest after China," said Anatoly Sedykh, chairman of the company known as OMK. "We won't perform billion-dollar acquisitions. We'd rather buy some small production assets and develop them."

By looking at smaller acquisitions, OMK says it may succeed where others have struggled. OMK is the most profitable Russian pipe producer, reporting a 31 percent EBITDA margin last year, according to its annual report. It posted net income of 26.2 billion rubles ($936 million) and sales of 118 billion rubles.

Markets abroad may account for as much as 40 percent of OMK's pipe sales in the "near future," Sedykh said in an interview last week in Vyksa, central Russia. That compares with 11 percent export sales last year, or about 30 percent including the Nord Stream contract, according to the company.

OMK plans to increase shipments to Total in West Africa and Royal Dutch Shell in Oman, and may seek to supply pipes to the Nabucco pipeline project and to Gazprom's rival South Stream venture, both of which would carry natural gas to Europe. Gazprom's Nord Stream pipe will take Russian gas via the Baltic Sea to Germany.

Sedykh said he sees "no contradiction" in potentially supplying all the pipeline ventures, adding that Nabucco would be built "whether we supply pipes or not."

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more