In 2006, OMZ recorded $28.2m in capital expenditures, and invested around $1.1m in scientific and research engineering developments.
The company said its development strategy outlines basic guidelines for capital expenditures and scientific and research engineering developments in 2007.
It plans to complete current investment projects and to raise investments in OMZ production facility development and modernisation by more than 50%. Approximately 70% of total investments will be spent on improvements to metallurgical facilities. A further $56.5m is to be spent on repairs to metallurgical, processing and assembly equipment.
The company intends to begin construction of a DSP-120 arc steel smelting furnace at OMZ-SpecStal. A series of projects, including modernisation of an ASEA-SKF out-of-furnace steel processing plant and thermal furnace at OMZ-SpecStal, purchase of mechano-processing equipment and self-powered welding heads, and modernisation of Schiss machine at Izhorskiye Zavody, will allow OMZ, it said, to produce the newest equipment for nuclear power plants planned under the Federal Programme for Development of the Russian Nuclear Energy Industrial Complex.
In 2007, the company will continue research on production related to new mining equipment development including ESH-15.90V and EKG-3000 excavators, DK-2000 extraction complex and crushing and milling equipment. The company also promised to develop new production technologies and improve existing technologies.
