Mitsubishi Corporation

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April 27, 2017
Mitsubishi Corporation

Mitsubishi Corporation and Partner to Build Steel Pipe Manufacturing Plant in Russia

Mitsubishi Corporation (MC) has reached an agreement with steel pipe maker Vyksa Steel Works (VSW), a part of the OMK Group, one of Russia’s largest steel and metalwork enterprises, for the construction of a steel pipe manufacturing plant in Russia. The contract is valued at approximately 10 billion yen. The new plant will be located on VSW’s premises in the city of Vyksa, 350 km east of Moscow in the Nizhny Novgorod region, with Nagata Manufacturing Co., Ltd. will be the vendor.
The agreement covers the supply of a manufacturing plant for 2 lines of electric resistance welded pipes. The plant will produce tubing and casing pipes from hot rolled coils. The external diameters for each line of pipes will be a maximum of 7 inches and 10 inches, respectively, with manufacture of the 7-inch pipes set to start at the end of 2018 and at the end of 2019 for the 10-inch pipes. The pipes will mainly be supplied to major oil companies in Russia for use as oil well casings.
As the main contractor, MC will serve as coordinator for the project, while Nakata will supply the plant with technical inputs and design-related services. The project overall will be executed by Mitsubishi Corporation Machinery, Inc., an MC subsidiary.
The project came to fruition thanks to positive track-records built up in the plant business globally by both MC and Nakata. In particular, Nakata has received high praise from customers for its revolutionary “FFX Mill”. Typically, the manufacture of electric resistance welded pipes requires the independent use of dedicated rolled coils that match the external diameter of each steel pipe. However, the FFX Mill, which was independently developed by Nakata based on sophisticated controlled roll positioning technology, is uniquely configured to roll different pipe sizes without needing to change the coil for each set of dimensions. The 25-inch line of pipes being manufactured using the FFX Mill since 2008 and these two new lines help bring to four the number of product lines that Nakata offers in Russia.
While industry players around the world are seeking to cut costs amidst a slump in oil prices, MC is also aiming to contribute to the diffusion of quality Japanese technology and manufacturing know-how around the world by continuing to engage in the export of high-calibre production facilities.
【Illustration of Plant】
Other Reference Information
1. About Mitsubishi Corporation
Head Office:              3-1, Marunouchi 2-Chome, Chiyoda-Ku, Tokyo 100-8086, Japan
Established:              1954
Main Business:          MC is a global integrated business enterprise that develops and operates business across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. MC’s current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods.
Representative:         Takehiko Kakiuchi, President and CEO
No. of Employees:    68,247 (consolidated, as of March 31, 2016)
2. About Nakata Manufacturing Co., Ltd.
Head Office:              3-7-6 Tagawa, Yodogawa-ku, Osaka, Japan
Founded:                    1908  
Main Business:          Manufacture of electric resistance welded (ERW) pipe forming mills as well as the
development, design, procurement and sale of various types of steel pipe manufacturing and other equipment and related after-sales services.
Representative:         Mitsuru Nakata
No. of Employees:    62
3. About Mitsubishi Corporation Machinery, Inc.
Head Office:              2-6-1 Marunouchi, Chiyoda-ku, Tokyo, Japan
Founded:                    1982
Main Business:          Export, import, and domestic trading of machinery and other components
Representative:         Shimon Tokuyama, President
No. of Employees:    443 (as of March 31, 2016)
4. About Vyksa Steel Works
Head Office:              45, Br. Batashev str., Vyksa, Nishny Novgorod Region, Russia 607060
Founded:                    1757
Main Business:          Manufacturing of (over 2 million tons per annum of) steel welded pipes and railway
wheels and related business.
Representative:         Alexander Barukov, Managing Director
No. of Employees:    12,000

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