The new project's name, Iron Ozone 32, brings together traditional iron and steel production (Iron), the environmentally friendly approach (Ozone), and its location at the plant's workshop No. 32.

Prime Minister Vladimir Putin played a key role in the commissioning ceremony for a furnace at the new workshop, during which the furnace smelted its first metal.

Alexei Dronov, Director of Operations at the Chelyabinsk Pipe Rolling Plant (which includes the Pervouralsk New Pipe Plant) told the prime minister that it takes 49 minutes to smelt top-quality steel from scrap metal, and that the feedstock is used to make 150-550-mm pipes.

After commissioning the furnace, Prime Minister Vladimir Putin and Andrei Komarov, Co-Chairman of the Pipe Industry Development Foundation, discussed social projects run by the Chelyabinsk Pipe Rolling Plant.

Transcript of the conversation:

Andrei Komarov: Mr Putin, may I give you a brief overview of our investment programmes?

Two billion (roubles) has gone to advance what is known as white metallurgy. We opened the Vysota 239 facility in July together – (displaying it on the monitor) here it is, on the right-hand side. And here's the finishing centre, which we drove past just now. And here's what our employees look like at work and home. We've now created about 2,000 new "smart" jobs, intended for highly qualified personnel.

We've also built two medical centres, which now provide healthcare services for the enterprise. Five hundred people visit the (outpatient treatment) centre daily, with a total 15,000 signed up for our medical insurance programme. The clinic is in high demand.

We have traditionally supported youth sports programmes and have had gymnasiums set up right on the premises. All of our company's senior officers, along with their staffs, must regularly come to the gym to exercise.

Also, we have a long-running anti-smoking campaign in place. There're no smokers among our top management, and no one smokes on the shop floor. Plus, there's a compulsory alcohol test to take.

Our winter festival known as Snezhnost has proved highly popular; we've been holding it for five years now, and more than 10,000 kids have attended so far. You know how big our New Year's parties used to be? Five thousand children from the families of our employees and another 5,000 orphaned children. It's a nice, popular festival. Children's theatre companies from across the country have contributed to it over the years. It's really been an incredibly popular event.

We've invested about $10 billion in the pipeline industry in recent years. We can see that the industry has been modernised enough now and is, by and large, ready to meet whatever orders the oil and gas sector may place with it. But we also realise that all this equipment requires human effort to run properly. And that the social infrastructure we've been supporting all these years can no longer keep pace with our ambitions for the development of our resources. So we need to move forward, launching a second phase of modernisation and making further investment. We're well aware that the industry will need about 10,000 people in additional workforce over the next few years. And of course, for the industry...

Vladimir Putin: Are you referring to the enterprise?

Andrei Komarov: No, to the industry as a whole.

Vladimir Putin: And what about your enterprise?

Andrei Komarov: For the enterprise, the figure is around 1,000. We've estimated the overall investment in the industry and then added 3-5% (an absolute maximum). This amount can fully cover our new needs. The primary need for young people is housing now. That's a key priority.

This year we've been testing this out, providing all the workers of this unit with corporate housing. But we believe we need to go still further, creating 1,000 new jobs in the near future. This means another 1,000 households to take care of.

Of course, there's a need for more modern living conditions, housing complete with gyms, kindergartens, and recreational facilities. We'd like to put about three billion roubles into this programme. Earlier, we discussed the programme with Sverdlovsk Governor Alexander Misharin, and he expressed his approval. Now we'd like to ask you, Mr Putin, for support. We're hoping to start a pilot project that would set an example for the entire industry. We'd like to ask for guarantees against which we could secure cheap loans and get the programme up and running as soon as possible. This, let me assure you, would give a strong impetus to the development of towns built around one particular sector, and it is precisely in such towns that our industry is based.

Vladimir Putin: I just visited VSMPO-AVISMA, and they have the same issues with housing, which, actually, is the case in many other companies as well. Attempts to attract young workers are closely linked with the problem of housing. On our way here, we discussed this with the governor and the minister.

Earlier, we provided you with state guarantees against 5 billion roubles in loans for the development of this production line, and you were then able to raise 10 billion worth of loans with the Sberbank savings bank. I've discussed this with Sberbank, and they say they will provide mortgages against government guarantees. But this could work only if we regard the programme as an investment project and if 25% comes in from the enterprise's own funds. We'll be able to issue the guarantees next year, but you could start paperwork for the Sberbank loan immediately, bearing in mind our earlier agreement on the provision of state guarantees to financial institutions.

Andrei Komarov: This is a project for the future.

Vladimir Putin: I just discussed the issue with Sberbank. They're willing to contact you and negotiate the terms. Actually, you're already in contact with Sberbank as they provided you with loans for this production line, so I don't think any administrative complications are likely to appear. I have arranged the economic aspects, and I hope the loan will be made on acceptable terms, considering government guarantees. We will try to extend the system to other major companies in your region, too.

Andrei Komarov: I expect this project will be in high demand.

Vladimir Putin: You'll need to consider the economic conditions if you're going to make housing available. But maybe you'll be able to come up with a more flexible scheme, so that people renting [an apartment] from you could also have the option of subsequently buying it out on certain terms. This could enable you to recover costs.

Andrei Komarov: Not just through the enterprise's core operations, but also by selling off property, right?

Vladimir Putin: Exactly. Some of your employees may be interested in becoming homeowners, you see.

Congratulations, once again.

Andrei Komarov: Thanks.

Mr Putin then went on to speak with some of the company's employees.

Transcript of the conversation:

Vladimir Putin: First of all, please accept my congratulations on the launch of this system – modern and sophisticated, it's crucial to the enterprise and the industry at large.

Secondly, I just met with your boss to discuss the next stage, focusing on social issues, notably housing. As you probably know, this project has been implemented thanks in no small part to our state guarantees (we provided guarantees against 5 billion roubles worth of loans). This made it possible to obtain 10 billion in loans to fund the project.

We agreed today that early next year we'll issue one more guarantee for further housing construction. Earlier, I'd arranged for Sberbank to disburse a loan, against that guarantee, to finance your housing programme. It remains to be seen how flexible this programme could be in terms of renting and buying options. But I think the company's top management and the trade union will find ways to make it flexible enough.

Remark: It would be great to do that kind of thing all across Russia, not just at our company.

Vladimir Putin: Yes, absolutely. We just visited VSMPO-AVISMA. They're facing the same problem there. So we'll see how we can extend this system to other enterprises.

Remark: Mr Putin, we'd first of all like to thank you for providing the state guarantees so that we could build this unit. We really appreciate your help, and we will do our best to meet your expectations.

Vladimir Putin: There is no doubt in my mind that you've got a brilliant team here, made up of remarkable, young, highly-qualified and results-oriented people. And, despite its rather old shops, your enterprise still looks as good as new.

As for housing, this is indeed a major challenge now. And we're dealing with it by taking the steps I outlined to you just now. I told your top management that we'll issue a guarantee for you next year, but the processing of the documents required to apply for the loan could begin right away. This will take time, of course, but a good, stable plan for housing construction will emerge as a result.

Remark: Mr Putin, what do you think of our products?

Vladimir Putin: Brilliant! Excellent job, guys. The most advanced technology. Such production lines are few and far between anywhere in the world. Congratulations! And I wish you all the best.

Remark: Thanks!

Vladimir Putin: Goodbye.