Mechel Announces Holding Successful Hot Testing of Universal Rolling Mill at
Chelyabinsk Metallurgical Plant
MOSCOW, May 6, 2013 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the
leading Russian mining and metals companies, announces that successful hot
testing was held at the complex of Chelyabinsk Metallurgical Plant's universal
During hot testing, the mill produced its first batch of structural shapes –
25SH1-type bar. This is the first type of steel products that the universal
rolling mill will be able to produce.
The entire cycle of structural shape production was hot tested, from billet
heating and hot rolling to correcting, cutting into measured sizes and
packaging. Currently steel is being tested.
Further on, the work schedule includes mastering production of other rolled
Launch preparation work is being completed at rail processing equipment, and
the plant is preparing for hot testing of rail production.
Construction of Chelyabinsk Metallurgical Plant's universal rolling mill is a
priority investment project for Mechel's steel division. When at full
capacity, the mill will annually supply up to 400,000 tonnes of high
resistance to wear and contact endurance rails for high-speed running, as well
as rails for use in low temperatures. The mill's total production capacity
will be over 1 million tonnes of products a year. This enterprise will
encourage development of related industries in Russia, ensure supplies of
high-quality steel products on competitive prices for Russian Railways OAO and
construction companies, as well as decrease their dependence on imports. Also,
the mill's launch will help resolve several social issues on regional level,
such as creating over 1,000 new jobs.
"Successful hot testing of the universal mill is a highly important first
stage of implementing Russia's largest and only such project over the past few
years," Mechel OAO's Vice-President for Technological Development Andrey
Deineko said. "At the second stage, our task will be to master production of
high-quality 100-meter rails. It is a unique technology which so far no one in
Russia has used."
Mechel is one of the leading Russian companies. Its business includes four
segments: mining, steel, ferroalloy and power. Mechel unites producers of
coal, iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, rolled
products, hardware, heat and electric power. Mechel products are marketed
domestically and internationally.
Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you
to the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
"Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in
our Form 20-F, that could cause the actual results to differ materially from
those contained in our projections or forward-looking statements, including,
among others, the achievement of anticipated levels of profitability, growth,
cost and synergy of our recent acquisitions, the impact of competitive
pricing, the ability to obtain necessary regulatory approvals and licenses,
the impact of developments in the Russian economic, political and legal
environment, volatility in stock markets or in the price of our shares or
ADRs, financial risk management and the impact of general business and global
CONTACT: Mechel OAO
Tel: + 7 495 221 88 88
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