Chelyabinsk Metallurgical Plant Export Project Wins State Support
April 17 2017 - 7:30AM
Mechel PAO (MICEX:MTLR) (NYSE:MTL)
, one of
the leading Russian mining and metals companies, reports that the
Expert Council of Russia’s Industry and Trade Ministry’s Industrial
Development Fund approved a loan for Mechel’s Chelyabinsk
Metallurgical Plant (ChMK PAO) to implement a project for
production of rails, beams and other structural rolls meant for
export.
The project’s cost totals 1.52 billion rubles,
including 300 million rubles to be loaned by the Industrial
Development Fund. The project includes acquiring technological
equipment in order to set up manufacturing of products according to
European standards on the basis of Chelyabinsk Metallurgical
Plant’s universal rolling mill.
Part of export-oriented products within the
project’s framework will be made this year. The project is planned
to be fully launched in the second quarter of 2019. Chelyabinsk
Metallurgical Plant had already received a European certificate of
compliance for its beams, and the plant has the status of a
potential rail supplier for Deutsche Bahn, Germany’s railroad
operator.
“The Industrial Development Fund’s financial
support will enable the plant to implement the project and make
high-margin products that are in demand abroad. European and Middle
Eastern markets have a stable demand for quality rails, beams and
other types of structural rolls. The plant already has requests for
future supplies. As Mechel Group owns a well-developed
international service and sales network, we can quickly enter
foreign markets with our new products,” Mechel-Steel Management
Company OOO’s Chief Executive Officer Andrey Ponomarev noted.
Note to editors:
Chelyabinsk Metallurgical Plant’s universal
rolling mill was launched in 2013. It is one of Russia’s largest
facilities for producing high-quality structural rolls and rails up
to 100 meters in length. Rails are produced using the technology of
heat treatment in an organic polymer solution, which has no
analogies in Russia and which makes rails highly wear-resistant,
contact-enduring and with high fatigue strength. Currently the mill
produces nearly 40 profiles of structural shapes and rails. The
mill’s chief customers are Russian Railways, metalworks factories,
steelmaking plants, mining plants and wagon-building
facilities.
Mechel is an international mining and steel
company. Its products are marketed in Europe, Asia, North and South
America, Africa. Mechel unites producers of coal, iron ore
concentrate, steel, rolled products, ferroalloys, heat and electric
power. All of its enterprises work in a single production chain,
from raw materials to high value-added products.
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 economic
conditions.
Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
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