Mechel Establishes East-European Steel Division
October 27 2008 - 9:00AM
PR Newswire (US)
TARGOVISTE, Romania, Oct. 27 /PRNewswire-FirstCall/ -- Mechel OAO
(NYSE: MTL), one of the leading Russian mining and metals
companies, announces the establishment of its East-European Steel
Division on the bases of its Romanian steel subsidiary, Mechel
Targoviste. Following the acquisition of Ductil Steel in the spring
of 2008, Mechel Group owned four steel companies in Romania: Mechel
Targoviste, Mechel Campia Turzii, Ductil Steel Buzau steel rolling
mill, and Otelu Rosu steel melting plant. In order to enhance the
performance and efficiencies of these subsidiaries, Mechel has now
established its East-European Steel Division on the bases of Mechel
Targoviste, effective October 22, 2008. The main objective of the
Division is to coordinate the operations of Mechel's Romanian
subsidiaries including investments, modernization, streamlining,
and production cost reduction efforts through the implementation of
efficient logistics planning, raw material acquisition and product
marketing across the subsidiary. Additionally, the Division is
engaged in human resources policy and coordinates contacts with
banks and financial institutions. The main priority of the Division
is the modernization of the Otelu Rosu, Ductil Steel Buzau, and
Campia Turzii plants. "Establishing the new Division will enable
Mechel to significantly increase the efficiency of managing
Mechel's Romanian subsidiaries. We are pleased that this entity
will be headed by an experienced specialist, Vyacheslav B. Shmyga.
Working as the Director of Mechel Targoviste, Mr. Shmyga
successfully implemented technical re-equipment and production cost
optimization programs that have resulted in the subsidiary earning
profits for the first time in recent years. Mr. Shmyga has been
assigned with the task to achieve similar results at Mechel's other
Romanian subsidiaries," Mechel Management OOO Chief Executive
Officer Vladimir Polin noted. Mechel is one of the leading Russian
companies. Its business includes three segments: mining, steel, and
power. Mechel unites producers of coal, iron ore concentrate,
nickel, 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
economic conditions. DATASOURCE: Mechel OAO CONTACT: Ilya
Zhitomirsky of Mechel OAO, +7-495-221-88-88, Web Site:
http://www.mechel.com/
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