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 rolling mill.
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 profiles.
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 economic conditions.
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