Mechel announces commissioning new electric steelmaking complex at Izhstal

Mechel OAO (NYSE: MTL), a leading Russian mining and steel company, announces that the Russian Prime Minister Vladimir Putin commissioned a new electric steelmaking complex at Izhstal OAO. The new facility comprises an electric arc furnace and a continuous slab caster.

During commissioning ceremony of the new facility, the Russian Prime Minister was accompanied by Grigory Rapota, the Plenipotentiary Representative of the President of the Russian Federation in Volga Federal Region; Alexander Volkov, the President of Udmurtia Republic; Denis Manturov, Deputy Minister of Industry and Trade of the Russian Federation; Igor Zyuzin, the Chairman of the Board of Directors of Mechel OAO; Valery Moiseyev, Managing Director of Izhstal OAO.

Valery Moiseyev, Managing Director of Izhstal OAO, informed the Prime Minister Vladimir Putin about ongoing modernization of the plant, its current capacity utilization and the prospects for enterprise’s development.

Then Vladimir Putin launched the new electric steelmaking complex that consists of electric arc furnace with a capacity of 40 tonnes and continuous slab caster. The facility will have an annual slab production capability of more than 300,000 tonnes. In addition to the electric arc furnace and continuous slab caster, a ladle metallurgy facility will be commissioned as part of the same process chain. Commissioning of the new facility will mark complete transition of Izhstal OAO to electric furnace steelmaking. This is one of the key stages for the plant’s large-scale technical upgrade program, which provides for renovation of steelmaking complex and modernization of steel rolling facilities of Izhstal OAO.

Project investments have totaled 5.8bn rubles ($195.6m).

Igor Zyuzin, Chairman of the Board of Directors of Mechel OAO, commented, “Technical modernization of the plant will result in more effective production, reduced costs, compliance with global quality standards and will allow us to satisfy the demand for specialty steel grades by the automobile, aircraft, aerospace and construction industries. Of no less importance for us is the social dimension of this project: technical upgrade of the plant will eventually mean more taxes paid to the budgets of all levels, new jobs creation, compliance with the latest safety requirements, and significant reduction of air emissions in the city of Izhevsk”.