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Mechel

May 18, 2009

Mechel announces the launch of the new welded mesh production line in Moscow Region

Moscow, Russia – May 18, 2009 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces the launch of welded mesh production by its Mechel Service OOO service and sales subsidiary in Moscow Region.

In the beginning of May 2009, Mechel Service has commissioned an automated line to manufacture welded meshes in the Town of Vidnoye, Moscow Region. The production was set up on the territory of a reconstructed workshop of Mechel’s Moscow Coke and Gas Plant OAO. The procedure of certification of the product has already been completed thus enabling Mechel Service OOO to supply the product to the market immediately.

Mechel Service’s project of welded mesh production in Moscow Region has been launched in line with Mechel Service’s the program of expansion and development of its production and warehouse network in the regions of its presence. The new equipment comprises an automated line designed to manufacture meshes with the mesh cell size from 50 mm to 300 mm. The size of the finished products may vary from 250 mm õ 1,200 mm to 2,400 mm õ 6,000 mm. VR-1 grade wire and cold deformed rebars of 2.8 mm -8.0 mm diameter produced at Mechel OAO’s subsidiaries will be used as feedstock. The line production capacity is up to 1,200 tonnes per month depending on the feedstock characteristics and required size of finished products.

Commissioning of Mechel Service’s mesh production will enable the company to expand its mix of marketable metal products and reach a new level of quality in servicing its end consumers. Construction companies of Moscow and Moscow Region will be the main off-takers of the welded meshes. High quality of products manufactured by Mechel Service is confirmed by the Certificate of Mosstroycertification, the Moscow system of voluntary certification in construction industry.

 

 

 

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