MECHEL ANNOUNCES COMMISSIONING OF A NEW INTEGRATED STEEL PROCESSING FACILITY AT
ITS CHELYABINSK METALLURGICAL PLANT OAO SUBSIDIARY
Chelyabinsk, Russia –November 24, 2009. -  Mechel OAO (NYSE: MTL), one of the
leading Russian mining and metals companies, announces that the official
ceremony was held today which was dedicated to the commissioning of the
integrated steel processing facility (ladle  furnace) # 3 that is the second
technological part of the continuous casting machine No.4 complex project at the
oxygen-converter shop of its Chelyabinsk Metallurgical Plant (CMP) OAO
subsidiary.
The official commissioning of the ladle furnace #3 facility was attended by
Vladimir Surnin, Head of Industry and Defense Complex of the Ministry of
Industry and Natural Resources of Chelyabinsk Region, Michael Yurevich, Head of
the city of Chelyabinsk, Sergei Komyakov,   Deputy Head of the city of
Chelyabinsk, Boris Vidgof, Chairman of Chelyabinsk City Duma, Ximersis Jiojios,
Vice-president of Danieli, Vladimir Tsukrov, the Head of Danieli’s
Representative Office and other guests.
Mechel OAO was represented at the ceremony by Igor Zyuzin, Mechel’s Chief
Executive Officer, Vladimir Polin, Mechel’s Senior Vice-president and Sergei
Malyshev, Managing Director of Chelyabinsk Metallurgical Plant.
The commissioned ladle furnace #3 is a system of devices and units which
provides integrated steel processing and allows reaching the exact chemical
composition, to conduct temperature correction and remove nonmetallic inclusions
which helps to improve the quality of metal. The equipment is mainly supplied by
Danieli. The ladle furnace #3 is planned to process about 1.2 million tonnes of
steel per year. Increase in steel processing would enable to raise continuous
caster efficiency at the continuous casting machine No.4 in the oxygen-converter
shop up to 120 thousand tonnes per year. Investments for construction and
commissioning of the ladle furnace #3 amounted to 1.05 billion roubles.
The ladle furnace #3 is implemented within the second part of the continuous
casting machine No.4 complex project which is one of the major investment
projects of the first stage of the plant’s technical re-equipment program.  It
is aimed to increase production efficiency at Chelyabinsk Metallurgical Plant by
reducing steel, ferroalloy and power consumption per ton of casting and
significant improve in quality of the final output – rolled products and
hardware.
Steel processing at the ladle furnace #3 is conducted in two ladles, which
improves efficiency and rhythmicity of the production process and also allows
reducing costs for steel processing outside stove. The construction of the
complex includes electrode group which is capable to work in two positions and
transformer of 32 MVA. Besides, each of the positions is equipped with a
water-cooling arch, four-stream wire addition system for delivery of aluminium
and flux cored wire, a unit for steel sampling, tuyeres for inert gas injection
and carburizing. The complex is equipped with an automatized route for
slag-forming material and ferroalloy supply, container lab for sampling and
performing operational chemical control. This will help to reduce steel
processing timing.
The steel processing complex #3 is equipped with state-of-the art and highly
effective gas purifier. It has the maximum filtration level and can work at high
temperature ranges during steel processing technological process. It also
provides continuous cycle of purification due to the system of filter
regeneration.
Vladimir Polin, Mechel’s Senior Vice-president commented on the event:
"Commissioning of the ladle furnace #.3 is an important stage of the Chelyabinsk
Metallurgical Plant’s investment program implementation. This program fully
complies with the world’s metallurgy development trends. First of all, in terms
of converter production and increase in volume of steel continuous casting. The
launch of the ladle furnace No.3 is also another step to shutting down highly
expensive technology of rolling production which includes ingots casting and
blooming processing. After today’s launch the share of steel billets produced by
the continuous casting technology at the plant will raise up to 50 percent. As a
result the performance of the Chelyabinsk Metallurgical Plant operations will
considerably increase".
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Mechel OAO
Ilya Zhitomirsky
Phone: + 7 495 221 88 88
ilya.zhitomirsky@mechel.com
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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, steel, rolled products, ferroalloys, hardware,
heat and electric power. Mechel products are marketed domestically and
internationally.
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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.