MECHEL ANNOUNCES COMMISSIONING NEW EQUIPMENT AT BELORETSK METALLURGICAL PLANT
Beloretsk, Russia – September 11, 2009 – Mechel OAO (NYSE: MTL), one of the
leading Russian mining and metals companies, announces commissioning of the new
production line for cold-deformed reinforcement wire held today at its Beloretsk
Metallurgical plant (BMP) subsidiary.
The new production line for cold-deformed reinforcement wire commissioning
ceremony was attended by President of the Republic of Bashkortostan Murtaza
Rakhimov, Deputy Prime Minister of the Republic of Bashkortostan Yury
Pustovgarov, Head of Beloretsky Municipal Region Nikolay Maksimov, Mechel OAO
Chief Executive Officer Igor Zyuzin, Mechel Management OOO Chief Executive
Officer Andrey Deyneko, BMP’s Managing Director Viktor Kamelin and other guests.
After the official part of the ceremony Murtaza Rakhimov and Igor Zyuzin cut a
symbolical red tape and then put the line into operation. The guests were
advised of the new product manufacturing process. After the first reinforcement
wire coil left the line, President of the Republic of Bashkortostan asked
Mechel’s management for details regarding the new technology and production
quality and application. Administration of the Republic of Bashkortostan and Mr.
Rakhimov personally emphasized great importance of Beloretsk Metallurgical plant
development and highly appreciated its contribute to the region’s industrial and
social development.
Deputy Prime Minister of the Republic of Bashkortostan Yury Pustovgarov noted:
“Today’s new equipment commissioning is a bright example of Mechel group’s
commitment to its strategy of modernization and increase in production volume in
spite of the world economic crisis consequences. The Republic’s Administration
highly appreciates results of the work which the company does in Bashkortostan.
Importance of Mechel’s work in our region rises each year, and as for the
current situation in our economy this is particularly obvious. I’d like to
emphasize the company’s well thought-out production policy focused on
manufacturing high added value products. Specifically at BMP a part of the
volume of rolled products produced by the plant is directed to manufacturing of
a number of types of high quality hardware products complying with the European
standards. The Republic’s Administration in its turn also makes efforts to
intensify consumption of goods produced on its territory (at BMP, for example)
by Bashkortostan’s enterprises.”
New set of equipment from GCR company, Italy with annual capacity of 36 000 tons
allows Beloretsk Metallurgical Plant to start production of a brand new class of
products – reinforcing wire with 4-12mm diameter used for construction. Due to
low carbon content and mechanical strengthening, the cold-deformed reinforcement
wire has several advantages compared to hot-rolled reinforcement wire of the
same size such as improved welding characteristics, increased toughness and
durability, lack of scale. Additionally cold-deformed reinforcement wire has
higher design resistance to expansion and compression allowing to reduce its
expenditure at 10 to 15 percent.
The set of equipment includes untwisting machine, mechanical descaler,
lubricant-applying unit, cold-rolling mill, twisting machine, pneumatic
equipment for coil bundling, equipment for supply of compressed air and
water-cooling station. A bridge crane of lifting with capacity of 5 tons was
additionally mounted in the aisle to deliver and load the wire-rod feed. Total
investment to the project exceeded 55 million rubles.
The new project was implemented within the scope of BMP strategic investment
program targeted at production facilities modernization; improve products
quality, rise production volumes and increase output of high added value
products. The equipment commissioned fully complies with high environmental
standards of modern steelmaking.
Mechel OAO Senior Vice President Vladimir Polin commented on the event:
“Commissioning of the new equipment for production of cold-deformed
reinforcement wire at Beloretsk Metallurgical Plant is one of Mechel’s projects
providing the increase of the share of high-margin products manufactured by
steel division enterprises of the group. New production of BMP – cold-deformed
reinforcement wire – will be a source for processing by a production unit of
Mechel Service company in Moscow region into quality wire rod highly demanded in
construction. We see increase in demand for this new class of steel products and
as early as this month we received an important order for reinforcing wire of
BMP production.”
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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.