Mechel Begins Development of Bulk Ingot Market


CHELYABINSK, Russia, July 20, 2017 (GLOBE NEWSWIRE) -- Mechel PAO (MOEX:MTLR) (NYSE:MTL), a leading Russian mining and metals company, reports that Chelyabinsk Metallurgical Plant has cast its first oversize 50-tonne ingot. The new technology for production of bulk ingots from specialty steels will enable Chelyabinsk Metallurgical Plant to enter a new segment of the oversize product market and make supplies both domestically and internationally.

Bulk ingots are produced by very few companies globally as their production requires equipment capable of simultaneous casting of necessary volumes of quality steel while maintaining special temperatures and speed in pouring steel into a mould. The mould is also technically difficult to produce, with the plant’s mould developed by the plant’s own experts who managed to attain maximum precision in its making.

The plant has produced bulk ingots before, but their maximum weight reached 17.5 tonnes. Chelyabinsk Metallurgical Plant’s 50-tonne ingots will be supplied as billets to Mechel’s other steel facility, Urals Stampings Plant. Urals Stampings Plant will use them to produce a new type of product — bulk forgings which are highly in demand in mechanical engineering.

“Production of a high-quality 50-tonne ingot is an event of strategic importance for Mechel’s steel division. Today only a few facilities in Russia and abroad can produce such ingots. While streamlining this production process, our experts applied groundbreaking design, engineering and technical solutions. We plan to build on this development, as we see stable demand for this type of product,” Mechel PAO’s Chief Executive Officer Oleg Korzhov commented.

Mechel is an international mining and steel company. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.

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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