Mechel Announces Holding Successful Hot Testing of Universal Rolling Mill at Chelyabinsk Metallurgical Plant

mechelMoscow, Russia — May 6, 2013 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that successful hot testing was held at the complex of Chelyabinsk Metallurgical Plant’s universal rolling mill.

During hot testing, the mill produced its first batch of structural shapes – 25SH1-type bar. This is the first type of steel products that the universal rolling mill will be able to produce.

The entire cycle of structural shape production was hot tested, from billet heating and hot rolling to correcting, cutting into measured sizes and packaging. Currently steel is being tested.

Further on, the work schedule includes mastering production of other rolled profiles.

Launch preparation work is being completed at rail processing equipment, and the plant is preparing for hot testing of rail production.

Construction of Chelyabinsk Metallurgical Plant’s universal rolling mill is a priority investment project for Mechel’s steel division. When at full capacity, the mill will annually supply up to 400,000 tonnes of high resistance to wear and contact endurance rails for high-speed running, as well as rails for use in low temperatures. The mill’s total production capacity will be over 1 million tonnes of products a year. This enterprise will encourage development of related industries in Russia, ensure supplies of high-quality steel products on competitive prices for Russian Railways OAO and construction companies, as well as decrease their dependence on imports. Also, the mill’s launch will help resolve several social issues on regional level, such as creating over 1,000 new jobs.

“Successful hot testing of the universal mill is a highly important first stage of implementing Russia’s largest and only such project over the past few years,” Mechel OAO’s Vice-President for Technological Development Andrey Deineko said. “At the second stage, our task will be to master production of high-quality 100-meter rails. It is a unique technology which so far no one in Russia has used.”

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, ferrochrome, ferrosilicon, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.