VIDNOYE, Russia, June 18, 2009 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and metals companies, announces the restart of a block of coke oven batteries No. 2 at its Moscow Coke and Gas Plant OAO (Moskoks).
Mechel OAO is successfully restoring production volumes at its steel segment subsidiaries' plants. Thus, the blast furnace #4 at Chelyabinsk Metallurgical Plant OAO (CMP OAO) was commissioned in March 2009 after capital repair, Southern Urals Nickel Plant operates its full capacity, and one more ore heat-treating electric furnace is commissioned at Tikhvin Smelting Plant ZAO. On June 10, 2009 coke oven #4 started operations after capital repair at CMP. Its capacity is 440 thousand tonnes of coke per year.
On June 18, 2009 the official commissioning of the block of coke oven batteries No. 2 was held at Moscow Coke and Gas Plant OAO. The event was attended by the Minister of Industry and Science of Moscow Region Government Vladimir Kozyrev, the Head of Leninsky Municipal District (Moscow Region) Vasily Golubev, Mechel Management OOO CEO Andrey Deineko, Moskoks Managing Director Vladimir Tycskiy and other honorable guests.
The personnel of the plant's three main workshops resume working based on a full time schedule as the capacity utilization was restored starting from June 15.
Block #2 consists of three batteries -- #3, 4 and 4-bis. It includes 89 oven chambers with 23.4 cubic meter capacity each. After today's restart, the plant's average monthly capacity utilization level will become equal to the average rates of the first eight months of 2008 (pre-crisis level). The block will produce 50 thousand tonnes of coke monthly after reaching its production capacity. Total annual capacity of the plant is 1.3 million tonnes of coke of 6% humidity. The plant's personnel is 1300 employees. After commissioning of the block #2 the plant's capacity utilization will reach 100%.
In the course of hot conservation period maintenance and capital repair works were held. The works included gas exhaust and intake equipment checkout, repair of water pipeline for the coke extinguishing towers #1 and 2, inlet collector of primary gas refrigerators of collecting workshop repair and some other works.
"Mechel OAO is the only Russian company commissioning coke oven batteries after period of suspension and production volume drop. Currently many metallurgical and chemical-recovery companies significantly decreased coke production as we saw very low demand in the last few months. Production volumes recovery at Mechel group's plants became possible mainly due to our sales units successful performance. Their efficient work allows us to increase deliveries to the third parties on the internal Russian market as well as export deliveries. For example, in June about 30% of Moskoks production will be shipped to foreign countries.
"Increase in coke production allows us to additionally utilize coking coal mining capacity providing us with reliable consumption channel.
"Steady work of mining plants is very important in the current economic situation and we would like to emphasize that the company fulfills its obligations in production and social programs as well," Mechel OAO Senior Vice President Vladimir Polin commented.
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, steel, rolled products, ferroalloys, hardware, heat and electric power. Mechel products are marketed domestically and internationally.
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.