CHELYABINSK, Russia, Aug. 23, 2011 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE:MTL), one of the leading Russian mining and metals companies, announces the launch of the new converter # 2 in Chelyabinsk Metallurgical Plant's oxygen-converter shop.
Replacement of the converter #2 is the first stage in the complex reconstruction program for Chelyabinsk Metallurgical Plant's oxygen converter shop. The program, which is due to be completed by 2013, includes full replacement of the shop's three converters, dedusting tracts and their infrastructure equipment. Once the program is completed, the shop's steel annual output will go up by 950,000 tonnes to a total of 4,550,000 tonnes. Its total cost is estimated at 173.8 million US dollars (5.1 billion rubles*).
The new converter #2's launch will enable the company to increase cast weight from 140 to 152 tonnes and cut down on the time required for cast treatment. The converter was produced by Austrian-based Siemens VAI, with the cooler, the dedusting system and the stack module manufactured by the Ukrainian-based technological and scientific center Energostal.
The converter #2 is also equipped with a modern dedusting system which ensures maximum filtering and allows the plant to reduce emission of waste gases into the atmosphere.
Reconstruction of the converter # 2 cost a total of 1.289 billion rubles (44.1 million US dollars*).
Today the oxygen-converter shop includes three converters and two high-capacity concasters (CCMs). The plant's complex technical re-equipment program also includes construction of a ladle furnace, a vacuum degasser and the concaster #5, which will produce billets for Chelyabinsk Metallurgical Plant's major investment project — the universal rolling mill.
* According to the Russian Central Bank exchange rate of 29.2555 RUR/$ as of August 23, 2011.
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, ferrochrome, ferrosilicon, rolled products, 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.