Mechel Steel Group acquires a controlling stake in Izhstal OAOMoscow, RUSSIA – May 20, 2004 – Mechel Steel Group has increased its interest in Izhstal OAO to a controlling stake in it. The Company currently owns 58.35% in the authorized charter capital of the Izhevsk plant.
"As to the range of products manufactured by Izhstal plant, it overlaps considerably the products manufactured by our group enterprises. Therefore, its integration into Mechel Steel Group will strengthen our leading position in the Russian special steels and alloys market. We are planning to pursue a single marketing and production policy", said Vladimir Iorich, CEO of Mechel Steel Group.
Izhstal currently enjoys a significant share on the market of high-speed, stainless, and tool steel bar, and also stampings and forgings. The company has a production capacity of about 1.1 million tons of steel, 1 million tons of rolled stock, 38 thousand tons of hardware, and 17 thousand tons of stampings. The company produced 427 thousand tons of crude steel in 2003.
Director of External Communications
Phone: 7-095-258 1828
Mechel is a Russian metals and mining company, uniting producers of steel, rolled products, hardware, coal, iron ore concentrate, and nickel. Mechel products are marketed domestically and internationally.