Mechel Reports Suspension of Smelting at Two Romanian Plants Due to WeatherMoscow, Russia — February 17, 2012 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, reports that smelting production was temporarily halted at Mechel Targoviste and Ductil Steel Otelu Rosu plants due to problems with shipping in scrap because of severe weather conditions.
Starting February 18, smelting workshops at Mechel Targoviste and Ductil Steel Otelu Rosu will be temporarily halted due to problems with supplying the plants with scrap and other raw materials used in the production process.
Mechel-Steel Management Company OOO’s Chief Executive Officer Andrey Deineko commented: “Over the past few days, when transport in Romania was paralyzed due to severe snowstorms and abnormal freezing temperatures, the plants have been using their winter stores of scrap which by now are depleted. Judging by forecasts, the weather will allow us to resume supply shipments shortly.”
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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.
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.