Mechel Reports Suspension of Two Romanian Plants Due to WeatherMoscow, Russia — February 15, 2012 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, reports that work was temporarily halted at Mechel Campia Turzii and Ductil Steel Buzau plants due to problems with shipping in raw materials because of severe weather conditions.
Over the past few days the two plants were cut off from major transport roads due to ceaseless snowstorms. Traffic of heavy-duty trucks along Romania’s routes was halted or limited. Railway operations are also severely limited. All this made it impossible to supply billets to Mechel Campia Turzii and Ductil Steel Buzau.
Ductil Steel Buzau and Mechel Campia Turzii are due to resume operations on February 22 and 24 respectively once the snowstorms’ effects are eliminated.
Chief Executive Officer of Mechel-Steel Management Company OOO Andrey Deineko commented on the situation by noting that the temporary halting of Mechel’s two Romanian steel plants will not affect the company’s production plans for the year.
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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.