Moscow, Russia – 18 February 2021 – Mechel Group (MOEX: MTLR, NYSE: MTL), one of Russia’s leading mining and steel companies, reports selling 300,000 tonnes of rails in 2020, which is 8% more than in 2019.

Mechel Group’s steel division includes two facilities producing various types of rails — Chelyabinsk Metallurgical Plant (railway and switch point rails) and Izhstal (subway conductor rails). Russian Railways were the chief recipient of Mechel’s rails, accounting for 234,000 tonnes. The remainder — approximately 70,000 tonnes — went to other Russian and foreign-based consumers.

Last year, Chelyabinsk Metallurgical Plant’s rail shipments went up 8% year-on-year. The plant’s exports went up by 74% year-on-year. Its sales geography expanded, with Chelyabinsk Metallurgical Plant’s rails shipped to Georgia and Latin America for the first time.

Apart from Russian Railways, key consumers of Mechel’s rails include Mosinzhproekt and Moscow Metro, which use Mechel’s rail products both for maintenance and for construction of new underground lines. Over the previous accounting period, Mechel’s facilities supplied over 87,000 tonnes of rails for construction of new metro lines and repairs to the existing metro railways in the Russian capital, with supplies including Chelyabinsk Metallurgical Plant’s R65 and R50 rails and Izhstal’s conductor rails.

Izhstal’s supplies of conductor rails in 2020 went up by 27% year-on-year. In 2020, Izhstal went through voluntary certification of its conductor rails, which gives the product competitive advantage and enables the plant to expand its customer portfolio and supply the rails to CIS member states.

“Since we launched rail production at Chelyabinsk Metallurgical Plant’s universal rolling mill, we have shipped over 1.5 million tonnes of rails to our domestic and international partners. Our rails are used in all of Russia’s major infrastructural railway projects. In the nearest future, we plan to master production of new types of rails at our Chelyabinsk facility, thus further expanding our product range,” Mechel Steel Management Company OOO’s Chief Executive Officer Andrey Ponomarev commented.

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Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com