Moscow, Russia – January 9, 2008 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that its Mecheltrans ??? transportation subsidiary has won the open tender held by Russian Railways OJSC (RZhD OAO) for the sale of the Port Temryuk production complex.
As previously announced in September 2007, Mechel OAO acquired 100% of the shares of Temryuk-Sotra seaport located on the Taman shore of the Sea of Azov. This is one of the most promising ports for small tonnage river-sea type vessels in Southern Russia due to its geographical location.
The tender of RZhD OAO was held on December 28, 2007 and involved the sale of the real estate assets of the Port Temryuk production complex, two land plots of about 150,000 sq. m total area.
Mechel Management OOO Chief Executive Officer Vladimir Polin commented on the transaction, “The acquisition of this property complex will enable us to strengthen our presence in the export shipping markets and provide us with more opportunities to efficiently manage the port’s operations and regulate logistics of our deliveries. Following complete commissioning of the real estate assets of the Port Temryuk production complex, we plan to achieve its transshipment capacity of approximately 1.5 million tonnes of cargo in 2008 and approximately 1.8 million tonnes beginning from 2009. The acquired property complex is located in immediate proximity to Temryuk-Sotra, which is already owned by Mechel. The operations of the both assets are supported by the same railway branch owned by Temryuk-Sotra and this affords us an opportunity to subsequently join these two infrastructure facilities into a high capacity port transshipment complex”.
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