Moscow, Russia – March 21, 2006 – Mechel OAO (NYSE: MTL) announces establishment of a 100%-owned subsidiary, Mechel Hardware OOO. The new company will sell products manufactured by Mechel’s hardware plants. The changes are in line with Mechel’s overall strategy to develop its mining segment and improve the efficiency of its steel business.
Mechel Hardware OOO will sell hardware produced at Beloretsk Metallurgical Plant, Vyartsilya Metal Products Plant, and Mechel Nemunas to the Russian and international markets. Vladimir Polin, Senior Vice President of Mechel Management OOO, is appointed to the position of General Director of Mechel Hardware OOO.
“Though the hardware market is tightly competitive, we have a positive view on this segment. We intend to strengthen our presence in this sector, and are happy that Vladimir Polin, who has been with Mechel for many years, will be in charge of the new company”, said Mechel’s COO Alexey Ivanushkin.
Mechel’s consolidated hardware output was over 557,000 tonnes in 2005.
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