MECHEL ANNOUNCES ESTABLISHING ITS REPRESENTATIVE OFFICE IN THE PEOPLE’S REPUBLIC
OF CHINA
Moscow, Russia – March 15, 2009 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces establishing its representative
office in the People’s Republic of China.
Registration procedure of Mechel OAO representative office in China was
completed on March 5, 2010. Mr. Stepan Karapetyan is appointed the head of the
representative office located at: Jingguang Center bldg 1 #3310A, Chaoyang
District, Beijing. The office telephone number is: + 86 134 391 88 470.
The representative office will support Mechel’s business in China, cooperate on
expansion of Mechel’s business in the country, work directly with Chinese
partners, establish new business contacts and perform studies on the market
dynamics.
Starting from 2007, Mechel performs successful sales of iron ore concentrate
produced by its Korshunov Mining Plant to China and since 2009 coking coal
concentrate produced by Yakutugol is supplied to Chinese consumers as well as
ferroalloys. Currently volumes of these supplies are being gradually increased.
In 2005 and 2008 between Mechel and China Coal Overseas Development Co.
contracts were signed to purchase new technologies for coal excavation and
equipment for Mechel’s Southern Kuzbass Coal Company OAO subsidiary. Moreover,
Mechel signed Memorandum of Intent with Minmetals, one of China’s largest state
industrial corporations. In accordance with the Memorandum of Intent the first
contract to construct universal rail and structural steel mill at Mechel’s
Chelyabinsk Metallurgical Plant OAO subsidiary has already been signed.
The new representative office is already the third one opened by Mechel in the
Asia-Pacific region. Other representative offices of the company were opened in
South Korea and Japan.
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Mechel OAO
Ekaterina Videman
Phone: + 7 495 221 88 88
ekaterina.videman@mechel.com
***
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, steel, rolled products, ferroalloys, 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.