Mechel Consolidates Its Ferroalloy Assets
OREANDA-NEWS. On October 30, 2008 Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announced the consolidation of its ferroalloy assets on the bases of its Oriel Resources subsidiary, reported the press-centre of Mechel.
In the spring of 2008, Mechel OAO purchased Oriel Resources Company, which comprised of Tikhvin Smelting Plant ZAO (St. Petersburg region), Voskhod Chrome Deposit and Shevchenko Nickel Deposit (Kazakhstan). Among the enterprises representing the ferroalloy business at Mechel are Southern Urals Nickel Plant OAO (Orenburg region) and Bratsk Ferroalloy Plant OOO (Irkutsk region).
Currently, Mechel OAO, together with its affiliates, owns 100% of the Oriel Resources’ charter capital. In October 2008, while Oriel's additional shares were being issued, 100% of Bratsk ferroalloys plant shares and 84.06% of Southern Urals Nickel Plant shares were combined into the Oriel Resources charter capital. Thus currently all the ferroalloy assets of the company are included into the structure of Oriel Resources Company.
“The consolidation of all ferroalloy assets currently owned by Mechel is in line with the development strategy of our ferroalloy division. The activities at our new division will increase the efficiency within our metallurgical segment, driven by the use of its own raw materials (ferroalloys) for specialty and stainless steel production. The consolidation will also help improve Mechel’s competitive position given the expansion of its existing business to new markets while enhancing the integration of its businesses,” Mechel OAO Chief Operating Officer and Mechel Ferroalloys Management Company OOO Chief Executive Officer Alexey Ivanushkin noted.