OREANDA-NEWS. June 14, 2012. Mechel JSC  (NYSE: MTL), one of the leading Russian mining and metals companies, reports that Mechels Chairman of the Board of Directors Igor Zyuzin met with Minmetals Corporations President Zhou Zhongshu during Mr. Zyuzins trip as part of the Russian delegation in the framework of Russian Federations President Vladimir Putins official visit to Peoples Republic of China.

During the meeting, the sides discussed the issues of implementing the project for the construction of the universal rolling mill at Chelyabinsk Metallurgical Plant (ChMK), where Minmetals, one of Chinas largest state industrial corporations, is general contractor.

ChMKs universal rolling mill will produce high-quality rails up to 100 meters in length, using state-of-the-art technologies for rolling, tempering, straightening, finishing, and quality control. These rails will surpass their world analogues on several key parameters, which are necessitated by the climate conditions under which rails are utilized in Russia. The Strategy for Development of Russias Railway Transport till 2030, approved by the Russian government provides for modernization and construction of new railroads all over the country, and will be implemented with the use of rails produced by Chelyabinsk Metallurgical Plant among others. The mills annual capacity will be over 1 million tonnes. The mill will also produce structural shapes and sections.

Chairman of Mechels Board of Directors Igor Zyuzin noted: For us the universal rolling mill construction project is a priority, as it has special importance for the entire country it is being implemented to meet the needs of Russian Railways and construction industry in high-quality steel products, which will help to bring down their dependence on foreign imports and international market volatility.