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Mechel (russian: ПАО «Мечел») is one of Russia's
mining Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. The exploitation of these deposits for raw material is based on the economic via ...
and
metals A metal (from Greek μέταλλον ''métallon'', "mine, quarry, metal") is a material that, when freshly prepared, polished, or fractured, shows a lustrous appearance, and conducts electricity and heat relatively well. Metals are typicall ...
companies, comprising producers of
coal Coal is a combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams. Coal is mostly carbon with variable amounts of other elements, chiefly hydrogen, sulfur, oxygen, and nitrogen. Coal is formed when dea ...
,
iron ore Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, or deep purple to rusty red. The iron is usually found in the fo ...
in concentrate,
steel Steel is an alloy made up of iron with added carbon to improve its strength and fracture resistance compared to other forms of iron. Many other elements may be present or added. Stainless steels that are corrosion- and oxidation-resistant ty ...
, rolled steel products. Headquartered in Moscow, it sells its products in Russia and overseas, and is formally known as ''Public Joint Stock Company Mechel''.


History

Southern Kuzbass Coal Company acquired control over
Chelyabinsk Chelyabinsk ( rus, Челя́бинск, p=tɕɪˈlʲæbʲɪnsk, a=Ru-Chelyabinsk.ogg; ba, Силәбе, ''Siläbe'') is the administrative center and largest city of Chelyabinsk Oblast, Russia. It is the seventh-largest city in Russia, with a ...
Steel Plant in the summer of 2002 and subsequently announced a merger of Southern Kuzbass and Mechel into Mechel Steel Group.
Igor Zyuzin Igor Vladimirovich Zyuzin (russian: И́горь Влади́мирович Зю́зин; born May 29, 1960) is a Russian businessman, a Chairman of the Board of Directors and a major shareholder of the mining and steel group "Mechel". Biograph ...
was elected as Chairman of the Board of Mechel Steel Group OAO in January 2004.


Mergers and acquisitions

Mechel acquired
Posyet Posyet (russian: Посье́т) is an urban locality (an urban-type settlement) in Khasansky District of Primorsky Krai, Russia, and an ice-free port on the Possiet Bay. Population: Etymology It is named after the Russian navigator Konstanti ...
Sea Commercial Port on the Russian coast of the Sea of
Japan Japan ( ja, 日本, or , and formally , ''Nihonkoku'') is an island country in East Asia. It is situated in the northwest Pacific Ocean, and is bordered on the west by the Sea of Japan, while extending from the Sea of Okhotsk in the north ...
in 2004. Mechel submitted a winning bid for a 26.9% stake in Izhstal in May 2004, subsequently increasing its stake to control. Mechel won an auction in January 2005 to buy a blocking stake (25% plus one share of stock) in
Yakutugol OJSC KhK Yakutugol (russian: Якуту́голь) is a Russian coal company located in Neryungri, Yakutia. Yakutugol was established in 2002 by the public offering of the State-owned SUE Yakutugol. Mechel Mechel (russian: ПАО «Мечел» ...
. Also in 2005, Mechel acquired a controlling stake in
Kambarka Kambarka (russian: Камбарка) is a town and the administrative center of Kambarsky District of the Udmurt Republic, Russia, located on the Kambarka River (Kama's basin), southeast of Izhevsk. Population: History It was founded as a ...
River Port. In October 2006, Mechel bought control in Moscow Coke and Gas Plant. Mechel acquired a controlling stake in Southern Kuzbass GRES OAO and Kuzbassenergosbyt power sales company in 2007. Also in 2007, Mechel added to its asset portfolio the Bratsk Ferroalloy Plant, the largest producer of high-silicon content
ferrosilicon Ferrosilicon is an alloy of iron and silicon with a typical silicon content by weight of 15–90%. It contains a high proportion of iron silicides. Production and reactions Ferrosilicon is produced by reduction of silica or sand with coke in t ...
in
Eastern Siberia Siberia ( ; rus, Сибирь, r=Sibir', p=sʲɪˈbʲirʲ, a=Ru-Сибирь.ogg) is an extensive region, geographical region, constituting all of North Asia, from the Ural Mountains in the west to the Pacific Ocean in the east. It has been a ...
, producing 84,000 metric tons of this material per annum, or approximately 14% of the total Russian ferrosilicon output. Mechel acquired Oriel Resources Ltd in April 2008, which controls the Tikhvin Ferroalloy Plant (in
Leningrad Region Leningrad Oblast ( rus, Ленинградская область, Leningradskaya oblast’, lʲɪnʲɪnˈgratskəjə ˈobləsʲtʲ, , ) is a federal subject of Russia (an oblast). It was established on 1 August 1927, although it was not until 194 ...
), the Shevchenko Nickel Deposit (in
Kazakhstan Kazakhstan, officially the Republic of Kazakhstan, is a transcontinental country located mainly in Central Asia and partly in Eastern Europe. It borders Russia to the north and west, China to the east, Kyrgyzstan to the southeast, Uzbeki ...
) and the Voskhod
Chromite Chromite is a crystalline mineral composed primarily of iron(II) oxide and chromium(III) oxide compounds. It can be represented by the chemical formula of FeCr2O4. It is an oxide mineral belonging to the spinel group. The element magnesium can s ...
Deposit (in
Kazakhstan Kazakhstan, officially the Republic of Kazakhstan, is a transcontinental country located mainly in Central Asia and partly in Eastern Europe. It borders Russia to the north and west, China to the east, Kyrgyzstan to the southeast, Uzbeki ...
). The Tikhvin Plant has an annual projected capacity of 140,000 metric tons of ferroalloys. Mechel launched a new refinery, Mechel Chrome, at the Voskhod Deposit in September 2008, with annual capacity of approximately 900,000 metric tons of chromite concentrate per annum. Mechel signed a deal to sell the Tikhvin Ferroalloy Plant and the Voskhod Refinery to Turkey's Yildirim Group in 2013. The US$425-million deal was closed in December 2013. Mechel negotiated the acquisition of 100% in US
Bluestone Coal Bluestone is a cultural or commercial name for a number of dimension or building stone varieties, including: * basalt in Victoria, Australia, and in New Zealand * dolerites in Tasmania, Australia; and in Britain (including Stonehenge) * feld ...
in 2008, for an estimated US$4 billion (approximately). However, the price was revised downward in early 2009 because of the
Great Recession The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At ...
: Mechel was to pay for the asset US$425 million and issue 15% of the post-acquisition equity in preferred stock to the current shareholders of Bluestone Coal. After receiving $436 million in cash from Mechel and 83.3 million preferred shares of Mechel stock in 2009,
Jim Justice James Conley Justice II (born April 27, 1951) is an American businessman and politician who has served as the 36th governor of West Virginia since 2017. Justice had a net worth of $1.2 billion in September 2018, making him the wealthiest person ...
purchased Bluestone Coal from Mechel OAO for only $5 million in cash in February 2015 with Mechel receiving future royalty payments of $3 per ton from Bluestone Coal mines and 12.5% from the sale of Bluestone Coal company if Justice sells the Bluestone Coal company during the next 5 years and 10% from the sale of the Bluestone Coal company during the next 5 to 10 years. Mechel Trans, a Mechel logistics and transportation subsidiary, acquired a controlling stake (55%) in the Vanino Sea Commercial Port for RUB 15.5 billion from the government at an auction in early December 2012. Only one month later, Mechel re-sold most of its recently acquired stake to a consortium of Russian and international investors. The company later acquired 21.64% of the Port's common stock from En+ for RUB4.57 billion. Mechel sold 21.64% of common stock in Vanino Port for RUB 5 billion on October 23, 2013, retaining only 1.4% in the Port In October 2019, Mechel agreed to buy
Gazprombank Gazprombank (russian: Газпромбанк), or GPB (JSC), is a private-owned Russian bank, the third largest bank in the country by assets. Since November 2014, Yuri Shamalov's Gazfond is its largest shareholder. The bank’s principal busine ...
’s 34% stake in the Elga coal deposit for around 30 billion roubles ($461 million).


Criticism from the government

Russian Prime Minister
Vladimir Putin Vladimir Vladimirovich Putin; (born 7 October 1952) is a Russian politician and former intelligence officer who holds the office of president of Russia. Putin has served continuously as president or prime minister since 1999: as prime min ...
sharply criticized Mechel management at a government meeting in
Nizhniy Novgorod Nizhny Novgorod ( ; rus, links=no, Нижний Новгород, a=Ru-Nizhny Novgorod.ogg, p=ˈnʲiʐnʲɪj ˈnovɡərət ), colloquially shortened to Nizhny, from the 13th to the 17th century Novgorod of the Lower Land, formerly known as Gork ...
on July 24, 2008, which focused on ongoing troubles in the steel industry. Putin accused Mechel for exporting raw materials for steelmakers at prices about half the domestic level (which could be a sign of
tax avoidance Tax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law. A tax shelter is one type of tax avoidance, and tax havens are jurisdict ...
).Слова Путина о «Мечеле» обрушили рынок российских акций
NEWSru NEWSru.com was a Russian online news site, based in Moscow, which had a government-critical orientation. History NEWSru.com was originally launched in 2000 at the address ntv.ru. When the government took over the NTV network in 2000, with the n ...
26 июля 2008 г.
After Putin's accusations, Mechel's stock dropped 37.6% on the
New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...
, while the Russian
Federal Antimonopoly Service The Federal Antimonopoly Service of Russia (FAS) (russian: Федеральная антимонопольная служба России, ФАС России) is the federal-level executive governmental organ that controls the execution of the ...
launched investigation into Mechel's practice of raising domestic coking coal prices far above the export price levels. On the following day, July 25, the company issued a contrite statement promising full cooperation with federal authorities, while share values rebounded by nearly 15 percent. However, Vladimir Putin once again criticized Mechel's management on July 28 during a government meeting on
transfer pricing In taxation and accounting, transfer pricing refers to the rules and methods for pricing transactions within and between enterprises under common ownership or control. Because of the potential for cross-border controlled transactions to distort ...
, narrowing down his complaint: After this, the stock price (which had recovered a little over the previous days) collapsed by another 33.85% (producing a combined decline of 60%). The company's market capitalization in August 2011 was still half its value in July 2008. In mid-August 2008, the Federal Antimonopoly Service found Mechel guilty of violating Article 10 of the Competition Law by causing the domestic price of coking to rise, imposing a relatively small fine for this violation, equivalent to 5% of the group's annual sales, or RUB 790 million. In addition, FAS recommended that Mechel should reduce the domestic price of coking coal by 15%. This caused an additional weakness in the stock price. In the wake of these events, Mechel announced on August 8 that a preferred share issue, previously planned for placement on August 11, was to be postponed indefinitely. This essentially closed the door to equity finance for Mechel, restricting its financing options to debt. Vladimir Putin expressed regret over his own comments at a steel industry meeting in Chelyabinsk on July 26, 2010:


Conflicts with minority shareholders

Mechel has had numerous conflicts with minority shareholders practically from the time of its incorporation; minority shareholders have accused Mechel of disregarding their rights. Vostok Nafta, Prosperity Capital, Metage Capital and H&Q Fonder accused Mechel in 2002—2004 of unfairly reducing the buyout stock price during consolidation of Mechel's subsidiary Southern Kuzbass assets. The Federal Service for Financial Markets confirmed that Mechel had in fact violated minority shareholders' rights by withholding essential information from them. Eventually, Mechel was forced to buy out the minority shareholders at the market price. In 2012, at the time when the Russian environmental watchdog Rosprirodnadzor filed claims against Mechel subsidiaries, a minority shareholder in Tomusinsky Open Pit Mine OAO (which is part of Southern Kuzbass) the Swiss Bank Julius Baer and Co. Ltd. accused Tomusinsky of issuing stock at a lower price in violation of the law and shareholders' rights. In 2013, Saven, which held a 22.95% equity stake in Tomusinsky Open Pit Mine OAO, filed nine suits with an arbitration court claiming more than RUB 6 billion from Tomusinsky and several other subsidiaries of Mechel:
Yakutugol OJSC KhK Yakutugol (russian: Якуту́голь) is a Russian coal company located in Neryungri, Yakutia. Yakutugol was established in 2002 by the public offering of the State-owned SUE Yakutugol. Mechel Mechel (russian: ПАО «Мечел» ...
, Mechel Mining, Mechel Service, Mechel Trans, and Mechel Energo. Saven accused the defendants of diverting profits under the guise of low-interest loans to companies affiliated with Mechel on conditions clearly detrimental to themselves: at interest rates ‘‘below’’ the Russian Central Bank's refinancing rate, i.e. well below the market interest rate, and without any collateral. Argasera also filed a suit in 2013 against Mechel subsidiary Urals Stampings Plant OAO. Courts have invariably ruled for the plaintiffs in these suits.


Late 2013 problems

Mechel stock unexpectedly dropped sharply towards the end of 2013. The stock dropped 41.35% on November 13, 2013, losing another 18% of their value the following day. Mechel's
market capitalization Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by t ...
decreased from US$ 24 billion in May 2008 to US$ 830 million in late 2013, while the group's debt had mounted to US$ 9.5 billion. The company started delaying wage payments and contractual payments to suppliers.«Мечел» задерживает зарплату сотрудникам
/ref> Industry experts are unanimous that the company's trouble arise from inefficient acquisitions and highly risky financing policy, which has practically brought Mechel to the brink of bankruptcy. The company has been forced to engage in tough negotiations with both Russian and international creditor banks. Mechel announced in late November 2013 that it had negotiated an arrangement with creditor banks to restructure debt, extend repayment terms, and be released from debt covenants for a “covenant holiday.” Some experts believe that the company is no longer capable of servicing its debt, including coupon payments on its
corporate bonds A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, M&A, or to expand business. The term is usually applied to longer-term debt instruments, with maturity of ...
. However, market analysts see Mechel's
bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...
as unlikely, as it would be against the creditors' best interests.
Sberbank PJSC Sberbank (russian: Сбербанк, initially a contraction of russian: сберегательный банк, translit=sberegatelnyy bank, lit=savings bank, link=no) is a Russian majority state-owned banking and financial services compan ...
,
VTB VTB Bank (; formerly known as ''Vneshtorgbank'', , lit. 'International Trade Bank') is a Russian majority state-owned bank headquartered in various federal districts of Russia; its legal address is registered in St. Petersburg; as of 2022 ...
, and
Gazprombank Gazprombank (russian: Газпромбанк), or GPB (JSC), is a private-owned Russian bank, the third largest bank in the country by assets. Since November 2014, Yuri Shamalov's Gazfond is its largest shareholder. The bank’s principal busine ...
are Mechel's main creditors, accounting for as much as 60-65% of the group's debt; bonds account for an additional 20-25%. The situation is complicated by the fact that Mechel is in need of dramatic upgrades to its production facilities. Some observers have noted difficult relationships between Mechel and several local governments of the home regions of Mechel's plants and facilities, pointing out specifically Governor of the Chelyabinsk Region Mikhail Yurevich. Mechel intends to dispose some of its non-core assets in 2014, as well as a minority stake in Elga coal mine, one of Russia's largest. By August 2017, 75% of the company's debts had been restructured.


Shareholders and management

Mechel Chairman
Igor Zyuzin Igor Vladimirovich Zyuzin (russian: И́горь Влади́мирович Зю́зин; born May 29, 1960) is a Russian businessman, a Chairman of the Board of Directors and a major shareholder of the mining and steel group "Mechel". Biograph ...
holds 67.42% of
common stock Common stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently outside of the United States. They are known as equity shares or ordinary shares in the UK and other Com ...
in Mechel OAO (via Calridge Ltd, Bellasis Ltd, Cyberwood Ltd, Actiondeal Ltd, Armolink Ltd, and MetHol LLC). Approximately 30% of
common stock Common stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently outside of the United States. They are known as equity shares or ordinary shares in the UK and other Com ...
and 20% of preferred stock in Mechel is traded as
ADS" \n\nads.txt (Authorized Digital Sellers) is an initiative from IAB Technology Laboratory. It specifies a text file that companies can host on their web servers, listing the other companies authorized to sell their products or services. This is des ...
on the
New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed c ...
(with the ticker MTL). The company's shares are also traded on the
Moscow Exchange The Moscow Exchange (MOEX; rus, Московская биржа, r=Moskovskaya birzha, p=mɐˈskofskəjə ˈbʲirʐə, a=) is the largest exchange in Russia, operating trading markets in equities, bonds, derivatives, the foreign exchange market, ...
(ticker MTLR).''Юлия Федоринова, Максим Товкайло, Филипп Стеркин.'' Добрый доктор для Зюзина
// Ведомости, № 165 (2435), 3 сентября 2009
As of 30 May 2008 the company had a market capitalization of $24 billion.''Ксения Рыбак, Филипп Стеркин.'' «Мечел» платит
// Ведомости, № 124 (1898), 09 июля 2007
On the 6th of September 2021,
Gazprombank Gazprombank (russian: Газпромбанк), or GPB (JSC), is a private-owned Russian bank, the third largest bank in the country by assets. Since November 2014, Yuri Shamalov's Gazfond is its largest shareholder. The bank’s principal busine ...
left Mechel capital with 9,35% of equity shares.


Management

* CEO / General Director: Oleg Korzhov.''Виталий Петлевой''
«Мечел» сменил гендиректора
// www.vedomosti.ru, 13 января 2014
* Deputy CEO for Economics and Finance / CFO: Nelli Galeeva. * Deputy CEO for Government Relations: Viktor Trigubko. * Deputy CEO for HR and Social Policy: Ekaterina Silayeva. * Deputy CEO for Security: Valery Sheverdin. * Deputy CEO for Legal Affairs: Irina Ipeeva. * Deputy CEO for Financial Control: Dmitry Voytkus. * Deputy CEO for Operational Efficiency: Elena Samarina. * Deputy CEO for Commercial Operations: Alexander Kolchin. * Deputy CEO for Ecology and Environment Protection: Vladimir Kolchin. * CEO / General Director of Mechel Mining: Andrey Pasynich. * CEO / General Director of Mechel Steel: Andrey Ponomarev. * CEO / General Director of Mecheltrans: Alexey Lebedev. * CEO / General Director of Mechel Energo LLC: Denis Graf.


Operations

Mechel is a steel, metals and mining company. The Mechel Group comprises producers of
coking coal Metallurgical coal or coking coal is a grade of coal that can be used to produce good-quality coke. Coke is an essential fuel and reactant in the blast furnace process for primary steelmaking. The demand for metallurgical coal is highly coupled ...
,
steam coal Coal is a combustible black or brownish-black sedimentary rock, formed as stratum, rock strata called coal seams. Coal is mostly carbon with variable amounts of other Chemical element, elements, chiefly hydrogen, sulfur, oxygen, and nitrogen ...
,
iron ore Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, or deep purple to rusty red. The iron is usually found in the fo ...
in concentrate,
steel Steel is an alloy made up of iron with added carbon to improve its strength and fracture resistance compared to other forms of iron. Many other elements may be present or added. Stainless steels that are corrosion- and oxidation-resistant ty ...
,
rolled steel In metalworking, rolling is a metal forming process in which metal stock is passed through one or more pairs of rolls to reduce the thickness, to make the thickness uniform, and/or to impart a desired mechanical property. The concept is simil ...
,
ferroalloys Ferroalloy refers to various alloys of iron with a high proportion of one or more other elements such as manganese (Mn), aluminium (Al), or silicon (Si). They are used in the production of steels and alloys. The alloys impart distinctive qualiti ...
, high value added products, heat and electric power. Mechel sells its output in the Russian and international markets.


Constituent companies of Mechel

* Mechel Mining OAO (the group's mining assets) ** Southern Kuzbass Coal Company,
Mezhdurechensk Mezhdurechensk (russian: Междуреченск) is the name of several inhabited localities in Russia. ;Urban localities *Mezhdurechensk, Kemerovo Oblast, a city in Kemerovo Oblast; administratively incorporated as a city under oblast jurisd ...
,
Kemerovo Oblast Kemerovo Oblast — Kuzbass (russian: Ке́меровская о́бласть — Кузба́сс, translit=Kemerovskaya oblast — Kuzbass, ), also known simply as Kemerovo Oblast (russian: Ке́меровская о́бласть, label=non ...
**
Yakutugol OJSC KhK Yakutugol (russian: Якуту́голь) is a Russian coal company located in Neryungri, Yakutia. Yakutugol was established in 2002 by the public offering of the State-owned SUE Yakutugol. Mechel Mechel (russian: ПАО «Мечел» ...
,
Neryungri Neryungri ( rus, Нерюнгри, p=ˈnʲerʲʊnɡrʲɪ; evn, Ньируунгра; sah, Нүөрүҥгүрү, ''Nüörünggürü'', ) is the second largest town in the Sakha Republic, Russia and the administrative center of Neryungrinsky Distr ...
,
Yakutia Sakha, officially the Republic of Sakha (Yakutia),, is the largest republic of Russia, located in the Russian Far East, along the Arctic Ocean, with a population of roughly 1 million. Sakha comprises half of the area of its governing Far Eas ...
** Korshunov Mining Plant,
Zheleznogorsk-Ilimsky Zheleznogorsk-Ilimsky ( rus, Железногорск-Илимский, p=ʐɪlʲɪznɐˈgorsk ɪˈlʲimskʲɪj) is a town and the administrative center of Nizhneilimsky District of Irkutsk Oblast, Russia, located north of Irkutsk, the administ ...
,
Irkutsk Oblast Irkutsk Oblast (russian: Ирку́тская о́бласть, Irkutskaya oblast; bua, Эрхүү можо, Erkhüü mojo) is a federal subject of Russia (an oblast), located in southeastern Siberia in the basins of the Angara, Lena, and Nizh ...
** Elga Coal Deposit,
Yakutia Sakha, officially the Republic of Sakha (Yakutia),, is the largest republic of Russia, located in the Russian Far East, along the Arctic Ocean, with a population of roughly 1 million. Sakha comprises half of the area of its governing Far Eas ...
** Mechel Bluestone,
West Virginia West Virginia is a state in the Appalachian, Mid-Atlantic and Southeastern regions of the United States.The Census Bureau and the Association of American Geographers classify West Virginia as part of the Southern United States while the Bur ...
, United States: owned by Mechel from 2009 until 2015 when
Jim Justice James Conley Justice II (born April 27, 1951) is an American businessman and politician who has served as the 36th governor of West Virginia since 2017. Justice had a net worth of $1.2 billion in September 2018, making him the wealthiest person ...
purchased Bluestone Coal ** Moscow Coke and Gas Plant,
Vidnoye Vidnoye ( rus, Ви́дное, p=ˈvʲidnəɪ) is a city and the administrative center of Leninsky District in Moscow Oblast, Russia, located south of Moscow city limits. Population: History Rastorguyevo summer cottage community was est ...
,
Moscow Oblast Moscow Oblast ( rus, Моско́вская о́бласть, r=Moskovskaya oblast', p=mɐˈskofskəjə ˈobləsʲtʲ), or Podmoskovye ( rus, Подмоско́вье, p=pədmɐˈskovʲjə, literally "under Moscow"), is a federal subject of Rus ...
** Mechel Coke LLC * Chelyabinsk Metallurgical Plant,
Chelyabinsk Chelyabinsk ( rus, Челя́бинск, p=tɕɪˈlʲæbʲɪnsk, a=Ru-Chelyabinsk.ogg; ba, Силәбе, ''Siläbe'') is the administrative center and largest city of Chelyabinsk Oblast, Russia. It is the seventh-largest city in Russia, with a ...
,
Chelyabinsk Oblast Chelyabinsk Oblast (russian: Челя́бинская о́бласть, ''Chelyabinskaya oblast'') is a federal subject (an oblast) of Russia in the Ural Mountains region, on the border of Europe and Asia. Its administrative center is the city ...
* Izhstal,
Izhevsk Izhevsk (russian: Иже́вск, p=ɪˈʐɛfsk; udm, Ижкар, ''Ižkar'', or , ''Iž'') is the capital city of Udmurtia, Russia. It is situated along the Izh River, west of the Ural Mountains in Eastern Europe. It is the 21st-largest city i ...
,
Udmurt Republic Udmurtia (russian: Удму́ртия, r=Udmúrtiya, p=ʊˈdmurtʲɪjə; udm, Удмуртия, ''Udmurtija''), or the Udmurt Republic (russian: Удмуртская Республика, udm, Удмурт Республика, Удмурт ...
* Beloretsk Metallurgical Plant,
Beloretsk Beloretsk (russian: Белоре́цк; ba, Белорет, ''Beloret'') is a town in the Republic of Bashkortostan, Russia, located on the Belaya River, from Ufa. Population: History Town-factories were a peculiar phenomenon in the town- ...
, Bashkortostan Republic * Urals Stampings Plant,
Chebarkul Chebarkul (russian: Чебарку́ль) is a town in Chelyabinsk Oblast, Russia, located on the shores of Lake Chebarkul, west of Chelyabinsk, the administrative center of the oblast. Population: Etymology The name of the town derives from t ...
,
Chelyabinsk Oblast Chelyabinsk Oblast (russian: Челя́бинская о́бласть, ''Chelyabinskaya oblast'') is a federal subject (an oblast) of Russia in the Ural Mountains region, on the border of Europe and Asia. Its administrative center is the city ...
* Moscow Coke and Gas Plant,
Vidnoe Vidny (russian: Ви́дный; masculine), Vidnaya (; feminine), or Vidnoye (; neuter) is the name of several inhabited localities in Russia. ;Urban localities *Vidnoye, Moscow Oblast, a town in Leninsky District of Moscow Oblast ;Rural localit ...
,
Moscow Oblast Moscow Oblast ( rus, Моско́вская о́бласть, r=Moskovskaya oblast', p=mɐˈskofskəjə ˈobləsʲtʲ), or Podmoskovye ( rus, Подмоско́вье, p=pədmɐˈskovʲjə, literally "under Moscow"), is a federal subject of Rus ...
* Vyartsilya Metal Products Plant,
Vyartsilya Vyartsilya (russian: Вя́ртсиля; fi, Värtsilä) is an urban locality (an urban-type settlement) under the administrative jurisdiction of the town of republic significance of Sortavala in the Republic of Karelia, Russia, located nea ...
,
Republic of Karelia The Republic of Karelia (russian: Респу́блика Каре́лия, Respublika Kareliya; ; krl, Karjalan tašavalta; ; fi, Karjalan tasavalta; vep, Karjalan Tazovaldkund, Ludic: ''Kard’alan tazavald''), also known as just Karelia (rus ...
* Mechel Nemunas,
Kaunas Kaunas (; ; also see other names) is the second-largest city in Lithuania after Vilnius and an important centre of Lithuanian economic, academic, and cultural life. Kaunas was the largest city and the centre of a county in the Duchy of Trakai ...
* Kaslinsky Plant of Art Casting,
Kasli Kasli (russian: Касли́) is a town and the administrative center of Kaslinsky District in Chelyabinsk Oblast, Russia, located among several lakes on the eastern slope of the Middle Urals, northwest of Chelyabinsk, the administrative center ...
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Chelyabinsk Oblast Chelyabinsk Oblast (russian: Челя́бинская о́бласть, ''Chelyabinskaya oblast'') is a federal subject (an oblast) of Russia in the Ural Mountains region, on the border of Europe and Asia. Its administrative center is the city ...
* Bratsk Ferroalloy Plant,
Bratsk Bratsk ( rus, Братск, p=bratsk) is a types of inhabited localities in Russia, city in Irkutsk Oblast, Russia, located on the Angara River near the vast Bratsk Reservoir. Etymology The name sounds like the Russian word for "brother" ("", '' ...
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Irkutsk Oblast Irkutsk Oblast (russian: Ирку́тская о́бласть, Irkutskaya oblast; bua, Эрхүү можо, Erkhüü mojo) is a federal subject of Russia (an oblast), located in southeastern Siberia in the basins of the Angara, Lena, and Nizh ...
— Mechel has held 100% stake in the plant since 2007 * Southern Urals Nickel Plant,
Orsk Orsk (russian: Орск) is the second largest city in Orenburg Oblast, Russia, located on the steppe about southeast of the southern tip of the Ural Mountains. The city straddles the Ural River. Population: It lies adjacent to the Kazakhstan– ...
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Orenburg Oblast Orenburg Oblast (russian: Оренбургская область, ''Orenburgskaya oblast'') is a federal subject of Russia (an oblast). Its administrative center is the city of Orenburg. From 1938 to 1957, it bore the name ''Chkalov Oblast'' () ...
* Voskhod Mining Plant,
Aktobe Province The Aktobe Region ( kk, Ақтөбе облысы, Aqtöbe oblysy; russian: Актюбинская область, translit=Aktyubinskaya oblast) is a Regions of Kazakhstan, region of Kazakhstan. The name ''Aktobe'' comes from Kazakh language, Kaz ...
* Mechel Energo LLC *
Southern Kuzbass GRES South Kuzbass GRES is a thermal power plant ( GRES) in Kaltan, Kemerovo Oblast, Russia. As of January 1, 2007 total electric power 554 MW, heating — 560 Gcal/h. Currently is a part of Mechel. GRES is located close to the local coal deposits, ...
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Kaltan Kaltan (russian: Калта́н) is a town in Kemerovo Oblast, Russia, located on the Kondoma River, south of Kemerovo, the administrative center of the oblast. Population: History It was founded in 1946 and was granted urban-type settlem ...
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Kemerovo Oblast Kemerovo Oblast — Kuzbass (russian: Ке́меровская о́бласть — Кузба́сс, translit=Kemerovskaya oblast — Kuzbass, ), also known simply as Kemerovo Oblast (russian: Ке́меровская о́бласть, label=non ...
* Kuzbass Power Sales Company,
Kemerovo Oblast Kemerovo Oblast — Kuzbass (russian: Ке́меровская о́бласть — Кузба́сс, translit=Kemerovskaya oblast — Kuzbass, ), also known simply as Kemerovo Oblast (russian: Ке́меровская о́бласть, label=non ...
* Posiet Sea Trade Port,
Primorskiy Krai Primorsky Krai (russian: Приморский край, r=Primorsky kray, p=prʲɪˈmorskʲɪj kraj), informally known as Primorye (, ), is a federal subject (a krai) of Russia, located in the Far East region of the country and is a part of the ...
* Port of
Kambarka Kambarka (russian: Камбарка) is a town and the administrative center of Kambarsky District of the Udmurt Republic, Russia, located on the Kambarka River (Kama's basin), southeast of Izhevsk. Population: History It was founded as a ...
( Kama settlement,
Udmurt Republic Udmurtia (russian: Удму́ртия, r=Udmúrtiya, p=ʊˈdmurtʲɪjə; udm, Удмуртия, ''Udmurtija''), or the Udmurt Republic (russian: Удмуртская Республика, udm, Удмурт Республика, Удмурт ...
) * Port Mechel-
Temryuk Temryuk ( rus, Темрю́к, p=tʲɪmˈrʲʉk) is a town and the administrative center of Temryuksky District in Krasnodar Krai, Russia, located on the Taman Peninsula on the right bank of the Kuban River not far from its entry into the Temr ...
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Krasnodar Krai Krasnodar Krai (russian: Краснода́рский край, r=Krasnodarsky kray, p=krəsnɐˈdarskʲɪj kraj) is a federal subject of Russia (a krai), located in the North Caucasus region in Southern Russia and administratively a part of t ...
* Mecheltrans Vostok LLC * Mechel Repair Service LLC, Chelyabinsk * Mecheltrans Auto LLC.


Key investment projects

*
Elga Coal Field The Elga Coal Mine ( rus, Эльгинское угольное месторождение) is a coal mine located in Sakha Republic. The mine has coal reserves amounting to 2.1 billion tonnes of coking coal, one of the largest coal reserves in A ...
(
Yakutia Sakha, officially the Republic of Sakha (Yakutia),, is the largest republic of Russia, located in the Russian Far East, along the Arctic Ocean, with a population of roughly 1 million. Sakha comprises half of the area of its governing Far Eas ...
) – is one of the largest coal fields in the world with 2.2 billion metric tons of 2P (proven and probable) reserves of coal. Production at the field started in 2011, when Mechel also opened service on its 321-kilometer Ulak – Elga rail track that it built to connect the coal deposit with the Baikal-Amur Mainline. The current plans envisage an increase the field's annual design capacity to 18 million tons of coal by 2018. *All-purpose rail-and-structural steel rolling mill at the Chelyabinsk Steel Plant – the first facility built from the ground up in Russia capable of producing rails up to 100 meters long. The mill uses steel rolling, tempering, adjustment, finishing, and quality control technologies. The mill has annual capacity of 1.1 million metric tons of finished products. The mill required investments of US$715 million.


Operating results

In 2012, Mechel produced 11.5 million metric tons of coking coal in concentrate (compared to 12.5 million tons in 2011 and 11.5 million tons in 2010), 5.9 million tons of steam coal (versus 6.4 million tons in 2011 and 8.1 million tons in 2010), 3.5 million tons of coke (compared to 3.4 million tons in 2011 and 3.9 million tons in 2010). The group's steel division produced 4.1 million tons of raw iron in 2012 (compared to 3.7 million tons in 2011 and 4.2 million tons in 2010), 6.5 million tons of steel (compared to 6.1 million tons in 2011 and 6.1 million tons in 2010), 4.8 million tons of rolled steel (versus 4.5 million tons in both 2011 and 2010). Mechel increased its 2012 electric power output by 9% year-over-year to 4,272.6 million GWh. Mechel's 2013 operating results reflected a substantial decline in output of the group's core products. More specifically, raw iron output declined by 10%, and steel production dropped 29% year-over-year. Mechel CEO Oleg Korzhov explained this decline by the divestiture of several loss-making steel assets in 2013. Coal output declined by 1% compared to 2012.


Sports sponsorship

Mechel has sponsored through the years ice hockey clubs Izhstal based in Izhevsk (Udmurtia) and
Mechel Mechel (russian: ПАО «Мечел») is one of Russia's mining and metals companies, comprising producers of coal, iron ore in concentrate, steel, rolled steel products. Headquartered in Moscow, it sells its products in Russia and overseas, and ...
based in Chelyabinsk, which are playing in the
Russian Major League The Supreme Hockey League (SHL) (russian: Высшая хоккейная лига (ВХЛ), links=no, ''Vysshaya hokkeinaya liga (VHL)''), also known as the Major Hockey League or Higher Hockey League (HHL), is a professional ice hockey league i ...
.


References


External links


Mechel official website
{{Authority control Companies listed on the New York Stock Exchange Steel companies of Russia Mining companies of Russia Coal companies of Russia Companies based in Moscow Companies established in 2003 Companies listed on the Moscow Exchange