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Mechel, Danieli Enter Partnership

04/04/2008 - Mechel OAO signs three-year partnership agreement with Danieli for the implementation of reconstruction and development projects at Mechel's steel subsidiaries.

Mechel OAO has signed a partnership agreement with Danieli & C. Officine Meccaniche SpA for the implementation of reconstruction and development projects for Mechel's steel subsidiaries.
 
Under terms of the new, three-year agreement, Danieli will provide Mechel with engineering and technical support to assist the implementation of Mechel's development plans and ensure its competitive advantages. The agreement becomes the basis for Danieli's work to modernize and re-equip Mechel's subsidiaries, including Chelyabinsk Metallurgical Plant, Russia; Mechel Targoviste, Romania; and Mechel Campia Turzii, Romania.
 
Although the new agreement follows a successful working relationship that has evolved between the two companies over the past few years, Mechel said that Danieli was selected as the equipment and technology provider on a competitive basis.
 
“We have been successfully working with Danieli for a long time, and now we have fortified our reliable partnerships,” said Mechel Management OOO Chief Executive Officer Vladimir Polin. “Danieli's equipment already operates well at our subsidiaries, specifically two continuous billet casting machines at Chelyabinsk Metallurgical Plant.”
 
The partners plan to conduct senior executive meetings on a regular basis to identify areas of cooperation, jointly consider development plans, and discuss further measures based on Mechel's priorities. Specialists from both companies will visit on a regular basis to discuss technical aspects of developing the projects, and Danieli specialists will be engaged in the preliminary engineering for all projects.
 
“We are pleased to move to a higher level of cooperation with a world-class engineering and technology leader such as Danieli,” said Polin. “We are confident that further cooperation between our companies will help us reduce costs and improve performance efficiency in our steel segment through the implementation of modern steel melting and casting technologies and modernization of our rolling production,” he concluded.
 
Mechel, one of the leading Russian mining and metals companies, unites producers of coal, iron ore, nickel, steel, rolled products, and hardware. Mechel products are marketed domestically and internationally.
 
Danieli, based in Italy, is a world leader in developing technologies and manufacturing equipment for steel production.