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Mechel, Mitsui Sign Memorandum of Cooperation
08/11/2009 - Mechel OAO signs a Memorandum of Cooperation with Mitsui covering marketing and sale of metal and related resources as well as joint investment projects in primary goods production.
Mechel OAO has signed a Memorandum of Cooperation with Mitsui & Co. Corp. covering a number of areas, including the marketing and sale of metal and related resources as well as joint investment projects in primary goods production, including both ferrous and nonferrous products.
The agreement was signed August 6 during a meeting between the heads of both of the companies that was held in Mechel’s Moscow office. Mechel CEO Igor Zyuzin signed the memorandum on behalf of Mechel, and Noriaki Sakamoto, Member of the Mitsui Board of Directors, signed the memorandum on behalf of Mitsui & Co. Ltd.
The Memorandum acknowledges the great experience that both parties have in the sphere of production and realization of resources and metallurgical production in Russia, Japan and other countries. The agreement also noted the intention of both parties to expand the geography of their activity and production, including the production of high-quality products.
The parties are planning to realize cooperation in a number of directions, including the marketing and sale of metal production and related resources, including coal, all types of ferroalloys, pig iron, billet and other types of iron and steel products. Joint investment projects are also planned, including the organization of joint ventures in primary goods production, production of ferrous and non-ferrous metallurgy, sales and distribution.
The cooperation will also extend to the sphere of logistics, where the parties intend to study opportunities and take joint actions in order to optimize commodity flows and minimize the expenses of cargo transportation. In order to develop mutually profitable joint projects, the parties also intend to cooperate in the sphere of finance.
The parties said that they will establish working groups that are to consist of representatives of both parties to support the effective realization of joint arrangements within the frame of the new Memorandum.
Mitsui & Co. Ltd. is one of the leading global diversified trading and investment enterprises, based in Tokyo, Japan.
Mechel, one of Russia’s leading companies, unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, nickel, hardware, heat, and electric power. Its business includes four segments—mining, steel, ferroalloys and power—and its products are marketed domestically and internationally.
