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Mechel Announces Acquisition of Port Temryuk-Sotra
09/21/2007 - Mechel OAO has acquired 100% of the Temryuk-Sotra seaport shares as part of its continued diversification of coal and steel product traffic flows by developing its own transport infrastructure.
Mechel OAO has acquired 100% of the Temryuk-Sotra seaport shares.
The company will specialize mainly in coal transshipment. According to Mechel, the acquisition supports the company's continued diversification of its coal and steel product traffic flows by developing its own transport infrastructure.
"In line with Mechel's strategy to develop its global transportation scheme and expand geography of its logistic routes, we acquired the Temryuk-Sotra seaport in addition to the commercial ports of Posiet and Kambarka already owned by Mechel,” said Mechel Management OOO CEO Vladimir Polin.
Located at the Taman shore of the See of Azov, the Temryuk-Sotra seaport is primarily utilized for low-tonnage river-sea type vessels in Southern Russia. The port’s competitive advantages include its geographical location, proximity to sea communications, year-round navigation, and available railroad and highway accesses. With the existing depths, the port currently enables the use of river-sea vessels with tonnages of up to 5,000 K, whose parameters correspond to the capabilities of the Black Sea, Mediterranean, and the mainland waterways in West Europe.
“This acquisition will provide us with even more capabilities to regulate logistics of our deliveries (including our export shipments), minimize dependence on transport market conditions, and deliver products from producer/seller to end consumers avoiding brokers, thus reducing our transportation costs, increasing flows of traffic, and expanding our sale markets,” said Polin.
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.
