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Mechel Announces Creation of Mechel Somani Carbon Private Limited, India
09/08/2011 - Mechel OAO announced the creation of Mechel Somani Carbon Private Limited, India, a new 51%-49% joint venture with India’s Somani Group.
Mechel OAO announced the creation of Mechel Somani Carbon Private Limited, India, set up jointly with India’s Somani Group.
The joint venture, which will handle distribution of metallurgical coals on the Indian market, was set up by Mechel Carbon AG, subsidiary of Mechel OAO’s mining division Mechel Mining OAO, and Northern Exim Private Limited, which is part of Somani Group. Mechel Carbon AG’s share in the joint venture is 51%.
The project’s distribution area will be located on India’s east coast, 20 kilometers from India’s major port of Vizag, in an industrially developed region. The joint venture partners are planning to establish additional distribution areas within the next several years, which is expected to have a positive impact on the overall sales volumes.
“We have been working with Indian consumers of our coals for several years and consider India to be a promising and strategically important market,” commented Mechel OAO’s Vice-President for Commercial Activities Mikhail Urvantsev. “Until now we have been delivering our products only to large-scale consumers. In setting up this joint venture, we will expand the Indian market for us due to a large number of consumers desiring to acquire smaller-sized shipments of our products.”
Mechel, one of Russia’s leading companies, conducts business in four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power, and its products are marketed domestically and internationally.
