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Mechel Announces Q1 2011 Operational Results

04/13/2011 - Mechel OAO reported the production of 931,800 tonnes of coke (-2.4% vs. Q1 2010), 1,012,900 tonnes of pig iron (-3.7%) and 1,588,000 tonnes of steel (+11.0%) in the first quarter of 2011. The company also produced 132,100 tonnes of flat rolled products (+29% vs. Q1 2010), 913,400 tonnes of long products (+9%), and 545,400 tonnes of billets (+9%).

Mechel OAO reported the production of 931,800 tonnes of coke (-2.4% vs. Q1 2010), 1,012,900 tonnes of pig iron (-3.7%) and 1,588,000 tonnes of steel (+11.0%) in the first quarter of 2011. The company also produced 132,100 tonnes of flat rolled products (+29% vs. Q1 2010), 913,400 tonnes of long products (+9%), and 545,400 tonnes of billets (+9%).
 
 “Over this year’s first three months all of Mechel’s business segments demonstrated confident levels of production growth we achieved in 2010,” said Mechel OAO General Director Yevgeny Mikhel, commenting on the first quarter 2011 operational results.
 
“In the mining segment, the coking coal concentrate’s production volumes went up by 31% compared to the same period last year. We managed to achieve these results despite the temporary halting of the coking coal washing shop of Yakutugol’s Nerungrinsk washing plant due to the collapse of three thickeners. The work of two out of three washing lines was promptly restored. Southern Kuzbass OAO fully mastered the technology of preparing high-quality mixes of PCI coals which enabled the plant to increase their production by 87%.
 
“The steel segment also showed confident growth compared to the same period last year,” continued Mikhel. “Hardware production went up by 36%. Due to the launch of new facilities, production of steel, steel alloy electrode and high-strength wires, as well as regular wire, was increased in particular. Output of forgings and stampings exceeded last year’s figures by 24% and 38% respectively, due to high demand both on domestic and international markets.
 
“The launch of a new electric steelmaking complex at Izhstal OAO and a new high-quality and stainless steel production complex at Chelyabinsk Metallurgical Plant OAO in 2010 enabled Mechel to boost steelmaking and billet-making capacities,” added Mikhel. “Due to modernization, output of flat products went up by 29% compared to the same period last year, while production of long products and billets went up by 9%.
 
 “The respective results achieved by every Mechel business segment in the first quarter of 2011 enable us to look into the future with optimism,” concluded Mikhel. “We intend to continue our efforts to further improve the group’s production results, as required by the market demand for our prime products.”
 
Mechel, a leading Russian company, 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. Mechel’s products are marketed domestically and internationally.