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Mechel Increases Stake in Charter Capital of Toplofikatsia Rousse

11/26/2010 - Mechel OAO has acquired an additional 51% stake in the charter capital of Toplofikatsia Rousse AD, located in the Republic of Bulgaria. As a result, Mechel has increased its stake in the charter capital of the power station up to 100% from the previous 49%.

Mechel OAO has acquired an additional 51% stake in the charter capital of Toplofikatsia Rousse AD, located in the Republic of Bulgaria. As a result, Mechel has increased its stake in the charter capital of the power station up to 100% from the previously owned stake of 49%.
 
The company notes that the move is in line with its power-segment development strategy; the acquisition provides new opportunities for realization of electric power in the European market.
 
After Mechel’s acquisition of 49% shares of Rousse TPP in 2007, the station secured stable consumption of steam coal manufactured by Southern Kuzbass Coal Co. OAO. The utilization of Kuznetsk Coal Basin’s high-quality coal allows the station to fulfill strict European requirements on environmental protection with regard to sulfur and volatile substances emissions without additional investments.
 
Toplofikatsia Rousse runs all municipal heat distribution systems of Rousse city as well as remote stations and heat sites. TPP provides nearby facilities and citizens with steam, heat, and hot water.
 
Viktor Gvozdev, CEO of Mechel Energo OOO, said: “The continuous development of the Group’s power segment is necessary for the effective work of the whole Group. The stake increase up to 100% is Mechel’s logical step in strengthening its positions in power industry and increasing efficiency of its operations in prospective European power market following the strategy of increasing output of high-value-added products.”
 
Mechel is one of the leading Russian mining and metals companies. Its business includes four segments: mining, steel, ferroalloy, and power. The company unites producers of coal, iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power. Its products are marketed domestically and internationally.