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Mechel

May 22, 2008

Mechel announces another phase of technological modernization at its Beloretsk Metallurgical Plant

Moscow, Russia – May 22, 2008 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces the commissioning of a new stranding machine and mine excavator at its Beloretsk Metallurgical Plant OAO (BMP) steel subsidiary.

The new stranding machine commissioned at BMP was manufactured by Mario Frigerio, Italy and has an annual capacity of over 4,000 ropes. It will enable BMP to start producing high quality ropes of 11.5 mm - 16.0 mm in diameter and increase its current output of 16.0 mm - 22.0 mm diameter ropes. The cost of the new project was about RUR40.0 million (approximately US$1.7 million).

BMP is currently one of the leading Russian producers of steel ropes with a wide array of products between 0.6 mm - 64 mm diameter for use in various applications. The new equipment will allow BMP to increase its presence in this market.

BMP also received a new modern Hitachi excavator designed to work at the Pugachev lime pit. The excavator is equipped with two buckets of 0.8 and 1.8 cubic meter capacity, and a hydrowedge, which will operate to crash oversized limestone for subsequent processing it at the crushing and screening plant. The new machine complies with modern technological requirements and is noted for its high capacity.

These actions were taken in line with BMP’s investment program aimed to improve the product quality, increase output, reduce production costs, and generate additional profit.

 

 

 

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