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Mechel mulls sale of Chelyabinsk Metallurgical Plant

Wednesday, 10 September 2014 13:46:08 (GMT+3)   |  
       

Mechel, one of the leading Russian mining and steel groups, is willing to consider various options and to sell any of its assets, depending on what price buyers offer, including both a share in or 100 percent of Chelyabinsk Metallurgical Plant, according to a statement of Mechel's CEO Oleg Korzhov. The company hopes to earn $2-3 billion from the sale of assets.

Chelyabinsk Metallurgical Plant became a part of Mechel in 2001, when Vladimir Lorih and Igor Zyuzin bought it from Swiss trader Glencore for $133 million. More than $900 million was invested in the mill's modernization. In particular, in 2008-2013 the rolling mill was built, which can produce 100 meter rails for the high-speed railways of Russian Railways.


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