Russian mining and steel group Mechel has announced that its subsidiary Izhstal, specialty steel and stainless long products manufacturer, has signed a loan agreement with State Specialized Russian Export-Import Bank (Eximbank of Russia) for financing the manufacturing of high-technology product for export contracts.
According to Mechel’s statement, Eximbank of Russia opened a credit line totaling RUB 3.35 billion ($58.04 million) for two and a half years. Financing was made available in the framework of a state program on supporting export of high-technology products that Eximbank of Russia is implementing in joint effort with Russia’s Trade and Industry Ministry.
Izhstal will use these funds to acquire raw materials for manufacturing products to be exported to the European and Kazakh customers through Mechel Group’s own sales network.
Mechel’s CEO Oleg Korzhov stated that Izhstal has recently significantly expanded its range of high-technology products, and Eximbank of Russia’s financing will enable it to maintain a level of working capital necessary to increase production and export of such products.