MECHEL ANNOUNCES COMMISSIONING A NEW OUT-OF-FURNACE STEEL PROCESSING EQUIPMENT
AT CHELYABINSK METALLURGICAL PLANT
Moscow, Russia – July 16, 2010 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces commissioning the out-of-furnace
steel processing equipment within the first stage of the arc-furnace melting
shop #6 upgrade at Chelyabinsk Metallurgical Plant (CMP).
The official commissioning of the ladle furnace No. 2 (LF-2) and the vacuum
degasser was attended by Mikhail Yurevich, Chelyabinsk Region Governor, Sergei
Komyakov, First Deputy Governor, Vladimir Myakush, Chairman of the Legislative
Assembly of Chelyabinsk Region, Boris Vidgof, First Vice Chairman of Chelyabinsk
City Duma, Ugo Tozo, Vice President of Danieli and other guests.
Mechel OAO was represented by Igor Zyuzin, Mechel OAO’s Chairman of Board of
Directors, Andrei Deineko, Chief Executive Officer of Mechel Steel Management
OOO and Sergei Malyshev, Managing Director of CMP.
The commissioned equipment at the arc-furnace melting shop #6 includes the LF
No.2 for out-of-furnace steel processing and a vacuum tank degasser for molten
metal degassing. Thus, at the arc-furnace melting shop #6 a full complex of
modern high-technology equipment for out-of-furnace steel processing is
commenced. The steel produced at the out-of-furnace processing unit is casted
into billets at continuous-casting machine. The new LF-2 allows significant
improvement of the casted steel quality. The vacuum degasser with the
appropriate infrastructure would allow CMP to extend a range of steel grades
manufactured at the arc-furnace melting shop #6, save costs at this processing
stage and improve quality of finished rolled products. The annual designed
capacity of LP-2 is as high as 1.2 million tonnes, and the vacuum degasser is
expected to process up to 650 thousand tonnes of steel per annum.
The project has been implemented within the reconstruction of the arc-furnace
melting shop #6. In addition to the out-of-furnace steel processing equipment
the project  also includes reconstruction of the continuous casting machine #2
which is nearly completed and a large complex of environmental protection
measures. Thus, the new out-of-furnace steel processing equipment is supported
with effective gas purifying system. The continuous casting machine No.2 gas
purifier will be modernized as well.
“The arc-furnace melting shop #6 is being reequipped in order to increase output
of concasted slabs up to 1.2 million tonnes per year which are used for
production of high quality flat products. Also the project’s implementation
would allow us to further enlarge the range of steel grades and products
manufactured by CMP. Additionally introduction of the new complex would allow us
to increase overall production efficiency of our steel segment due to decrease
in consumption of raw materials and power. The equipment of the arc-furnace
melting shop #6 matches the best examples of the world stainless steel producing
plants. The new equipment ensures increasing quality of our products and would
allow us to increase output of plates and rolls of corrosion-resistant steel
grades after reconstruction of our rolling facilities to compete with the
leading European producers”, noted Andrei Deineko, Chief Executive Officer of
Mechel Steel Management OOO.
***
Mechel OAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
***
Mechel is one of the leading Russian companies. Its business includes 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 products are marketed domestically and
internationally.

***
Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you to
the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
“Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our
Form 20-F, that could cause the actual results to differ materially from those
contained in our projections or forward-looking statements, including, among
others, the achievement of anticipated levels of profitability, growth, cost and
synergy of our recent acquisitions, the impact of competitive pricing, the
ability to obtain necessary regulatory approvals and licenses, the impact of
developments in the Russian economic, political and legal environment,
volatility in stock markets or in the price of our shares or ADRs, financial
risk management and the impact of general business and global economic
conditions.