MECHEL BEGINS DEVELOPMENT OF BULK INGOT MARKET

Chelyabinsk, Russia – July 20, 2017 – Mechel PAO (MOEX: MTLR; NYSE: MTL), a
leading Russian mining and metals company, reports that Chelyabinsk
Metallurgical Plant has cast its first oversize 50-tonne ingot. The new
technology for production of bulk ingots from specialty steels will enable
Chelyabinsk Metallurgical Plant to enter a new segment of the oversize product
market and make supplies both domestically and internationally.
Bulk ingots are produced by very few companies globally as their production
requires equipment capable of simultaneous casting of necessary volumes of
quality steel while maintaining special temperatures and speed in pouring steel
into a mould. The mould is also technically difficult to produce, with the
plant’s mould developed by the plant’s own experts who managed to attain maximum
precision in its making.
The plant has produced bulk ingots before, but their maximum weight reached 17.5
tonnes. Chelyabinsk Metallurgical Plant’s 50-tonne ingots will be supplied as
billets to Mechel’s another steel facility, Urals Stampings Plant. Urals
Stampings Plant will use them to produce a new type of product — bulk forgings
which are highly in demand in mechanical engineering.
“Production of a high-quality 50-tonne ingot is an event of strategic importance
for Mechel’s steel division. Today only a few facilities in Russia and abroad
can produce such ingots. While streamlining this production process, our experts
applied groundbreaking design, engineering and technical solutions. We plan to
build on this development, as we see stable demand for this type of product,”
Mechel PAO’s Chief Executive Officer Oleg Korzhov commented.
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Mechel PAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
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Mechel is an international mining and steel company. Its products are marketed
in Europe, Asia, North and South America, Africa. Mechel unites producers of
coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and
electric power. All of its enterprises work in a single production chain, from
raw materials to high value-added products.
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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.