Mechel Announces Establishing Its Representative Office in the People's Republic of China
March 15, 2010 9:33 AM
MOSCOW, March 15, 2010 (GLOBE NEWSWIRE) -- Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces establishing its representative office in the People's Republic of China.
Registration procedure of Mechel OAO representative office in China was completed on March 5, 2010. Mr. Stepan Karapetyan is appointed the head of the representative office located at: Jingguang Center bldg 1 #3310A, Chaoyang District, Beijing. The office telephone number is: + 86 134 391 88 470.
The representative office will support Mechel's business in China, cooperate on expansion of Mechel's business in the country, work directly with Chinese partners, establish new business contacts and perform studies on the market dynamics.
Starting from 2007, Mechel performs successful sales of iron ore concentrate produced by its Korshunov Mining Plant to China and since 2009 coking coal concentrate produced by Yakutugol is supplied to Chinese consumers as well as ferroalloys. Currently, volumes of these supplies are being gradually increased. In 2005 and 2008 between Mechel and China Coal Overseas Development Co. contracts were signed to purchase new technologies for coal excavation and equipment for Mechel's Southern Kuzbass Coal Company OAO subsidiary. Moreover, Mechel signed Memorandum of Intent with Minmetals, one of China's largest state industrial corporations. In accordance with the Memorandum of Intent the first contract to construct universal rail and structural steel mill at Mechel's Chelyabinsk Metallurgical Plant OAO subsidiary has already been signed.
The new representative office is already the third one opened by Mechel in the Asia-Pacific region. Other representative offices of the company were opened in South Korea and Japan.
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, rolled products, ferroalloys, 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.
