Russian mining company
) announced that it has launched the universal rolling mill at
Chelyabinsk Metallurgical Plant. The company invested about $715
million in the project. Italy's Danieli will supply equipments
for the mill, while China's Minmetals will be the main contractor
for the mill.
The mill will produce high-quality structural shapes and rails
of length 12.5 to 100 meters. The mill, which is expected to
produce up to 1.1 million tons of finished product a year,
possesses all the technical know-how, necessary equipment as well
as quality control technologies. The company has installed
advanced technologies in the plant and removed the old ones, thus
reducing environmental hazards. The project has also led to the
creation of about 1500 jobs.
The rails produced at the mill will be supplied to Russian
Railways OAO as a part of the agreement signed by Mechel and
Russian Railways OA and approved by the Russian government. As
per the contract Chelyabinsk Metallurgical Plant will provide
annual rail supplies of up to 400,000 tons until 2030.
The new rails produced at the plant will be superior than its
foreign counterparts due to its resistance to low temperatures,
high wear and contact resistance. The launch of universal rolling
mill will also cater to the needs of the Russian customers
interested in its products. Mechel remains optimistic about the
project and expects its financial results to improve once the
mill reaches its project capacity.
Mechel retains a Zacks Rank #4 (Sell).
Other companies in the steel industry with favorable Zacks
Kobe Steel Ltd.
Shiloh Industries Inc.
Nippon Steel & Sumitomo Metal Corporation
). All of them hold a Zacks Rank #1 (Strong Buy).
KOBE STEEL-ADR (KBSTY): Get Free Report
MECHEL OAO ADS (MTL): Free Stock Analysis
NIPPON STEEL CP (NSSMY): Get Free Report
SHILOH INDS INC (SHLO): Get Free Report
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