) has announced that it has sold a part of its 73.3% stake (55%
of share capital) in Vanino Sea Trade Port OAO, which it bought
from the Russian government and foreign investors. Mechel now
retains about 1.5% of the enterprise's common shares.
Mechel stated that the investors are not interested in
transhipping their products through Port Vanino, which will
enable it to use the port's entire capacity in the company's
interests. Port Vanino was already utilized by Mechel to ship its
cargo. The first vessel carrying 30,000 tons of Yakutugol Holding
Company OAO's coal products has left the port and another vessel,
which will carry 40,000 tons of coal, is set to start its journey
at the port.
Last week, Mechel acquired a controlling stake in Vanino Sea
Trade Port OAO for about RUB15.5 billion ($512.5 million). The
takeover was in sync with the company's efforts to expand its
export capacities in Asia Pacific.
Port Vanino is one of Russia's largest ports and is suitably
located for Mechel to serve the Asia Pacific region. The port is
also open for navigation throughout the year and is the largest
transport hub in the Kahabarovsk Region.
According to Mechel, Port Vanino's coal transhipment capacity can
be increased to 7 million tons in 2013 without incurring any
significant costs. This also saves Mechel from building its own
storage terminal at Vanino for the next 3-5 years. By utilizing
the capacities of the port, Mechel can increase its customer
Mechel currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the steel industry with favorable Zacks Ranks
Gibraltar Industries Inc.
ArcelorMittal South Africa
). While both Gibraltar and POSCO hold a Zacks Rank #1 (Strong
Buy), ArcelorMittal South Africa holds a Zacks Rank #2 (Buy).
(AMSIY): ETF Research Reports
MECHEL OAO ADS (MTL): Free Stock Analysis
POSCO-ADR (PKX): Free Stock Analysis Report
GIBRALTAR INDUS (ROCK): Free Stock Analysis
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