) Chelyabinsk Metallurgical Plant has completed the order placed
by the Russian Helicopters holding for a new class of steel for
helicopter-making. The preliminary technological testing for the
high-quality steel produced in Nov 2012 revealed successful
results and was thus passed for industrial production.
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Chelyabinsk Metallurgical Plant worked along with Urals Stampings
Plant for this order. Also, experts from Bardin's Central
Research Institute for Ferrous Metals and the All-Russian
Aviation Materials Institute worked together with Chelyabinsk
Metallurgical Plant's technicians for developing the helicopter
steel making technology.
The new class of high-strength steel produced by the Chelyabinsk
Metallurgical plant will be used to produce important joints for
the modern Ka-226(T) helicopter. This light helicopter is used
for corporate or private flights and also for special operations
and rescue missions. This ecologically-friendly and safe
Ka-226(T) helicopter is equipped with engines that ensure high
carrying capacity and flight height (up to 7,500 meters) and also
a coaxial rotor system.
The high-strength steel is also used in the production of attack
scout helicopter Ka-52 Alligator, which represents the most
perfect armed machines among its peers. This helicopter is in
serial production after crossing all state level tests and it has
been adopted into the Russian Air Force's arsenal. The Russian
Helicopters holding also has plans to utilize the new steel for
Mechel posted a loss in the first quarter of 2013, reported on
Jun 18, hurt by the sale of its Romanian steelmaking assets.
Revenues dropped by double digits with declines across the board.
Sustained weakness was seen in the core mining segment. Mechel
announced its decision to buy back shares.
Mechel's high debt and substantial interest burden are matters of
concern. Mechel is also faced with weak demand from Europe.
However, we are encouraged by the incremental opportunities
stemming from the Elga mine, which is expected to reinforce the
company's position as a metallurgical coal producer through
Mechel retains a Zacks Rank #4 (Sell).
Other companies in the steel industry with favorable Zacks Rank
Kobe Steel Ltd.
Shiloh Industries Inc.
Nippon Steel & Sumitomo Metal Corporation
). All of them hold Zacks Rank #1 (Strong Buy).