) declared successful testing of equipment that produces coking
coal concentrate at the Elga coal deposit's seasonal washing
plant at the Republic of Sakha (Yakutia).
The coking coal concentrate producing equipment's adjusting
and start-up procedures were also completed. The plant's
production working shifts were framed to ensure 24 hours of
The plant is expected to start its production at full capacity
before the end of this month and is expected to produce nearly
50,000 tons of raw coal by the end of this year.
The test batch of the washing plant will be forwarded to
Chelyabinsk Coke and Chemical Products Plant (Mechel Coke), which
falls under Mechel's mining segment. Mechel have plans to export
coking coal concentrate to foreign consumers in 2014.
Mechel, in June, declared the commencement of hot testing of
rail rolls production at Chelyabinsk Metallurgical Plant's
universal rolling mill. With the launch of hot testing, the
company commenced the second stage of preparation for the launch
of universal rolling mill. Earlier, in May, Mechel declared
successful hot testing at its Universal Rolling Mill at
Chelyabinsk Metallurgical Plant.
Mechel is a leading domestic steel and coal producer with a
strong position in key businesses, including production of
specialty steel and alloys. The company has the largest coal
reserve base in Russia and is mainly focusing on growth and
Mechel owns and controls essential infrastructure, including
ports, rolling stock and power plants, which provide access to
the export markets. However, high debt and interest burden are
the challenges for Mechel and it might not be able to keep up
with its huge capital spending program.
Mechel retains a Zacks Rank #4 (Sell).
Other companies in the steel industry with favorable Zacks
Nippon Steel & Sumitomo Metal Corp.
Kobe Steel Ltd.
). While Nippon Steel and Ternium maintain a Zacks Rank #1
(Strong Buy), Kobe Steel maintains a Zacks Rank #2 (Buy).
KOBE STEEL-ADR (KBSTY): Get Free Report
MECHEL OAO ADS (MTL): Free Stock Analysis
NIPPON STEEL CP (NSSMY): Get Free Report
TERNIUM SA-ADR (TX): Free Stock Analysis
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