Russian miner Mechel OAO (MTL) has appointed Oleg Korzhov as its new Chief Executive Officer (CEO). Oleg Korzhov, who has served as the company’s Senior Vice-President for Economics and Management, succeeded Evgeny Mikhel upon the latter’s wish to leave the company.
Evgeny Mikhel served as the Chief Executive Officer since 2010. The transition has been approved by the company’s Board and came into effect on Jan 1, 2014.
As the CEO, Evgeny Mikhel competently guided the company to achieve greater heights through revised strategies. It is under his able guidance that Mechel completed key investment projects and sold most of its non-core assets.
Oleg Korzhov has been associated with Mechel since 2005 by holding various positions at different phases. Prior to joining Mechel, he worked with the Evrazholding Company OOO at Nizhnetagilsky Metallurgical Plant and Nikoremstroy OAO.
Mechel is a leading domestic steel and coal producer with strong positions in key businesses, including production of specialty steel and alloys. It has the largest coal reserve base in Russia and is mainly focused on growth and cost-cutting measures.
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 may affect Mechel, and it might not be able to support its huge capital spending program.
Mechel currently retains a Zacks Rank #4 (Sell).
Some better-ranked stocks in the steel industry include ArcelorMittal (MT), Companhia Siderurgica Nacional (SID) and AK Steel Holding Corp. (AKS). While ArcelorMittal and Companhia Siderurgica hold a Zacks Rank #1 (Strong Buy), AK Steel carries a Zacks Rank #2 (Buy).