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Mechel Completes Project Construction

Zacks Equity Research

Russian mining company, Mechel OAO (MTL) announced that it has completed the construction of a grinding-mixing complex to produce cement. The complex with an annual capacity of 1.6 million tons was built in Chelyabinsk Metallurgical Plant’s industrial zone. The company invested $174.4 million in the project.

The complex is the first such facility in Russia which was built up to modern European standards. Vertical roller mills installation will help it to achieve a maximum level of disintegration-grinding down to 4500-6000 Blaine fineness, which ensures cement strength and hardening rate. The complex houses the necessary equipments that are environmental friendly so that dust emission is maintained at extremely low levels.

Mechel has completed the startup and commissioning works at the plant and has started on guarantee tests for its equipment. Mechel has constructed the complex so that it can utilize the blast furnace slag from the Chelyabinsk Metallurgical Plant for producing high-quality cement.

The blast furnace slag cement is used in constructing above and underground structures that are exposed to aggressive environments, in building hydro power stations, ferrous metallurgy and heavy industry facilities. It is also used in making wall blocks, concrete mixes, construction mortars and dry mixes.

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 cost-cutting measures.

Mechel currently retains a short-term Zacks Rank #4 (Sell).

Other companies in the steel industry with favorable Zacks Rank are Nippon Steel & Sumitomo Metal Corp. (NSSMY), Companhia Siderurgica Nacional (SID), and Shiloh Industries Inc. (SHLO).  All of them hold a Zacks Rank #1 (Strong Buy).

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