Tuesday, April 7, 2009

Mechel Announces Blast Furnace Commissioning at its Chelyabinsk Metallurgical Plant Subsidiary

Moscow, Russia – April 6, 2009 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that blast furnace No. 4 was officially commissioned today at its Chelyabinsk Metallurgical Plant subsidiary (CMP). The furnace was temporarily delayed last November due to its third category capital repair.

Blast furnace No. 4 was delayed in November of last year, in connection with the plant’s revised production programs and planned lower output. The unit was used for its capital repair while it temporary stayed idle. The renewed furnace will produce about 3,000 tones of pig iron daily. Until the commissioning of blast furnace No. 4, the plant’s workshop operated with two blast furnaces, whose daily capacity was over 7,500 tonnes of pig iron, and ensured the operation of the plant’s steel melting workshops in accordance with the available orders.

Preparation for the capital repair was performed on a tight schedule. Blocks and components required for the repair were manufactured at CMP’s subsidiary, Spetsremzavod OOO.

During the capital repair, the unit’s power equipment, including the coolers and cooling system, and the main runners at the cast house were replaced. In addition, the blast furnace top equipment was renewed, charging system equipment was revised and installed, and the air heaters block was repaired. New technical solutions were applied while replacing the blast furnace lining using refractories made by Mayerton. The main feature of the completed reconstruction was the new cooling system equipment as 233 coolers in aggregate were installed during the repair.

“The implemented measures will provide a 10% increase in the actual productivity of blast furnace No. 4 and extend its overhaul life, which will positively influence the economic performance of the Chelyabinsk Metallurgical Plant’s blast furnace workshop. The completed reconstructions and capital repairs of the equipment will allow CMP to give maximum effective response to the growing demands for metal products and ensure future production consistent with the market needs,” Mechel OAO Senior Vice President Vladimir Polin commented.

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