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PJSC Mechel : Mechel Launches First Stage of New Wiredrawing Equipment at Beloretsk Metallurgical Plant

EquityStory.RS, LLC-News: PJSC Mechel / Key word(s): Investment PJSC Mechel : Mechel Launches First Stage of New Wiredrawing Equipment at Beloretsk Metallurgical Plant 21.06.2021 / 16:15 MSK The issuer is solely responsible for the content of this announcement. MECHEL LAUNCHES FIRST STAGE OF NEW WIREDRAWING EQUIPMENT AT BELORETSK METALLURGICAL PLANT

 

Beloretsk, Russia - June 21, 2021 - Mechel PAO (NYSE: MTL, MOEX: MTLR), a leading Russian mining and metals company, announces the launch of four wiredrawing benches at Beloretsk Metallurgical Plant, for output of import-substituting wire. The equipment worth 220 million rubles has been acquired as part of the project of revamping Beloretsk Metallurgical Plant's wire and rope facilities. This is the first stage of the facility, where a total of 12 benches will be installed.

The launch ceremony included the Republic of Bashkortostan's Head Radiy Khabirov, Chairman of Mechel PAO's Board of Directors Igor Zyuzin, Mechel PAO's Chief Executive Officer Oleg Korzhov, Beloretsk Metallurgical Plant's Managing Director Sergey Fedorov and other high guests.

Beloretsk Metallurgical Plant began implementing the investment project upgrading the plant's wire and rope facilities in 2016. The project's cost totals 1.5 billion rubles, including 750 million granted by Russia's Industrial Development Fund as a concessionary loan. The project is due to be finished in 2023. It includes a sweeping technical upgrade of the plant's wire facilities, installation of new wiredrawing machines and auxiliary equipment, as well as reconstruction of the closed-loop water system and installation of a new wastewater cleansing station for the wire rope facility.

All new wiredrawing lines are equipped with scalebreakers that scale dross off wire rods mechanically. This will enable the plant to abandon the practice of chemical scaling and gradually close down chemical etching facilities in its wire workshops.

The new wiredrawing benches will produce low-carbon and high-carbon wire - rods for rope and spring wire. The four benches' annual capacity will total up to 50,000 tonnes.