EQS-News

PJSC Mechel : Mechel's Beloretsk Metallurgical Plant Repaid Loan to Russia's Industrial Development Fund

EquityStory.RS, LLC-News: PJSC Mechel / Key word(s): Investment PJSC Mechel : Mechel's Beloretsk Metallurgical Plant Repaid Loan to Russia's Industrial Development Fund 04.08.2021 / 13:00 MSK The issuer is solely responsible for the content of this announcement. MECHEL'S BELORETSK METALLURGICAL PLANT REPAID LOAN TO RUSSIA'S INDUSTRIAL DEVELOPMENT FUND

 

Beloretsk, Russia - August 04, 2021 - Mechel PAO (NYSE: MTL, MOEX: MTLR), a leading Russian mining and metals company, reports that Mechel Group's Beloretsk Metallurgical Plant has discharged all obligations to Russia's Industrial Development Fund in regards to a target loan for production of multi-strand wire ropes.

Beloretsk Metallurgical Plant received the 255.3-million-ruble loan in 2016 for five years. It accounted for half of the total cost of setting up production of steel multi-strand ropes for industrial equipment, bridge construction and shipbuilding. The plant contributed the other half.

The plant used the Industrial Development Fund's loan to acquire new rope production and polymer coating lines. The facility was launched in 2018. It enabled the plant to produce multi-strand ropes with 6 to 12 strands, 22 to 90 mm in diameter, including those with polymer coating. Before, Russia had no facility technologically capable of producing 12-strand ropes and ropes more than 70 mm in diameter.

The project is also unique in the polymer coating composition, as Russia did not have a ready formula for it before then. The plant's experts joined forces with research institutes to develop an authentic polymer coating composition. Plastic coating protects ropes from wear, dynamic stress, aggressive environment and climatic hazard. This helps the rope's users to reduce excavator and other equipment downtime, cut maintenance and repair costs, improve overall machine efficiency.

Today Beloretsk Metallurgical Plant's products successfully substitute imported analogues on the Russian market. The plant's ropes are used in cargo lifting machines, load-bearing members of hanging bridges, coal and mining industry, oil and gas facilities, fishing and maritime traffic.