Russian swordsman got rid of his metallurgical plants in Romania

Mechel sold his shares of metallurgical assets in Romania for $ 70 (230 Romanian lei). The buyer was the Romanian mining and metallurgical company Invest Nikarom Srl. Four Mechel Meshnest Nikarom Srl moved to Invest Nikarom Srl: Dactil Style Buzeu, Mechel Kimpia Tursii, Mechel Tyrgovishta, Laminorul Brail and Mechel East Europe Metallurgical Division Srl. This is stated in the message of the Mechel group.

“This deal is the next step in the implementation of the updated strategy of Mechel OJSC, aimed at developing key production areas and selling non -core businesses. Earlier, we announced our intention to get out of the production of metallurgical products in Europe, which in the current and predicted conjuncture remains chronically unprofitable. Our Romanian metallurgical assets have negatively affected the financial result and cash flow of the group for some time. We intend to focus on the direction of our resources to those projects that promise the greatest profit to our shareholders, i.e. Elginsky deposit and a universal rail -filling camp. With the planned loss of Romanian enterprises in 2013 in the amount of 2.4 billion rubles. This transaction will bring a tangible financial effect for our shareholders. The released cash flows will be aimed at both operational activities and reducing the debt of the company, ”the General Director of Mechel Evgeny Michel commented on the sale of Romanian assets.

As you know, the decision to sell non -core assets was made at a meeting of shareholders of the Mechel group on September 21 last year. In addition to the Romanian factories, the non -coffee asset also fell under the term Donetsk electrometallurgical plant (DEMZ), which was stopped indefinitely in the last time.

As we are already reported , on November 21, 2012, metallurgical production was temporarily suspended at the Romanian plants "Mechel Tyrgovishta" and "Dactil Style Curacy Rosh." On November 27, 2012, rental production was suspended on Mechel Tyrgovishta and from December 15, 2012, rental and deduced production at Dactil Style Buzau, Laminorul Brail and Mechel Kmpy Tursii were stopped. During the stop of production at all of the listed enterprises, measures were carried out to maintain the performance of the equipment and its maintenance.