Mechel announces the closure of the transaction on two ferroalloy assets

The Russian mining and metallurgical company Mechel sold ferroalloys of the Yildirim Group (Yildirim Group) of Turkey for a total of 425 million US dollars.

In accordance with the terms of the transaction, Yildirim Group paid the entire amount of OJSC Mechel for 100 percent of the shares of Sunrise GOK (Khromtau, Kazakhstan) and the Tikhvinsky Ferroalloy Plant (Tikhvin, Leningrad Region, Russia).

"After the acquisition of the chrome of Mechel’s unit, the consolidated production capacities of high -quality high -carbon ferrochroma (HC Fecr) Yildirim will be located in Turkey, Sweden and Russia," said Robert Yuksel, president and executive director of Yildirim Group.

"Thus, the Yildirim Group is the only global manufacturer of high -carbon ferrochrome in three different countries in order to hedge political, economic and other risks for their large long -term customers for stainless steel. In addition, the total annual production of chrome ore will reach 2.5 million tons in Turkey and Kazakhstan for the internal production of ferrochrome and export chrome ore ".

Chief Executive Director of OJSC Mechel Evgeny Michel noted that "this agreement was signed in accordance with the restructuring strategy for non -core assets of the group. The funds received by our company from this transaction will be used to reduce the share of borrowed funds. In 2013, we achieved significant progress in the disposal of non -core assets and closed the transactions for nine out of 14 enterprises of the planned for the planned We will complete the sales of other non -strategic assets in 2014. "