OREANDA-NEWS. On July 17, 2008 Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announced its operational results for the first six months of 2008, reported the press-centre of Mechel.

Mechel Management OOO Chief Executive Officer Vladimir Polin commented on the operational results for the first six month of 2008: “In the first half of this year, Mechel continued to demonstrate positive growth dynamics in the production and sales of its core business segments’ products, both through integration of its new subsidiaries and strong performance of its existing ones.

The acquisition of Yakutugol by Mechel, cost structure optimization, and modification of the mining operation’s plan to increase coking coal production resulted in the growth of coking coal concentrate output and significantly changed this segment’s sales structure and economics. During the first half, we also continued the implementation of Southern Urals Nickel Plant’s technical re-equipment program, as well as increased production of nickel, which is an important component in manufacturing stainless steel rolled products.”

Mr. Polin continued: “In our steel segment, Mechel continued to modernize its subsidiaries in order to reduce cost and change the mix of its commercial rolled products to increase the output and sales of its downstream products to include higher added value products, consisting mainly of hardware and long products, at the expense of lower semifinished product sales.

With the integration of the Tikhvin Ferroalloy Plant acquired by Mechel in April 2008, we started production of our own ferrochrome, thus reducing our stainless steel production costs. In our power segment, Mechel increased its electric power generation volumes, based primarily on the integration of the Southern Kuzbass Power Plant, which was acquired by Mechel in 2007, and subsequent modernization of its generating facilities.”