OREANDA-NEWS. On November 26, 2008 Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announced that the President of Romania, Traian Basescu, made his second working visit, this time to another of Mechel’s Romanian steel subsidiaries, Mechel Targoviste, reported the press-centre of Mechel. 

On November 25, 2008, President Basescu, made a working visit to Mechel Targoviste in furtherance of his program of visiting Romania’s major enterprises. The objective of the President’s trip was to get firsthand experience with the enterprises’ operations in the current economic situation. During an earlier visit to Mechel Campia Turzii, President Basescu was interested in the affairs at the plant and what possible support the plant would like to require from the government.

The General Director of Mechel Group’s East-European Steel Division, Vyacheslav Shmyga, welcomed President Basescu at Mechel Targoviste. The meeting was also attended by the heads of the main units of Mechel Targoviste and the Chairman of the plant’s trade union.

Mr. Shmyga directed President Basescu to the Division’s structure, the Romanian enterprises it comprises, and familiarized him with the details of the plant. The investment projects implemented at Mechel’s Romanian subsidiaries were also described to the President, including those implemented at Mechel Targoviste, such as the new continuous caster, the medium-section mill, its shearing press, the heating furnace, and rebar production lines. During his discussion with President Basescu, Mr. Shmyga made a special emphasis on the investments made by Mechel related not only to its production, but also to the plant’s environmental and social projects.

The privatization contract for Mechel Targoviste was concluded in August 2002. Mechel met all of its investment obligations in late 2006 and, thus, was capable of completing the requirements of the contract more than one year ahead of the stipulated term. Mechel’s investments at Mechel Targoviste made in compliance with the contract amounted to over US38.0 million.

President Basescu described the plans concerning the implementation of national projects to construct roads, bridges and other state infrastructure to be financed from the state budget and from the European funds.

President Basescu also stated that, as part of a new government program, certain measures are under consideration to include banks extending loans to Romanian citizens and businesses, which could result in the stimulation of the Romanian consumer market.

The President also informed Mechel Targoviste that suggestions concerning a potential tax burden reduction in the form of an accelerated VAT refunding, temporary reduction of the profit tax rate and deferring obligatory payments to the budget are among the measures being considered. Mr. Shmyga assured the President that the Division’s priority is to maintain the existing jobs and professional staff of all the facilities included in its structure.