OREANDA-NEWS. September 16, 2009. Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announced commissioning of the new production line for cold-deformed reinforcement wire held today at its Beloretsk Metallurgical plant (BMP) subsidiary, reported the press-centre of Mechel.

The new production line for cold-deformed reinforcement wire commissioning ceremony was attended by President of the Republic of Bashkortostan Murtaza Rakhimov, Deputy Prime Minister of the Republic of Bashkortostan Yury Pustovgarov, Head of Beloretsky Municipal Region Nikolay Maksimov, Mechel OAO Chief Executive Officer Igor Zyuzin, Mechel Management OOO Chief Executive Officer Andrey Deyneko, BMP’s Managing Director Viktor Kamelin and other guests.

After the official part of the ceremony Murtaza Rakhimov and Igor Zyuzin cut a symbolical red tape and then put the line into operation. The guests were advised of the new product manufacturing process. After the first reinforcement wire coil left the line, President of the Republic of Bashkortostan asked Mechel’s management for details regarding the new technology and production quality and application. Administration of the Republic of Bashkortostan and Mr. Rakhimov personally emphasized great importance of Beloretsk Metallurgical plant development and highly appreciated its contribution to the region’s industrial and social development.

Deputy Prime Minister of the Republic of Bashkortostan Yury Pustovgarov noted: “Today’s new equipment commissioning is a bright example of Mechel group’s commitment to its strategy of modernization and increase in production volume in spite of the world economic crisis consequences. The Republic’s Administration highly appreciates results of the work which the company does in Bashkortostan. Importance of Mechel’s work in our region rises each year, and as for the current situation in our economy this is particularly obvious. I’d like to emphasize the company’s well thought-out production policy focused on manufacturing high added value products. Specifically at BMP a part of the volume of rolled products produced by the plant is directed to manufacturing of a number of types of high quality hardware products complying with the European standards. The Republic’s Administration in its turn also makes efforts to intensify consumption of goods produced on its territory (at BMP, for example) by Bashkortostan’s enterprises.”

New set of equipment from GCR company, Italy with annual capacity of 36 000 tons allows Beloretsk Metallurgical Plant to start production of a brand new class of products – reinforcing wire with 4-12mm diameter used for construction. Due to low carbon content and mechanical strengthening, the cold-deformed reinforcement wire has several advantages compared to hot-rolled reinforcement wire of the same size such as improved welding characteristics, increased toughness and durability, lack of scale. Additionally cold-deformed reinforcement wire has higher design resistance to expansion and compression allowing to reduce its expenditure at 10 to 15 percent.

The set of equipment includes untwisting machine, mechanical descaler, lubricant-applying unit, cold-rolling mill, twisting machine, pneumatic equipment for coil bundling, equipment for supply of compressed air and water-cooling station. A bridge crane of lifting with capacity of 5 tons was additionally mounted in the aisle to deliver and load the wire-rod feed. Total investment to the project exceeded 55 million rubles.

The new project was implemented within the scope of BMP strategic investment program targeted at production facilities modernization; improve products quality, rise production volumes and increase output of high added value products. The equipment commissioned fully complies with high environmental standards of modern steelmaking.

Mechel OAO Senior Vice President Vladimir Polin commented on the event: “Commissioning of the new equipment for production of cold-deformed reinforcement wire at Beloretsk Metallurgical Plant is one of Mechel’s projects providing the increase of the share of high-margin products manufactured by steel division enterprises of the group. New production of BMP – cold-deformed reinforcement wire – will be a source for processing by a production unit of Mechel Service company in Moscow region into quality wire rod highly demanded in construction. We see increase in demand for this new class of steel products and as early as this month we received an important order for reinforcing wire of BMP production.”