OREANDA-NEWS. July 05, 2010. Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces official creation of divisional management system of the company’s operational activity, reported the press-centre of Mechel.

As the result of the process that started in 2008 the following management companies were established and showed their ability to control their divisions efficiently:

Mechel Mining Management Company is headed by Boris Nikishichev and is responsible for management of mining division operations. Mechel Steel Management Company is headed by Andrey Deineko and is responsible for steel division operations. Mechel Ferroalloys Management Company is headed by Gennady Ovchinnikov and is responsible for ferroalloy division operations. Mechel Energo is headed by Viktor Gvozdev and is responsible for power division operations. Mechel Trans Management Company is headed by Alexander Starodubov and is responsible for logistics unit activity.

As the result of these changes the operational activities within the segments will be fully controlled by the management companies. In order to represent the interests of company’s shareholders Mechel OAO management keeps the right to control operational and financial activities of the group’s divisions as well as strategic management of financial policy, major mergers and acquisitions, strategic partnership with other companies, capital investment programmes and other.

Mechel successfully overcame world economical crisis and once again proved efficiency of its divisional management system which allows the company to be flexible in the changing market environment and let managers of the company’s divisions and business-units make immediate decisions. Thus, Mechel’s steel segment was the first in Russia to reach full utilization of production capacities after the crisis. Mechel’s mining segment managed to increase coal production significantly. Ferroalloys segment’s plants of the company became profitable. Efficiency of Mechel’s power assets’ operations rose due to the centralization of their management system.

Vladimir Polin, Mechel’s Senior Vice President is leaving the company since construction of the divisional management structure is completed. Its efficiency and integration to Mechel’s strategic management has been witnessed and its performance is recognized to be positive. Mr. Polin’s position will be eliminated.

Igor Zyuzin, Mechel’s CEO commented on the event:
“We regret Vladimir Polin’s leaving the company. He is a highly experienced professional, who has done a lot for Mechel group’s formation and development. Many large-scale projects have been started and successfully completed with his help. He worked hard to facilitate Mechel’s passing through the world economy crisis in 2008 – 2009. But we understand that Mr. Polin has finished working on one of his the most important tasks – implementation of the efficient divisional management structure. We respect his intention to take a new position which is more interesting for him. We are sure he will be successful in his work and wish him good luck”.