OREANDA-NEWS. August 10, 2011. Mechel JSC (NYSE: MTL), one of the leading Russian mining and metals companies, announces the signing of a three-party contract between Mecheltrans Vostok LLC, Sinara-Transport Machines JSC, and VTB Leasing JSC for development, production and delivery of TEM-8 type locomotives.

The contract stipulates that in 2012-2014 Lyudinovsky Diesel-Locomotive Building Works (part of Sinara-Transport Machines JSC) will deliver 18 single-sectional eight-axle TEM-8 locomotives to Mecheltrans Vostok LLC.

The new mainline single-sectional TEM-8 locomotive will be developed on the basis of the servicing of the TEM-7A electric-transmission switcher locomotive and equipped with the 2,206-KW power installation produced by GE Transportation Parts LLC (USA).

“The locomotives we are leasing will be used on the 315-kilometer Ulak-Elga rail branch, which links Mechel Group’s Elga Coal Complex with the Baikal-Amur Mainline. Sinara-Transport Machines will develop locomotives specially suited for use in mountainous areas and intricate climatic conditions, which will not only enable us to use the Ulak-Elga railway with maximum efficiency, but also save on transport expenses. In accordance with production plans for Elga Coal Complex before 2014, these leased locomotives will allow us to ensure prompt and timely delivery of Elga coal. We are glad that our long-time partner VTB Leasing is part of this deal,” Mecheltrans Management LLC’s Chief Executive Officer Alexander Starodubov commented.

Mecheltrans LLC is Mechel Group’s transport operator, providing freight forwarding of no less than 50 million tonnes of cargo annually. The operator transports Mechel’s products to Russia and the CIS as well as further abroad. It arranges exports bound for Europe and Pacific Asia. A major part of the cargo goes through land border-crossings to China, Ukraine, Slovakia, Romania, Bosnia and Herzegovina.