MECHEL ANNOUNCES THE LAUNCH OF THE NEW WELDED MESH PRODUCTION LINE IN MOSCOW
REGION


Moscow, Russia – May 18, 2009 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces the launch of welded mesh
production by its Mechel Service OOO service and sales subsidiary in Moscow
Region.
In the beginning of May 2009, Mechel Service has commissioned an automated line
to manufacture welded meshes in the Town of Vidnoye, Moscow Region. The
production was set up on the territory of a reconstructed workshop of Mechel’s
Moscow Coke and Gas Plant OAO. The procedure of certification of the product has
already been completed thus enabling Mechel Service OOO to supply the product to
the market immediately.
Mechel Service’s project of welded mesh production in Moscow Region has been
launched in line with Mechel Service’s the program of expansion and development
of its production and warehouse network in the regions of its presence. The new
equipment comprises an automated line designed to manufacture meshes with the
mesh cell size from 50 mm to 300 mm. The size of the finished products may vary
from 250 mm х 1,200 mm to 2,400 mm х 6,000 mm. VR-1 grade wire and cold deformed
rebars of 2.8 mm -8.0 mm diameter produced at Mechel OAO’s subsidiaries will be
used as feedstock. The line production capacity is up to 1,200 tonnes per month
depending on the feedstock characteristics and required size of finished
products.
Commissioning of Mechel Service’s mesh production will enable the company to
expand its mix of marketable metal products and reach a new level of quality in
servicing its end consumers. Construction companies of Moscow and Moscow Region
will be the main off-takers of the welded meshes. High quality of products
manufactured by Mechel Service is confirmed by the Certificate of
Mosstroycertification, the Moscow system of voluntary certification in
construction industry.
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Mechel OAO
Ilya Zhitomirsky
Phone: + 7 495 221 88 88
ilya.zhitomirsky@mechel.com
***
Mechel is one of the leading Russian companies. Its business includes four
segments: mining, steel, ferroalloy and power. Mechel unites producers of coal,
iron ore concentrate, steel, rolled products, ferroalloys, hardware, heat and
electric power. Mechel products are marketed domestically and internationally.
***
Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you to
the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
“Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our
Form 20-F, that could cause the actual results to differ materially from those
contained in our projections or forward-looking statements, including, among
others, the achievement of anticipated levels of profitability, growth, cost and
synergy of our recent acquisitions, the impact of competitive pricing, the
ability to obtain necessary regulatory approvals and licenses, the impact of
developments in the Russian economic, political and legal environment,
volatility in stock markets or in the price of our shares or ADRs, financial
risk management and the impact of general business and global economic
conditions.