Mechel announces opening the expansion of its Mechel Service in Izhevsk

JSC Mechel Service is a trading company engaged in domestic sales of Mechel’s metal products whose subdivisions operate in 16 major constituent entities of the Russian Federation.

The official opening ceremony was attended by Mechel Chief Executive Officer Igor Zyuzin, JSC Mechel Management General Director Vladimir Polin, and JSC Mechel Service General Director Andrey Ponomarev.

The opening of the new warehouse in the capital of the Republic of Udmurtia will permit Mechel to increase its warehouse sales, significantly reduce logistic costs in product transportation, and expand its market presence in the Republic of Udmurtia and the neighbouring regions. The warehouse premises are located within the facilities of Mechel’s Izhstal subsidiary, which minimizes the Company’s lease costs and guarantees safe product storage. The Kazan Branch of Mechel Service already has a remote operating division in Nizhny Novgorod.

The new remote warehouse division also has its own office and full-time staff. The nominal storage capacity for the warehouse, depending on the product type and storage method, is 5,000 tonnes minimum, and its transshipment capacity is 500 tonnes per day. The facility will primarily be used to store rebars from the Company’s Chelyabinsk Metallurgical Plant. The warehouse will also receive metal products from other Mechel’s subsidiaries, Izhstal and the Company’s Beloretsk Metallurgical Plant.

Products from the remote warehouse will be sold mainly to the markets of the Republic of Udmurtia, Republic of Bashkiria, and Kirov Region.