Mechel Announces Creation of Joint Venture Mechel Somani Carbon Private Limited, India

Mechel JSC, one of the leading Russian mining and metals companies, announces the creation of Mechel Somani Carbon Private Limited, India, set up jointly with India’s Somani Group. The joint venture will handle distribution of metallurgical coals on the Indian market.

Mechel Carbon AG, subsidiary of Mechel OAO’s mining division Mechel Mining OAO, and Northern Exim Private Limited, which is part of Somani Group, jointly set up Mechel Somani Carbon Private Limited, India. Mechel Carbon AG’s share in the joint venture is 51%.

The project’s distribution area will be located on India’s east coast, 20 kilometers from India’s major port of Vizag, in an industrially developed region. Within several years, other distribution areas are planned to be established, which is expected to have a positive impact on the overall sales volumes.

Mechel OAO’s Vice-President for Commercial Activities Mikhail Urvantsev commented: “We have been working with Indian consumers of our coals for several years and consider India to be a promising and strategically important market. Until now we have been delivering our products only to large-scale consumers. In setting up this joint venture, we will expand the Indian market for us due to a large number of consumers desiring to acquire smaller-sized shipments of our products.”

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, nickel, steel, ferrochrome, ferrosilicon, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.