Mechel may transfer some assets to Russpetstal

Wednesday, 14 February 2007 15:12:49 (GMT+3)   |  
       

Various Russian sources report that domestic steel producer Mechel is in talks with Russia's state arms export monopoly Rosoboronexport concerning the transfer some of its assets to Russpetstal in exchange for a share in the company. Rosoboroexport owns a 25 percent stake in Russpetstal through its wholly-owned subsidiary Promimpeks. Responding to a question from SteelOrbis on the issue, Mechel's spokesperson said, ’We do not comment on market rumors'. Russpetstal was created in August 2006 with the aim of the creation of a metallurgical holding through consolidation and development of assets which produce special grade steel. Since Russia's largest special grade steel producer Chelyabinsk Metallurgical Plant belongs to Mechel, the current market rumors may have solid grounds behind them.