Mechel acquires Port Kambarka OAO

Mechel acquires Port Kambarka OAO

Russian steel producer Mechel announced yesterday that it acquired a 90.36% stake in Port Kambarka OAO for approximately $3.4 million. Thanks to its proximity to the Gorkov railway, the port will diversify Mechel's cargo flow of coal and steel products and improve the company's logistics. Port Kambarka OAO has been in bankruptcy proceedings since 2004. An agreement regarding the bankruptcy proceedings is expected to be signed in the first half of 2005.