The Russian steelmaker Mechel has announced that it has won the auction to acquire a 93.35 percent stake in Southern Kuzbass Power Plant for a total of Ruble 6.9 billion ($265 million).
The acquisition of Southern Kuzbass Power Plant is in line with Mechel's strategy to develop its mining segment. The purchase of the plant will allow Mechel to increase its performances through the possibility of producing high-value added products in the form of electric power using the company's own steam coal. The competitive advantage of Southern Kuzbass Power Plant is its proximity to coal mining sites, to steelmaking works, and coal and ore mining companies.
Mechel, for its part, has promised to supply the plant with modern equipment, which will increase the efficiency of its work.