The Russian mining and steel producing group Mechel has announced the establishment of its East-European Steel Division, based at its Romania-based steel subsidiary Mechel Targoviste, effective from October 2008.
The new Division is to coordinate the operations of Mechel's Romania-based subsidiaries, including investments, modernization, streamlining, and production cost reduction efforts through the implementation of efficient logistics planning, raw material acquisition and product marketing across the subsidiary. The main priority of the Division is the modernization of Mechel's Otelu Rosu, Ductil Steel Buzau and Campia Turzii plants.
Moreover, the new Division is engaged in human resources and coordinates contacts with banks and financial institutions, and, according to Mechel Management CEO Vladimir Polin, will allow the company to significantly increase the efficiency of managing its Romanian subsidiaries.
Mechel Group owns four steel companies in Romania: Mechel Targoviste, Mechel Campia Turzii, Ductil Steel Buzau steel rolling mill, and Otelu Rosu steel melting plant.