The Russian mining and steel producing company Mechel is planning to expand its foreign operations.
During 2009-2010, Mechel plans to invest about $70 million in the modernization of its Romania-based subsidiary Mechel Campia Turzli, while in 2008 alone Mechel plans to invest about $20 million in the modernization of its other Romanian facility Mechel Targoviste. In addition, the company plans to invest more than $80 million in the technical modernization of its newly acquired Romanian mill Ductil Steel in the 2008-2009 period.
In Latvia, Mechel is investing in the development of the country's only metallurgical plant Mechel Nermunas. Since its acquisition in 2003, Mechel is carrying out an investment program directed at the modernization of the mill's production capacities. In 2008, Mechel plans an additional investment worth €5.1 million, a part of which has already been invested, for the development of the mill.
In Kazakhstan, Mechel plans to proceed with investment in its newly acquired Oriel Resource, which includes ferroalloy producing facility Tikhvisk Ferralloy Plant in the Leningrad region, the Voskhod chrome ore reserve and the Shevchenkovskoe nickel ore deposit, both of which are located in Kazakhstan. By the end of 2008, Mechel plans to increase its annual chrome production capacity at Voskhod to 1.2 million mt, which will be processed into 900,000 mt of concentrate. 300,000 mt of this chrome ore concentrate will be used by Tikhvisk Ferroalloy Plant, and the rest will be sold on the open market. As for the Shevchenkovskoe nickel ore deposit, Mechel is currently engaged in technology development for this greenfield project.
Regarding possible new acquisitions, Mechel stated that the company is considering several opportunities in the EU, North America, Africa and Asia. However, the company does not limit itself to these regions.