Mechel

Mechel

Mechel, founded in 2003, is one of the world's leading mining and metals companies. The company has production facilities in 11 of Russia’s regions and abroad.
Mechel is comprised of more than 20 production enterprises, producing coal, iron ore, steel, rolled products, ferroalloys, heat and electric power. All of the Group’s enterprises work within a single production chain – from raw materials to high value-added products. The holding also owns three trade ports, transport operators and international sales and service networks. Mechel’s products are marketed domestically and internationally.

What we do

Mining, steel, power, transport and sales enterprises of Mechel work within a single production chain and form a whole vertically intergrated production complex. A part of our products we sell to the market, another part is used as raw material for Mechel's production of high value-added products.

Company’s assets produce a full chain of raw materials and high value-added products: coal, iron ore, pig iron, steel, billets, rolled products, hardware and electricity generation. Shipping and sales are secured by its own logistics and sales networks. Such vertically integrated complexes with a balanced production chain and its own secured resource and power base are more effective for the purposes of cost savings and less vulnerable to market volatility.

 

Products

Mechel is one of the world’s leading mining and metals companies. The Group’s mining segment produces a wide range of coal products – coking coal concentrate, anthracites, PCI, steam coal, iron ore and a wide assortment of coke chemicals.

The steel segment's facilities produce billets, flat and long rolls, structural shapes and sections, rebar, a wide assortment of hardware, stampings and forgings of carbon, construction, engineering, high-speed, stainless, corrosion-resistant and other specialty steels and alloys. Also, within this product range, the company may produce various steel grades to a customer’s specifications.

Companies of Mechel’s power segment ensure generation and sales of electricity and heat both for Mechel’s enterprises and to third parties in order to obtain additional profit.

  • Mining

    Mechel’s mining segment comprises facilities producing and selling coking coal concentrate, iron ore concentrate and coke, which are chief raw materials for production of steel and steam coal. Apart from providing for the needs of our steel and power segments, we sell significant volumes of raw materials to third-party consumers.

    Mechel is a leading Russian coking coal producer as well as one of the world’s major coking coal concentrate producers. The Group controls 25% of Russia’s coking coal washing facilities. In 2019 the company produced 18.8 million tonnes of coal.

    The segment’s priority investment project is the development of Elga Coal Complex. Elga’s JORC reserves of high-quality coking coal grades, which are in high demand internationally, amount to approximately 2.2 billion tonnes. After Elga Open Pit was commissioned and tracks were laid along the 321-kilometer Ulak-Elga railroad linking Elga Coal Complex with Baikal-Amur Mainline, Mechel went ahead with the next stage – launching a washing plant in October 2012. Elga Coal Complex’s first stage includes construction of a mining facility with an annual capacity of 11.7 million tonnes of run-of-mine coal.

    In summer 2011 and spring 2012, the company acquired subsoil licenses for iron ore mining at the Pionerskoye and the Sivaglinskoye deposits in the Sutamskaya area, located in the Republic of Sakha (Yakutia)’s Neryungri region. The total estimated reserves of the two deposits’ reserves exceed 163 million tonnes of iron ore, while the Sutamskaya area’s forecast reserves are estimated at 1.35 billion tonnes of iron ore, under the Russian standards.

    Mechel’s mining segment includes:

    • Southern Kuzbass
    • Yakutugol
    • Elgaugol
    • Korshunov Mining Plant
    • Moscow Coke and Gas Plant
    • Mechel-Coke

 

  • Steel

    The business of Mechel’s steel segment includes manufacturing of rolled products from carbon steel and specialty steels, flat stainless steel products, structural shapes, high value-added steel products, including hardware and stampings, as well as production of billets.

    Mechel’s steel segment comprises metallurgical enterprises in Russia and abroad.

    Mechel is Russia’s top producer of specialty steels and alloys with the widest product range, and is Russia’s second largest rolls manufacturer. Mechel is also Russia’s leading producer of reinforcement and rolled wire.

    One of Mechel's steel segment’s competitive advantages is its significant share on the high value-added product markets, primarily specialty steels, stainless rolls and hardware, with a leading position in Russia on several counts. This advantage is upheld by unique technologies, which are further developed to expand the product range and improve quality. Mechel’s strong positions on the steel market are ensured due to the group’s own expansive service and sales network.

    In 2012 Chelyabinsk Metallurgical Plant launched the first line of its universal rolling mill – a complex producing quality steel, which will operate in the same production cycle as the mill itself. The mill’s chief product will be new types of rails up to 100 meters in length, of high resistance to wear, contact endurance and reliability in low temperatures. The mill was fully launched in July 2013. It will enable Mechel to become Russia’s chief supplier of long rails that would be up to every requirement of both Russian and foreign railways. This guarantees the company a significant share in all major infrastructure projects over the next several decades. The mill also produces various types of sections.

    Mechel’s steel segment also includes the world-renowned Kaslinsky Plant of Art Casting, one of Russia’s oldest plants, which preserves ancient traditions of art casting and architectural iron casting, and is known for unerringly high quality and a rich collection of models.

    Mechel’s steel segment includes:

    • Chelyabinsk Metallurgical Plant
    • Beloretsk Metallurgical Plant
    • Izhstal
    • Urals Stampings Plant
    • Donetsk Electrometallurgical Plant
    • Vyartsilya Metal Products Plant
    • Mechel Nemunas
    • Bratsk Ferroalloy Plant
    • Southern Urals Nickel Plant
    • Kaslinsky Plant of Art Casting

 

  • Power

    Mechel’s power segment enables the Group to sell some of the steam coal it produces, profit from supplies of end product to third parties on the free market and supply the Group’s enterprises with electricity.

    The Group’s power assets are managed by Mechel-Energo OOO.

    The power segment’s enterprises produce electricity, power, heat in hot water and steam, blast-furnace air, fresh service water, chemically purified water and compressed air. They also offer services in resale of energy resources and act as agents in electric power transmission.

    Mechel’s power segment includes:

    • Mechel Energo
    • Southern Kuzbass Power Plant
    • Kuzbass Power Sales Company

 

  • Logistics

    Mechel is committed to maximum efficiency in its transportation operations and actively develops its own logistics.

    The company’s logistics division includes two sea ports and one river port, as well as transport operators. Use of Mechel’s own transport capacities enables the Group to reduce costs, make prompt and quality delivery of our products and guarantee Mechel’s transport security. The company is hedged against transport market fluctuations and can establish flexible delivery schedules best suited to clients’ needs.

    Logistics enterprises are managed by Mecheltrans Managing Company OOO.

    Mechel’s products are transported over Russia and the CIS as well as further abroad. Cargo is expedited to Europe, the Middle East and the Pacific Asia. Much of the cargo goes through land borders into China, Ukraine, Slovakia, Romania, Bosnia and Herzegovina. The transported cargo is mostly coal and iron ore concentrate, iron and nickel ore, steel products, coke. Cargo is transported by rail with subsequent transshipment in ports and delivery to end consumers by river in Russia and Europe as well as by sea and truck.

    Transport companies constantly work at improving our logistics service.

    • Mecheltrans
    • Mechel Trans Auto
    • Port Posiet
    • Port Mechel Temryuk
    • Port Kambarka

 

  • Sales

    One of Mechel’s key competitive advantages lies in its own flexible and ramified sales network, as well as a well thought-out sales policy. The policy is based on the aspiration to create long-term and mutually profitable partnerships with our clients. Another advantage is that representatives of the Group’s sales companies work directly with the ultimate consumer and are able to fulfill any order regardless of volume.

    Mechel markets its products domestically through the Russian subsidiary of the international service and sales network Mechel Service Global. Mechel Service Global’s subsidiaries and Mechel Carbon handle international sales.

    • Mechel Service Global
    • Mechel Service
    • Mechel Carbon AG
    • Mechel Carbon (Singapore) Pte Ltd
    • Mechel Materials
    • Mechel Energo

 

  • Procurement

    Dear partners,

    Our company is taking measures to improve the transparency and efficiency of its procurement procedures. Please inform us in case of biased offer appraisal, artificial limits on competition, as well as baseless demands imposed on the process participants. More>>>

    Let us also remind you that our company executes its procurement transactions through b2b-mechel electronic trading system.

 

 

Contact

Mechel
1, Krasnoarmeyskaya st.,
Moscow,
125167
Russian Federation

www.mechel.com

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