Mechel Reports Completion of First Stage of Reconstruction of Oxygen Converter Shop in Chelyabinsk Metallurgical Plant

Mechel OAO (NYSE: MTL) announces the launch of the new converter # 2 in Chelyabinsk Metallurgical Plant's oxygen-converter shop.

Replacement of the converter #2 is the first stage in the complex reconstruction program for Chelyabinsk Metallurgical Plant's oxygen converter shop. The program, which is due to be completed by 2013, includes full replacement of the shop's three converters, dedusting tracts and their infrastructure equipment.

Once the program is completed, the shop's steel annual output will go up by 950,000 tonnes to a total of 4,550,000 tonnes. Its total cost is estimated at 173.8 million US dollars (5.1 billion rubles*).