MECHEL ANNOUNCES LAUNCH OF UNIVERSAL ROLLING MILL AT CHELYABINSK METALLURGICAL
PLANT

Chelyabinsk, Russia — July 16, 2013 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces the launch of the universal
rolling mill at Chelyabinsk Metallurgical Plant. Russia’s Prime Minister Dmitry
Medvedev launched the mill in an official ceremony. The company’s and the
plant’s management and other officials attended the ceremony.
The universal rolling mill is Russia’s first complex universal producer of
high-quality structural shapes and rails of 12.5 to 100 meters long. The mill’s
complex includes all necessary technological equipment and uses state-of-the-art
rolling, correction, processing and quality control technologies. The mill’s
capacity is up to 1.1 million tonnes of finished product a year. Investment in
the project totaled some 715 million US dollars.
Italy’s Danieli acted as equipment supplier for the mill, with China’s Minmetals
the mill’s primary contractor. The mill’s active construction phase took two
years. The mill’s primary building is some 1.5 kilometers long, with the longest
technological line for rail production over 3 kilometers long. As a result of
implementing the project at Chelyabinsk Metallurgical Plant, over 1,500 new jobs
were created. Besides, due to the use of advanced technologies during the mill’s
construction, the plant’s negative impact on the environment will be
dramatically decreased due to old equipment being taken out of commission and
new cleansing equipment installed.
The rails produced at the mill are due to be supplied to Russian Railways OAO as
part of the Development Strategy for Russian Railway Transport until 2030,
approved by the Russian government and including modernization and construction
of new railways all over the country. In February 2008, Mechel OAO and Russian
Railways OAO signed an agreement for long-term mutually beneficial partnership
in providing Russian railways with transport steel rolls. Chelyabinsk
Metallurgical Plant and Russian Railways OAO also signed a contract for annual
rail supplies of up to 400,000 tonnes until 2030.
The new rails will be superior to their foreign analogues on several key counts,
due to the climatic and other specifics of rail exploitation in Russia, such as
resistance to low temperatures, high wear and contact resistance.
“The mill’s launch is a most important event not only for our company, but for
the Russian economy as a whole as we will be able to fully meet the needs of
Russian customers interested in the universal rolling mill’s products. The
project has been successfully completed despite the challenging situation in the
Russian and global steel industry. We expect that once the mill reaches its
project capacity, it will significantly improve financial results of Mechel’s
steel segment. We are proud that our steel will join Russian regions in a
network of state-of-the-art high-speed railways,” Chairman of Mechel OAO’s Board
of Directors Igor Zyuzin noted.
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Mechel OAO
Elena Andreyeva
Tel: + 7 495 221 88 88
Elena.andreeva01@mechel.com

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Mechel is an international mining and steel company which employs over 80,000
people. Its products are marketed in Europe, Asia, North and South America,
Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled
products, ferroalloys, heat and electric power. All of its enterprises work in a
single production chain, from raw materials to high value-added products.
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Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you to
the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
“Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our
Form 20-F, that could cause the actual results to differ materially from those
contained in our projections or forward-looking statements, including, among
others, the achievement of anticipated levels of profitability, growth, cost and
synergy of our recent acquisitions, the impact of competitive pricing, the
ability to obtain necessary regulatory approvals and licenses, the impact of
developments in the Russian economic, political and legal environment,
volatility in stock markets or in the price of our shares or ADRs, financial
risk management and the impact of general business and global economic
conditions.