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MOSCOW, July 19, 2013 (GLOBE NEWSWIRE) --
Mechel OAO (NYSE:MTL),
one of the leading Russian mining and metals companies, reports selling 100% of shares of British-based steel plant Invicta Merchant Bar and its debt to Mechel to privately-owned Helium Miracle 127 LLP for 1.1 million pounds sterling.
Invicta Merchant Bar is a steel plant producing round, square and strip long rolls of various steels, located on Britain's south-east coast. It was part of Mechel Group since 2011. At the time of its stoppage in January 2013, it employed 78 people.
"Invicta Merchant Bar's sale was made in line with our strategy of divesting assets that are not part of the Group's priority development areas. Considering the lingering crisis in Europe's steel industry, the Group's assets that are located in this region are of no added value to Mechel's shareholders, and their sale is due to improve our operational cash flow and help the company's deleveraging," Mechel OAO's Chief Executive Officer Evgeny Mikhel noted.
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.
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.