Mechel reports liquidating the Group’s ferroalloy division due to successful asset sales

As part of the reorganization process, Bratsk Ferroalloy Plant will be managed by the steel division (Mechel-Steel Management Company). Southern Urals Nickel Plant, halted since December 2012, will be managed directly by Mechel. Mechel-Ferroalloys Management Company, the division’s management company, will be liquidated.

In 2012, Mechel’s Board of Directors approved a development strategy that prioritizes mining and full-cycle steelmaking with a stress on manufacturing high value-added products (long rolls, specialty steels, stainless rolls and hardware).

“In order to cut down management personnel costs and due to a significant reduction in workload as several ferroalloy assets were sold and Southern Urals Nickel Plant was halted, we decided to liquidate Mechel-Ferroalloys Management Company. This decision logically follows from implementing our labor efficiency improvement program by optimizing management structures, which we approved in 2008. Thanks to our efforts in this field, we managed to reduce our administrative staff by over 3,000. The new administrative model will enable us to significantly cut personnel costs and ensure a more efficient mechanism for decision making,” Mechel’s Chief Executive Officer Oleg Korzhov said.