Mechel Increases Its Stake in the Charter Capital of Toplofikatsia Rousse AD up to 100%

As the result Mechel has increased its stake in the charter capital of the power station up to 100% from the previously owned stake of 49%.
Consolidation of 100% stake in Toplofikatsia Rousse AD is implemented in line with Mechel’s power segment development strategy. It provides new opportunities for realization of electric power in promising European market and will strengthen Company’s position in power industry.
After Mechel’s acquisition of 49% shares of Rousse TPP in 2007 the station secured stable consumption of steam coal manufactured by Southern Kuzbass Coal Company OAO. During the past heating season Europe faced difficulties in gas supplies, while Kuzbass coal allowed TPP to continue operations amid rising prices on power-plant fuel. Furthermore the utilization of Kuznetsk Coal Basin’s high quality coal allows the station to fulfill strict European requirements on environmental protection with regard to sulfur and volatile substances emissions without additional investments. The balanced value chain contributes to decrease in the Company’s expenses and improves power and heat generation efficiency.
Toplofikatsia Rousse runs all municipal heat distribution systems of Rousse city as well as remote stations and heat sites. TPP provides nearby facilities and citizens with steam, heat and hot water.
Viktor Gvozdev, CEO of Mechel Energo OOO, commented on the event: «The continuous development of the Group’s power segment is necessary for the effective work of the whole Group. The stake increase up to 100% is Mechel’s logical step in strengthening its positions in power industry and increasing efficiency of its operations in prospective European power market following the strategy of increasing output of high value added products».