Chelyabinsk Steel Group Mechel PAO (NYSE:MTL, MCX:MTLR) was founded on March 19, 2003. It was formerly known as Mechel OAO. It was changed to its current name in March 2016 and was formerly known as Open Joint Stock. Company Mechel, headquartered in Moscow, Russia, has 59,382 full-time employees. It is a holding company engaged in the mining and production of coal, steel, iron core and nickel products.
Chelyabinsk Steel Mechel OAO (MTL):
Mechel OAO is mainly engaged in the mining and production of coal, steel, iron core and nickel products. Its business operations are divided into mining, steel, ferroalloy and electricity.
- The mining department sells metallurgical and fuel coal, iron ore, and coke;
- The steel department provides steel products, including semi-finished products, carbon steel, special strip steel, carbon steel and stainless steel flat steel, metal wire, forgings and stamping products;
- The ferroalloy department provides ferronickel, ferrosilicon, and ferrochrome;
- The power sector produces and supplies electricity.
Mechel PAO (MTL) History of Chelyabinsk Steel:
- In the summer of 2002, Southern Kuzbass Coal Company acquired Chelyabinsk Steel Plant. Later, Southern Kuzbass merged into Mechel Steel Group to form Mechel Steel Group OAO. The transaction was completed on March 19, 2003. Igor Zyuzin was the first chairman of the board;
- In 2004, Chelyabinsk Steel acquired Posyet Sea Commercial Port;
- In May 2004, Mechel acquired a 26.9% stake in Izhstal;
- In January 2005, Mechel acquired a 25% stake in Yakutugol;
- In 2005, Mechel acquired a controlling stake in Kambarka River Port;
- In October 2006, Mechel obtained a controlling stake in Moscow Coke and Gas Plant;
- In 2007, Mechel acquired a controlling stake in Southern Kuzbass GRES OAO and Kuzbassenergosbyt Electricity Sales Company;
- In 2007, Mechel acquired Bratsk Ferroalloy Plant;
- In April 2008, Mechel acquired Oriel Resources Ltd (holding Tikhvin Ferroalloy Plant, Shevchenko Nickel Deposit, Voskhod Chromite Deposit);
- In May 2008, Chelyabinsk Steel acquired the right to develop Uvat Quartzite;
- In September 2008, Mechel acquired Mechel Temryuk Sea Port;
- In September 2008, Chelyabinsk Steel opened a new steelmaking plant-Mechel Chrome in Voskhod Deposit;
- In October 2008, Mechel expanded the holding ratio of Yakutugol from 25% to 100%;
- In October 2008, Chelyabinsk Steel acquired Elga Coal Field;
- In 2008, Mechel negotiated for the purchase of Bluestone Coal from the United States for US$4 billion. However, due to the drop in steel prices, the transaction was finally made in 2009 at a price of only US$425 million;
- In early December 2012, Mechel Trans, the Chelyabinsk steel logistics branch, acquired a 55% controlling stake in Vanino Sea Commercial Port from the Russian government for 15.5 billion rubles. Only one month later, Mechel sold these assets to Russian consortium and a group of international investors;
- In 2013, Mechel sold Tikhvin Ferroalloy Plant and Voskhod Refinery to Turkey’s Yildirim Group for 425 million US dollars. The transaction was completed in December 2013;
- On October 23, 2013, Chelyabinsk Steel sold a 21,64% stake in Vanino Port, which was acquired for 4.57 billion rubles, for 5 billion rubles;
- In 2014, Mechel planned to dispose of its non-core assets, including a minority stake in the Elginsky Coal Mine, one of Russia’s largest coal mines;
- In March 2016, Mechel OAO was renamed Mechel PAO;
- By August 2017, 75% of Chelyabinsk Steel’s debt was restructured.