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May 24, 2022

Mechel metallurgical plants on sale

Russian metallurgical group Mechel put on sale many assets, including the plants it controls in Romania, and wants to obtain USD 150 M for the steel mills Mechel Targoviste, Mechel Campia Turzii, Laminorul Braila and Ductil Steel. Mechel put on sale many assets, including those it controls in Romania via Eastern European Steel Division SRL, in an attempt to cut his debts and finance a mining project. The group wants USD 46 M for Mechel Targoviste, USD 33 M for Mechel Campia Turzii, USD 32 M for Laminorul Braila, and USD 39 M for Ductil Steel. The Board of Mechel approved Friday the partial or total sale of several assets in Russia, Romania, Ukraine, Lithuania, Bulgaria, Kazakhstan and the United Kingdom, which no longer fit in the strategy of the company, reads a press release. Mechel needs the money in order to reduce its debts worth EUR 9.4 bln and to finance the Elga mine – a priority project for the company. Mechel Campia Turzii started in June the collective layoff of its 800 employees, in three phases due to end at the middle of September. After this moment, the plant should remain with 238 of its 1,050 employees. In a Cabinet meeting Wednesday, the government analysed if the Russian group Mechel kept its promises concerning the steel mill based at Campia Turzii, and the conclusion was that it observed all the clauses provided by the privatisation contract, governmental spokesman Andrei Zaharescu said.

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