Mechel Signs Service Agreement With Sinara Transport Machines
21 April 2015 - 9:48PM
Mechel OAO (MICEX:MTLR) (NYSE:MTL),
one of
the leading Russian mining and metals companies, reports signing a
four-year contract on locomotive maintenance works between
Mecheltrans-East OOO and Sinara Transport Machines OAO
(STM).
The contract was signed on the sidelines of the 20th
International Exhibition for Transport and Logistics Services and
Technologies "TransRussia" and is valid until December 31,
2018.
According to the agreement, STM's subsidiary STM-Service will
fully service and repair TE8 locomotives manufactured at STM's
Lyudinovsky Locomotive Plant to Mecheltrans's order. Currently
Mecheltrans-East's locomotive park includes 15 TE8 locomotives and
3 TEM18DM shunting diesel locomotives. The machines were produced
to specifications requisite for exploitation in difficult climatic
conditions and mountainous areas.
All service and repair works will be made in the repair depot at
Verkhny Ulak station located on the Mechel-constructed Ulak-Elga
railway which links the Elga coal deposit with the Baikal-Amur
Mainline. Also, starting in the second half of 2015, STM-Service
will ensure the readiness of Mecheltrans-East's locomotives for use
on general-type railways. According to the contract, servicing will
cost 120 million rubles annually.
"In 2014, we completed the contract on designing, producing and
supplying 15 innovative TE8 locomotives with the 2,206-kW
(3,000-hp) SuperSkid power unit produced by the US-based GE
Transportation Parts LLC. The locomotive proved its efficiency in
long hauls in mountainous areas, in difficult climatic conditions.
This new service contract is another step in our mutually
profitable long-term partnership. STM accepted obligations of
setting up a specialized service center, training personnel,
creating a stockpile of spare parts and consumables, which will
help the efficiency of our business in this remote area," STM's
Chief Executive Officer Evgeny Gritsenko noted.
"Mechel's transport division and Sinara Group are linked by
long-term business ties. I am grateful to our partners for helping
us in developing the Elga coal deposit, one of the world's most
large-scale industrial projects. Today it is highly important for
us to conduct prompt maintenance and quality repairs of our
locomotive park at our production facilities. This will help our
company to save transport costs, have a high rate of our
locomotives' technical readiness and, as a result, a reliable
resource in meeting our cargo traffic plans," Mecheltrans
Management Company's Chief Executive Officer Alexey Lebedev
commented.
Mechel is an international mining and steel company which
employs over 70,000 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.
CONTACT: Mechel OAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
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