Mechel is a low-cost metals and mining company that works in four main segments: mining, metallurgy, ferroalloys and energy. The company specializes in production of coal, iron ore, steel products ferronickel, ferrochrome, ferrosilicon and electricity. It is the largest Russian producer of coking coal, with around a 21% market share and controlling more than 25% of domestic coking coal washing capacity.
Mechel is the second largest producer of long products in Russia and the largest producer of specialty steels and alloys. Most of its coke is uses in house or sold. The company is nearly fully sufficient in raw material supply for producing metal products. It is a leader in specialty steel, making the main alloy components. The group’s energy segment is made up of raw materials, energy production and energy retail businesses.
The shares trade on the NYSE, as well as locally on the RTS and MICEX indexes.
Mechel’s 9m08 US GAAP revenues were $8.6 bln, and it reported EBITDA of $2.9 bln and net income of $1.6 bln.