Mechel signs long-term contract with Chinese Jiangsu Sha Steel Group
Mechel signs long-term contract with Chinese Jiangsu Sha Steel Group
Jiangsu Sha Steel is one of Mechel's long-standing strategic partners in the Asia-Pacific region. The agreement marks a reliable business relationship between the parties based on mutual benefit and trust.
The new contract will be valid from September 2019 to August 2020. During this year, up to 720 thousand tons of premium coking coal produced by Yakutugol Holding Company JSC will be shipped to Jiangsu Sha Steel. The delivery will be carried out primarily through Trade Port Posiet JSC, which is part of the Mechel Group. The parties agreed that the price will be set in accordance with global market trends.
The Chinese company also expressed its readiness, if necessary, to conduct additional purchases of thermal coal mined at Mechel enterprises.
“We are delighted to continue our cooperation with Jiangsu Sha Steel and will continue to provide our Chinese partners with the best quality coal products. Such long-term contracts allow us to plan more efficiently the utilization of production capacities and strengthen Mechel's position as one of the key exporters of coking coal in the world, ”commented Pavel Shtark, Deputy General Director of Mechel PAO.
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Mechel PAO Ekaterina Videman Tel .: +7-495-221-88-88ekaterina.videman@mechel.com
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Mechel Is a global mining and metals company. The company's products are supplied to Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore, steel, rolled products, ferroalloys, heat and electricity. All businesses operate in a single production chain: from raw materials to high value-added products.
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Certain statements in this press release may contain assumptions or predictions about future events or the future financial performance of Mechel PAO in accordance with the provisions of the 1995 US Securities Litigation Reform Act. We would like to warn you that these statements are only assumptions and the actual course of events or results may differ materially from those stated. We do not intend to revise or update these statements. We refer you to the documents that Mechel periodically submits to the US Securities and Exchange Commission, including the Form 20-F annual report. These documents contain and describe important factors, including those identified in the "Risk Factors" section and "Note on the forecasts contained in this document" in Form 20-F. These factors could cause material differences between actual results and our assumptions and forecasts regarding upcoming events, including, but not limited to, achieving the anticipated level of profitability, growth, cost and efficiency of our recent acquisitions, the impact of competitive pricing, the ability to obtain the necessary regulatory approvals and confirmations. the state of the Russian economy, the political and legal environment, volatility in stock markets or the value of our shares or ADRs, financial risk management and the impact of the general business situation and global economic conditions.
08/08/2019