Mechel PAO (MOEX: MTLR; NYSE: MTL), a leading Russian mining and metallurgical company, announces that the Supervisory Board of the Industry Development Fund of the Ministry of Industry and Trade of the Russian Federation has approved the allocation of a concessional loan to the Beloretsk Metallurgical Plant (AO BMK, part of the Mechel Group) for the implementation of the project for the modernization of steel wire rope production.

The cost of the project is 1.5 billion rubles, the IDF loan will be 50% - 750 million rubles. The loan term is 5 years. The project provides for a large-scale technical re-equipment of the steel wire and rope production workshops at BMK with the installation of new drawing equipment of the direct-flow type. The modernization will make it possible to produce wire, which is now imported to Russia, with high quality characteristics, such as plastic properties, surface cleanliness and uniformity of mechanical properties along the length. Springs, ropes and other products made from such wire will have a longer service life.

The project plans to introduce the best available technologies, which will provide an additional effect in the form of minimizing environmental impact, since the new equipment will meet the strictest environmental standards. The mills will be equipped with a line for mechanical descaling from the billet, this will allow to abandon the chemical pickling of wire rod.

The new BMK products will be in wide demand in aircraft and shipbuilding, automotive, construction, oil and gas, electronics, furniture and chemical industries .

“Modernization of steel wire and rope production will help to dramatically improve the quality and efficiency of products, make production more environmentally friendly and safer. We plan to complete this modernization in 2023. We are grateful to the Industrial Development Fund for the credit support of this project. I am sure that new products with improved quality characteristics will be in demand not only by domestic enterprises, but also abroad, ”commented Mechel PAO General Director Oleg Korzhov.

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PAO Mechel Ekaterina Videman Tel .: +7-495-221-88-88ekaterina.videman@mechel.com

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