Mechel (MTL) To Supply Certified Rails To Russian Railways - Analyst Blog

Russian steel and mining company, Mechel OAO MTL announced that it has received a certificate of compliance with the requirements of the Customs Union's Technical Regulations for its rails of up to 100 meters in length.

The certification will help Mechel to supply the Chelyabinsk Metallurgical Plant’s (“CMP”) products to Russian Railways. The certificate was given by the Federal Railway Transport's Certification Registry after testing and monitoring of the production process, and several certification procedures at the Russian Railway Research Institute.

A sample batch of CMP rails was successfully validated after it cleared the test of carrying 150 million ton kilometers of cargo for six months. These tests confirmed that Mechel’s products are on par with those of its global competitors in terms of quality. Rail production at CMP will support the import substitution program and take the country’s import infrastructure a step ahead.

CMP's universal rolling mill has an annual production capacity of up to 1.1 million tons. The unit utilizes a special heat treatment technology that enables it to produce high-quality rails and structural shapes, with excellent wear resistance, durability and fatigue endurance. Investment in this project has exceeded $900 million.

Mechel is a leading domestic steel and coal producer with a strong position in key businesses, including the production of specialty steel and alloys.

Other well-placed companies in the steel industry include Schnitzer Steel Industries, Inc. SCHN, Commercial Metals Company CMC and Evraz Highveld Steel & Vanadium Ltd. HGVLY. While Schnitzer Steel Industries sports a Zacks Rank #1 (Strong Buy), both Commercial Metals and Evraz Highveld Steel & Vanadium carry a Zacks Rank #2 (Buy).

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