Mechel suspends two Romanian plants due to weather conditions
MOSCOW. Feb 15 (Interfax) - Mechel has temporarily halted work at the Ductil Steel Buzau and Mechel Campia Turzii plants in Romania due to difficulties shipping raw materials to them as a result of severe weather conditions, the company said in a press release.
"Over the past few days, the two plants were cut off from major transport roads due to ceaseless snowstorms. Traffic of heavy-duty trucks along Romania's routes was halted or limited. Railway operations are also severely limited. All this made it impossible to supply billets to Mechel Campia Turzii and Ductil Steel Buzau," the press release said.
"Ductil Steel Buzau and Mechel Campia Turzii are due to resume operations on February 22 and 24 respectively once the snowstorms' effects are eliminated," it said.
CEO of LLC Mechel-Steel Management Company Andrey Deineko said that the temporary halting of Mechel's two Romanian steel plants will not affect the company's production plans for the year.
Mechel consolidates controlling stakes in metallurgical, mining and energy companies. Its metallurgical division (Mechel-Steel) includes five Romanian plants: Mechel Campia Turzii, Ductil Steel Buzau, Otelu Rosu Plant, Mechel Targovishte and Laminorul Braila.
Mechel's main beneficiary is chairman of the board of directors Igor Zyuzin. Its free float (ADR) is around 25%.