28 Aug 2009 15:57

Mechel could run Estar's Rostov steel mill

MOSCOW. Aug 28 (Interfax) - Mechel could take control of the Estar steel group's Rostov Electrometallurgical Plant in southern Russia for one year, a source with knowledge of the situation told Interfax.

The source said Mechel's owner, Igor Zyuzin, had visited the plant. "But there's no clarity yet, but they will probably be looking at managing the plant like the Zlatoust Steel Works," the source said.

Mechel declined to comment.

A court put the Rostov plant under supervision on August 3.

Mechel agreed on a strategic partnership deal with the Chelyabinsk region concerning the Zlatoust plant, under which Mechel will manage this Estar group member also.

Estar started to build the Rostov plant in 2005. The plant went on line in January 2008 and has the capacity to produce 700,000 tpa of semis.