Mechel: "We are negotiating with a potential investor interested in the plants"

The "Mechel" România Group is negotiating with a potential investor interested in its Romanian assets, according to the representatives of the company. They have also said that the party with whom they are negotiating intends to preserve the integrity of the "Mechel" plants. The quoted sources said that for the time being, they can't reveal the name of the potential investor.

At the end of last week, the "Mechel" metallurgic group announced that it was looking to sell numerous assets across Europe, including the plants it owns in Romania, specifically "Mechel" Târgovişte, "Mechel" Câmpia Turzii, "Laminorul" Brăila and the two "Ductil Steel" plants.

Last week, officials of the company told us that the five plants will not be sold, but will instead continue to operate normally. Thus, according to the quoted sources, the sale of the "Mechel" plants represents just one of the possible options for dealing with the situation.

"We have a program to optimize costs and personnel. At Oţelu Roşu the last stage of a major investment process is ending. In October, a new equipment will be commissioned at Oţelu Roşu, which will lower the energy costs and will increase the effectiveness of the output. In other words, we will produce more in the same time. The investment is part of a greater investment program, of 50 million Euros, which is close to completion. Last year, a new complex for the elaboration of steel was commissioned, which is also part of the investment process which we mentioned", the company officials said.

• Liviu Pop: An Italian investor wants to buy "Mechel"

An Italian company expressed its intention to buy the "Mechel" Romania Group, according to a statement quoted by Mediafax, made yesterday in Cluj by the delegated minister for social dialog. The official said that the Italian investor will maintain the line of business for the five "Mechel" plants which are operating on the Romanian market.

Minister Pop said: "The < Mechel > group wants to sell the five plants in Romania for 150 million dollars".

"The sale will still result in the continuation of the activity, they do not want to shut down the five plants in Romania. Based on the data I have available, there is already an Italian company looking to buy the Mechel Group in Romania, but it is all in the preliminary discussions stage. They will have to come with more details in that regard. According to the talks with the Russian representative of the < Mechel > Group in Romania, the sale will not result in a change of the line of business of the plants".

According to him, a first meeting between the "Mechel" Romania Group and the Italian firm will take place next week.

"The Russians want the preservation of all the assets of the plants, so that at the time when the sale comes, the future owners will decide whether they want to keep working using those machines or not", said Liviu Pop, referring to the "Mechel" Câmpia Turzii plant, which will enter preservation. According to him, none of the machines will be scrapped.

• Mircea Scântei: "People at the plant are talking about < Donau > being interested in < Mechel >"

Russian company "Donau", registered in Austria, may also be interested in "Mechel", according to Mircea Scântei, the leader of the Union Federation "Metarm".

He said: "There is talk within the company that < Donau > is interested in < Mechel >. I have no direct contacts with < Donau >, but I know that there is this intention on their part. Now, after the statements made by Liviu Pop, it would appear that there are already two companies interested in these plants. There may be even more of them...".

"Donau", which trades metals and metallic ores, has owned the majority stake in the "Laminorul Brăila" plant between 2006, when it bought the shares from the AVAS, and the beginning of 2010, when they were acquired by "Mechel".

According to the Russian media, the Russian corporation wants to get 46 million dollars for "Mechel" Târgovişte, 33 million dollars for "Mechel" Câmpia Turzii, 32 million for "Laminorul" Brăila and 39 million dollars for "Ductil Steel".

Present in Romania since 2002, "Mechel" recently reduced its output and labor at Câmpia Turzii, due to the low demand for the products made by the plant.

In June, "Mechel" Câmpia Turzii began the collective layoff of 800 employees, out of the just over 1,000 people it employed.