Russian steelmaker Mechel reached an agreement with Invest Nikarom SRL to sell the five steelmaking plants in Romania for the price of US$70.
The five are Otelu Rosu, Campia Turzii, Ductil Steel Buzau, Targoviste and Laminorul Braila.
Mechel also sold Mechel East Europe Metallurgical Divisionn to Invest Nikarom SRL.
Mechel pointed out that the sale will prevent further losses from the Romanian plants.
Mechel CEO, Evgeny Mikhal, said that due to Romanian assets' planned loss of RUB2.4 billion in 2013, this transaction will have a marked financial effect for our shareholders.
The freed cash flow will be used for operational activities as well as decreasing the company's leverage.
He also pointed out that Mechel will focus on promising projects such as the Elga coal deposit and the universal rolling mill.
Source:
http://www.yieh.com/2.2.01.01stainlesssteelnews.aspx?no=63106&division=A9
