MECHEL OAO ANNOUNCES CHANGES IN THE STRUCTURE OF COMPANY'S OPERATIONAL
MANAGEMENT
Moscow, Russia – July 01, 2010 – Mechel OAO (NYSE: MTL), one of the leading
Russian mining and metals companies, announces official creation of divisional
management system of the company’s operational activity.
As the result of the process that started in 2008 the following management
companies were established and showed their ability to control their divisions
efficiently:
Mechel Mining Management Company is headed by Boris Nikishichev and is
responsible for management of mining division operations. Mechel Steel
Management Company is headed by Andrey Deineko and is responsible for steel
division operations. Mechel Ferroalloys Management Company is headed by Gennady
Ovchinnikov and is responsible for ferroalloy division operations. Mechel Energo
is headed by Viktor Gvozdev and is responsible for power division operations.
Mechel Trans Management Company is headed by Alexander Starodubov and is
responsible for logistics unit activity.
As the result of these changes the operational activities within the segments
will be fully controlled by the management companies. In order to represent the
interests of company’s shareholders Mechel OAO management keeps the right to
control operational and financial activities of the group’s divisions as well as
strategic management of financial policy, major mergers and acquisitions,
strategic partnership with other companies, capital investment programmes and
other.
Mechel successfully overcame world economical crisis and once again proved
efficiency of its divisional management system which allows the company to be
flexible in the changing market environment and let managers of the company’s
divisions and business-units make immediate decisions. Thus, Mechel’s steel
segment was the first in Russia to reach full utilization of production
capacities after the crisis. Mechel’s mining segment managed to increase coal
production significantly. Ferroalloys segment’s plants of the company became
profitable. Efficiency of Mechel’s power assets’ operations rose due to the
centralization of their management system.
Vladimir Polin, Mechel’s Senior Vice President is leaving the company since
construction of the divisional management structure is completed. Its efficiency
and integration to Mechel’s strategic management has been witnessed and its
performance is recognized to be positive. Mr. Polin’s position will be
eliminated.
Igor Zyuzin, Mechel’s CEO commented on the event:
“We regret Vladimir Polin’s leaving the company. He is a highly experienced
professional, who has done a lot for Mechel group’s formation and development.
Many large-scale projects have been started and successfully completed with his
help. He worked hard to facilitate Mechel’s passing through the world economy
crisis in 2008 – 2009. But we understand that Mr. Polin has finished working on
one of his the most important tasks – implementation of the efficient divisional
management structure. We respect his intention to take a new position which is
more interesting for him. We are sure he will be successful in his work and wish
him good luck”.

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Mechel OAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
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Mechel is one of the leading Russian companies. Its business includes four
segments: mining, steel, ferroalloy and power. Mechel unites producers of coal,
iron ore concentrate, nickel, steel, ferrochrome, ferrosilicon, rolled products,
hardware, heat and electric power. Mechel products are marketed domestically and
internationally.
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Some of the information in this press release may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Mechel, as defined in the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. We wish to caution you that
these statements are only predictions and that actual events or results may
differ materially. We do not intend to update these statements. We refer you to
the documents Mechel files from time to time with the U.S. Securities and
Exchange Commission, including our Form 20-F. These documents contain and
identify important factors, including those contained in the section captioned
“Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our
Form 20-F, that could cause the actual results to differ materially from those
contained in our projections or forward-looking statements, including, among
others, the achievement of anticipated levels of profitability, growth, cost and
synergy of our recent acquisitions, the impact of competitive pricing, the
ability to obtain necessary regulatory approvals and licenses, the impact of
developments in the Russian economic, political and legal environment,
volatility in stock markets or in the price of our shares or ADRs, financial
risk management and the impact of general business and global economic
conditions.