Mechel is one of the leading Russian companies. Its business includes three segments: mining, steel, and power. Mechel unites producers of coal, iron ore concentrate, nickel, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.
Mechel produces ~15 million tonnes of coking coal and around 11 million tonnes of steam coal annually; as well as close to 4.7 mt of iron ore concentrate and approx. 6 million tonnes of steel per annum (mostly long steel products such as bar and rod). The company is the largest Russian producer of special steel (i.e. stainless and other alloy grades) supplying some 39% of Russian steel output of specialty steel grades.
The company has production sites scattered across:
From the foregoing, the company is perhaps best described as an important mining and metallurgy business - being both a leading supplier of metallurgical coke and ferroalloys and an important supplier of specialty and other steels; and a firm that is strategically advantaged by its control of important steelmaking raw materials including iron ore, coking coal and steam coal.
The busines is majority-owned by the CEO Igor Zyuzin, but a proportion of the company's shares are traded on the NYSE.
The company has recently come under fire from the Russian government due to Anti-Trust and Tax Evasion Concerns. Russian Prime Minister Putin has been very vocal about Mechel's foreign vs domestic sales. The deadline for the Russian Anti-Monopoly Committee's decision is August 26th, but most expect it earlier
On August 13th 2008, the Federal Anti Monopoly Service gave its ruling. The Russian Service will insist on a 30 percent reduction in domestic coking coal prices, and a fine of 7 percent to 8 percent of revenue. Coking coal accounts for about 8% of Mechel's revenue and the fine will cost Mechel about 300 million dollars according to Goldman Sachs analyst Vasily Nikolaev.