Russia's Mechel Sets East European Steel Division in Romania

The main objective of the division is to co-ordinate the operations of Mechel's Romanian subsidiaries including investments, modernisation, streamlining, and production cost reduction efforts through the implementation of efficient logistics planning, raw material acquisition and product marketing across the subsidiary, the steel group said in a statement.

Following the acquisition of Romania's Ductil Steel in the spring of 2008, Mechel Group owned four steel companies in Romania: Mechel Targoviste, Mechel Campia Turzii, Ductil Steel Buzau steel rolling mill, and Otelu Rosu steel melting plant.

"In order to enhance the performance and efficiencies of these subsidiaries, Mechel has now established its East-European Steel Division on the bases of Mechel Targoviste, effective October 22, 2008," the statement said.

The new entity will be headed by the director of Mechel Targoviste, Vyacheslav B. Shmyga.

Mechel Targoviste reported in August a first-half net profit of 65.71 million lei ($22.05 million/17.8 million euro), up from 14.11 million lei a year earlier.

(1 euro = 3.6877 Romanian lei)