OAO Mechel (MTLR), the Russian steelmaker controlled by billionaire Igor Zyuzin, said first-quarter output dropped on weaker demand from construction and the machinery industry.
Steel production declined 30 percent to 1.1 million tons, with rolled products dropping 22 percent, the Moscow-based company said today in a statement. Raw coal output fell 53 percent to 3.4 million metric tons and washed coal production slid 47 percent to 2.2 million tons
“Negative trends caused by the global economic crisis have affected Mechel,” Vladimir Polin, a senior vice-president at the company, said in the statement. Demand for washed steam coal used by power plants remained “stable,” he said.
Mechel said last week it agreed to spend at least $1.4 billion in cash, shares and dividends to acquire coking coal assets in West Virginia from Bluestone Coal Corp.
To contact the reporter on this story: Yuriy Humber in Moscow at firstname.lastname@example.org
To contact the editor responsible for this story: Simon Casey at email@example.com.