Mechel OAO (MTL) announced that rails produced at Chelyabinsk Metallurgical Plant confirmed their high quality and met the requirements of Russian Railway Research Institute OAO, during independent lab tests.
A batch of rails, of type R65 category DT350, made at Chelyabinsk Metallurgical Plant, completed the lab tests on all counts, which confirmed the high quality of these rails. Moreover, the rail steels demonstrated high level of purity on non-metallic inclusions. The rails also underwent Bench tests for fatigue and crack resistance, which showed that they complied with the best international standards.
Once the rails complied with the lab tests, they were laid onto the Railway Research Institute's experimental railroad ring that is used to test rails in real-life conditions over the next 6-7 months. Before the rails were laid on the experimental railroad ring, Russian Railways OAO's commission inspected the entire technological operation chain and confirmed that Chelyabinsk Metallurgical Plant has created a rail production facility that is up to date for world-class products.
The annual capacity of the Chelyabinsk Metallurgical Plant's universal rolling mill is 1.1 million tons of end products. The plant produces high-quality structural shapes and rails of 12.5-100 meters in length. The plant’s universal rolling mill has mastered production of two types of rails — R50 and R65. Further, the plant has already signed several contracts with major Russian companies for rail supplies.
Mechel is a leading domestic steel and coal producer with a strong position in key businesses, including production of specialty steel and alloys. The company currently carries a Zacks Rank #4 (Sell).
Other companies in the steel industry with favorable Zacks Rank include Grupo Simec S.A.B. de C.V. (SIM), POSCO (PKX), and ThyssenKrupp AG (TYEKF). While Grupo Simec sports a Zacks Rank #1 (Strong Buy), POSCO and ThyssenKrupp carry a Zacks Rank #2 (Buy).
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