Russian miner Mechel OAO (MTL) announced that its chief flat products’ manufacturer – the Chelyabinsk Metallurgical Plant – has become the potential supplier of rails to Germany’s railway operator Deutsche Bahn AG, after a production audit.
Experts of Deutsche Bahn AG visited Mechel’s oxygen converter workshop, universal rolling mill and the rolling workshop number 3 during a work visit. They also checked out the company’s steel products testing center and the central analytics lab, and scrutinized the stages of rail production. Deutsche Bahn AG’s experts examined every stage, right from steelmaking to the shipping of rails, and highly praised the quality management control system at the plant.
Deutsche Bahn AG finally signed an agreement with Mechel, confirming Chelyabinsk Metallurgical Plant as its rail supplier. Moreover, the plant also agreed to carry out procedures for its rails to be certified as compliant with the TSI standard for rail products in the European Union. In the meantime, the Chelyabinsk Metallurgical Plant will be carrying out high-speed rail tests to ensure rail supplies to the Deutsche Bahn AG rail network.
Mechel’s goal is to secure quality certification not only in Russia but also in Europe. The plant’s universal rolling mill is proven for manufacturing finest-quality products. Together, this will help Mechel to substitute domestic imports and become a successful global competitor.
Mechel is a leading steel and coal producer with a strong position in key businesses, including the production of specialty steel and alloys.
Mechel currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the basic materials sector include Kobe Steel Ltd. (KBSTY), LB Foster Co. (FSTR) and Coeur Mining, Inc. (CDE). While Kobe Steel sports a Zacks Rank #1 (Strong Buy), both LB Foster and Coeur Mining carry a Zacks Rank #2 (Buy).
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