September 7, 2008
Mechel to Invest $125 Mln in Railroad Car Factory Before 2010
YAKUTSK. Sept 7 (Interfax) - Mechel (RTS: MTLR) coal and steel group is planning to invest $125 million in railroad car assembly facility with a capacity of 2,500 tons at the Neryungrinsky mechanical repair facility (RMZ), a Yakutugol branch, Mechel Mining (Group's mining segment) General Director Igor Khafizov said at an economic forum in Yakutsk on Sunday.
"It will be the initial stage of construction, subsequently the capacities could be increased," Khafizov said.
The new facility will be able to reach the set capacity by 2010, he said.
Besides, a workshop will be built to produce 12,000 wheelsets per year.
The reconstruction plan is being prepared by experts from the Giprotyazhmash design institute.
Currently, Mechel Trans' freight car fleet consists of 4,000 cars.
Mechel Group holds controlling stakes in steelmaking, mining and energy companies in Russia, Romania and Lithuania, as well as in commercial ports. The controlling stake in Mechel is owned by its General Director Igor Zyuzin, free float (ADR) is around 25%.
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