Mechel OAO To Liquidate Its Ferroalloy Division - Quick Facts

(RTTNews) - Russian mining and metals company Mechel OAO (MTL) Thursday said it is liquidating its ferroalloy division due to successful asset sales of Tikhvin Ferroalloy Plant and Voskhod Mining Plant in late 2013.

As part of the reorganization, Bratsk Ferroalloy Plant will be managed by the steel division, while Southern Urals Nickel Plant, halted since December 2012, will be managed directly by Mechel OAO. Mechel-Ferroalloys Management Company OOO will be liquidated.

"In order to cut down management personnel costs and due to a significant reduction in workload as several ferroalloy assets were sold and Southern Urals Nickel Plant OAO was halted, we decided to liquidate Mechel-Ferroalloys Management Company OOO." said Mechel OAO's Chief Executive, Oleg Korzhov.

The company said its new administrative model is likely to cut personnel costs and ensure a more efficient mechanism for decision making.