Mechel eyes German metal trader

Mechel is eyeing a German metal trader. Experts believe that this could be attributable to the company’s plans to ramp up output of stainless steel rolled products at Chelyabinsk Metallurgical Plant and launch these products on the European market.

Mechel Group has applied to Germany’s antimonopoly authorities to acquire a controlling interest in metal trader HBL Holding GmbH, which includes 8 traders and a number of service centers with more than 9,000 customers in Germany.

At present, Mechel exports its products via Liechtenstein-based Mechel Trading. In experts view, the company intends to expand its distribution chain in Europe. For the record, the company controls two rolling mills in Romania and we do not rule out that the group has plans to ramp up sales of their products in the coming years.

In addition, a large-scale upgrade program is being implemented at Chelyabinsk Metallurgical Plant, including the stainless steel production facilities. For the record, Mechel intends to significantly boost the output of these products.