Russian, Chinese metals giants sign deal for Urals steel mill

Russia's largest mining and metals company, Mechel, has signed a $300 million deal with China's Minmetals to build a steel mill at its plant in Chelyabinsk, the company said on Wednesday.

The agreement is the largest steel-industry contract ever concluded between Russian and Chinese companies. The construction of the plant is scheduled for completion in the last quarter of 2010.

The plant's primary function will be producing railroad rails up to 100 meters long. Mechel is committed to delivering 400,000 tons of rails a year under a contract signed with Russian Railways in February.

"Mechel will be the first [in Russia] to supply 100-meter rails," Mechel CEO Vladimir Polin said.

Mechel is one of the leading Russian companies, uniting producers of coal, iron ore concentrate, nickel, steel, rolled products, hardware, heat and electric power. The company sells its product both on domestic and international market.

Founded in 1950, Minmetals is one of China's largest state-owned industrial corporations. The company, listed among China's 44 "key enterprises," has metals and minerals operations worldwide, as well as finance, real estate and logistics businesses.

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