The Russian company also plans to sell several units in Ukraine, the UK, Lithuania, Kazakhstan, Russia and Bulgaria, as well as its international subsidiary Mechel Service Global B.V., excepting Mechel Service Russia.
“We took an important practical step in implementing the Group’s renewed strategy. The decisions [to divest several assets] are fully in line with Mechel’s declared course on improving our operational efficiency and will enable us to focus on priority business areas,” Mechel OAO’s Chief Executive Officer Yevgeny Mikhel said.
Mechel didn’t say how much it hopes to raise from selling its Romanian operations. According to Russian newspaper kommersant.ru, the steelmaker seeks to obtain $150 million from divesting its Romanian plants Mechel Targoviste, Mechel Campia Turzii, Laminorul Braila and Ductil Steel Otelu Rosu.
Mechel operates five plants in Romania and employs around 7,000 staff.
Last week, the Russian steelmaker announced it would temporarily halt production at its plant in Otelu Rosu, following a recent slowdown in production at another Romanian unit in Campia Turzii on the backdrop of weakening demand.