Mechel OAO reported halting production at Southern Urals Nickel Plant OAO. Considering persistent negative trends on global nickel market and unfavorable forecasts for its recovery in the foreseeable future, the plants Board of Directors decided to halt production at the plant for the long term and to prepare its equipment for a long-term shutdown in order to minimize the plants losses. All requisite procedures set by the Russian Federations law will be observed.

Southern Urals Nickel Plant JSC will provide its laid-off employees not only those measures required by the labor law and the collective labor agreement, but also guarantees set by the multilateral agreement between the Orenburg Regions government, Orsks city administration, Mechel JSC and the plants management and trade union. In particular, the plants employees will be offered up to 1,500 jobs at Mechel Groups enterprises, including its newest production facilities that are currently being commissioned.