Chelyabinsk Metallurgical Plant

What Chelyabinsk Metallurgical Plant does

Chelyabinsk Metallurgical Plant (ChMK / PAO ChMK) is the flagship metallurgical subsidiary of PAO Mechel Group (MOEX: MTLR), one of Russia's largest vertically integrated mining and metallurgical holding companies. ChMK itself operates a full metallurgical cycle, producing pig iron, steel, section and shaped rolled products, stainless steel flat products, hardware (metiz), and high-value-added rail products. The plant hosts the Universal Rail and Beam Mill (URBS), commissioned in July 2013 at an investment of approximately $715 million, which produces integrated shaped rolled products and rails from 12.5 to 100 meters — a first in Russia with capacity of up to 1.1 million tons per year. ChMK also operates Continuous Billet Casting Machine No. 5 (1 million tons/year capacity) that feeds the rail-beam mill, and has developed approximately 1,400 grades of steel and alloys over the past 20 years. The facility serves primary end-markets including railway infrastructure (notably Russian Railways / RZD with a long-term supply contract covering 2010–2030), construction (gas pipelines such as Power of Siberia and Altai, Moscow Metro tramways), and machine-building / engineering.

ChMK is embedded within Mechel Group's broader integrated value chain spanning mining (Southern Kuzbass, Yakutugol, Korshunovsky GOK, Elgaugol, Sivagli iron ore deposit), metallurgy (ChMK, Beloretsky Metallurgical Combine / BMK, Izhstal, Uralskaya Kuznitsa, Bratsk Ferroalloy Plant), energy (Mechel-Energo, South-Kuzbass GRES), logistics (Mechel-Trans with ~13,300 wagons, Port Posyet with 9 Mt/year expandable to 15 Mt/year, Port Mechel-Temryuk), and distribution (Mechel-Service with 80+ divisions and 18 service centers). Group production includes 10.9 million tons of coal and 3.4 million tons of steel annually (2024), 1,953,377 thousand kWh of electricity and 5,241,404 Gcal of heat energy. Revenue is generated through one-time hardware sales (steel and coal products), managed logistics services, and recurring energy supply. Go-to-market is B2B industrial, with direct sales to large enterprise customers under long-term contracts (Baosteel, JFE Steel, POSCO, Jidong Cement, Itochu, RZD) and direct-to-customer metal trading via Mechel-Service and the mechelservice.ru online store.

Name

Chelyabinsk Metallurgical Plant

Legal name

PAO «Мечел» (Publichnoye Aktsionernoye Obshchestvo «Mechel»)

Website

https://mechel.ru

Company type

Public

Founded year

2003

Operating status

Operating

Short description

Chelyabinsk Metallurgical Plant (ChMK) is a vertically integrated Russian steel producer, flagship subsidiary of Mechel Group, operating a full metallurgical cycle that manufactures section rolled products, rails, hardware, and stainless steel for construction, railway, and industrial customers.

Ownership category

akta.pro rank

Product category

Steel and Metallurgical Manufacturing

NAICS

Fabricated Metal Product Manufacturing (332), Petroleum and Coal Products Manufacturing (324)

SIC

Bituminous Coal & Lignite Surface Mining (1221), Miscellaneous Chemical Products (2890)

akta.pro primary industry

Integrated Steelmaking (BF-BOF) (IMAKABAA)

akta.pro secondary industries

Metallurgical Coal Mining (Coking/PCI Coal) (IMAKAIAB), Industrial Process CHP (Refineries, Chemicals, Pulp & Paper, Metals) (EUACAKAI)

Keywords

• Steel manufacturing
• Rail products
• Coking coal mining
• Metallurgical rolled products
• Hardware and wire

Headquarters

HQ city

Moscow

HQ country

Russia

HQ region

Europe

Offices4 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Operations, Personnel, Technology or R&D, Infrastructure

Revenue model

1. Coal and Coke Production: Mining segment produces and sells coking coal concentrate, anthracites, PCI coal, coke, and iron ore concentrate. In 2024, Mechel produced 10.9 million tons of coal.
2. Steel and Rolled Products: Metallurgical segment produces section rolled products, shaped rolled products, stainless steel flat products, and high value-added metal products including hardware and stampings.
3. Electricity and Heat Energy: Power segment produces electrical and thermal energy for group enterprises and for sale in the open market. In 2024, electricity generation was 1,953,377 thousand kWh and heat energy was 5,241,404 Gcal.
4. Logistics and Transportation Services: Transport segment with railway fleet of about 13,300 wagons and annual cargo volume of 23 million tons. Includes railway operator, auto transport operator, and ports.
5. Metal Trading and Services: Metal trading network with over 80 divisions and 18 service centers selling metal products directly to end consumers.

Go-to-market motion1 record

Distribution channels4 records

Marketing channels5 records

Core offering

Chelyabinsk Metallurgical Plant (ChMK) is a full-cycle metallurgical enterprise within Mechel Group producing sectional and shaped rolled steel, rail products, beams, stainless steel flat products, pig iron, hardware (metiz), forgings, and special steels/alloys. The plant operates the Universal Rail-Beam Mill (URBS), Russia's first integrated production of shaped rolled products and rails from 12.5 to 100 meters with capacity of up to 1.1 million tons per year. Products are sold under long-term contracts to railway operators (Russian Railways), construction firms, steel manufacturers, and through Mechel-Service sales network.

Product overview

Chelyabinsk Metallurgical Plant (Chelyabinskiy Metallurgicheskiy Kombinat, ChMK/CMK) is a subsidiary of Mechel Group, a vertically integrated mining and metallurgical company. The plant operates as a full metallurgical cycle enterprise producing sectional and shaped rolled steel, rail products from the universal rail-beam mill, flat stainless steel products, and pig iron. Mechel Group encompasses over 20 industrial enterprises in mining, metallurgy, energy, logistics, and distribution sectors. The portfolio includes coking coal and iron ore concentrates from mining operations, steel and rolled products from metallurgical plants, electricity and heat from energy assets, and logistics services through owned ports and transport operators. The Group's product portfolio spans from raw materials (coal, iron ore) to finished metallurgical products (rolled steel, rails, hardware/forgings) and energy, serving construction, railway, automotive, and industrial manufacturing sectors across Russia and export markets.

Differentiator

Problem solved

Functional benefit

Brands

• Мечел-Сервис (Mechel-Service): Metallurgical sales and service network across Russia with over 80 branches and 18 service centers
• Мечел Сервис Глобал (Mechel Service Global)
• Мечел-Энерго (Mechel-Energo)
• Мечел-Транс (Mechel-Trans)
• Мечел-Транс Восток (Mechel-Trans Vostok)
• Мечел-Транс Авто (Mechel-Trans Auto)
• Мечел-Материалы (Mechel-Materials)
• B2B-Mechel
• Мечел Карбон Сингапур (Mechel Carbon Singapore)
• Mechel Somani Carbon Private Limited

Products and services

• Coking Coal Concentrate
• Iron Ore Concentrate
• Coke
• Sectional Rolled Steel
• Rail Products (R65 DT-350 and P65)
• Beam Products
• RT62 Tram Rails
• Hardware (Metizy)
• Forgings and Stampings
• Special Steels and Alloys
• Stainless Steel Flat Products
• Electricity and Heat Energy
• Logistics and Transportation Services
• Mechel-Service Sales Network

Quantifiable outcome

• Produces 10.9 million tons of coal annually (2024)
• +4 more outcomes

Named customers8 records

Segments5 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Partnerships

Nine partnerships are on record, tiered core and minor.

• Baosteel Resources (China)coreStrategic or Co-development Partner · 31 December 2024Long-term partnership for coking coal supply. Contract for annual supply of up to 1.4 million tons of coking coal. Partnership began in 2013 and has been extended multiple times.
• JFE Steel (Japan)coreStrategic or Co-development Partner · 31 December 2024Three-year agreement for coking coal supply of up to 1 million tons annually. Major Japanese steel producer.
• POSCO (South Korea)coreStrategic or Co-development Partner · 31 December 2024Three-year contract for coking coal supply of 500,000 tons annually. Major international steel producer.
• Jidong Cement (China)coreStrategic or Co-development Partner · 31 December 2024Long-term contract for thermal coal supply of up to 3 million tons annually. One of world's largest cement producers. Partnership includes memorandum for potential future coal supply.
• Itochu Corporation (Japan)coreChannel Partner/ Reseller/ Distributor · 31 December 2024Long-term export contracts for coal products. Major Japanese trading company.
• Danieli (Italy)coreTechnology or Integration · 31 December 2024Contract for supply of technology and equipment for universal rail and beam mill construction at Chelyabinsk Metallurgical Plant. Italian company specialized in metallurgy equipment.
• Russian Railways (RZD)coreStrategic or Co-development Partner · 31 December 2024Long-term rail supply contract for period 2010-2030. Mechel supplies railway rails for Russian railway infrastructure.
• Russian Ministry of Industry and Trade / Industrial Development FundcoreStrategic or Co-development Partner · 1 June 2021Beloretsky Metallurgical Plant received favorable loan from Industrial Development Fund for modernization of steel wire and rope production. Equipment from Italy purchased through this program.
• STX (South Korea)minorStrategic or Co-development Partner · 1 September 2012Agreement for cooperation in promoting products, joint projects in port development on Russian Far East, and marine transportation.

Scale indicators17 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Evraz: Vertically integrated steel and mining group with significant Russian and North American operations. Comparable in integrated steelmaking, rail/wheel production, and coking coal exposure.
• Novolipetsk Steel (NLMK): One of Russia's largest steel producers, focused on flat-rolled and high-value-added steel products. Directly comparable as a vertically integrated Russian steelmaker competing in the same domestic and export markets.
• Magnitogorsk Iron & Steel Works (MMK): Large Russian integrated steel producer with BF-BOF steelmaking and downstream processing. Directly comparable in scale, product mix (flat/long products), and domestic market focus.
• Severstal: Major Russian steelmaker with integrated iron ore ( Karelian Pellet) and steel operations. Comparable as a Russian integrated producer serving construction and industrial customers with overlapping product portfolios.

Broad incumbents

• JFE Steel: Major Japanese steelmaker with three-year Mechel coking coal contract (up to 1Mt/yr). Comparable as a premium global steel producer with structured long-term raw material supply relationships.
• POSCO: South Korean integrated steelmaker and a long-term Mechel coking coal customer (500kt/yr contract). Comparable as a major steel producer with significant raw material sourcing needs and premium product capabilities.
• Anglo American: Global diversified mining major with metallurgical coal, iron ore, and steelmaking feedstock exposure. Comparable as a major coking coal and iron ore producer serving international steel customers.
• ArcelorMittal: World's largest steel producer with global footprint across flat, long, and mining operations. Comparable broad-spectrum steelmaker, though substantially larger and more geographically diversified than Mechel.
• Baosteel Resources: Chinese steel giant and Mechel's largest coking coal customer (up to 1.4Mt/yr). Comparable as a global steel producer with extensive coking coal sourcing relationships and integrated operations.

Regional players

• RUSAL: Major Russian metals producer primarily in aluminium. Regionally comparable as a Russian-domiciled metals producer with similar export orientation, capital markets presence, and exposure to Russian operating risks, though in a different metal.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/MechelPao
• Facebookfacebook.com/mechel.ru

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Subsidiaries29 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Chelyabinsk Metallurgical Plant