10.6m-dollar increase at Mechel Targoviste

Special steels manufacturer Mechel Targoviste intends to increase its share capital by at least 10.6 million dollars (8.5m euros) through a cash contribution from its shareholders. The majority shareholder, the Swiss firm Mechel Trading, one of the subsidiaries of the Russian metallurgic group Mechel, will contribute 10.6m dollars to the capital increase, a sum that represents investments it committed to make under the privatisation contract in the 4th and 5th year. The money raised in the wake of this capital increase will be used for investments in retooling and for environmental projects. Technological investments will amount to some 7.3m dollars (5.8m euros), and will be directed towards the modernisation of existing equipment and acquiring new tools. The firm will allocate 3 million dollars (2.4m euros) to environmental projects.