Mechel Targoviste S.A. has procured from Mechel Campia Turzii S.A. scrap iron, wire, towing cable, welding electrodes and other materials, totaling 14 million RON. The contract does not mention any collateral, but does stipulate penalties of 0.15 percent per day of delay until the full settlement of the debt. The contract is valid until December 31st, 2006.

"The exact total of the commercial operations to be performed under this contract, as well as the total quantity of deliverables will be announced in an additional report to be made after the finalization of the contract," reads a release from Mechel Targoviste to the Bucharest Stock Exchange.

In turn, Mechel Targoviste sold steel products and other kinds of products to Mechel Campia Turzii for 6.1 million RON. The contract expires on December 31st, 2006. Penalties for delay stand at 0.06 percent per day.

The former Targoviste Special Steel Works (Combinatul de Oteluri Speciale Targoviste) weas privatized in 2002 to Conares Trading, which, one year later, became the operator of the Russian group Mechel for acivities outside Switzerland. In Romania, Mechel also owns the former Campia Turzii Wire Industry (Industira Sarmei Campia Turzii).

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