Ostrava, December 17, 2015 - For the second time this year, representatives of NGOs, primarily from the Moravian-Silesian Region, together with the management of the VÍTKOVICE STEEL Charity Fund (VSCF) gathered together to sign a deed of donation rising to the total amount of 2.5 million CZK. From a total of 150 applications submitted, and totalling more than 20 million CZK, the Board of Trustees of the charity fund selected a total of 30 projects that aim to support the Moravian-Silesian Region. Traditionally, submitters also include employees of VÍTKOVICE STEEL, who presented 13 projects under the programme called "PEOPLE FROM THE STEEL HELP." Together with the projects from the first round of VSCF allocation plan, which took place in the first half of this year, a total of 4.5 million CZK was allocated from VSCF this year toward 38 projects to support handicapped children, care for the elderly, education and sports, etc.
Ostrava, November 24, 2015 - With the participation of the company’s employees, management, and invited guests the operation of a modernized pusher furnace no. 2 was officially put into trial today in the VÍTKOVICE STEEL, a.s. Quarto 3.5 rolling mill. The ecological benefit of the project lies primarily in the reduction of the amount of discharged nitrogen oxides into the atmosphere by approximately 21.7 tons per year. By reducing emissions, this project will contribute toward improving the environment in Ostrava. The total investment is 196 million CZK. Activities were implemented with a provision of subsidies from the Operational Programme Environment in the amount of 125 million CZK. The first slab, which left the new furnace today, is designed to produce a so-called heavy plate for a customer, the SIAG Company. Ultimately, the sheet will be used to manufacture parts of a wind power plant.
Ostrava, September 30, 2015. The shutdown of the VÍTKOVICE STEEL, a.s. steelworks (hereinafter as the Company) was implemented today. The reason for this action was inadequate setting of the operating conditions for the steelworks, which does not allow for maintaining long-term production of the Company in the future. The Company will replace input semi-finished products for the production of heavy plates, the so-called slabs, with deliveries from suppliers in the European Union and Russia.
VÍTKOVICE STEEL, a.s. strongly objects to the information published by certain media outlets related to the alleged transfer of the company’s production from the Czech Republic to Russia.
The management of VÍTKOVICE STEEL, a.s. (hereinafter referred to as the Company) and the Regional Authority of the Moravian-Silesian Region have agreed not to extend the integrated permit required for the continued operation of the steel shop. As a result, the Company will close down the steel shop by September 30th, 2015. The Company sees this step as the end of a chapter in the life of the firm and remains focused on the challenges of the future, which it proves by investing in production technologies valued at approximately 300m CZK in 2015. After several years, the Company has once again achieved positive EBITDA results and is beginning to harvest the results of many years of work aimed at transforming itself and reducing its costs.
The Regional Authority of the Moravian-Silesian Region agreed with VÍTKOVICE STEEL, (hereinafter the Company) to not extend the integrated permit required for the operation of the Steelworks after September 30, 2015. Both sides are convinced that the extension of the integrated permit for another six months does not solve the long-term employment situation in the Moravian-Silesian Region, and currently would not have a major financial impact on the company and its existence. Both sides agreed that it is strategically important to find solutions for the departing employees as soon as possible. Dmitry Ščuka, Chairman of VÍTKOVICE STEEL, a.s., said: "We considered all realistic options and we are convinced that this decision will help to close one chapter in the history of the Company, and over the long term will maintain future production in VÍTKOVICE STEEL."