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6.9.2016 - VÍTKOVICE STEEL TO PRODUCE PLATES MADE FROM BRAZILIAN STEEL

Ostrava, 6 September 2016 - This year in July, VÍTKOVICE STEEL, a.s. (the "Company") agreed on the bulk supply of steel slabs, the primary raw material for the production of so-called heavy steel plates, manufactured by the Brazilian company Compania Siderúrgica de Pecém. Under this contract, the first slabs from Brazil have already been dispatched to arrive in Ostrava in early October. The supply volume of slabs from South America will reach a substantial portion of the total annual volume of the charge consumption required for the production of heavy plates at the 3.5 Kvarto rolling mill (max. 800,000 tons / year).

VÍTKOVICE STEEL, a.s. changed over to a complete supply of slabs from external suppliers after the shutdown of its steelworks last September. Current suppliers of slabs are from EU countries, Russia and Ukraine. A new supplier of slabs from Brazil has begun production this May. They possess advanced technology, and an experienced and largely foreign management focused on performance and quality. Excellent local production conditions allow for a competitive price for their end product. "Through interconnection with this and other existing suppliers, we distribute the risk of potential cuts in slab supply from any supplier to an acceptable level," said Dmitry Ščuka, Chairman of the Board of Directors. "Together with our flexible logistics system this move allows us to better meet customer needs," says D. Ščuka.

Signature of the contract for the supply of slabs from Brazil is evidence to the possibilities of global interconnection of a supply-customer chain, and the company management's ability to maintain its high production efficiency in a complicated situation on the European market of steel products.

Media Contact: Jaromír Krišica, Spokesman

+420 603 543 572; press@vitkovicesteel.com

www.vitkovicesteel.com

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