Media releases

For the first three quarters of this year VÍTKOVICE STEEL generated profit before tax of 2 189 625 thousand CZK. When compared with the same period last year with the pre-tax profit of 790 835 thousand CZK, this year the profit increased by 176%. At the end of the year the company management forecasts a pre-tax profit of 2.5 billion CZK.

Evraz Group S.A. (LSE: EVR), one of the leading vertically integrated steel production and mining businesses with operations mainly in Russia, today announces the completion of the acquisition of 98.96% of the shares of Vitkovice Steel, the largest platemaker in the Czech Republic, for approximately €240 million.

Approximately 84 % from the total production in VÍTKOVICE STEEL is represented by flat products, i.e., by plates. The largest part of plates is used in mechanical engineering (30 %), civil engineering (28 %), shipbuilding (20 %) and also line pipe (11 %). VÍTKOVICE STEEL supplies its plates also for manufacture of heavy construction machines and pressure vessels.

VÍTKOVICE STEEL is a traditional supplier of plates for the power generation sector. Since 2004 this Ostrava-based steel company has been able to place its products from higher quality grades to another interesting sector in the power industry, i.e., to transportation of energy media like crude oil, natural gas, and others.

This year, VÍTKOVICE STEEL was going through a very difficult process, which entered its ultimate stage on July 13, 2005. On this day the Czech Government approved the results of the tender for sale of the last Czech Government-owned steel company whose 99 percent shareholding in the basic capital was owned by OSINEK since 2002.

In the first eight months of this year VÍTKOVICE STEEL generated a pre-tax profit of 2 046 024 thousand CZK. This value is more than three times higher than the same period last year with a pre-tax profit 634 455 thousand CZK.