Media releases

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 30^th, 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."

Representatives of non-profit organizations and private persons from the Moravian-Silesian Region gathered December 16, 2014 in the Ostrava MERCURE Hotel with the management of the VÍTKOVICE STEEL Charity Fund (VSCF) to sign donation agreements to fund their projects. Based on the VSCF call 160 applications were filed, of which the Fund Board of Directors selected 24 projects to receive a total of 6.2 million CZK. A total of 6.7 million crowns were divided into 36 projects together with twelve Employee Projects amounting to 474,000 crowns to provide support in the Moravian-Silesian Region. 

The General Meeting of VÍTKOVICE STEEL, a.s. (thereafter „the Company“) has taken a decision to discontinue the investment into the secondary dedusting system of its steel shop convertor hall. The dedusting system is required by the integrated permit, valid until September 30, 2015. (note: integrated permit is issued by the Moravian-Silesian Region Government and is necessary for the operation of a source of pollution in an urban area). The Company’s shareholders have instructed the management of the Company to prepare a plan for the termination of operation of the Steel Shop production center. The plan should particularly minimize the influence the decision may have on the employment rate within the region as well as respect the supplier-customer relationships as well as the. The decision will have minimum impact on other production centers of the company.

On April 3, 2014 a group of private investors purchased from EVRAZ plc 100% of shares of EVRAZ VÍTKOVICE STEEL, a.s.