29.4.2004
VÍTKOVICE STEEL, a.s. has changed its behavior in the area of business activities. The new business policy of VÍTKOVICE STEEL, a.s. fully recognizes the accession of the Czech Republic to the EU and the changes after May 1, 2004. This new policy will facilitate a full incorporation of the company and its clients to the unified internal EU market and a problem-free accession to the European Economic Community. And at the same time, membership in the custom union and business policy in accordance with contractual obligations of the EU is a commonplace.
The company management is aware of the advantages coming from the accession to the EU. We expect that the share of the EU market on the turnover of the Czech Republic will grow to about 75-80%. Of course, we are mostly interested in the share of steel products. One of the advantages will be expansion of the market without trade barriers to 450 million inhabitants, free access to raw materials and semi-finished products, but also changes resulting from the membership in the custom union,” said Vladimír Bail, Chairman of the Board of Directors and CEO of VÍTKOVICE STEEL, a.s. „Good news for our company is easier and faster transport of goods across the borders and increased legal protection of enterprise, business activities and access to public job orders,“ added Bail.
Accession to the EU brings also increased demands in a highly competitive environment. In order to prevent defaults against rules of economic competition, VÍTKOVICE STEEL, a.s. will focus on its competitive ability mainly by timely deliveries and by individual approach to individual customers. The currently effective anti-dumping measures are guarded by the EC General Directorate for economic competition. In practice, prices of some products which the EU considers as dumping prices will be increased to a level which is common in the EU. The changes apply also to trading with the third world countries. Numerous contracts and treaties will cease upon the accession to the EU. In this respect this means a special regimen for VÍTKOVICE STEEL, a.s. when trading with China or in some cases of import this will result in custom duties.
Accession to the EU means also active cooperation and participation during negotiations of international steel federations like EUROFER. He the company will not only develop the traditional cooperation, but the company will also gain a possibility to participate on work in other federations and in their professional commissions. A clear benefit from the accession of the Czech Republic to the EU is also the possibility to use facilities from the EU structural funds.
