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.

The Company's objective for the coming years is to maintain its position as a leading European manufacturer of high-quality heavy plates. The Company achieved positive EBITDA result last year, and has been developing long-term efforts to increase production efficiency, and investments in technology upgrades have amounted to approximately 300 million CZK this year.

"Our current condition is at a decent level, and during the next few years we expect it to improve, because closure of the steelworks will allow us to further develop the operations of our Company," said Dmitrij Scuka, the Chairman of VÍTKOVICE STEEL, a.s.

By the end of 2015, 271 people will have gradually left the Company. Depending on the amount of years worked the laid-off staff should receive an average of up to 450,000 CZK in redundancy payments. The number of the Company's employees as of January 1, 2015 was 1,105 employees, and as of December 31, 2015, is 834 employees.

The way of further use of the ironworks is yet to be decided. The Company has conducted negotiations about the possibility for further use of attractive free land with representatives of the City of Ostrava and other institutions.

The Company continues to fulfil its social responsibility towards the Region. It is a long-term partner of the hockey extraleague team HC VÍTKOVICE STEEL and has supported the Moravian-Silesian Region since 2006 through the VÍTKOVICE STEEL Charity Fund (formerly the EVRAZ Charity Fund). The VÍTKOVICE STEEL Charity Fund is again going to prepare a new call for applicants for financial aid to participate in October 2015.


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