15.11.2021
VÍTKOVICE STEEL returns to profit making after difficult loss years. It achieved 25 M CZK net profit for the first three quarters of this year and the outlook is still positive in spite of the utility price increase. The company profited from the recovery of demand for steel products as well as improving of efficiency of its production processes. The good results will be reflected in employee remunerations.
“The circumstances faced by steelmaking are still full of risks, from the EU climate package up to the growth of prices of utilities and emission credits, but the strong revival of demand for steel products plays into our hands. Now we do our utmost to improve the favourable conditions in order to strengthen our position of a leading steel plate producer,” said Dmitrij Ščuka, General Manager and Chairman of the Board of Directors of VÍTKOVICE STEEL.
The profit achieved by the company is also a result of improvement of efficiency of certain processes and savings. For example, the procurement logistics has been improved, the production planning has been streamlined, a new software for rolling has been introduced and by reusing the backing wooden blocks the company saved 4 trees every day.
“We believe that the market conditions will continue to be positive for steelmakers. Steel as a 100 % recyclable material should play a leading role in the economic and environmental approach to the society development. We have a chance to improve the current market conditions to strengthen our competitiveness, gain new customers, launch new investments and stabilize the company so that it can successfully operate also in the years to come,” added Radek Strouhal, Chief Financial Officer and member of the Board of Directors of VÍTKOVICE STEEL.
The achievement of profit will be reflected in employee remunerations this year. “We are sure that the plan for this year will be met, so the pre-Christmas bonus agreed in the Collective Agreement will be paid to the employees each of whom will also receive CZK 1,000 bonus as an acknowledgement of the working results,” confirmed Kateřina Nogolová, HR Director and member of the Board of Directors of VÍTKOVICE STEEL.
Most of the company products are applied in building industry and mechanical engineering. 70 % of the sold products are exported. The key markets of VÍTKOVICE STEEL are the EU countries. It manufactures steel plates, sheet piles and cut shapes.
VÍTKOVICE STEEL recorded 267 M CZK loss for the last year, but it was substantially lower compared to the previous years and was followed by the company’s return to positive operating performance and profitability. The last yearly net profit was achieved by VÍTKOVICE STEEL in 2017 but it was recorded only because of a high exchange rate profit from revaluation of shareholder loans. The last “real” yearly net profit was achieved by the company in 2008 (under the then name Evraz Vítkovice Steel).
VÍTKOVICE STEEL, a. s. is a traditional European manufacturer of rolled steel products, the largest manufacturer of steel plates in the Czech Republic and the only manufacturer of sheet piles in the country. The company is owned by multinational investment funds from the countries of the former Soviet Union. It employs almost people.
