Ostrava, October 3, 2017 - VÍTKOVICE STEEL, a.s. (the Company) is the only producer of sheet piles in the Czech Republic and one of two in the European Union. In order for the Company to strengthen its market position, it has modernized the rolling mill intended for the production. Investment worth almost 315 million CZK will affect the increase in production capacity, expansion of the product portfolio, reduction of natural gas consumption, and reduction of NOx emissions.

The rolling mill modernization includes the installation of a new section straightener and modernization of the furnace heating system. The investment aims to increase the capacity of production of sheet piles to at least 20 kiloton/month and to create conditions for expanding the product portfolio with wider and more robust sheet piles. The modernization of the Company's heavy-section mill also has an impact of reducing the consumption of natural gas from 1.8 GJ/t to 1.5 GJ/t (17%), and by reducing the amount of NOx emissions from the required 300 mg/m3, stipulated by an integrated permit, to 200 mg/m3, having a positive impact on the environment.

"The realization of the investment was possible thanks to the stabilization of our Company and its positive economic development," said Dmitry Ščuka, Chairman and CEO of the Company.

The modernization of the rolling mill for the production of sheet piles, the heavy-section mill, was implemented from August to September this year and is now in full operation. The amount of investment is almost 315 million CZK using supplier credit without the use of subsidies. Suppliers of key technologies are specialized German companies.

The tradition of the production of steel sections by the Company dates back to 1913. Sheet piles are used mainly for the foundations of construction and for strengthening the banks of waterways. Vítkovice sheet piles were used, for example, for repairing the Charles Bridge pillars in Prague.

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