VÍTKOVICE STEEL still burdened by investigation conducted because no decision still has been made

22.7.2022

VÍTKOVICE STEEL still burdened by investigation conducted because no decision still has been made

VÍTKOVICE STEEL located in Ostrava produces and operates without any restrictions but is burdened by lengthy investigation conducted by the Financial Analytical Office (FAO) due to the company’s suspected ownership ties to Russia. The investigation has been underway for 3 months without any outcome and the FAO does not communicate with the company. This makes it difficult for the company to maintain good relationships with its business and financial partners, and its employees and their families experience uncertainty and concerns about further development.

“The demand for our products is high but carrying on business when the inconclusive investigation by the FAO is dragging on because of which the suspicions raised are still faced by us, our position is extremely difficult although we do our best to keep the company running to the maximum extent possible,” said Radim Pachlopník, member of the Board of Directors of VÍTKOVICE STEEL.

The company repeatedly declared in writing its openness and willingness to cooperate in the administrative proceedings involving an interim measure regarding disposal of the company assets which was initiated by the FAO in end April, but no official response has been received.

The market situation is favourable for the company because the demand for steel products is high and the war in Ukraine made it even higher. The problem faced not only by VÍTKOVICE STEEL but by all the industry is expensive utilities, logistics complications and uncertain gas supplies. In addition, the steelmakers have to handle the emission credits and safeguard measures on steel import to Europe. In spite of all unfavourable circumstances the company manufactures and delivers products to its customers, discharges its obligations to almost 900 employees, has enough purchase orders and hopes that the issues associated with the investigation by the FAO will be clarified without an irrecoverable impact on the company.

We reiterate that VÍTKOVICE STEEL owners are not Russians and are not found in the sanction lists. The company is owned by 5 multinational investment funds which are controlled by persons residing in the territory of former Soviet Union, namely in Armenia.

 

VÍTKOVICE STEEL, a. s. is a traditional European producer of rolled steel products, the biggest producer of steel plates in the Czech Republic and the only producer of sheet piles in the country. Most of the products of the company located in Ostrava are used in the building industry and mechanical engineering. 70 % of the sold products are imported. Last year, the company generated operating profit again after difficult loss years.

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