Situation in 2000
Data on GDP development during the Y2000 confirm continuing growth of the Czech economy with year-on-year increase exceeding level of 2 percent. Economic growth is expected to accelerate to some 3 percent in 2001.
The recovery of the CR economy in 2000 has positively affected the steel consumption. So both the general economic situation and the steel consumption have shown the clear signs of recovery. The inland steel consumption recovery enabled to direct the so-called steel products deliveries on the inland customers more than to abroad ones (8.1 percent growth in 2000 to 1999, 5.2 percent respectively; at the assortment of rolled material 7.7 percent, 6.2 percent respectively). The penetration process of import continues (round 20 percent growth in 2000).
The economy of the two main steel consuming branches - machinery and civil engineering has improved. It confirms the long term forecast on steel consumption development.
The steelmaking situation in the CR has shown slowly improvement in 2000. The possibility of full utilisation of the growth in demand in inland and foreign countries has been in some companies hampered by their inner problems. Only the company Trinecke zelezarny, a.s. from the 3 integrated companies, could wholly take use of the demand growth dynamism. Further two companies being still in majority property of the National property fund, had to overrule their problems.
The company Nova hut, a.s. wasn't successful in complying with the start of the new key capacity - so called minimill. That caused considerable negative influence on the company’s economy dynamism and on production development as well. The bad situation of lack of operation capital at Vitkovice had been stabilised step by step. It was due to the undertaken government measures.
That is the reason why in comparison with further countries from the former Comecon the production didn’t rise in such extent.
As for steel it was against Y1999 12%, the growth in rolled material was only 7.6%. Further growth of imports contributes to 55 percent covering of the steel consumption by import.
The so-called verification stage of the Restructuring study was introduced to the government.
The results of steel consumption development forecast were again approved.
In April 2001 the so-called Phare stage of the Restructuring study was finished. The suggestions given by the Eurostrategy Consultants – the winner of tender – have to be elaborated into document addressing the government for discussion in July 2001.
