Situation in 2002

The steel products‘demand grew in 2002 favourable. By the year-end the major part of capacities was running on the full extent. The both companies being in troubles have improved their state markedly. The largest company, i.e. Nova hut – was by the year-end standing near to the privatisation. The plate producer Vitkovice Steel (funded in 2001 by splitting the former Vitkovice, a.s. following the government’s recovery programme) shows now good economy. There is no hurry to privatise it, means the government. But it remains the main privatisation task of the Czech government. The third integrated Steelwork – Trinecke zelezarny, a.s. - is the economic stable company. Product chains and upgrade its production range towards the higher added value are the main principles of the continuing development strategy.

EU approved the National Programme of the Czech Steel Industry Restructuring. Monitoring of its realisation incl. capacities’ reduction will be made regularly twice a year till March 2007. 590 Kt of capacities have to be liquidated – the actual list of them was handed over to EU Commission. The Czech government accepted the conditions required by EU Commission. Prospects for this year remain optimistic. From the point of view the steel consumption, the reserves are seen in the infrastructure actions.

The new wave of investment comes with the brand new owner of Nova hut – LNM Group. The new company’s name is ISPAT NOVA HUT a.s.

The output position will remain favourable for the 1st Half of 2003, too.