Situation in 2004
Steel industry in the CR took in 2004 advantage of in general favourable steel market. Production volumes didn’t however in year to year view markedly rise, because capacity possibilities have been practically fully utilised. National Restructuring Program obliges to liquidation of a part of capacities and only a single company pushed off liquidation of rolling mill about 1 year (to 2005).
Big economic benefits recorded for second year again the biggest steel company CR – Ispat Nova hut.
Those benefits allowed its owner LNM Holdings to write out a special redundancy payment on own finances score, which enabled to speed up retirements of redundant workers from company. LNM Holdings proved that it is able from ruins companies to establish highly prosperous steel companies. As well another short of privatisation standing company - Vitkovice Steel – fastened its economical position. By the end of January showed about its serious interest (at fulfilment tendering requirements) round 19 companies. It is foreseen a volunteered price dwarfing Crowns4000m. In both cases more than volume of production reacted on profit growth positively the rationalization of companies’ control.
Trinecke zelezarny again carried forward on the way of improving production assortment in favour of higher up-value of production mix. Likewise the views of year 2005 have all three big companies optimistic. Also steel processors – tubing, drawing plants – recorded positively tendencies of development.
Everything founded echo also in investment programmes with perspective levelling up investment intensity about 30% against plans for year 2005.
Permanent positive tendencies of development show construction building and industry, so that projection of next development for home demand is favourable. However before steel industry are standing tasks to settle with input price rising along with entire operation trade with emissions CO2 allowances. As positive step is five - year contract closed on supplies coal and coke. The tight situation in scrap has to help solve the initiative of Ministry of Industry and Trade towards incentive system on behalf of collection and treatment of scrap aimed to intensify processing of depreciation scrap.
