Situation in 2009

Year 2009 was ever the worst year for steel industry since 1989. Markedly depressed steel products demand from second half of 2008 persisted until first half of 2009 and its convalescence have been very slow and fluctuating.

Demand depression resulted in:

• Expressive cutback in production (crude steel by 28%, rolled material by 25%) in spite of already lower level of 2008

Crude steel and rolled materials production in 2007 - 2009 (mil. T).

• Incomes decrease by 38,7%
• Labour productivity fall by 30%
• Unprofitable operational economic result Crowns4,2billion
• Low capacities’ utilization, shut - down 1 blast furnace
• Employment rate decrease by 2000 workers
• Decreased export volume by 23,6%
• Already begun investment construction continued
• Threatened was start of new ecological investments.

Financial resources, gained in boom phase, ensured nearly in all companies filling their financial commitments.