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ArcelorMittal Ostrava to Resume Hot-Metal Supply to Evraz Vítkovice Steel

11/03/2010 - ArcelorMittal Ostrava and Evraz Vitkovice Steel (EVS) reached an agreement recently over the supplies of liquid pig iron from ArcelorMittal Ostrava to the steelmaking facilities of EVS. The agreement guarantees supplies of hot metal from November 20, 2010, to the end of 2011.

ArcelorMittal Ostrava and Evraz Vitkovice Steel (EVS) reached an agreement recently over the supplies of liquid pig iron from ArcelorMittal Ostrava to the steelmaking facilities of EVS.
 
The agreement guarantees supplies of hot metal from November 20, 2010, to the end of 2011. Under the agreement, ArcelorMittal Ostrava will supply 65,000 tonnes of hot metal until the end of 2010 and another 550,000 tonnes, or about 80% of EVS’s requirements, during 2011 to the Vítkovice steel plant.
 
Part of EVS’s rolling needs will still be met by the supply of slabs from Evraz’s NTMK plant in Russia, with the remaining portion acquired from other suppliers in Slovakia, Ukraine, Turkey, and other countries.
 
The agreement is based on a price formula that both sides consider mutually acceptable.
 
“The agreement is good news for both companies, their employees, and the region. Following the substantial increase in raw material prices and the unstable market situation, we are happy to have found a solution now which guarantees stability for both companies throughout 2011,” said Augustine Kochuparampil, CEO of ArcelorMittal Ostrava, upon the signature of the agreement.
 
ArcelorMittal Ostrava a.s. is the biggest steelmaker in the Czech Republic and part of the world’s largest steel group, ArcelorMittal. Its yearly capacity is 3 million tonnes of steel. It exports approximately 50% of its output to more than 80 countries all over the world.
 
Evraz Vítkovice Steel is a leading European manufacturer of rolled steel products located in Ostrava, Czech Republic. It is one of Europe’s top producers of heavy plates and is the only plate producer in the Czech Republic. Production capacity of its steel plant is 965,000 tonnes, plate mill is 755,000 tonnes per annum.