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Evraz Vitkovice Steel to Temporarily Shut Down Steel Shop
07/01/2010 - Evraz Group announces the temporary closure of the steel shop at Evraz Vitkovice Steel following failed negotiations between Evraz Vitkovice and ArcelorMittal Ostrava over prices for hot iron supplied by ArcelorMittal Ostrava.
Evraz Group announces the temporary closure of the steel shop at Evraz Vitkovice Steel, the company’s Czech subsidiary. The closure takes effect July 1.
The closure follows failed negotiations between Evraz Vitkovice Steel and ArcelorMittal Ostrava over prices for hot iron supplied by ArcelorMittal Ostrava.
Although Evraz Vitkovice Steel had accepted ArcelorMittal Ostrava’s pricing formula proposal as a basis for further negotiations, the company said that ArcelorMittal Ostrava had effectively rejected its proposal regarding the base price, and had officially stated that its position was unchanged.
Evraz Vitkovice said it would not allow the temporary closure of the steel shop to affect its rolling production. The company intends to maintain the production levels achieved in recent months with rolling stock provided by slabs from suppliers in Slovakia, Ukraine, Turkey, as well as from Evraz's NTMK plant in Russia.
Evraz Vitkovice is requiring its steel shop workers to remain in their positions or on standby so they will be ready to re-start steel shop as soon as an agreement is reached with ArcelorMittal Ostrava. The temporary closure plan also provides for alternative employment for the steel shop workers during the month of August, should the steel shop remain closed.
The company said it has no plans to lay off any workers during the temporary shutdown period.
Evraz Vitkovice Steel, a subsidiary of the Evraz Group, has a current annual steelmaking capacity of 950,000 tonnes of steel.
