Investments in Třinecké železárny will exceed CZK one billion this year
Třinecké železárny is going to be ready for a difficult year. Last year's decline in demand and the downward pressure on prices of products had a negative impact on the preparation of financial plan. Already last year, the company reduced the planned investments by CZK half billion. Plan for this year is in amount of CZK 1.4 billion.
“We reduced total investment by more than CZK half billion last year due to adverse market and economic developments. Finally, we invested 2.3 billion crowns,” says Mr. Jan Czudek, the CEO of Třinecké železárny. Due to decline in demand, we slightly decreased the production volume.
In 2019, the company produced 2.502 million tons of crude steel, which is 81 thousand tons less than in the previous year. This year's production volume is planned at the level of 2.637 million tons of crude steel. However, the investment will be at the lower level in Třinecké železárny.
Třinecké železárny intends to invest 1.4 billion crowns this year. “It is significantly less than we originally had in our Business Plan. However, the overall situation does not allow us to invest more money,” specifies the CEO of Třinecké železárny. There are 54 investment projects, some of them have already launched last year.
According to the CEO, this year will be very difficult. “Although we expect a higher production of crude steel than last year, the current outlook of the economic result, particularly with regard to selling prices on the market, is not favourable,” the CEO says and adds, that the weak growth of the German economy and the uncertainty associated with changes in the automotive industry will affect economic development. Uncertainty is further increased by high prices of basic raw materials such as iron ore and coal, and the US trade war with China. And finally, a strong pressure to reduction of the carbon footprint as well as other environmental commitments, metallurgical companies in Europe have to implement at the cost of increasing expenses, thus we are reducing our competitiveness on the global markets.
Investments in 2020
The biggest investment having started this year, will be a new peeling line for CZK 715 million.
Thanks to this fact, the company will increase the capacity of peeled bars, which is in demand on the market. Other important projects this year will include the new hot blast stove No. 62 at the blast furnace, which is more energy efficient than the obsolete equipment we use now and reaches a higher heating temperature (up to 1250° C). The total investment will reach CZK 290 million.
This year, the company will also complete investments that have already begun. In spring, it will put into operation the treatment line No. 2. It is a project with a total cost of almost CZK 260 million. “Steel bars get better properties at the same strength by heat treatment. They predestine them for use in the machinery and automotive industries,” specifies Mr. Radek Olszar, The Director of Investment and Strategy. Typical products made of tempered bars are for example fasteners, rods, shafts, springs or stabilizers.
Other investments under construction include the extensive modernization of the Steel Drawing Plant in Staré Město, totalling CZK 600 million, of which the automatic warehouse stacker is already in operation and the construction of a new production hall on an area of 4000 m2 for automated production lines. The company will thus introduce improved peeling and grinding technologies. The annual production capacity of the Steel Drawing Plant is around 90,000 tons. New investment should increase the production capacity by approximately 20%.
This year, we will complete additional environmental investment, which will reduce fugitive dust emissions in the atmosphere. “The project of dedusting equipment for transporting and re-establishing the charge for producing the BOF sinter will be put into operation this year. The second equipment for the collecting and processing the mixture for the production of blast furnace sinter will be put into operation next year." adds Jan Czudek. The total expected amount of both facilities exceeds CZK 760 million with a SEF subsidy of CZK 338 million.
This year, the company will also deal with the topic of carbon neutrality. It is striving to offset CO2 emissions. "We are preparing a series of measures to reduce our and global carbon footprint, especially in the energy sector, where it is technically possible" specifies the CEO. The company intends to provide the public with details in the first quarter of the year. One of the upcoming projects is the construction of a solar power plant in the new Steel Drawing Hall in Staré Město.
Petra Macková Jurásková
Press Secretary of the Třinecké železárny - Moravia Steel Group
phone: +420 558 535 841
mobile: +420 602 265 738