The steel industry remains under pressure, revenues have declined

The General Meeting of Třinecké železárny (TŽ) yesterday approved the financial results for the past year. The company achieved a net profit of CZK 316 million, solely due to strict cost-saving measures. In 2023, the profit was CZK 44 million. Revenue from the sale of products and services amounted to CZK 47,371 million in 2024, compared to CZK 49,692 million in 2023.

Steel production reached 2,425 kilotonnes last year, representing a year-on-year increase of 10 kilotonnes. The company thus confirmed its position as a stable steel producer even during challenging economic period, which for the third consecutive year has been marked by lower apparent steel consumption and weak demand. In 2024, the European industry experienced a decline in steel consumption across all major customer sectors. Consumption has been gradually decreasing since the start of the war in Ukraine, mainly because of persistently high energy costs and low prices of steel products.

“Low demand is harming traditional European producers of high-quality and environmentally friendly steel, while the market is being massively flooded with cheap products from Asia, North Africa, and the Middle East. The negative balance is driven by extremely high energy prices, as well as the environmental, administrative, and legislative burdens imposed by European political bureaucracy,” said Tomáš Chrenek, Chairman of the Supervisory Board.

Despite the challenging conditions, the company did not stop its investment activities. A total of CZK 1,578 million was allocated to development last year. In terms of investments, the largest portion of financial resources in 2025 will be directed toward primary production, with the goal of achieving maximum decarbonization. Plans include the construction of an emission-free iron ore briquetting line, which is expected to reduce CO₂ emissions by up to 70,000 tons annually. Other investment projects will include the installation of specialized robots for continuous casting equipment.

The key investment in an electric arc furnace (EAF), originally planned for 2028, is being postponed until at least 2030 due to a lack of public support, an uncertain regulatory framework, and high costs. “Such a large-scale investment requires a stable European policy, clearly defined market protection rules, and a national energy strategy that ensures the competitiveness of Czech industry,” added Ján Moder, First Vice-Chairman of the Supervisory Board.

The transition to low-emission steel production will require the implementation of several projects with total costs exceeding CZK 25 billion.

Product Sales

Rolled wire remained the company’s best-selling product. In 2024, over 941 kilotonnes of wire were shipped from Třinec to the market. In the category of bar and section steel, sales volumes reached nearly 471 kilotonnes. Almost 241 kilotonnes of rails, including rail infrastructure accessories, were delivered primarily to foreign markets. Exports accounted for 69% of total sales, while 31% of the products were supplied to domestic customers.

Třinecké železárny produces approximately 2.5 million tonnes of steel annually. Its main products include long rolled items – rolled wire, structural steel, special bar steel, drawn steel, rails, wide flat steel, seamless tubes, and metallurgical semi-finished products.

The company currently employs 6,800 people, and together with its subsidiaries and affiliated businesses, it provides jobs for up to 30,000 individuals.

The steel industry holds a significance for the Czech Republic that goes beyond standard industrial sectors – it is a strategic industry, part of the critical infrastructure, and a fundamental pillar of national sovereignty.