EVRAZ Vitkovice Steel Reaches Agreement with ArcelorMittal Ostrava over the Supply of Liquid Pig Iron
1 November 2010 – EVRAZ Group S.A. (LSE: EVR) (“Evraz”) announces that its subsidiary in the Czech Republic, EVRAZ Vitkovice Steel (“EVS”), has reached an agreement with ArcelorMittal Ostrava over the supplies of liquid pig iron from ArcelorMittal Ostrava (“AMO”) to the steelmaking facilities of EVS.
The agreement is based on a price formula that both sides consider mutually acceptable. The agreement will cover approximately the next five quarters. The supply of pig iron from ArcelorMittal Ostrava to EVRAZ Vitkovice Steel will resume in early November 2010. The new agreement implies the annual minimum set at the level of 550,000 tonnes. As such, AMO’s supplies will cover about 80% of EVS’s requirements. Part of EVS 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.
EVRAZ Vitkovice Steel has already started preparation of its steelmaking facilities for re-launch.
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 – 755,000 tonnes per annum.
For further information:
VP, Public Relations
+7 985 122 4822
Director, Investor Relations
+7 495 232 1370