Czech Steel IndustryCzech Steel Industrybefore and after Accessionbefore and after Accession
JaroslavJaroslav RaabRaabHutnictvHutnictvíí žželezaeleza –– Czech Steel FederationCzech Steel Federation
Ankara 8th Ankara 8th -- 9th August 20069th August 2006
Restructuring the I&S IndustryRestructuring the I&S Industry
2
Macroeconomic Data CR 200Macroeconomic Data CR 2004, 2005, 20064, 2005, 2006
9.8 %
+1.9 %
+0.0 %
+5.8 %
+4.9 %
2005
10.2 %
+2.8 %
+9.7 %
+ 9.9 %
+4.7 %
2004
9.2 %
+2.9 %
+2.0 %
+ 5.0 %
+4.5 %
2006
GDP growth
Industrial output growth
Construction output growth
Net inflation
Unemployment rate
3
Czech Steel IndustryCzech Steel Industry
Production 6.2 mil. tBOF / EAF 90 / 10Long / Flat products 65 / 35Seamless / Welded tubes 60 / 40CC steel / Ingots / Liquid steel 88 / 9 / 3EU 25 Deliveries + Imports 4.0 mil. tEU 25 Deliveries + Exports 4.4 mil. t
4
Share of Czech SteelShare of Czech SteelW
orld
stee
lpro
duct
ion
(Mt/y
ear)
ShareofCzechsteelon theW
orldproduction
(%)
Year
15
Changes after Entry Changes after Entry to EU to EU –– TradeTrade
Part of much bigger „domestic“ marketdistinguishing „dispatch“ and „export/import“
Member of customs unionRespecting the EU obligationsHarmonizing the standardsActive role in the European institutes
EUROFERESTA
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UPDATED NATIONAL PROGRAMME OFUPDATED NATIONAL PROGRAMME OFTHE CZECH STEEL INDUSTRYTHE CZECH STEEL INDUSTRY
RESTRUCTURINGRESTRUCTURING
(Final Version)
Summarised content of documents concerning restructuring of the Czech steel industry and the present state of the restructuring
Prague, December 2002
Approved by the Czech Government and the European Commission
18
Czech Steel Industry Czech Steel Industry –– Parameters to 2007Parameters to 2007
Removal of 1.9 mil. tons of excessive capacity Steel production about 6 mil. tonsGrowing portion of flat productsApparent domestic consumption ca. 4.7 – 4.8 mil. tonsGrowing productivity
8500 employees in hot productionProductivity of ca.700 tons of steel per employee
Two basic lines of product chains : long products based on Třinec Steel Works flat products based on Nova Hut Ostrava
19
Restructuring ProgrammeRestructuring Programme
Crucial aspects of the restructuring:constant pressure to reduce costs and increaseproductivityinter-connection of the state support with thereduction of capacities viability guarantees product chains
20
Monitoring Monitoring
Fulfilment of The Programme to Restructure theCzech Steel Industry will be regularly monitored
Twice a year from March 2003 to March 2007Complying with the EC criteria
Observing the scheduleState supportClosing of the excessive capacitiesTheir subsequent liquidation
21
Social ConsequencesSocial Consequences
Accompanying Social Programme” – Government Resolution # 181/2002 More than 14 000 employees dismissed from 20002000 to 2002, ca. 4 400 people took advantage of ASPIn 2003, the benefit provided to 1200 workersIn 2004, the benefit provided to 800 workersIn 2005, the benefit provided to 530 workersTotal ca. 7000 people under this programmeThe end of the program in 2007
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Social ConsequencesSocial Consequences
Support of new jobs:START programme – support of small business activities for the workers dismissed from metallurgyRegional Development Programme – development of business activities and new jobs in regions touched by restructuringAbout CZK 300 mil. for these programmes annually
Programme of active need for employment (allindustry incl. steel)
24
Employees in Czech Steel IndustryEmployees in Czech Steel Industry
Employees in hot
Productivity (t of steel / employee)
25
Environmental ProtectionEnvironmental Protection
Since 1991 – association processSince 1992 – legislation, harmonization with EU
the Czech limits were even more strictkey role of the Ministry of Environment
at present, the environmental management issues are fully in accordance with EU Directivesand other regulations
27
Investments Investments –– Companies Companies
Programs since 1991:
Total investments – CZK 75 billion
Modernization and new facilities – CZK 50 billion
Environmental projects – CZK 25 billion
+ Old environemntal burden disposal – CZK 8 billion
Similar trends are expected in the future
28
Recent SituationRecent Situation
Greenhouse gases tradingIPPC
long time of the approving processREACHEnergetic taxes
effect to the inputs
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Thank you for your attentionThank you for your attention
More information at:www.hz.cz