Steelmaker Třinecké železárny ends another year in red

Despite increased production, Třinecké železárny lost Kč 632 mln in 2010 due to expensive commodities and low steel product prices

In its annual report for 2010, Třinecké železárny – Moravia Steel group has posted a loss of Kč 632 million for 2010. The loss was around Kč 100 million less than in the previous year and the company was again the largest Czech producer of raw steel.

“2010 was a time when the global economic crisis continued. Even though the most difficult period of the past decade is receding, we are still feeling the consequences,” the company’s joint owner and executive board chairman, Tomáš Chrenek, wrote in the annual report, adding that the loss was caused by expensive commodities crisis and low market prices for steel products.

In 2010, Třinecké železárny – Moravia Steel’s gross income rose by around a third to Kč 32.5 billion and production returned to pre-crisis levels. For the second year in row the company was the largest steel producer in the Czech Republic, accounting for 48 percent of the country’s output. Again the company’s most-sold product was rolled steel wire of which it sold a record quantity.

“In the area of sale prices, we had to react to the market situation in order to keep our structure of customers,” Chrenek reported, adding that due to the reconstruction of a coking plant at the steelworks in Třinec, the company had to buy some of its coke supplies at highly disadvantageous prices.


Staff Writer

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