Economic Slowdown and Pandemic Affected the Economy

One of the most challenging years in modern history, this was the year 2020 for Třinecké železárny. It was accompanied by an economic slowdown, uncertainties on the steel market, and finally a global coronavirus pandemic that meant a fundamental change in the organisation of work and care of employees. Despite this, the company managed to achieve a positive result of CZK 469 million. However, this is the worst result in a decade.

In 2020, Třinecké železárny earned CZK 35.114 billion, down CZK 3 billion year-on-year. Crude steel production reached 2.581 million tonnes. Despite the challenging situation, the company did not have to shut down any of its production units during the pandemic.

"Adhering to strict corporate anti-epidemic and safety measures paid off. Damage caused by production and trade restrictions was reduced to a minimum. Production and sales remained at the level of previous years. This is an almost miraculous result when we consider that, as a result of the pandemic, steel production in the EU fell by almost 12 percent in 2020," says Tomáš Chrenek, Chairman of the Supervisory Board of TŽ.

The TŽ's share of domestic crude steel production increased to 58% in 2020. Wire remains the best-selling product, with total sales reaching a record 1,017 kt. The sales volume of bar and section steel reached 542 kt. The higher degree of finishing of bar steel enables sales of higher value-added products, which are mainly used in the automotive and engineering industries. 226 kt of rails and rail accessories were shipped to EU countries, Canada, the USA and the domestic market.

Of the total sales of our products, 69 percent were exported and almost 31 percent were destined for domestic customers.  The most important export countries include Germany, Slovakia, Italy and Poland.

In 2020, the TŽ invested CZK 1.420 billion. Among the most significant were the modernisation of two wind heaters, refining line number 2, STAKU line number 2 and the development of a detached drawing plant in Staré Město.

This year, the company plans to invest CZK 1.6 billion. "We have drawn up the investment plan taking into account the current market situation, economic prospects and the consequences of the coronavirus pandemic," said Jan Czudek, CEO of Třinecké železárny.

In the second half of August, the most significant investment of this year will begin, the reconstruction of one of the two blast furnaces, with a total cost of over CZK 600 million. This year, Třinecké železárny will also modernise the continuous steel casting plant No. 1, where it will replace the original guide table frames from 1989 and transform the casting streams to be able to cast round blooms of 600 mm diameter.

In response to the commitments of the European Green Agreement, Třinecké železárny is preparing an integrated transformation project based on the use of renewable energy, a change in steel production technology and the greening of primary production. The smelter will thus reduce greenhouse gas emissions by 55 percent. "We will ensure the continuation of the tradition of metallurgical production in Třinec for future generations in a modern, environmentally friendly plant, where we build on the principles of the circular economy and produce steel in a sustainable way," concludes the CEO of the company.

The annual production of Třinecké železárny is around 2.5 million tonnes of steel. The main products include mainly long rolled products – wire rod, steel profiles, special bar steel, drawn steel, rails, wide steel, seamless pipes and semi-finished products. Třinecké železárny has been the largest producer of crude steel in the Czech Republic for the last 10 years. In its entire history since 1939, Třinecké železárny has produced more than 180 million tonnes of steel. About 7,000 people are employed there.

Petra Macková Jurásková
Press Secretary of the Třinecké železárny - Moravia Steel Group
phone: +420 558 535 841
mobile: +420 602 265 738
e-mail: Petra.Mackova@trz.cz