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August 13, 2018 12:00 am | FILED UNDER: business

ArcelorMittal Ostrava Nets Kc3.2 Billion In 2017

By ČTK ArcelorMittal Ostrava Steel Production Line

Ostrava, North Moravia, Aug 13 (CTK) – Steel producer ArcelorMittal Ostrava (AMO) netted Kc3.2bn last year, 146 percent (Kc1.9bn) more than in 2016, AMO spokeswoman Barbora Cerna Dvorakova told CTK today.

 

The annual growth was influenced positively by the result on the financial level.

 

“The financial result for 2017 amounted to Kc5.3bn, which is Kc4.2bn more than in 2016. The increase was thanks to higher income, mainly proceeds from the sale of shares in subsidiaries ArcelorMittal Tubular Products Ostrava and ArcelorMittal Tubular Products Karvina to the parent company,” Cerna Dvorakova said.

 

Subsidiaries thus turned into sister companies.

 

On the operating level, the company made a loss of Kc2.6bn, mainly due to a decrease in production caused by investments, planned repairs and lower margins.

 

“The company produced 1.8 million tonnes of liquid steel, 1.1 million tonnes of wet coke and 1.6 million tonnes of pig iron,” Cerna Dvorakova said.

 

ArcelorMittal Ostrava, a joint-stock company, is a unit of the ArcelorMittal group. It produces steel mainly for the building and engineering industries, exporting its products to more than 40 countries.

 

AMO and it subsidiaries have a 7,000-strong workforce.

 

ArcelorMittal is currently selling AMO.

 

In May, the European Commission approved a takeover of Italy’s Ilva, the biggest steel maker in Europe, by ArcelorMittal, the world’s number one steelworks, on condition that the group sells AMO and some other units in Europe to provide guarantee that Ilva’s acquisition will not violate economic competition and will not cause a price hike.

 

According to the media, two potential buyers have shown interest in AMO, namely Britain’s British Steel and India’s Liberty Steel. ArcelorMittal has not commented on the number of candidates or their names, which has been criticised by trade unions, who demand more information on the sale and guarantees that AMO will continue to operate.

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