{"id":4411,"date":"2018-04-17T00:00:26","date_gmt":"2018-04-16T23:00:26","guid":{"rendered":"https:\/\/praguebusinessjournal.com\/?p=4411"},"modified":"2021-06-29T15:45:37","modified_gmt":"2021-06-29T14:45:37","slug":"arcelormittal-pledges-to-keep-government-informed-of-ostrava-steelworks-sale","status":"publish","type":"post","link":"https:\/\/praguebusinessjournal.com\/arcelormittal-pledges-to-keep-government-informed-of-ostrava-steelworks-sale\/","title":{"rendered":"ArcelorMittal Pledges To Keep Government Informed Of Ostrava Steelworks Sale"},"content":{"rendered":"<p class=\"p1\"><span class=\"s1\">Prague, April 17 (CTK) &#8211; ArcelorMittal will inform the Czech government of all steps related to the potential sale of the ArcelorMittal Ostrava (AMO) steelworks, Industry and Trade Minister Tomas Huner and AMO CEO Ashok Patil said at a briefing after their meeting today.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Huner also announced that a four-member working group with the participation of both parties would be created to analyse necessary data in case of the sale. The group might be established during the government&#8217;s working trip to the Moravia-Silesia Region next week, he said.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">By selling the Ostrava-based AMO, international steel group ArcelorMittal wants to obtain an approval from the European Commission (EC) for its acquisition of the Ilva steelworks in Taranto, Italy.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The EC is to make a decision on the case by May 23 and is not commenting on it in the meantime.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Patil reiterated today that if the EC approved the sale, AMO would stay in full operation, though under a new owner.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The potential sale of the steelworks has been criticised by Josef Stredula, the head of the trade union umbrella organisation CMKOS.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">&#8220;After the experience with (mining company) OKD and with what is currently happening at (engineering group) Vitkovice, we want to be ready. On the one hand, there is no reason to panic at this moment, since ArcelorMittal Ostrava is a thriving company with above-average wages, but on the other hand, we want to avoid a situation when we learn about key decisions too late. Maintaining employment Ostrava is an absolute priority for us,&#8221; Huner said.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Analysts do not expect AMO to have a problem to find a new owner with regards to its profits. The risk that the company employing nearly 7,000 people will be closed is minimal, they said.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">According to Cyrrus analyst Lukas Kovanda, Chinese steel giant He Steel may show interest in AMO.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">He Steel considered acquiring Slovak steelworks US Steel Kosice last year but the deal did not eventually take place.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Online daily E15 said on Sunday there are speculations that a company from Russia might buy AMO. It is also possible that Czech steelworks <a href=\"https:\/\/praguebusinessjournal.com\/trinecke-zelezarny-sees-profits-fall-23-in-2020\/\">Trinecke zelezarny<\/a> will try to revive its previous plans to create a Czech steel group.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Patil said today he could not comment on potential buyers until the EC made a decision on the matter.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Stredula told CTK that it would be bad news for ArcelorMittal Ostrava and its employees if the new owner was a mere speculator who buys companies for immediate profit only.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">AMO posted a net profit of Kc1.308bn in 2016, Kc1.017bn higher than the year before, while its sales decreased by Kc1.8bn year-on-year to Kc28.8bn.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">On Friday, ArcelorMittal announced that the plants intended to be sold as compensation for the acquisition of Ilva also include Romania&#8217;s Galati, Italy&#8217;s Piombino, Macedonia&#8217;s ArcelorMittal Skopje, Luxembourg&#8217;s ArcelorMittal Dudelange and operations in Liege, Belgium.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">AMO, formerly Nova hut, has been part of ArcelorMittal since 2003.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The parent company ArcelorMittal is the biggest producer of steel in the world, accounting for about 6 percent of the global steel output.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prague, April 17 (CTK) &#8211; ArcelorMittal will inform the Czech government of all steps related to the potential sale of the ArcelorMittal Ostrava (AMO) steelworks, Industry and Trade Minister Tomas Huner and AMO CEO Ashok Patil said at a briefing after their meeting today. Huner also announced that a four-member working group with the participation &#8230; <a title=\"ArcelorMittal Pledges To Keep Government Informed Of Ostrava Steelworks Sale\" class=\"read-more\" href=\"https:\/\/praguebusinessjournal.com\/arcelormittal-pledges-to-keep-government-informed-of-ostrava-steelworks-sale\/\" aria-label=\"Read more about ArcelorMittal Pledges To Keep Government Informed Of Ostrava Steelworks Sale\">Read more<\/a><\/p>\n","protected":false},"author":6,"featured_media":4415,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[18],"tags":[479],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>ArcelorMittal Pledges To Keep Government Informed Of Ostrava Steelworks Sale - Prague Business Journal<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/praguebusinessjournal.com\/arcelormittal-pledges-to-keep-government-informed-of-ostrava-steelworks-sale\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ArcelorMittal Pledges To Keep Government Informed Of Ostrava Steelworks Sale - Prague Business Journal\" \/>\n<meta property=\"og:description\" content=\"Prague, April 17 (CTK) &#8211; ArcelorMittal will inform the Czech government of all steps related to the potential sale of the ArcelorMittal Ostrava (AMO) steelworks, Industry and Trade Minister Tomas Huner and AMO CEO Ashok Patil said at a briefing after their meeting today. 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