Evraz Vitkovice temporarily closes steel shop

 

TIDMEVR 
 
RNS Number : 5238O 
Evraz Group S.A. 
30 June 2010 
 

          Evraz Vitkovice Steel Temporarily Shuts Down its Steel Shop 
 
30 June 2010 - Evraz Group (LSE: EVR) ("Evraz" or the "Company") announces the 
temporary closure of the steel shop at Evraz Vitkovice Steel ("EVS"), the 
Company's Czech subsidiary, with effect from 1st July. The closure marks the 
current failure in negotiations between Evraz Vitkovice Steel and ArcelorMittal 
Ostrava over the prices for hot iron supplied by ArcelorMittal Ostrava. 
 
 Evraz Vitkovice Steel fully proved its commitment for constructive dialogue 
and accepted AMO's pricing formula proposal as a basis for further negotiations 
over the formula's base price. ArcelorMittal Ostrava effectively rejected the 
proposal of EVS regarding the base price and officially stated that its position 
was unchanged. 
 
 The current annual steelmaking capacity of EVS is 950,000 tonnes of steel. 
The temporary closure of the steel shop will not in any way influence the 
plant's rolling production which will be maintained at the level achieved in 
recent months. EVS's rolling requirements will be covered by the supply of slabs 
from suppliers in Slovakia, Ukraine, Turkey, as well as Evraz's NTMK plant in 
Russia. 
 
 All the EVS steel shop workers will be required to remain in their 
positions or on standby, so that, if agreement with ArcelorMittal Ostrava is 
reached, they would be able to start up the steel shop immediately. The 
temporary closure plan also counts on alternative employment for the steel shop 
workers during the month of August, should the steel shop remain closed. There 
are no plans to lay off any workers during the temporary shutdown period. 
 
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For further information: 
 
Media contact: 
 Alex Agoureev 
 VP, Public Relations 
+7 985 
122 4822 
[e-mail] 
 
Investor contact: 
 Alexander Boreyko 
 Director, Investor Relations 
 +7 
495 232 1370 
[e-mail] 
 
 
 
 
Evraz Group S.A. is a large vertically-integrated steel, mining and vanadium 
business with operations in the Russian Federation, Ukraine, Europe, the USA, 
Canada and South Africa. The Company is ranked the 14th largest steel producer 
in the world based on crude steel production of 15.3 million tonnes in 2009. 
Evraz is largely self-sufficient in respect of its iron ore and coking coal 
requirements with the majority of its internal consumption covered by its mining 
operations. Evraz's consolidated revenues for the year ended 31 December 2009 
totalled US$9,772 million, while consolidated adjusted EBITDA amounted to 
US$1,237 million. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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