Ostrava - Vitkovice Steel, formerly Evraz Vitkovice Steel, will close its Ostrava plant by September 30, 2015 at the latest, spokesman Jaromir Krisica told CTK today.
Vitkovice Steel currently employs over 1,000 people, of whom around 250 work in the Ostrava plant. It is not yet clear how many people will be dismissed.
A general meeting of the company decided to halt investments in the secondary dedusting unit at its converter shop. Without the unit, the firm´s integration permission which it needs for the steel plant´s operation expires on September 30 next year.
Shareholders ordered the management to work out a phase-out plan for the steel plant that will minimise the impacts on employment in the region and will respect customer-supplier relations, Krisica said.
A group of investors, namely Martinley Holdings, Nabara Holdings, Vitect Services, Hayston Investments and Dawnaly Investments, has become a new owner of Vitkovice this year.
Evraz, the largest Russian steel group, obtained $287m (over Kc5.7bn) for the Czech unit which it bought for $285m in 2005.