The sharp drop in the indicator is caused by problems at the Liberty Ostrava steel plant
In 2023, Czech steelmakers reduced steel production by 21.1% compared to 2022, to 3.4 million tons. The country was thus ranked 39th in the global ranking of steel producers by WorldSteel, according to the association's report. report .
The Czech Republic has two steel companies: Trinecke Zelezarny, with an annual capacity of 2.8 million tons of steel and 2.1 million tons of pig iron, and Liberty Steel Ostrava (3.6 million tons of steel per year, 2.1 million tons of pig iron per year).
The sharp decline in steel production in the country is likely due to problems at Liberty Steel. Since October last year, the company has suspended its only No. 3 blast furnace in operation. The unit's shutdown was scheduled for two weeks due to insufficient demand for products in the EU. During this period, it was planned to maintain full employment and meet customer orders while the rolling mills continued to operate.
It later turned out that Liberty Ostrava had debts with the energy supplier Tameh Czech. The sole energy supplier for the steel mill was on the verge of bankruptcy. On December 21, 2023, production at the plant came to a complete halt when Tameh stopped supplying the company with electricity.
Since then, employees at the power station and power supply company Tameh Czech (around 6,000 people in total) have remained at home and most operations have been suspended. The date for factory employees to return to work has been postponed several times. According to Patrick Schober, spokesman for the energy supply company, Liberty is showing very little activity in resolving the situation.
Therefore, the situation in Liberty Ostrava will continue to have a negative impact on steel production in the Czech Republic in early 2024, as the country's largest steel mill remains closed and the date of its return to work remains unknown.
Overall, steel production in EU countries decreased by 7.4% in 2023 compared to 2022 – to 126.3 million tonnes.
As Compraço previously reported, in 2022, the Czech Republic reduced steel production by 11% compared to 2021, to 4.3 million tons. Thus, the country's steel industry presents negative results for the second consecutive year. In 2021, steel production by Czech steel mills increased by 7.9% compared to the previous year – to 4.8 million tons.
