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CZECH METALWORKING INDUSTRY

Supplement of:Czech Business and Trade 11-12/2007

C Z E C H M E T A L W O R K I N G I N D U S T R Y

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MK ČR E 6379

This magazine is published as a supplement to the economic bi-monthly issued in English (Czech Business and Trade), German (Wirtschaft und Handel inder Tschechischen Republik), French (Industrie et commerce tchèques), Spanish (Empresas y negocios en la República Checa), and Russian (óe¯cÍaflÚop„o‚Îfl Ë Ôe‰ÔËÌËÏaÚeθcÚ‚o).

Managing Editor: Jakub HavelEditor: Naďa VávrováGraphic Design: Helena Dvořáková, Miloslav Bucvan

Address: PP Agency s.r.o., Myslíkova 25, 110 00 Praha 1, Czech RepublicPhone: +420 221 406 623, 221 406 626, Fax: +420 224 930 016E-mail: journal@ppagency.czwww.ppagency.cz, www.mpo.cz/cbt

Deadline: 24/9/2007

Attitudes expressed by the authors of articles in this magazine are not necessarily consistent with the viewpoint of the Publisher.

PP Agency Company with the ISO 9001 certified quality management system for publishing services

CONTENTS:

ANALYSIS4 Tradition and Prospects of Metal Production4 Metal Production Belongs to Competitive Sectors8 Czech Constructional Steelwork Association Supports Firms of the Branch8 Czech Steel Structures Rank among the Most Splendid Ones in Europe10 Steel Industry as the Main Supplier11 Investment into Metallurgy and Metalworking Increases Competitiveness

EDUCATION12 Association of Foundries Supports Education in the Branch

ENTERPRISE14 Foundry and Pattern Shop Scores Points Abroad

WE ARE INTRODUCING16 Leader on the Steel Market

CZECH TOP18 KOVOHUTĚ ROKYCANY - Brand of World Standard19 A Successful Czech Exporter20 Largest Steel Producer in the Czech Republic22 Plates from EVRAZ VÍTKOVICE STEEL for Luxury Pleasure Boats

RESEARCH & DEVELOPMENT24 Accomplishment in Metal Research and Development

SURVEY26 Poll of Successful Companies Operating in the Metalworking Industry

INFORMATION30 Fairs and Exhibitions in the Metalworking Sector in the Czech Republic in 200830 Important Contacts

PRESENTATION OF COMPANIES:

2 INCARD Steel, a. s.7 SAND TEAM, spol. s r.o.13 ZVONAŘSKÁ DÍLNA TOMÁŠKOVÁ-DYTRYCHOVÁ s.r.o.15 KOVOSREAL s.r.o.17 MORAVIA STEEL a.s.21 ArcelorMittal Ostrava a.s.27 Lobby Česká republika, s. r. o.29 Technologické centrum a.s.31 KOVONA SYSTEM, a.s.32 M.I.P. Group, a.s.

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Investment into Metallurgy andMetalworking Increases Competitiveness

Foundry and Pattern Shop Scores PointsAbroad

Plates from EVRAZ VÍTKOVICE STEEL forLuxury Pleasure Boats

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Tradition and Prospects of Metal Production

Ministry of Industry and Trade, e-mail: posta@mpo.cz, www.mpo.cz

The manufacture of metal structures andfabricated metal products – NACE 28(except machinery and equipment)belongs to the traditional branches of themanufacturing industry of the CzechRepublic. This branch mainly processessemi-finished metal products frommetallurgical plants (sector NACE 27 –Manufacture of basic metals). In view ofthe broad range of operations included inthe sector, the products are either final orare passed on for processing in othersectors, primarily engineering, electricalengineering, the building industry, andthe automobile industry.

Production in the Metal IndustryIn 2006, the metal industry accounted for8.79% of the total revenue of themanufacturing industry from the sale ofproducts in constant prices, and for13.8% of the total number of employees

in the manufacturing industry. The sharewas higher than in 2005.

Metal industry producers are in allregions. The range of the sizes ofproducts is huge and so the sizes ofenterprises differ. Most of the firms, morethan 7 000, have up to 49 employees.Many manufacturers of large productshave factories near the sources ofmaterial without need for long transport.This is why most Czech metal productsare manufactured in north Moravia.

Exports and ImportsThe largest partners of the CzechRepublic in both exports and imports ofproducts in the NACE 28 sector aretraditionally the EU countries, especiallythe nearest neighbours, Germany, Austria,and Slovakia. In 2006, NACE 28 productsfor EUR 3 182.8 million were importedand for EUR 4 734.9 million exported,

which was 11.7 % and 9.36 %respectively more than in 2005.

Metal Production in the CzechRepublic – Tradition andProspectsMetal production has the same traditionas engineering in the Czech Republic. Theuse of metals in components for themanufacture and completion of finalproducts is ever more popular. The reasonis the utility properties of metals. Thedevelopment of engineering and supportto the automobile industry in the CzechRepublic increased the two sectors’demand for metal components. Anotherlarge buyer of metal products has beenthe building industry. Metal structures areever more popular in the building industry,although they are not always the winnersin competition with concrete.

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Metal Production Belongs to Competitive Sectors

Jaroslava Urbanová, Ministry of Industry and Trade, e-mail: urbanova@mpo.cz, www.mpo.cz

The manufacture of metal structures andfabricated metal products (NACE 28)embraces an immense range of productsand technologies – from pins to nuclearreactors. Due to the range of the sector,the development and prospects of itsbranches differ greatly.

Importance of the Sector in the Manufacturing IndustryThe 2006 revenues from the sale ofproducts and services of the sector incurrent prices were 18.5 % higher thanin 2005, which was above the average ofthe whole manufacturing industry. The2006 increase in the revenues from thesale of products and services of themanufacturing industry in current priceswas 12.6 %.

Products of the NACE 28.1Branch – Manufacture ofStructural Metal ProductsStructural metal products are typicalcompleting products used in the buildingindustry, including bridge structures andvarious frameworks. In engineering,metal structures are importantcomponents, for instance of completeplants. This branch includes theinstallation, assembly, and repairs ofmetal structures. It also includes the

metal structures of cranes, hothouses,hangars, fences, metal stands, motorwaycrash barriers, etc. The branch as a wholeis successful due to large investment inthe Czech Republic, its qualified staff,and successful export of complete plants.Revenues of the NACE branch 28.1 fromthe sale of products and services incurrent prices rose from EUR 1 072.8million in 2001 to EUR 1 912.2 million in2006.

Successful companies which operate in

Revenues from the sale of products and services in current prices

EUR million 2001 2002 2003 2004 2005 2006

NACE 28 5 830 5 874 5 977 7 274 7 874 9 335

Manufacturing industry 70 832 71 752 75 812 88 729 94 328 106 195

Average exchange rate in 2006: EUR 1 = CZK 28.34

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the branch include BAEST, a.s. Benešov,Česko-slezská výrobní, a.s. Jeseník,DESMO, a.s., Praha, FERRMON, spol.s r.o. Ostrava, Hutní montáže, a.s.Ostrava, ISOTRA a.s., Opava, KOFING,

a.s. Ostrava, MCE Slaný, s.r.o., NedconBohemia, s.r.o. Pardubice, NERTECH s.r.o.Teplice, PKD, s.r.o., Dačice, SIAG CZ,s.r.o. Chrudim, SSI Schäffer s.r.o. Hranice,V.K.P. spol. s r.o. Chrudim, and VítkoviceHARD, a.s. Jeseník.

Products of the NACE 28.2BranchThis branch includes primarily metal tanks,reservoirs, containers, and boilers. Theirmanufacture is rising steadily due to themodernisation of production technologiesin the Czech industry and successfulexport of complete plants. This trend isalso influenced by the sale of centralheating radiators and boilers connectedwith the modernisation of heating.Revenues of branch 28.2 from the sale ofproducts and services in current pricesrose from EUR 494.6 million in 2001 toEUR 720.3 million in 2006.

Successful companies of branch 28.2which manufacture metal tanks andreservoirs include Chart Ferox, a.s.,Děčín, MEVA a.s., Roudnice nad Labem,OKZ HOLDING, a.s. Praha, TENEZ, a.s.Chotěboř, and VÍTKOVICE CYLINDERS,a.s. Ostrava. Companies whichmanufacture boilers and radiatorsinclude BBT Thermotechnology CZ s.r.o.,Praha (previously DAKON), JaroslavCankař a syn ATMOS, Bělá podBezdězem, KORADO, a.s. Česká Třebová,NERIA, a.s. Hustopeče, Thermona, spol.s r.o., Zastávka, and VERNER, a.s.Náchod.

Products of the NACE 28.3BranchNACE branch 28.3 includes themanufacture of steam generators andauxiliary equipment, condensers and

nuclear reactors used in the construction,reconstruction, and modernisation in theenergy industry. They are mainly sub-deliveries to complete plants. Strongcompetition exists in the branch, and themanufacture of these products is veryenergy- and time-consuming andexpensive. This is why variations in someyears cannot be seen as a failure of thebranch. The traditional manufacturers in

the branch in the Czech Republic includeALSTOM Power, s.r.o. Brno, BRESSON, a.s.Plzeň, ČKD DUKLA, a.s., Praha, Modřanskápotrubní, a.s. and ŠKODA JS, a.s. Plzeň.

Production in the NACE Branch28.4 – Forging, Pressing, andOther FormingForging, pressing and other forming arethe basic technological processes in themanufacture of engineering andautomobi le components. Thedevelopment of engineering and theautomobile industry increases demandfor these processes. The standard ofthese processes inf luences thecompetitiveness of their products. Thesuccessful development of the branch isevident from regular growth of revenuesfrom the sale of its products and servicesin current prices between 2001 and2006. Important companies of thebranch include Kovárna "VIVA" Zlín,spol. s r.o., Magna Cartech spol. s r.o.,České Velenice, Moravské kovárny, a.s.,Jihlava, Taforge, a.s. a Tawesco, s.r.o. inKopřivnice and ZEVETA COMPONENTS,a.s. Hradec Králové.

Production in the NACE Branch28.5 – Treatment and Coating of MetalsAs in the NACE branch 28.4, thetreatment and coating of metals has

NACE 28 – Imports and exports in the individual years

IMPORTS in EUR million 2000 2001 2002 2003 2004 2005 2006

28.1 Structural metal products 177.9 181.3 178.4 213.9 266.7 261.5 322.1

28.2 Tanks, reservoirs, containers 97.2 95.1 100.0 98.2 121.1 101.5 122.1

28.3 Steam generators, nuclear reactors 27.8 20.8 17.7 19.1 13.1 18.2 12.0

28.6 Cutlery, tools, general hardware 516.2 608.8 604.4 677.3 793.2 782.6 794.5

28.7 Other fabricated metal products 1 008.7 1 158.3 1 180.0 1 288.9 1 601.0 1 677.7 1 932.2

Total 1 827.7 2 064.3 2 080.5 2 297.5 2 795.0 2 841.6 3 182.8

EXPORTS in EUR million 2000 2001 2002 2003 2004 2005 2006

28.1 Structural metal products 634.3 655.4 580.4 605.7 737.1 843.8 991.1

28.2 Tanks, reservoirs, containers 220.8 243.5 230.5 296.1 358.0 377.9 447.2

28.3 Steam generators, nuclear reactors 84.2 90.6 97.9 91.4 75.0 115.2 82.2

28.6 Cutlery, tools, general hardware 450.8 578.3 565.3 630.4 773.8 803.1 847.6

28.7 Other fabricated metal products 1 451.5 1 522.8 1 410.3 1 596.9 2 095.4 2 172.3 2 366.8

Total 2 841.5 3 090.5 2 884.4 3 220.5 4 039.4 4 312.3 4 734.9

Average exchange rate in 2006: EUR 1 = CZK 28.34

Shares of the individual branches in the total revenues of the sector from the sale of products and services in current prices in 2006

Manufacture of metal structures and fabricated metal products Revenues in EUR million

28.1 Manufacture of structural metal products 1 912.2

28.2 Manufacture of tanks, reservoirs, and containers 720.3

28.3 Manufacture of steam generators 219.1

28.4 Forging, pressing, powder metallurgy 584.1

28.5 Treatment and coating of metals 2 177.8

28.6 Manufacture of cutlery, tools, and general hardware 1 950.3

28.7 Manufacture of other fabricated metal products 1 771.4

Total 9 335.2

Average exchange rate in 2006: EUR 1 = CZK 28.34

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major influence on the final quality andstandard of engineering products.Requirements placed on the mechanicaland surface (appearance) properties ofmetal products are increased by thepopularity of the use of metal in ordinarylife, industrial development, and theomnipresent competition. Consequently,revenues from the sale of products andservices in current prices have beenrising since 2001. The 2006 revenueswere up by 44.8 % against 2005. Thisbranch has the largest share in the sector28 total revenues from the sale ofproducts and services in current prices.Companies which operate in branch28.5 include ELEKTROPOLI-GALVIA,s.r.o., Třemošnice, BRAWE, spol. s r.o.Kaplice, MEA MEISINGER, s.r.o. Plzeň,Mesa Parts, s.r.o., Vysokov, MESIT

povrchové ochrany, spol s r.o., UherskéHradiště, Muramoto ManufacturingEurope s.r.o., Praha, SIGNUM spol. s r.o.Hustopeče, and Wiegel CZ žárovézinkování s.r.o. Žebrák.

Production in the NACE Branch28.6This branch includes cutlery, tools, andgeneral hardware. Revenues since 2001have been indicating its success. Revenuesfrom the sale of its products and servicesin current prices in 2006 were 10.2 %higher than in 2005. Companies whichmanufacture tools include GÜHRINGs.r.o., Líně, INA Lanškroun, s.r.o., NAREXBystřice, s.r.o. and Narex Ždánice, spol.s r.o., PILANA TOOLS Knives spol. s r.o.,PILANA TOOLS Saw Bodies spol. s r.o.,PILANA TOOLS Wood Saws spol. s r.o.from Hulín, Pramet Tools, a.s., Šumperk,STIM ZET, a.s. Vsetín, Wera Werk s.r.o.,Bystřice pod Pernštejnem, and ZBIROVIA,a.s. Zbiroh. Companies whichmanufacture mainly cutlery include TONER s.r.o., Moravská Třebová. Locksand metal fittings are made by BRANO,

a.s. Hradec nad Moravicí, FAB, s.r.o.,Rychnov nad Kněžnou, Hettich ČR, k.s.,Žďár nad Sázavou, ROSTEX VYŠKOV,s.r.o., TOKOZ, a.s. Žďár nad Sázavou andWITTE Nejdek, spol. s r.o.

NACE Branch 28.7 – Manufactureof Other Fabricated MetalProductsThis branch includes a broad range ofproducts, such as steel barrels andcontainers up to 300 l, small metalcontainers, connecting material (chains,springs, cords, and electrodes) wireproducts etc. The results of the branchhave been good since 2001, as shown byrevenues from the sale of its productsand services in current prices. Theserevenues were up by 12.5 % in 2006 ascompared with 2005.

Companies which operate in the branchinclude SCHÄFER – SUDEX, s.r.o., Ledečnad Sázavou, ALLTUB Central EUROPE,a.s. Kol ín, MORAVIA CANS, a.s. ,Bojkovice, ESAB VAMBERK, s.r.o., LANAVAMBERK, s.r.o., PRYM CONSUMER CZs.r.o. České Budějovice, Hanáckéželezárny a pérovny, a.s. Prostějov,KAMAX s.r.o., Turnov, pewag, s.r.o.Vamberk, Řetězárna, a.s. Česká Ves,Šroubárna Kyjov, spol s r.o. andŠroubárna Turnov, a.s.

Foreign Trade of NACE 28 SectorThe NACE 28 sector - Manufacture ofmetal structures and fabricated metalproducts is developing favourably asshown by foreign trade data. The 2006imports to the Czech Republic were by11.7 % higher than in 2005. The year-on-year increase in exports from thiscountry was only 9.36 %. The 2006foreign trade in products ended witha surplus of EUR 1.5 billion.

Imports and exports had an upwardtrend between 2000 and 2006 withoutswings in the individual years. Imports

increased by 74.1 % and exports by 66.6 % over the period. Every year endedwith a surplus.

Foreign Trade of Sector 28 in 2006 According to TerritoriesThe largest partner of the Czech Republicin both exports and imports is Germany.The share of this partner in total importsand exports of NACE 28 productsremains almost the same. The share ofGermany in exports was 42 % in 2005 aswell as in 2006, and the share in importswas slightly higher in 2005 than in 2006– 46 %.

Prospects of the SectorThe use of metals in components for themanufacture and completion of finalproducts is ever more popular. Thereasons are the utility properties ofmetals, knowledge, and particularly thetradition of engineering production inthe Czech Republic. The development ofengineering and support to theautomobile industry in the CzechRepublic increased the two sectors’demand for metal components. Anotherlarge long-time buyer of metal productshas been the building industry. Metalstructures are ever more popular in thebuilding industry although they are notalways the winners in competition withconcrete.

Growth in the living standard, thediversity of the offer, and the quality offinal products in the Czech Republicincreased the sale of metal products toordinary consumers.

In the global competition, companieshave been regaining large and smallorders connected with complete plantsespecially in recent years, and many havemaintained their markets and areexpanding.

The development of the sector is alsodue to investment incentives forproducers with emphasis on the use ofhigh technology. The technology centres,which are being established, and otherforms of support help improve the qualityof final products in the sector and the possibility of sale on markets.Consequently, the sector has very goodprospects for development in theenvironment of competition.

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Export territories in 2006 Import territories in 2006

Germany 42 % Germany 44 %

Italy 7 %

Others 24 %

Japan 3 %France 4 %

Slovakia 5 %China 5 %

Austria 5 %Poland 4 %

Austria 6 %Poland 5 %

France 4 %United Kingdom 4 %

Belgium 3 %

Others 25 %

Netherlands4 %

Slovakia 8 %

Czech Constructional Steelwork AssociationSupports Firms of the Branch

Czech Constructional Steelwork Association (Česká asociace ocelových konstrukcí), e-mail: sekretariat@caok.cz, www.caok.cz

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The Czech Constructional SteelworkAssociation has more than 50 members,manufacturers of metallurgical material,steel traders, construction firms, andcompanies which deal with joining,welding, and dividing of steel structuresand surface protection, and firmsspecialising in manipulation equipment,assembly, software and the like. It isa member of the European Conventionfor Constructional Steelwork (ECCS).

Steel in the 21st CenturySteel entered the 21st century as one ofthe most important and most versatilematerials. Steel is used in a broad rangeof products and qual i t ies . Theexcept ional , inexhaust ib le, andinnovative potential in the developmentof products, technologies, and

commercial uses ranks steel among themost essential materials. The CzechConstructional Steelwork Association isstriving for an ever more widespread useof this potential.

The Association Contributes tothe Development of the BranchThroughout its existence, The CzechConstructional Steelwork Associationhas been striving for the development ofthe steel structure branch. Its activitieshelp the provision of better informationto architects, designers, investors,developers, engineers, and everybodyelse who is involved in the branch,students in particular. The Associationuses suitable and effective means toenhance the development of the steelstructure market by achievement of

consensual views on Euro codes andstandards, products and technologies,educational and educative methods,capabil ity of enterprises, and theeconomic advantages, utility properties,and design of steel structures. The CzechConstructional Steelwork Associationmanagement monitors the standard ofsteel structure designing and realisation,in i t iates measures of qual i tyimprovement, and deals with specifictasks as required by the members tofacilitate their business. Importantactivities include emphasis on theadvantages of steel structures,propagation of their use in construction,and, last but not least, pointing out thepossibility to recycle steel.

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Czech Steel Structures Rank among the MostSplendid Ones in Europe

Czech Constructional Steelwork Association (Česká asociace ocelových konstrukcí), e-mail: sekretariat@caok.cz, www.caok.cz

Steel structures from the workshops ofCzech manufacturers are winningimportant awards in competitions inthe Czech Republic and Europe. Twoyears ago, for example, the EuropeanConvent ion for Const ruct iona lSteelwork (ECCS) ranked the SAZKAARENA structure among the best steelstructures in Europe in 2005. Thechoice was mainly due to the fact thatthe whole arena and the steel structureof the roof significantly propagated theuse of steel in the building industry asa progressive element with cleararchitectural and economic advant-ages. Footpath in front of the D8 motorway known as "Cat’s Eyes" Ph

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Appreciation of the Work andStandard of Czech Professionals"This was a huge acknowledgement ofthe work and standard of Czecharchitects, designers, and builders. It waseven more important in view of the farmore frequent use of steel in thebuilding industry abroad in consequenceof intensive propagation and lobbying,"according to Tomáš Měřínský, Secretaryof the Czech Constructional SteelworkAssociation, which entered the structurefor the competition. The prizes werepresented in a ceremony in the hotel LePalais de la Méditerranéé in Nice, France.

Other Czech structures which wereacknowledged by ECCS in the pastincluded the bridge which spans theProkopské údolí Valley in Prague, theadministrative building of Jihomoravsképlynárny (South Moravian Gasworks),and Mariánský Bridge in Ústí nad Labem.In 2007, ECCS ranked among the bestanother Czech structure – a footpath in

front of the D8 motorway known to theprofessional public as "Cat’s Eyes".

Steel Is Winning Over theTraditional ConcreteOther successful Czech structures provethat the use of steel in construction isa good choice. For example, the bestCzech structure in 1995 was theRaiffeisenbank building in Brno. Themajor part of its interior is formed bya combination of steel and glass. The useof steel structures in the construction ofshopping malls was most considerable inthe Czech Republic in the PragueChodov Centre. Several thousand tonnesof steel formed its supporting structure.Supportive structure of steel is also usedin inter iors , at th is t ime in theconstruction of the Brno Universitycampus. Steel structures combined withglass are dominant in the interiors andexteriors of the building of the CzechAgriculture and Food Inspect ion

Authority, which is also in Brno. Thisbuilding was acknowledged in the 1998Structure of the Year competition.A good example of possibilities of theuse of steel in recent years is MendelUniversity of Agriculture and Forestry inBrno.

The beauty of steel can be admired byair transport passengers. Prague Ruzyněairport was enlarged recently and theroof of the new Terminal North is a steelstructure. A unique steel structure is inthe departures/arrivals hall at Brnoairport. The hall has a span of 40 metresand has no inside support in the mainpart of the building. Steel offersa versatility which is impossible whenconcrete and other materials are used.Steel as a supporting and architecturalelement was chosen by the designers ofthe new terminal of Karlovy Vary airport.

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Steel Industry as the Main Supplier

Jaroslav Raab, The Steel Federation, e-mail: hzas.pha@telecom.cz, www.hz.cz

The steel industry is the major supplier ofproducts for metal structures and othermetal items. The Czech Republic hasthree large steel companies anda number of small ones with narrowspecialisation. In the last decade, newservice centres have been completingthe supply chain of tradit ionalwholesalers who are equipped to dobasic adaptations to meet the specificrequirements of clients. This guaranteesservice. The per capita consumption offinal steel products has exceeded 600 kgin this country, which placed it first inthe EU.

Steel FederationThe entire steel industry in the CzechRepublic is represented by the SteelFederation (Hutnictví železa, a.s. – HZ),which provides its members with manyservices. These include statistics andanalyses of the steel industry as a whole,which are the basis of the developmentstrategy of the individual companies,and the fulfilment of obligations toforeign institutions of which HZ isa member. This ensures exchange ofinformation and links the joint steelindustry interests at both EU and globallevels. Most important are standardcreation, environment-related agenda,personnel matters, branch marketing,technical progress, and research and development. Dur ing theimplementat ion of the Nat ionalProgramme of the Czech Steel IndustryRestructuring, HZ participated regularlyin its monitoring for the Government,the European Commission, and for steelcompanies. HZ is the collective platformfor membership in the Confederation ofIndustry and the Chamber of Commerce,and performs the function of employerunion in the steel industry. It closely co-operates with the Ministry of Industryand Trade by providing professionaladvice and data for participation ininternational agendas.

Steel Industry on the RiseAnalyses have shown that the year 2004was a clear turning point in the situationof the steel industry, which was alreadyable to use the generally favourable

state of affairs on the market. Theeconomic results have been very goodsince then. The iron and steel industry asa sector with rapid development of thequality of production is maintaining itstradition of flexibility. The number ofsteel marks has reached severalthousand and the dimensions ofproducts are based on the technicalspecifications of clients. New productsare being introduced on the basis of co-operation with customers. The structureof production is being changed towardssteel and products with a higher utilityvalue.

In the past 15 years, the technologicalequipment of enterprises went throughthorough modernisation and becameenvironmentally friendly. Increasedattention has been given to theconstruction of new and modernisationof old facilities for trapping and treatingof emissions and waste. Consequently,metallurgical equipment meets therequirements of European and Czechlaws relating to the environment,especially to emissions which pollute theair and water, and to waste.

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Investment into Metallurgy and MetalworkingIncreases Competitiveness

Zuzana Tůmová, CzechInvest, e-mail: zuzana.tumova@czechinvest.org, www.czechinvest.org

The metalworking industry belongs tothe traditional sectors of the Czecheconomy. The development of follow-upsectors in the last few years gave a boostto its position in the manufacturingindustry of the Czech Republic. Largeenterprises, which have the mainposit ion due to the influence ofmetallurgy, are concentrated in theMoravia-Silesia Region. The iron andsteel industry is located in three regionsof the Czech Republic, but more thanthree quarters of production and plantsare in the Ostrava area (Moravia-SilesiaRegion).

Investment into MetallurgyForeign acquisition accounted for themajor part of investment into the ironand steel industry in the past. Thebiggest investors were the largest steelcompanies which could ensure financingdespite the long period of return of theinvested money. The main emphasis isplaced on ecological investment.Privatisation is followed by growth inforeign direct investment into themetalworking industry, which isnoticeably more rapid than investmentinto the whole manufacturing industry.Both are connected with marketglobal isat ion, as capital is beingconcentrated in the hands of the largestcompanies of the world. This is also thecase of ArcellorMittal, at present theworld’s number one, which enteredNová huť, a.s., and Evraz Holdings,which privatised the state share in theVítkovice Steel Company.

Position of the Forging Industryin the Czech RepublicThe forging industry has a tradition ofmore than a millennium in the CzechRepublic. Its products are now serving inevery sector, including the automobileindustry, which is the pillar of the Czech economy. Forging industrymanufacturers are focusing on highquality products, meticulous satisfactionof clients’ requirements, and the searchfor new contacts to secure sales. Proof

of the success of this strategy is thesteady growth in exports which areranging around one half of production.

Investment into theModernisation of ProductionA good example of investment intotechnology modernisat ion isSTAVOPLAST KL spol. s r. o., whichoperates in metalworking. The total costof the project was EUR 469 000, whichthe company covered partly witha subsidy from the Structural Funds,partly from a bridging and investmentcredit, and partly from its own resources.The modern technological equipment of

the assembly hall is to increase thecompany’s compet i t iveness. Theequipment includes a universal CNCcutter, a mechatronic centre lathe witha combination of manual and CNCcontrol, a horizontal cutting and boringmachine, a steel welding table, weldingunits, a telescopic manipulator, anda high-lift truck. The phases of theproject were successive or part lyconcurrent.

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Association of Foundries Supports Education in the Branch

Josef Hlavinka, Association of Foundries of the Czech Republic (Svaz sléváren ČR), e-mail: sek@svazslevaren.cz, www.svazslevaren.cz

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The Association of Foundries of theCzech Republic (AFCR) is an organisationof foundries, pattern-shops, design andresearch institutions, trading companies,and training centres, vocational schoolsand univers i t ies with foundryspecialistaion.

AFCR Realises EducationProgrammesIn addition to other activities, AFCR hasbeen realising since the beginning of2006 an educational project in theOlomouc Region for the professions offoundry worker and foundrytechnologist. It prepared curricula andteaching aids (text books, DVDs etc.).Courses and practice in the form ofexcursions to foundries in the OlomoucRegion took place from February to April2007. Written tests and final examsfollowed in June 2007 and participantswho passed received certificates. Theproject ends in December 2007 and theeducat ional programmes for theprofessions of foundry worker andfoundry technologist will serve foundryorganisations throughout the CzechRepublic.

A similar project in the South MoraviaRegion is designed for the education offoundry foremen, furnace operators,and trade specia l i s ts . The BrnoSecondary Technical School andVocational School, and the Ekoaudit

Company are involved in the project toprovide a part of general educationmodules and participate in the draftingof curr icula and teaching plans,textbooks and aids, publicity of the

project etc. The project was launched inOctober 2006 and will continue untilJune 2008. In the theoretic part, the

participants are acquainted with relevantlabour and commercial law provisions,health and safety protection at work,economy, general foundry, and themetallurgy of ferrous and non-ferrous

metals. Practice will again have the formof excursions to foundries, this time inthe South Moravia Region. The finalexams are due in January 2008. Besideswritten tests, the exams will newlyinclude a closing work which theparticipants are preparing during thecourse. Those who pass will receivea certificate. When the project ends, theprogrammes wi l l be avai lablethroughout the Czech Republic.

Since foundry experts are also neededin other professions, the AFCR team ispreparing new educational projectswhich are to be a part of the programmeof lifelong education in the Czechfoundry sector.

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The Association of Foundries regards the education of workers in the sector as important

AFCR is a member of the Confederation of Industry of the Czech Republic, theEuropean Foundry Association CAEF, and the MEGI Central European Association ofFoundry Unions and Companies, and co-operates with the Ministry of Industry andTrade of the Czech Republic, the Ministry for Regional Development and othergovernment authorities and organisations. It concludes state-wide collectiveagreements with the OS KOVO trade union centre. In support of the economicpolicy, the Association of Foundries of the Czech Republic maintains and promotesinternational contacts which lead to enhanced understanding of the competitiveenvironment, give publicity to Czech foundries and pattern shops, and createoptimum conditions for the export and import of their products. It acquaints itsmembers with the topical offer of equipment, raw and other materials, and collectsinformation about the manufacture of castings and models in the Czech Republicand abroad.

Foundry and Pattern Shop Scores Points Abroad

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Slévárna a modelárna Nové Ransko, s. r. o. is a medium-sizedcommercial foundry and pattern shop, focused on theproduction of pieces up to medium-sized series. Its annualproduction ranges around 3 500 tonnes of castings, about 45 % of which are exported mainly to German-speakingcountries. The company’s annual turnover is approximately EUR8.8 million.

In addition to trading, the company co-operates withprofessional and research institutions, universities in particular,conducts its own research and development, and participates inprofessional and educational events of the Czech FoundrymenSociety. We asked Mr Ivo Lána, First Secretary of the Society,about the metalworking business.

How do you see the present position of metalproduct manufacturers?Metal products are supplied mainly to engineering, and castingsgo to the building industry. Both sectors are developing fairlywell, and so the capacities of the manufacturers of semi-finished engineering products are likely to be full at least in thenext few years.

What does your production programme include?Our products include graphitic cast iron castings, which accountfor 40 % to 45 % of the turnover as do castings of aluminiumand copper-base alloys, and the rest are patterns and metalmoulds mainly for our own casting production.

Can you mention important investment into yourcompany’s production?

Investment into production is planned after thorough analysisof the requirements of sections, and is limited by credit andleasing possibilities. Investment which has been made in the lastfew years went into a new hall to expand hand-mould castingand a new core room in the iron foundry, enlargement of themelting house and the department which produces large coresin the foundry of aluminium and copper-base alloys, anda machining shop equipped with electronically controlled lathesand cutters.

Can you mention your most important clients andorders?

The range of our products is very large sincewe have many clients who order pieces upto medium-sized series. Major Czechcustomers are Elektroporcelán Louny, RieterVamberk, and Sauer Žandov, and theforeign ones are the German Siemens,Eurofound, and Weiss.

How successful are you on foreignmarkets?As I have said, approximately 45 % ofproducts are exported mainly to Germany,followed by Austria, Slovakia, Switzerland,and other countries. We export castings,machined pieces, pattern equipment, andmetal moulds.

What new products can youintroduce?Besides new products connected with thementioned investment, we maketechnologically more complicated (mainlybox-type) castings. As to materials, we haverecently introduced the manufacture ofcastings from cast iron with spheroidalgraphite with a perl it ic basic metalsubstance for isothermal hot processing(ADI). Naďa Vávrová Ph

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Třinecké železárny (iron works), thelargest iron and steel works in the Těšínarea of Silesia, was established in 1839and it ranks among the steelmakingfacilities with the longest tradition in theCzech Republic.

The decisive event in the developmentof Třinecké železárny was the opening ofthe Košice-Bohumín railway line in 1871,which linked Třinec with new oredeposits in Slovakia, made possible thetransport of bituminous coal from theOstrava-Karviná mines, and opened theway for the sale of iron on distantmarkets. In 1906, Třinecké železárnybecame the most important part of theAustrian Mining and MetallurgicalCompany. The brand "three hammers ina circle" originated in that period andsince then Třinec metallurgical productshave been stamped with it. The Třinecké

železárny steel company hit its peak inthe 1980s and 1990s, when the annualproduction reached around 3.2 milliontonnes. Tř inecké železárny wascompletely privatised in 1996. Its majorshareholder is the MORAVIA STEEL joint-stock company.

Třinec Steel in MercedesTřinecké železárny is an integrated steelcompany. It turns out 2.5 million tonnesof steel annually, which is more than

one-third of the total domest icproduction. The main products made ofthe high-quality Třinec steel include longrolled stock such as rails, wire, specialbars and rebars, sections, semis, widesteel and seamless tubes. Approximatelyone half of the annual rolled productionis exported to some 50 countries of theworld, mainly to Germany, Italy, Belgium,the United Kingdom, and Portugal. Thefinal customers are companies of theengineering and automotive field.Třinecké železárny supplies products tocompanies such as Bekaert Company,Michelin, Pirelli, and ESAB. Třinec steel isused by almost all European automotiveproducers including Mercedes and AlfaRomeo. In 2005, Třinecké železárny wasawarded the prestigious "VincentGaeremynck Prize" by the BekaertCompany for permanent improvement

of the quality of its products andservices.

Třinecké železárny and ItsSubsidiariesThe TŘINECKÉ ŽELEZÁRNY – MORAVIASTEEL group has subsidiaries whichoriginated during the restructuring ofTřinecké železárny or were acquired. Themost important of them includeENERGETIKA TŘINEC, a.s., StrojírnyTřinec, a.s., Slévárny Třinec, a.s.,

REFRASIL, s . r.o. , Řetězárna a.s . ,Sochorová válcovna TŽ, a.s . ,FERROMORAVIA, s.r.o., VVT-VÍTKOVICEVÁLCOVNA TRUB, a.s., VÚHŽ a.s., andVítkovice-Výzkum a vývoj, spol. s r.o.

Environmental ManagementAn integral part of the Tř ineckéželezárny strategy is systematic andregular care of the environment. Itseffect is permanent reduction of burdenof the nearby Beskydy Mountains andgradual elimination of the consequencesof the almost 170-year metallurgicaloperations. In the last six years, Třineckéželezárny and its subsidiaries spenta total of EUR 158 mi l l ion onenvironmental protection.

Třinecké železárny has entered the 21stcentury with the vision of continuedcontribution to the development of the

Beskydy Mountains region and rankingamong advanced European industrialsteel companies. Even in the thirdmillennium, Třinec products, stampedwith the brand involv ing "threehammers in a circle" will keep providingour business partners with thetraditionally high quality proved by ages.

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Leader on the Steel Market

MORAVIA STEEL a. s., e-mail: info@moravia-steel.cz, www.trz.cz

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W E A R E I N T R O D U C I N G

From Třinecké železárny production

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KOVOHUTĚ ROKYCANY – Brand of WorldStandard

KOVOHUTĚ ROKYCANY, a. s. ranksamong the lead ing Czechmanufacturers of wrought semi-finished products of copper, nickel, andtheir alloys, and sliding bearings andshells. Semi-finished products in theform of wires, rods, tubes, sheets andstrips are used in electrical engineeringand electronics, telecommunicationtechnologies and vacuum technologies,engineering, the automobile industry,and the manufacture of artistic articles,artificial jewellery, musical instruments,and cartridge cases. Manufacture isbased on the technologies of vacuummelting, continuous casting, hot andcold forming, and final heat treatmentin protective atmospheres.

Clients and OrdersThe c l ients are prominentmanufacturers in the above mentionedsectors in the Czech Republic, the

European Union, the USA,and Russia. KOVOHUTĚROKYCANY suppl iesTaiwan with semi-finishedproducts for themanufacture of contactsfor mobi le phonebatteries. Early in 2007,the company concludeda contract wi th thePoongsan Corporation ofKorea on the supply ofn icke l s t r ips for themanufacture of eurocoins. Its value exceedsUSD 2.5 million.

InvestmentKOVOHUTĚ ROKYCANY is modernising the manu-facturing facilities. In thefirst half of 2007, thecompany put intooperation an ITS Bendaslitting line to slit brass,copper, bronze, and nickelstrips with extraordinaryprecision and in the best

quality to meet the super-standardrequirements of the clients.

Research and DevelopmentKOVOHUTĚ ROKYCANY has i t sdevelopment base. Early in 2007, thecompany received a subsidy in theIMPULS programme of the Ministry ofIndustry and Trade to research thetechnology of continually cast CuSnalloy wires and its dependence on thetype and quality of graphite crystallisersand their lifetime. Another researchproject, in the EUREKA programme, isthe optimisation of alloy manufactureon the basis of iron and nickel.Innovative is the development of newalloys and their forming. The companyhas introduced a technical service forclients to respond to their requirementsand mediate consu l tat ions wi thprofessionals on non-ferrous metalforming.

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Václav Krupička, KOVOHUTĚ ROKYCANY, a. s., e-mail: krupicka@koro.cz, www.koro.cz

Sliding bearings for use in the automobile industry

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A Successful Czech Exporter

The company Kovolit, a. s., establishedin 1921, is now one of the largest Czechproducers of aluminium castings andcopper and aluminium alloy forgings.The foundry and forging shop went intooperation in the 1930s. The forgingshop specialised in die forming ofcopper, brass, bronze, and aluminium,and the foundry in aluminium alloycasting under pressure. These are alsothe company’s principal technologies at the present time. The company’sturnover exceeded EUR 35 million in 2006. The present major i tyshareholder in Kovolit, a.s. is thecompany Remet, s.r.o., an importantCzech company engaged inmanufacturing aluminium alloys andrecycling.

Principal Activities andProduction TechnologiesThe principal foundry technologies arepressure casting and mould casting.Castings are manufactured principally byrobotic units and automated presseswith the possible use of vacuum castingtechnology and squeezing. The castingsare machined on CNC machines, hot-treated, impregnated, etc. to meet therequirements of clients.

The forging shop uses hot forging ina die or cold pressing. Both technologiesare used in the manufacture of items forbranches of industry that require highstrength, durability of shape, andmaterial homogeneity.

The tool shop is a third division thatproduces moulds, dies, and trimmingtools for the company’s own use and forexport.

ExportKovolit exports 60 % of its products. Itslargest customers are German andSwedish enterprises. Some deliveries gooverseas, primarily to the USA and NewZealand. Exported i tems inc ludecomponents for the automobile industryand electric motors, ranging fromservomotors to winding tower motors,parts for sewing machines, heating unitsfor trucks and caravans, and thefurniture industry. The most important

buyers in the automobile industry areVW Škoda, GM, PSA, and Valeo. Thecompany’s most important customer inelectrical engineering is ABB.

Progressive Growth and NewActivitiesThe company’s revitalisation programmewithin the framework of privatisation

required large investment, particularly intechnology and a new informationsystem. Investment in the modernisationof production has exceeded EUR 6million in the last five years. The forgingshop has been equipped with a newautomated l ine for forgings andextrusions, and the foundry furnishedwith a robotic unit with cast ing

machines from the leadingmanufacturers Bühler and Müller-Weingarten. Chiron cutters and a specialMuratec large-capacity CNC lathe havebeen purchased for the machine shop.A project focusing on the pressurecasting of magnesium is now beingprepared in co-operation with BrnoTechnical University and the Czech

Technical University in Prague. This newtechnology is to enable Kovolit toexpand its range of products and add tothe satisfaction of its clients and thecompany’s competitiveness on the Czechand foreign markets.

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Miroslav Hrůza, Kovolit a. s., e-mail: miroslav.hruza@kovolit.cz, www.kovolit.cz

Chamber casting

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Largest Steel Producer in the Czech Republic

Jana Dronská, ArcelorMittal Ostrava a.s., e-mail: jana.dronska@arcelormittal.com, www.arcelormittal.com/ostrava

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ArcelorMittal Ostrava a.s. is a part ofArcelorMittal, the world’s largest steelindustry group, and the biggest steelproducer in the Czech Republic. Thecompany is primarily engaged in theprocessing of pig iron and steel. Itsproducts include coke and by-products,pig iron, flat products, long products,engineering products, and energies. Theproducts serve in the building industry,mining, engineering, the energy industry,transport, water supply engineering, andthe petroleum and gas industry.ArcelorMittal Ostrava belongs toenterprises with the largest turnover inthe Czech Republic – its 2006 net profitwas approximately EUR 338 million.

Plants and SubsidiariesThe ArcelorMittal Ostrava group includesseveral p lants and subsidiar ies.ArcelorMittal Ostrava is comprised of theCoking Plant, Blast Furnace Plant, SteelPlant, Rolling Mills, Minimill, ServicePlant, Power Plant, and Transport Plant.The largest subsidiaries are VÁLCOVNYPLECHU, a. s., JÄKL Karviná, a. s., andMSO PIPES & TUBES a. s.

Product PortfolioThe company manufactures coke andby-products, slag aggregates, semi-finished products, pig iron, hot-rolledflat products, round steel bars, wire rods,reinforcing bars, profiles, tubes andpipes, and engineering products.

Products for ExportArcelorMitta l Ostrava exports i tsproducts to 88 countries worldwide – 59 % of its production were exported in2006. The largest customers are inGermany, Slovakia, Poland, Austria,Spain, Italy, and the USA. The exporteditems are flat and long products, tubesand pipes, and engineering products.

ArcelorMittal Ostrava - theSuccessful Company The company’s steel product ionexceeded 3 million tonnes in 2006, andit recorded a major rise of the productionof tubes and pipes, mine supports, andfoundry products. Results were alsogood in the production of long products,especially in the medium-fine rolling mill.The ambitious target in flat products was

reached. In 2006, the minimi l lproduction reached the record of 1 125million tonnes of coils, and crash barriersproduction also did well. The goodresults were attained, although thecompany was restructured in the secondhalf of 2006 and major changes weremade in organisation of all sections andplants. The achievements includedsystem and product certifications whichwere obtanied or prolonged in 2006.Very successful was the audit of theintegrated system of qual i tymanagement and environmentalprotect ion. The company gainedcertificates, which are important onforeign markets for new products suchas reinforcing bars, profiles, flat strips,and tubes ad pipes.

InvestmentIn the 2007-2010 period, ArcelorMittalOstrava is investing more than EUR 200mill ion into the modernisation ofequipment and environmental projects.The most important projects are themodernisation of the blast furnace, themodernisation of coke oven batteries,and the modernisation of tandemfurnaces. These projects will increase theproduction of products with higher valueadded and thus bring the companyhigher profit, and help to reduce theadverse influence of production on thel iv ing environment. This categoryincludes the construction of a newgalvanising line for manufacturing ofcrash barriers, and new sheet-cuttinglines. Both final products will allow us tomeet demanding requirements of ourclients.

The company is implementing manyother investment projects to renewproduction equipment as wel l astechnological and auxiliary units. Highlyimportant are projects concerning worksafety and health protection, industrialaccident prevention, and improvementof working conditions.

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Plates from EVRAZ VÍTKOVICE STEEL for LuxuryPleasure Boats

The history of EVRAZ VÍTKOVICE STEELopened when the first heat of ductileiron was tapped in Rudolf's Smelter in1830. Roll ing mil ls were built inVítkovice as steel production developed.The predecessors of the present rollingmills went into operation in 1911.Production is now focused on steel andsteel products – heavy plates, rolledsections, and cut shapes. The company isstriving to increase the sale of productswith a high value added, such asdeliveries of plates for pipelines.

Integrated CompanyEvraz Group S. A. is a leading vertically-integrated steel and mining company. In2006, Evraz Group produced 16.1 milliontonnes of crude steel. Its consolidatedprofits increased from USD 6.508 billionin 2005 to USD 8.292 billion in 2006. TheEvraz Group main assets are in the threelargest steel plants in Russia: Nizhni Tagil(NTMK) in the Urals region, West Siberian(ZapSib) and Novokuznetsk (NKMK) inSiberia, and in Palini & Bertoli in Italy,Evraz Vitkovice Steel in the CzechRepublic, and Evraz Oregon Steel Millsheadquartered in the USA. Its fast-growing mining businesses compriseEvrazruda, the Kachkanarsky (KGOK),and Vysokogorsky (VGOK) iron oremining complexes, the Yuzhkuzbasugolcompany and an equity interest in theRaspadskaya coal company. The miningassets enable Evraz Group to bea vertically-integrated steel producer.Evraz Group also owns and operates theNakhodka commercial sea port in the FarEast of Russia. Evraz vanadiumoperations comprise Strategic MineralsCorporation, the USA, and Highveld Steeland Vanadium Corporation, SouthAfrica.

Plates for ExportEVRAZ VÍTKOVICE STEEL is the mainproducer of heavy plates in Europe andthe only one in the Czech Republic.

Due to significant support from itsowner, Evraz Group S. A., and its strongposition on the Russian and world steelmarkets, the company entered theRussian pipe-line market with success.

The largest buyers of the company’sproducts are the European Unioncountries to which almost 52 % of itssteel products went in 2006.Approximately 39 % went to Czechcustomers, and 9 % of products weredivided in other countries, such asCroatia, Russia, and the USA.

Production and ProductionProgrammeThe main product ion programmeincludes heavy plates, rolled sections,sheet piles, and cut shapes. Of the totalproduction 82 % are heavy plates, 5.2 %rolled sections, and 9.7 % sheet piles(special construction sections) cut shapesaccount for a mere 3.1 %.

Steel is produced by the converter steelplant, followed by continuous casting.The steel plant has an annual capacity of950 kt, the plate mill 755 kt, and thesection mill 170 kt. Cut shapes aremanufactured by three modern flame-cutting machines equipped with plasmaburners and oxygen – natural gasburners with CNC system support. Theannual capacity of the cut shapes centreis 30 kt.

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Jaromír Krišica, Crest Communications Ostrava s.r.o., e-mail: krisica@crestcom.cz, www.crestcom.cz

ATMOFIX

The use of plates with the ATMOFIX trade mark isconstantly increasing. The specific feature of thissteel is a compact layer of rust, so-called patina,which slows down further corrosion of thematerial and thus prolongs the lifetime of thestructure. ATMOFIX plates were used, for instance,for the construction of bridges on the D47motorway, the largest investment in the Moravia-Silesia Region.

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ULYSSES

Plates were used for the construction of theworld’s largest ferry – the "Ulysses". A total of 7 753 tonnes of plates was delivered to the AkerYards, Rauma, Finland for the construction ofa boat with a capacity of 2 000 passengers. Theboat is 209 m long and 32.2 m wide and its owneris the Irish Ferries Company.

CHARLES BRIDGE REPAIRS

Special sections – sheet piles were used when thepillars of the Charles Bridge National CulturalMonument in Prague were repaired at the turn of2004-2005. The perfect technical parameters ofthe sheet piles prevented water of the Vltava Riverfrom leaking into the working area around thepillars.

LUXURY SHIPS OF THE FREEDOMCLASS

Plates are now being used for the construction ofluxurious ships of the Freedom class - "Liberty ofthe Seas" and "Independence of the Seas", whichare the largest pleasure ships in the world. Theircapacity is 3 600 passengers and 1 400 crewmembers. The "small sailing cities" are being builtby the Finnish Aker Yards, Turku, for the RoyalCaribbean Cruises Ltd.

STŘÍŽKOV UNDERGROUNDSTATION

A total of 1 000 tonnes of plates were needed forthe steel structure of Střížkov station of line IV.C2of the Prague metro. Its builder is Sdružení metroIV.C2. The most prominent element in the strikingarchitecture of the station is the steel structure ofthe hall. The station went under construction in2004 and is due to be opened in mid-2008.

Accomplishment in Metal Research and Development

Miroslav Kursa, Faculty of Metallurgy and Material Engineering – Technical University of Ostrava, e-mail: miroslav.kursa@vsb.cz,www.vsb.cz

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R E S E A R C H & D E V E L O P M E N T

Research and development at the Facultyof Metallurgy and Material Engineering –Technical University is focused on themetallurgy of metals (ferrous andnonferrous) , chemical metal lurgy,mater ia l engineer ing, and heatengineering. In 2006, the Faculty wasentrusted with 28 new projects in thesebranches from grant agencies andministries of the Czech Republic. At thattime, the Faculty was working on a totalof 74 projects of which 24 werecompleted with success. The faculty staffare also co-operating in 43 projects withcompanies that focus on this area. Long-term scientif ic research is mainlyoriented towards two research plans,which the Faculty opened in 2005 andwhich should be completed in 2011.

Research of Special MaterialsThe first research plan is entitled"Processes of Preparation and Propertiesof Highly Pure and Structurally DefinedSpecial Materials" and it is orientedtowards complex solut ion of thepreparation processes, study of theproperties and degradation of highlypure and structurally defined specialmaterials. It includes and interlinks allstages connected with the preparationof materials by crystallisation processes,

thermal processesduring crystallisation,diffusion and segregat-ion.

This scientific researchis focused on highlypure metals andmaterials with a highstrength-thickness ratio(alloys of aluminium,magnesium, and tita-nium), materials forhigh temperatures(super-alloys of nickel,inter-metallic phases onthe basis of transitionmetals nickel, titanium,aluminium, and sili-

con), mater ia ls for bio-medicalapplications (nickel and titanium basedshape memory materials, titanium alloysfor dental implants), and materials forelectr ical engineering and micro-electronics (refractory metals for specialcathodes and other applications, low-fusing al loys – lead-free solders,semiconductor mater ia ls ) . Thecomplexness of solution is increased bythe study of degradation processes ofthe mater ia ls by corros ion, hightemperatures, tension and hydrogenembrittlement.

Research of Forming ProcessesThe second research plan is entitled"Structural Potential and Properties of Ph

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Intensively Formed Materials". Theresearch is conducted mainly ona laboratory rolling mill train, whichserves the testing of plasticity, study ofthe deformation behaviour of differenttypes of metallic materials at hot andcold forming processes, and theoptimisation of intensive technologies ofcontrolled forming, cooling, and hotprocessing with a view to maximumutilisation of the structural potential ofthe material and targeted use of itsutility properties. This has yieldedoriginal results in the area of phasetransformations, deformation resistance,and structure-forming processes atthermo-mechanical processing of steel(low-alloyed steel, IF – interstitial free),TRIP (transformation induced plasticityof multi-layer semi-finished products,and alloys of nonferrous metals such asmagnesium-aluminium, zinc-titanium-copper, or inter-metallic materials basedon iron-aluminium-chromium-titanium-boron). Increasing attention is devotedto computer processing of the results ofphysical modelling and mathematics imulat ion of different processesconnected with rolling and forging. Inmaterial engineering, research is mainlyoriented towards relations between theinternal structure of materials and theirutility properties, the mechanisms of thedegradation of materials, prediction ofthe safety and reliability of structures,etc. Attention is also devoted to moderntypes of steel, such as stainless andrefractory, and to composite and nano-crystalline materials.

Co-operation with Czech andForeign EstablishmentsThe Faculty continues its co-operationwith Třinecké železárny a. s. and other

metallurgic enterprises. It has a majorshare in the solut ion of "NewProgressive Technologies of SteelProducts Manufacture". The technicalsolution is focused on continual castingof steel, simulation of the processes ofthe solidification and cooling of meltedmetal, improvement of the quality ofsteel, and optimisation of steel formingprocesses.

In grant projects, the Faculty co-

operates with renowned establishmentsin France, the USA, Japan, Russia, andother countries. In France, long-term co-operation continues with the prestigiousEcole Centrale Paris, specifically its

Laboratoire de géniede procédés etmatériaux, in branchessuch as corrosion andprotection of steelsand al loys againstcorrosion, the degra-dation of steel, nickela l loys, and inter-metallic materials ine n v i r o n m e n t scontaining hydrogen,measuring diffusioncharacter ist ics ofhydrogen in the abovementioned materials,and structuralconnections of the

degradation of structural materialsinfluenced by hydrogen.

The Faculty also maintains intensive co-operation with Yokohama NationalUniversity in the preparation of doctoralstudents in studies of localdeformations, crash test assessment,and microstructure of fracturemechanics. Co-operation with TohokuUniversity Sendai is oriented towardscorrosion and corrosion cracking. The

Technical University of Ostrava hascontracts on long-term co-operationwith both universities. In the USA, it co-operates with Southern Illinois UniversityCarbondale, Centre for AdvancedFriction Studies in composite materials,specifically friction materials based onpolymers with metal content and theirinfluence on the environment. In Russia,co-operat ion with Ross iyskayaAkademiya Nauk, Institut Metallurgiii Materialovedeniya im. A.A. Baykovaconcerns the metallurgy of refractorymetal, specifically a project entitled"Study of the Preparation of SingleCrystals of Wolfram and Molybdenumand their Low-alloyed Alloys by Plasma-arc and Electron-zone Melting". Theresults are published regularly in foreignand Czech professional journals andpresented at international conferences.

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Poll of Successful Companies Operating in the Metalworking Industry

ŽĎAS, a. s.

Strojírenská 6, 591 71 Žďár nad Sázavou, phone: +420 566 642 124, fax: +420 566 642 871, e-mail: or@zdas.cz, www.zdas.cz

Turnover (2006): CZK 3.1 billion – approx. EUR 109.3 millionNumber of employees: 2 780Contact: Mr Viktor Horanský, e-mail: viktor.horansky@zdas.czExport: 49.25 % of total sales, e.g. Germany, Slovakia, the United Kingdom, Russia, Austria, Spain, Sweden, the Netherlands, Italy, Norway, Denmark, and France

For more than 55 years, the ŽĎAS joint-stock company has beenmanufacturing equipment for rolling mills, material processingfrom rolls, bar and pipe straightening, open die and die forging,bulk and sheet metal forming, and metal scrap processing. Italso manufactures castings from cast steel and nodular castiron, ingots, smith forgings, and patterns and tools for theautomobile industry, transfer forming, and the consumerindustry.

Which companies are your most importantcustomers?The largest Czech buyers are ŠKODA AUTO a. s. Mladá Boleslav,U.S. Steel Košice, Třinecké železárny a.s., Mittal Steel Ostravaa.s., and Vítkovice a. s. The many foreign ones include BGHEdelstahl Siegen Germany, and OEMK Russia.

You take part in Czech and foreign exhibitions.What new product will you take to the nextexhibitions?

One of the main new ŽĎAS exhibits will be the CNS 1100 modelof hydraulic shears. It is a highly efficient equipment which canboth cut and bale steel scrap. The patent-protected technologyof pressing before cutting and strong force of deformationallows the processing of very hard scrap. Other advantages areelectronic lifting of all hydraulic rollers, possibility of addingscrap during the automatic cutting cycle with a minimum lossof time, and low upper edge of the hopper.

Jäkl Karviná a. s.

Rudé armády 471, 733 23 Karviná-Hranice, phone: +420 596 391 111, fax: +420 596 311 373, e-mail: jakl@jakl.cz,www.jakl.cz

Turnover (2006): CZK 2.8 billion – approx. EUR 102.2 millionNumber of employees: 727Contact: Mr Rostislav Jevickýe-mail: Rostislav.Jevicky@arcelormittal.comExport: 56 % of total sales – Slovakia, Germany, Austria,Poland, Finland, Sweden, Switzerland, Lithuania, Iceland, theNetherlands, Belgium, Italy, France, the United Kingdom,Slovenia, Croatia, Hungary, and Denmark

Jäkl Karviná a. s. has been on the market since 1918. The companyis a traditional exporter of steel thin-walled welded tubes andsections and open sections. It is renowned for the quality andbroad range of products, and good technical support to its clients.The company has a dominant position on the Czech market.

Your company has a long history. What is itspresent situation?The company became a part of NHKG (Nová huť KlementaGottwalda) Ostrava in 1958, and is a subsidiary of ArcelorMittal,Ostrava at present. In the last few years, investment went into

the manufacture of products for the automobile industry –drawn tubes and sections, and calibrated tubes. New lines forfollow-up treatment of products were constructed.

Hydraulic press

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Kovona system, a. s.

Závodní 540, 735 06 Karviná – Nové Město, Contact address: Průmyslová 2007, 737 01 Český Těšín, phone: +420 558 764 111, fax: +420 558 764 190, e-mail: kovona@kovona.cz, www.kovona.cz

Turnover (2006): CZK 730 million – approx. EUR 25.7 millionNumber of employees: 440Contact: Mr Daniel Zagura, e-mail: daniel.zagura@kovona.cz,Ms Kateřina Husarová, e-mail: katerina.husarova@kovona.czExport: 93 % of total sales e.g. EU, the USA, Canada,Malaysia, Singapore, and Hong Kong

Kovona System, a.s. was established in 2000. It primarily turnsout custom-made large series of metal products including sub-deliveries and surface treatment. Century-old continuity ofmetalworking skills gave the company a unique opportunity toestablish co-operation with globally-oriented distributionpartners. A new factory, built in Český Těšíň at the turn of 2003and 2004, is equipped with automated technology for large-series manufacture of folding chairs, which went into operationin 2004.

Can you give a brief description of the technologyof manufacture?Large series are manufactured in single-purpose automatedworkshops, and specific processes are realised on automatedlines or tested technological units. Production on CNC machinesneeds minimum time for modification of the workplaceparameters.

Which companies are your largest buyers?Our important customers include, for example, IKEA (furnitureindustry), New Store Europe (rack systems), and Stow (racksystems). Chair manufacture in Kovona system

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Jihomoravská armaturka spol. s r. o.

Lipová alej 3087/1, 695 01 Hodonín, phone: +420 518 318 111, fax: +420 518 354 003, e-mail: sales@jmahod.cz,www.jmahod.cz

EKO Plus – nodular cast ironvalve

Turnover (2006): CZK 1.1 billion – approx. EUR 38.8 millionNumber of employees: 556Contact: Mr Pavel Horák, e-mail: horak@jmahod.czExport: 80 % of total sales 50 % of which go to Germany andthe rest to Austria, Slovakia, Poland, Italy, Hungary, Slovenia,Croatia, Serbia, Monte Negro, Macedonia, Albania, Greece,Egypt, Israel, Bulgaria, Romania, and South Africa.

Jihomoravská armaturka spol. s r. o. is a traditional manufacturerand seller of water-supply and industrial fixtures – above-ground and underground hydrants, gate and other valves,filters, and suction strainers – and castings from grey andnodular cast iron.

Your products go to many countries.Which ones are in greatest demand?The main exported items include gate valvesof al l types, above ground andunderground hydrants, flap valves,return valves, and swing check valves.Castings from nodular cast iron are inequal demand.

What innovations are youpreparing for 2008?Next year’s target is improvementof deliveries to customers with theuse of the new European LogisticCentre.

Which companies are your most importantcustomers?In the Czech Republic, the main customer is FERONA Praha, andthe others are JIRY s.r.o, FAVEX TRADE s.r.o., CZ-FERRO s.r.o.,and SOLAR s.r.o.. Major buyers abroad are KAAM STAAL BV,

SALZGITTER STAHLHANDEL GMBH, RAVENE SCHAFER GMBH,TESKO STEEL sp. z.o.o., and ERIC KIHLBERG AB. Thesecompanies are wholesalers and their clients are in the buildingindustry, water and gas distribution, the automobile industry,and engineering.

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I N F O R M AT I O N

FOND-EX12th international foundry fair13–16 May 2008Veletrhy Brno, a.s.e-mail: fond-ex@bvv.czwww.bvv.cz

MSVInternational Engineering Fair15–19 September 2008Veletrhy Brno, a.s.e-mail: msv@bvv.czwww.bvv.cz

TOOLTEC14th specialised exhibition of machines, tools, implements and ironmonger’s goods 23–25 October 2008INCHEBA EXPO PRAHAe-mail: pragolinqua@incheba.cz

Fairs and Exhibitions in the Metalworking Sectorin the Czech Republic in 2008

Important Contacts Ministries

Ministry of Industry and Trade www.mpo.cz mpo@mpo.cz

Ministry of the Environment www.env.cz info@env.cz

Associations and unions

Confederation of Industry of the CR www.spcr.cz spcr@spcr.cz

Association of Foundries of the Czech Republic www.svazslevaren.cz svaz@svazslevaren.cz

The Steel Federation www.hz.cz hzas.pha@telecom.cz

Czech Constructional Steelwork Association www.caok.cz sekretariat@caok.cz

The Czech Nonferrous Metal Industry Association www.kovohute.net info@kovohute.net

Steel Structures Institute www.iok.cz rozlivka@iok.cz

Universities and research institutions

Brno University of Technology – Faculty of Civil Engineering, Institute of Metal and Wooden Structures www.fce.vutbr.cz melcher@fce.vutbr.cz

Czech Technical University in Prague – Faculty of Civil Engineering, Institute of Steel Structures web.fsv.cvut.cz/k134 studnicka@mat.fst.cvut.cz

Czech Technical University in Prague – Faculty of Civil Engineering,

Department of Steel and Wooden Structures www.fsv.cvut.cz k134@fsv.cvut.cz

Technical University of Ostrava – Faculty of Metallurgy and Material Engineering www.fmmi.cz katerina.koronkova@vsb.cz

The use of steel elements in the construction of MendelUniversity in Brno

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