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

Czech Metalworking Industry

Supplement of

Czech Business and Trade 01-02/2009

CONTENTS

Editorial 4

ANALYSIS

Metallurgy and Metalworking – Basis of Czech Industry 4

The Task of the Association of Foundries Is to Create

an Optimum Climate within the Branch 8

Steel is a Building Material with a Number of Advantages 9

LEGISLATION

Implementation of REACH Chemical Legislation

in Czech Metallurgy and Foundry Industry 10

EDUCATION

FMME Provides Comprehensive Education in the Branch 12

INVESTMENT

Investing in Metallurgy and Metalworking

– an Opportunity for the Automobile Industry 14

CZECH TOP

The World’s Largest Steel Company in the Czech Republic 16

ArcelorMittal Ostrava Places a New Type

of Crash Bars on the Market 18

Forging Line for India – Important Export Deal of ŽĎAS, a.s. 20

ENTERPRISE

Czech Plate Is Used for Building the World’s Largest Ships 22

RESEARCH & DEVELOPMENT

Original Solution of Reducing the Environmental

Impact of Foundries 24

Research of Metals, a Way to Higher Efficiency of Production 26

SURVEY

Poll of Successful Companies Operating

in the Metallurgy and Metalworking Sector 28

INFORMATION

Exhibitions and Fairs Concerned with Metallurgy

and Metalworking 30

Important Contacts 30

PRESENTATION ON COMPANIES: AKTIVIT, SPOL. S R.O.; FIRMCONSULT, SPOL. S R.O.; KOVONA SYSTEM, A.S.;

KOVOSREAL S.R.O.; LIEBEZEIT HYDRAULIK, S.R.O., MEVA A.S.; PÉROVNA ÚSTÍ N.L. S.R.O.; PKD, S.R.O.; POWER-CAST ORTMANN S.R.O.;

PRVNÍ BRNĚNSKÁ KOVÁRNA, S.R.O., VELETRHY BRNO, A.S.; Z - GROUP A.S.; ŽDB GROUP A.S.

MK ČR E 6379This magazine is published as a supplement to the economic bi-

monthly issued in English (Czech Business and Trade), German (Wirt-

schaft und Handel in der Tschechischen Republik), French (Industrie

et commerce tchèques), Spanish (Empresas y negocios en la República

Checa), and Russian (Чешская топговля и предпринимательство).

Managing Editor: Petr Kamenický

Editor: Ondřej Štrba

Graphic Design: Art director: Nina Nováková

Graphic Designers: Romana Holíčková, Jiří Hetfleisch

Production: Tamara Machotová, Anežka Zvěřinová

Address: PP Agency s.r.o., Myslíkova 25, 110 00 Praha 1

Czech Republic, Phone: +420 221 406 623, 221 406 626

Fax: +420 224 930 016, E-mail: journal@ppagency.cz, www.ppagency.cz

www.mpo.cz/en/minister-and-ministry/ministry/default.html

Deadline: 23/11/2008

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 manage-

ment system for publishing services

| 4

A N A LY S I S

Metallurgy and Metalworking – Basis of Czech Industry

Metallurgy and metalworking are the

cornerstones of Czech industry. With

its centuries-long tradition and high-

quality production, the Czech Repub-

lic is a much sought-after supplier of

metal sections, a large part of which

is exported. Plate turned out by our

rolling mills is used to build ships all

over the world, Czech turbines gener-

ate electricity in a number of foreign

power stations.

Readers will be drawn into the sub-

ject by an expert analysis prepared

by the Ministry of Industry and Trade,

which will cover all important aspects,

provide detailed statistics, give a view

of the future and will supply all infor-

mation needed to fully understand

the following texts.

In the current issue, readers will be

introduced to the most important

Czech companies operating in the

branch, including giants such as EVRAZ

VÍTKOVICE STEEL and ArcelorMittal.

In the section Research and Devel-

opment, readers will be acquainted

with the work of institutes concerned

with metal research and technological

innovations aimed at reducing the en-

vironmental burden of the branch.

Especially instructive are the branch

analyses of associations concerned

with metallurgy and metalworking,

which add interesting points to the

material resulting from their practical

work.

Ondřej Štrba

Martin Karfus, Ministry of Industry and Trade,

e-mail: karfus@mpo.cz, www.mpo.cz

Metallurgy is the basis for the follow-up

manufacturing sectors, especially con-

struction, engineering, and the automo-

bile industry. Metallurgy is marked for

its extreme capital intensiveness requir-

ing huge amounts of money for realis-

ing strategic marketing decisions. These

decisions predetermine the output for

many years ahead. Metallurgical and

steel production in the Czech Repub-

lic depends on the import of input raw

materials, especially iron ore, for the pro-

duction of pig iron, and on the import

of primary metals for further processing.

Metallurgy and metalworking are at the

same time the largest energy consumers

within the manufacturing industry. Fuel

and energy consumption in the sector

in units of measure is more than 24 GJ

per one tonne of the final production.

In recent years, the trend in basic metal

and metallur gical production worldwide

has been to switching from commod-

ity character supplies to products with

greater added value and to technologi-

cal partnerships. In the Czech Republic,

this trend can be observed especially in

relation to the automobile industry.

Way to Modern MetallurgyAt the end of the 1980s, ferrous metallurgy

on the territory of former Czechoslovakia

employed nearly 170 000 people; in 1988,

a record 15.8 million tonnes of steel was

made. As a result of investment aimed

at increasing the volume of production,

however, funds were lacking for the mod-

ernisation of manufacturing equipment

and technological and product restruc-

turing. Consequently, the technical and

economic standard of metallurgical pro-

duction as a whole began to fall behind.

In addition, investments made in environ-

mentally friendly equipment were inad-

equate. Nevertheless, several advanced

technological projects were realised (e.g.

continuous casting of steel, new rolling

mills, out-of-furnace metallurgy, produc-

tion of steel in oxygen converters, etc.); all

those steps led to higher productivity and

quality of production.

In the 1990s, the transformation pro-

cess in the metallurgical industry was

influenced by privatisation. The years

1991-1993 saw the disintegration of

the markets of the Council for Mutual

Ec onomic Assistance (CMEA), a rapid

decline in the production of a number

of sectors, price changes, liberalisation

of foreign trade, protectionist measures

applied by the EU, insolvency of en-

terprises, and the disintegration of the

Czechoslovak state, denationalisation of

enterprises and the emergence of new

juristic entities. The basic decision which

influenced the development and the

economy of metallurgical production

was the relationship between privati-

sation and restructuring, with a discus-

sion of the role of the state.

The shares of the state in the country’s

three largest metallurgical companies

(Nová huť Ostrava, a.s., Vítkovice, a.s. and

Třinecké železárny, a.s.) remained con-

centrated in the National Property Fund.

In later years, the companies found new

owners, who contributed significantly to

their restructuring. With the exception of

Třinecké železárny, the entry of foreign

owners in the remaining two companies

was combined with property and finan-

cial restructuring on the part of the state.

This was linked with the incorporation

of the companies in the Programme for

the Restructuring of the Czech steel in-

dustry. The Programme provided for the

concentration of production in more ef-

ficient units with the simultaneous phas-

ing out of obsolete inefficient units and

the modernisation and building of new

units aimed at improving technological

and economic standards of the sector

(improvement of secondary metallurgy,

construction of continuous casting facili-

ties, modernisation and construction of

new rolling mill lines).

The Programme was fulfilled, and in

recognition of this fact, in its 2007 final Ph

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

report on the termination of the restruc-

turing of the Czech steel industry the Eu-

ropean Commission noted that the set

targets had been met and the required

competitiveness of the sector had been

achieved.

Accession of the Czech Republic to the EU Helped the SectorWhile metalworking is mainly the domain

of smaller companies with closer links to

engineering, 85% of metallurgical produc-

tion is concentrated in three dominant

companies – ArcelorMittal Ostrava a.s.,

Třinecké železárny, a.s. and EVRAZ VÍTKO-

VICE STEEL, a.s.

ArcelorMittal Ostrava, a.s., which is part

of the world’s largest steel group, and

EVRAZ VÍTKOVICE STEEL, a.s., whose owner

is offering the company further export

opportunities, for example easier access

to the Russian market, have joined the

worldwide ongoing consolidation process

in metallurgy as a way to maintaining

its competitiveness. Třinecké železárny,

too, has been for several years realising

successfully its strategic plan to add value

to its product range.

The Czech Republic’s entry to the EU

had a favourable effect on the ec onomic

situation of companies. For many of

them, the broadening of the market

meant an improvement, although it in-

volved the need to respect new customs

measures on the external border of the

EU. Mutual trade exchange, greater com-

petitiveness made possible by the better

quality of products, certification and the

coordi nation of regulations in the techni-

cal and commercial areas are processes

which have been going on successfully

for a number of years.

Metal Consumption Is GrowingApparent consumption of steel products

in the Czech Republic is following a nearly

continuously rising trend. As shown by

the chart, while since 1993 steel produc-

tion has been on the level of 6-7 million

tonnes, apparent consumption continues

to grow, with only minor exceptions in

1996 and 1999.

The Graph shows that the prices of

the main input materials have more

than doubled since 2003 and that this

trend is continuing. On the global scale,

the growth of prices was linked to the

Steel production and consumption in the Czech Republic (million tonnes)

Steel product consumption keeps growing

production

consumption

| 6

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50%

100%

150%

200%

250%

300%

350%

2000

2001

2002

2003

2004

2005

2006

2007

A N A LY S I S

revival of steel production worldwide

and the investment boom in Southeast

Asia, in particular China. As a result, foun-

dries raised their demand for strategic

input materials, which manifested itself

most strongly in the growth of the prices

of scrap, coke, coal, and iron ore. Some

manufacturers projected this increase in

input prices in the prices of metallurgical

products, which was accepted by both

the final customers and the market. It can

be said unequivocally that the demand in

2003 and 2004 pushed the average prices

of strategic inputs and steel products ir-

reversibly to a higher price level.

Steel continues to be a quality mate-

rial, demanded both in production and in

practical use, where it has a great poten-

tial in ensuring sustainable development.

Important Changes – Environmental LegislationProduction processes in metallurgy are

very energy intensive and together with

the power industry may constitute a bur-

den for the environment, especially by

emitting pollutants into the air, water,

and soil. If, however, we compare the life

cycle of metals with the life cycles of other

products, we shall see that metals have

the lowest impact on the environment.

Metals – products of metallurgy – can

be continuously recycled without losing

their basic properties, and in those cases

energy consumption, in comparison with

primary production from ores, is much

lower. Recycling is a way of saving primary

raw materials and reducing the impact on

the environment.

The impact of metallurgical produc-

tion on the environment is controlled by

legislation, which is applied with varying

stringency in different parts of the world.

As regards Europe and energy efficiency,

Europe’s final energy consumption in the

production of basic metals remains un-

changed, or is even declining, despite the

continuing growth of the production of

metals in the past fifteen years. As regards

emissions, a considerable reduction has

been achieved in the emission of some of

the main air pollutants.

In the Czech Republic, the technological

equipment of enterprises in the branch

has undergone massive modernisation

and improvement in terms of its impact

on the environment. Simultaneously, spe-

cial attention has been paid to the con-

struction of equipment for the separation

and processing of pollutants and wastes

and the modernisation of existing facili-

ties. As a result, the equipment of metal-

lurgical plants meets the requirements of

both European and Czech environmental

legislation. Most enterprises are accred-

ited with ISO 1400 environmental man-

agement certificate and their manufactur-

ing equipment works in accordance with

what is known as integrated pollution

prevention and control.

In the case of CO2 emissions, as a result

of the introduction of the greenhouse

gas trading system, from 2008 enterprises

may not be able to meet their produc-

tion requirements because of the reduced

permitted volume of emissions in 2008-

2012; enterprises will have to purchase

permits which will cost them extra money

- in the order of dozens of euros per per-

mit (permit = 1 tonne of CO2). After 2012

even greater pressure is to be expected

for more massive reduction for individual

operators as a result of fixed EU targets to

reduce the emissions of that gas by 20-

30% by the year 2020 in comparison with

1990 and by 50-60% by the year 2050 in

comparison with 1990.

Metallurgical technologies capable of

reaching those targets are not known for

the time being and the issue is being tack-

led by researchers under EU programmes.

The potential realisation of the new tech-

nologies will be rather costly. In addi-

tion, new nitrogen oxide emission limits,

on the level of 40% of existing emission

limits, will be introduced in 2016. This will

require financially demanding de-nitri-

fication of metallurgical production and

especially the heating plants of metallur-

gical enterprises incinerating black coal.

Unless those measures are realised by

the end of 2015, the heating plants con-

cerned may be closed down and energy

would have to be purchased, which can

only be realised in the case of natural gas

and electricity. A number of other energy

sources (steam, condensed air, etc.) are

Total Czech export of metallurgical products in 2003 - 2007 /thousand tonnes

Product 2003 2004 2005 2006 2007

World, total fl at products 995.0 949.3 1 112.8 1 238.5 1 307.5

galvanised sheet 2.5 7.3 9.6 15.2 18.7

long products 2 367.0 2 306.1 2 050.3 2 270.1 2 233.9

semi-fi nished products 247.2 253.1 246.6 324.2 588.3

tubes 502.0 532.0 541.3 585.2 626.5

other 458.4 486.2 513.8 577.3 585.2

total 4 569.6 4 526.8 4 464.9 5 005.3 5 341.5

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Input prices in the steel industry (Index – year 2000 = 100%)

Steam coal

Coking coal

Ferrous ores

Natural gas

Scrap

Electricity

7 |

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

proportion of products with higher use

value. This will require to continue creat-

ing product chains that will shorten the

way to the final user. Equally important

will be the practical application of results

achieved in research and development.

The steel industry constitutes the basis

for industrial growth. It is not aimed only

at quantitative growth, but also on values

and the future. In 1950, metallurgy began

to play a key role in the process of Euro-

pean integration, when it contributed

actively to common economic develop-

ment. It goes without saying that in the

latter half of the 20th century, steel was

one of the most important materials in

reconstruction and the rapid economic

development of Europe after the Second

World War. The European Coal and Steel

Community (ECSC), established in the

early 1950s, contributed significantly to

the development of the steel industry at

that time. ESCO, the predecessor of the

European Union, created the initial com-

mon market of European countries. The

main principles of that organisation were

ensuring the transparency of the market,

setting out competition rules, regulation

of competition and laying down acquisi-

tion rules. Other principles concerned

the social sphere, such as the training

and preparation of employees. At the

same time, the Community initiated the

establishment and operation of different

funds, the most important of which was

the Research and Development Fund. Its

other initiative was the establishment of

a new system of multinational common

research, which at that time was the most

important move on Europe’s way forward

for the past fifty years.

Still in the fi rst half of 2008 steel manu-

facturers enjoyed a seemingly never-end-

ing boom, with record profi ts. In summer

of that year, however, as a result of the

situation on the world fi nancial markets, the

fi rst worries appeared, which have turned

into the current reality. Owing to the cool-

ing down of the economy, they must re-

duce production to a certain degree.

The steel industry, however, is a typical

example of a cyclic branch, and foundries

are more or less prepared for the new

situation. The main reason why they are

reducing production is to prevent an un-

controlled volatility of prices.

�

not even available in sufficient quantities.

Considering the situation in energy sup-

ply in the framework of the entire EU, it

must be in the interest of the metallurgi-

cal enterprises themselves to raise their

self-sufficiency in energy production for

their own consumption.

The Task for the Future Is Raising Quality and CompetitivenessFrom the point of view of the Czech Re-

public it can be said that the country’s

steel industry is faced with tasks leading

to greater competitiveness. These tasks

include especially the application of envi-

ronmental legislation and increasing the

Czech metalworking industry steadily on the way of quality improvement

| 8

A N A LY S I S

The Task of the Association of Foundries Is to Create an Optimum Climate within the Branch

Josef Hlavinka, Association of Foundries of the Czech Republic,

e-mail: sek@svazslevaren.cz, www.svazslevaren.cz

The Association of Foundries of the Czech

Republic (SSČR) is an organisation bringing

together foundries, pattern shops, project de-

signing and research organisations, as well as

trading organisations and apprentice training

centres, secondary schools, and universities

teaching foundry practice and science. The

foundry industry and the production of cast-

ings have a long tradition in the Czech Lands.

For decades, the industry bore comparison

with the highest European, and indeed world,

standards. After the change of the geopoli tical

situation in 1989 and the disintegration of the

markets, the Czech foundry industry had great

problems attracting new customers and fi nd-

ing outlets for its products. Now, the Czech

foundry product market is fully stabilised. Cur-

rent Czech year-on-year production amounts

to more than 540 000 tonnes of castings, about

110 000 tonnes of which are aluminium cast-

ings and the rest ferrous metal castings. Most

orders, estimated at more than 60% of total

domestic foundry output, come from neigh-

bouring Germany. In recent years, however,

an ever higher quantity of Czech castings have

found outlets in eastern countries, and the

Czech Republic has become an interesting

manufacturer of this type of foundry products,

not only for the Russian Federation. The de-

mand is especially for more complicated cast-

ings as regards shape and quality.

The Principal Customers Are Power Engineering and the Automobile IndustryThe leader of Czech industry is the automobile

industry. In this sector, the outlets for foundry

products are not only the car factories them-

selves, but also factories making machine tools,

forming machines, and other manufacturing

equipment, not to forget power engineering

plants. The production of nuclear, thermal, as

well as wind power in this country is based on

sections manufactured by Czech foundries.

One of the key roles in this respect is played

by good-quality foundry castings. Between

2005 and 2007, year-on-year foundry produc-

tion showed very high stability, which made it

possible for foundries to invest in new, modern

technologies. The expected result is even bet-

ter quality and a higher volume of production,

with the simultaneous reduced demand for

skilled labour. This is the only way of raising the

competitiveness of Czech foundries and main-

taining high quality, to which our customers

have become accustomed. The need for skilled

labour has prompted our Association to focus

more on education. We continuously train

foundry workers at all levels to raise their skills

and we re-qualify external employees sent to

us by agencies. We have prepared courses for

foreign workers holding a green card, who are

seeking employment in our foundries.

The Association Is Engaged in ResearchScience, research, and innovation are not alien

to our Association. Our members are involved

in various scientifi c and research projects in

the area of foundry practice. Examples of these

eff orts are new binder systems, polystyrene

pattern castings, etc. Projects leading to lower

energy intensiveness and a decreased environ-

mental burden are not alien to us, either.

SSČR is a member of the Confederation of

Industry of the Czech Republic, the European

Foundry Association (C.A.E.F.) and the Central

European Foundry Initiative (MEGI). It co-oper-

ates with the Ministry of Industry and Trade of

the Czech Republic, the Ministry for Regional

Development, and other government offi ces

and organisations. It has a collective contract

with the KOVO Trade Union. To support the

country’s economic policy, the Association of

Foundries of the Czech Republic maintains

and promotes international relations leading to

a better knowledge of the competitive environ-

ment, the promotion of Czech foundries and

pattern shops. It keeps its membership base

informed about the latest off ers of equipment

and raw materials and processes information

about the production of castings and patterns

in the Czech Republic and other countries.

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

Steel is a Building Material with a Number of Advantages

Marek Janda, Czech Constructional Steelwork Association,

e-mail: janda@caok.cz, www.caok.cz

Today, when steel as a building material

must face keen competition and the great

popularity of iron concrete, especially on

the European market, it is worth pointing

out the advantages of steel structures in

construction. This applies in particular to the

Czech Republic, since in comparison with

other industrialised states, this country is

giving unequivocal preference to concrete

and iron concrete structures at the expense

of steel. This is true despite the fact that

very often steel structures have a number

of incontestable advantages of technical,

economic, aesthetic, and especially environ-

mental character.

Which are the most tangible advantages of

using steel in construction?

Steel provides essential advantages to

project designers, suppliers, as well as ar-

chitects and investors, in comparison with

iron concrete or concrete. Firstly, it is the

speed of construction, which, together

with transport and assembly costs, can add

signifi cantly to the shortening of the time

between the commencement of building

and the putting of the structure into oper-

ation and to reducing the cost of the whole

structure. This argument is often neglected,

leaving steel in the shadow of, for example,

concrete, which is given preference be-

cause of the price of the basic material and

the entire structure. For architects and the

supporting professions, an important con-

sideration is the ability of the steel structure

to overcome the considerable span lengths

of ceilings and roofs in relatively small di-

mension beams. Easier entry for cables and

other media is another argument speaking

in favour of steel.

Is steel an advantage in construction itself?

Does it infl uence the speed of construction?

A frequent necessity is the adjustment of

load-bearing structures during construc-

tion, in response to changed or raised re-

quirements of the building professions or

the client. Considering the extremely short

terms allowed for preparing the project

documentation of the whole structure, this

has become a regular practice. In addition,

technology changes are called for by pres-

sures for decreasing the price of the project

and its delivery and further requirements of

the building professions. Steel structures are

undeniably better prepared for these de-

mands than other materials.

How does steel stand in terms of safety?

What progress has been made in fi re

prevention?

For a number of years, great attention has

been paid to fi re resistance, which until recent-

ly, in addition to the low corrosion resistance

of steel structures, caused concern to builders.

Recent developments, however, indicate that

steel has not exhausted its innovation poten-

tial and that its properties can be further im-

proved and adjusted to the most demanding

requirements of designers by sophisticated

processes, such as forming, heat treatment,

and surface fi nishing. Where fi re resistance is

a priority, a favourite combination in the world

is steel and concrete – in the form of steel tube

columns with concrete fi lling.

Steel is a material naturally susceptible to

corrosion. Is it a great disadvantage?

One of the few weak points of standard

quality construction steels is their lower re-

sistance to all types of corrosion attacks. An

advanced steel industry, however, can solve

even this problem successfully, by sophis-

ticated surface refi nement on lines linking

up with the mill trains. These technologies,

using the most up-to-date lines, are con-

trolled by artifi cial intelligence pursuing

a programme of high-level corrosion resist-

ance combined with the decorative aspect

(choice of optimum colour or surface struc-

ture). The corrosion resistance of construc-

tion profi les has reached a level ensuring

corrosion resistance exceeding 100 years,

often the life of the building itself.

Information sources Bosch, P.: Steel structures in the best struc-tures of the year, Konstrukce magazine 1/2007, pp. 20-21; Sommer, B.: Steel – neglected material in Czech building industry, Steel Structu-res magazine 4/2001, pp. 46-48; Wald, F.: Gas temperature during fi re in a one-storey building, Konstrukce magazine, 2/2005; Sommer, B.: Product innovations in the steel industry for steel struc tures, Steel structures magazine 6/2001, pp. 52-54

ENVIRONMENTAL PRIORITIES OF STEELThe advantages of steel in construction, both environmental and technical,

cannot be overlooked. Steel is basically a natural material (its material source

being iron ore). From the chemical point of view, iron is the fourth most widely

represented element in the earth’s crust and regardless of the fi nal product, it

does not have a harmful eff ect on the environment. In comparison with other

construction materials, its energy intensiveness is relatively low. For example in

the case of aluminium it is 160 kJ.kg-1, in the case of steel 20 kJ.kg-1, i.e. eight

times less. An especially strong argument in favour of steel in today’s world,

where environmental requirements are ever more stringent, is undeniably the

never-ending process of recycling. A large proportion of needless steel products,

which have been discarded or have come to the end of their service life, go back

to the steelworks in the form of a valuable secondary raw material.

| 1 0

L E G I S L AT I O N

Regulation No. 1907/2006 on registration,

evaluation, authorisation, and restriction

of chemicals (REACH) entered into force

on 1 June 2007 In the Czech Republic it

is being implemented in stages. Before

its implementation could start in the area

of metallurgy and foundry practice, it

was necessary to specify the names and

defi nitions used in the sector. The situa-

tion was complicated by the fact that the

REACH Implementation Projects (RIP) are

being issued and amended only gradu-

ally, and for some parts of the process they

have not been issued at all (e.g. Guidance

on information requirements and chemi-

cal safety assessment, Guidance on Global

Harmonised System). The same applies to

annex No. IV and V to the regulation list-

ing substances not coming under REACH,

which were last amended on 9 October

2008. This setback places high demands

on enterprises, which are required to im-

plement the REACH Regulation.

The last obstacle is that the deadlines

for the implementation of the separate

phases of REACH are fixed, although the

discussion on individual items has not

ended.

Steel Shapes Do Not Come under REACHAn important thing is that the classifi ca-

tion and identifi cation of materials being

sold and purchased must be uniform for all

metallurgical enterprises within the entire

European Union. To ensure this, a working

group was created on the supranational

level (Czech and Slovak enterprises),

which has prepared documents and pro-

posals for this purpose. Simultaneously,

the issue was tackled by representatives

of those enterprises and the metallurgi-

cal and foundry industry federation, who

worked in clusters attached to the Euro-

pean Confederation of Iron and Steel In-

dustries. We also co-operated with other

European associations, e.g. those operat-

ing in the chemical industry. Gradually,

separate metallurgical substances com-

ing under the REACH Regulation have

been identifi ed. In all, several hundred

substances have been evaluated, a part

of which was defi ned as products com-

ing under the Regulation. An important

thing was that steel shapes were defi ned

as objects not coming under the REACH

Regulation.

Implementation Proceeds According to PlanAs part of the implementation of the REACH

Regulation it was necessary to review the

safety lists of hazardous substances, which

metallurgical enterprises pass on to their

customers. There are several dozen of such

lists. We have fulfi lled the task and duly

met the deadline. The same was required

from suppliers of dangerous substances,

and updated safety lists are being handed

over to metallurgical enterprises.

By the end of November 2008, the pre-

registration of substances was completed.

In metallurgy, those substances include:

� coke-oven chemicals (e.g. raw benzol,

sulphur, ammonium sulphate),

� alloys as preparations (each element in the

alloy must be pre-registered separately),

� slag from high furnaces, oxygen con-

vertors, and arc furnaces if supplied as

products,

� sludges, dusts, and scales if sold as

products,

and many other items. In pre-registration,

the procedure is to preventively pre-regis-

ter substances, where it is not clear if the

substance concerned does or does not

come under REACH. Metallurgical product

market deliveries usually amount to quan-

tities of more than 100 t/year. This means

that they will have to be registered by 30

November 2010. Financial registration

charges plus costs involved in the prep-

aration of the dossier for currently known

substances in metallurgy will amount to

EUR 90-110 million and will have to be ex-

pended in the period from 2009 to 2010.

The Czech Republic has the Best Prerequisites to Introduce REACH in TimeAlthough the new chemical legislation

under the REACH regulation and its im-

plementation by metallurgical enterprises

involves considerable diffi culties and costs,

the Czech Republic has all basic prerequi-

sites for its successful application in place.

An important point to make, however,

is that both the European Union and the

Czech Republic should see to it that enter-

prises importing to the European Union

metallurgical products from alloys made

by manufacturers outside the EU be treat-

ed in the same way, without exception, as

manufacturing enterprises in the EU27.

�

Vladimír Toman, Hutnictví železa, a.s.,

e-mail: vladimir.toman@hz.cz, www.hz.cz

Implementation of REACH Chemical Legislation in Czech Metallurgy and Foundry Industry

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Implementation of REACH goes according to plan

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E D U C AT I O N

FMME Provides Comprehensive Education in the BranchJaroslav Sojka, Faculty of Metallurgy and Material Engineering (FMME),

VŠB - Technical University of Ostrava, e-mail: jaroslav.sojka@vsb.cz, www.vsb.cz

The Faculty of Metallurgy and Material Engin-

eering is one of the seven faculties of VŠB - the

Technical University of Ostrava. At the faculty,

students acquire all knowledge needed for

work in metallurgy and foundry practice. The

continuously growing interest in metalworking

attracts ever more students to the faculty.

Study in Accordance with ECTSIn the 2004/2005 academic year, a system of

three-grade study courses was introduced at

the faculty. Studies for the Bachelor’s Degree at

FMME take three years and they are followed

by two years of Master courses. The best gradu-

ates of a Master’s Degree programme may car-

ry on their studies for a Doctor’s Degree, where

the standard courses take three years. At FMME,

a credit system is applied, which is compat-

ible with the European Credit Transfer System

(ECTS). This is important especially for students

wishing to attend courses in other countries.

Specialisation Programmes Are Applied Throughout the Entire Course of StudyIn all courses of study for the Bachelor’s Degree,

emphasis is placed on the students’ profound

knowledge of natural sciences, in particular

mathematics, chemistry, physics, and physical

chemistry, and on their theoretical knowledge

of the programmes and branches of study.

Programmes of study in the follow-up

courses for the Master’s Degree are designed

so as to link up closely with the Bachelor

courses. Here, too, a good balance is main-

tained between the scientifi c basis, the theo-

retical basis of the programme of study and

the application subjects.

Instruction Combines Theory with PracticeIn both grades of study, besides the require-

ment of a profound theoretical basis, empha-

sis is placed on the practical work of students,

and most subjects comprise experimental

projects. In addition, students may take part

in scientifi c and research work organised by

university departments already during their

studies. The most successful of them may rep-

resent the Faculty in competitions held both

in the Czech Republic and in other countries.

Also important are some of the Faculty’s spe-

cifi c activities. Students attending Art Foundry

courses create valuable works of art. As part

of the StudentCar project realised by FMME,

students may participate in the construction

of a sporting car prototype and become ac-

quainted with certain important technologies

used in its manufacture. Instruction in subjects

concerning metal forming comprises the

practical use of the Faculty’s Tandem labora-

tory rolling mill, which in 2001 was awarded

the “Engineering Academy of the CR Prize”.

Special Emphasis Is Placed on Co-operation with Foreign CountriesThe best FMME students, who at the same

time have a good knowledge of a foreign

language, can carry on a certain part of their

studies in another country. This opportunity is

used by several dozen FMME students every

year. On the other hand, the Faculty enrols for-

eign students to attend its courses on a reg-

ular basis, and it has agreements with several

universities on double diploma programmes.

These agreements make it possible for stu-

dents meeting certain conditions, who have

attended a part of their programme of study

in a foreign country, to obtain a diploma not

only from FMME, but also from the partner

university in the country concerned. For ex-

ample, Czech students study at universities

in Germany and Austria, as well as in France,

Finland, the USA, and Japan. Most of them are

universities with which the Faculty co-oper-

ates in the area of science and research.

An important feature is FMME’s co-operation

with universities in other countries and the

mutual exchange of their students in special-

ised excursions, practical work, and at confer-

ences, in the organisation of which FMME plays

an important role. Worth mentioning are, for

example, the INTERNATIONAL STUDENTS’ DAY

OF METALLURGY (in 2009 the event will be

held at FMME) and the third, originally a Czech-

Austrian, conference of students organised

with the support of AKTION foundation.

The Number of Students Is Steadily GrowingInterest in studying at FMME is continuously

increasing. The number of students currently

studying at the Faculty has exceeded 2 300,

of which nearly 300 are students in doctoral

courses. Altogether 450 students of the Fac-

ulty of Metallurgy and Material Engineering

were conferred Bachelor’s and Master’s De-

grees in the 2007/2008 academic year.

�

PROGRAMMES OF STUDY AT FMME IN COURSES FOR THE BACHELOR’S AND MASTER’S DEGREESMetallurgical Engineering

Material Engineering

Process Engineering

Economy and Management of Industrial Systems

PROGRAMMES OF STUDY AT FMME IN COURSES FOR THE DOCTOR’S DEGREEMetallurgy

Material Sciences and Engineering

Management of Industrial Systems

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I N V E S T M E N T

Investing in Metallurgy and Metalworking – an Opportunity for the Automobile Industry

Petra Hájková, CzechInvest, e-mail: petra.hajkova@czechinvest.org

www.czechinvest.org

Locating new metallurgical and metal-

working plants in Central Europe is rela-

tively problematic, as the entire region

is completely saturated by activities

of large companies. This explains why

since 1993 CzechInvest has not noted

much interest in this type of direct in-

vestments. Rather than attracting new

investors engaged in metallurgy and

metalworking, the Czech Republic has

had experience with the privatisation of

large state-owned enterprises and ac-

quisitions of large Czech metallurgical

companies.

The Czech Republic Is a Good Place for Locating Sophisticated InvestmentsInvestors in metallurgy will find it rela-

tively hard to locate their manufacturing

plants in any of this country’s industrial

parks. In new industrial parks, an ob stacle

for the location of large facilities will be,

for example, the high energy intensive-

ness of potential investment projects

and the impact of this kind of industrial

activity on the environment, which in the

final analysis might mean a significant

increase in investment costs of financing

the industrial park. An important aspect

in this case is the psychological barrier of

the owners of land, where the project is

to be located.

On the other hand, support in the

branches concerned is given to sophis-

ticated investments of companies that

will bring added value to the Czech Re-

public. Also supported are suppliers in

the branch, who can become important

partners to companies operating on the

Czech market, for example in the auto-

mobile industry and other engineering

sectors.

Important Suppliers on the Czech MarketAn example of such a supplier is the Mex-

ican foundry company Nemak, which has

been on the Czech market since the year

2000, when it announced its plan to build

a plant making aluminium components

for the automobile industry.

Another successful supplier in the

meta llurgy sector is MOTOR JIKOV Tlaková

slévárna, a.s. (pressure foundry), which in

2007 was awarded a prize in the Investor

of the Year competition. In the Subcon-

tractor of the Year – Contract of the Year

category it won a prize for its contract

with the company Briggs & Stratton.

Investment Support ProgrammesInvestors introducing new production

or enlarging their existing facilities in

the manufacturing industry in the Czech

Republic, provided their investments

amount to more than CZK 50 million,

may take advantage of investment in-

centives under the Investment Incen-

tives Act (No. 72/2000 Coll.), as amended,

which entered into force on 2 July 2007.

Under its provisions, investors may be

granted a complete income tax allow-

ance for five years (in the case of newly

established companies), or a partial in-

come tax allowance for up to five years

(in the case of expanding companies). In

addition, they may obtain material sup-

port to the amount of CZK 50 000 for the

creation of every one new workplace in

what are called “A” regions, i.e. regions

where unemployment exceeds 50% of

the country’s average unemployment

rate. Another kind of support available

to investors in “A” regions is material sup-

port for training and requalification. In-

vestors operating in selected areas may

obtain a financial bonus to the amount

of 35% of their training and requalifica-

tion costs.

�

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Amount of investments mediated by CzechInvest in diff erent sectors

shared services centres 1%

glass industry 1%

textile industry 2%

food industry 2%

engineering, metalworking 9%

rubber and plastics industry 5%

information technologies 1%

electronics and electrical engineering 12%

woodworking, pulp and paper industry,

printing 5%

production of vehicles 45%

chemical and pharmaceutical industry 6%

others 11%

The Czech Republic off ers support to investing in the branch

| 1 6

C Z E C H T O P

The World’s Largest Steel Company in the Czech Republic

Věra Breiová, ArcelorMittal Ostrava,

e-mail: vera.breiova@arcelormittal.com, www.mittalsteelostrava.com

ArcelorMittal Ostrava is part of the world’s largest steel concern Arce-

lorMittal, which employs more than 320 000 people all over the world.

The company is the outcome of the merger of the world’s number one

steel manufacturer, Arcelor, with the world’s number two steel maker,

Mittal Steel. The group’s steelworks are to be found in 27 countries on

four continents – Europe, Asia, Africa, and America. In 2007, Arcelor-

Mittal’s consolidated revenues amounted to more than EUR seventy

billion. ArcelorMittal accounts for 10% of the world’s steel output. The

company is a leader in all big world markets. The group’s products are

exported to 187 countries, from New Zealand to areas around the

North Pole. In recent years, the group has been building a position for

itself, especially on the rapidly growing Chinese and Indian markets.

Most products go to the automobile industry, construction and the

manufacture of household appliances and packaging. 48% of steel is

made in Europe, 35% in America, and 17% in other countries, such as

Kazakhstan and South Africa.

In the Czech Republic, the company operates through four

companies. ArcelorMittal Ostrava will be introduced to you

in the following article, its three subsidiaries in the text here

below.

ArcelorMittal Frýdek-Místek belongs to the group of the largest Czech steel company,

ArcelorMittal Ostrava. The company closed the year 2007 with a profi t

of EUR 19 million (before tax), a 28% increase on a year-on-year basis.

Its profi t after tax was EUR 15 million. In all, the enterprise rolled out

and sold 143 000 tonnes of sheet (21 633 tonnes of electro sheet),

in comparison with 138 000 tonnes (15 100 tonnes of electro sheet)

one year before. The company currently employs 733 people.

ArcelorMittal Tubular Products Ostrava came into being on 1 May 2007, when division 15 – Pipe Manu-

facturing Plant (Rourovna) was spun off from its mother company

ArcelorMittal Ostrava. It specialises in the manufacture of seam-

less and spiral-welded tubes and tubular products. Its volume of

production is more than 300 000 tonnes of tubes annually. Since Ph

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The ArcelorMittal Concern has more than 320 000 employees all over the world

1 7 |

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

1957, the company has been entitled to mark its oil pipes with

the initials of the American Petroleum Institute, API. In the spin-

off process, the company took over all the employees of the Pipe

Manufacturing Division and some employees of ArcelorMittal

Ostrava. Now it has 1188 employees. In the eight months of 2007,

from its establishment on 1 May until the end of the year, the

company earned revenues amounting to EUR 173 million. Its

profit before and after tax was EUR 14 million and EUR 9 million,

respectively.

ArcelorMittal Tubular Products Karviná is a one-hundred-per-cent subsidiary company of the largest

Czech steel company ArcelorMittal Ostrava. In 2008, the former

Jäkl Karviná Company marked the 90th anniversary of its estab-

lishment. It is the largest Czech manufacturer of welded tubes

and profiles, and with its more than six hundred employees it

is one of the largest employers in the Karviná region. In the first

half of 2008, the company generated a profit of EUR 4.8 million.

Within the ArcelorMittal group, it belongs to the Tubular Prod-

ucts Division (Mechanical Group). For a number of years, it has

been manufacturing and supplying also precision drawn tubes

and calibrated tubes used in the automobile industry. The Karv-

iná-based company exports its products to 24 countries around

the world. Its largest customers are companies in Slovakia, Po-

land, and Germany.

�

| 1 8

C Z E C H T O P

ArcelorMittal Ostrava Places a New Type of Crash Bars on the Market

Věra Breiová, ArcelorMittal Ostrava,

e-mail: vera.breiova@arcelormittal.com,

www.mittalsteelostrava.com

ArcelorMittal Ostrava is the only Czech manufacturer of steel road

crash barriers and crash-barrier systems and the main supplier of

these products to the Czech and the Slovak markets. It also exports

these safety devices to Germany, Poland, France, and Spain. Next

year will mark the 40th anniversary of the fi rst crash barrier (at that

time marked NH4) leaving the works. The following are the replies of

Ms Věra Breiová, representative of ArcelorMittal Ostrava, to questions

concerning the new type of crash barriers.

What is the main advantage of the new type of crash barriers you

have presented? Where can your crash barriers be found?

The crash barriers from ArcelorMittal Ostrava are absolutely unparal-

leled in all their technical parameters in comparison with other such

safety devices. That is why they are used on 95% of Czech roads and

motorways. In addition, in recent years we have sold our crash bar riers

to a number of other countries, such as Lithuania, Latvia, Estonia, Bos-

nia, Croatia, and even Iceland. Each year, ArcelorMittal Ostrava turns

out approximately 50 000 tonnes of crash barriers. Although now, af-

ter forty years of making these products, it manufactures a complete

range of all types of crash barriers, it is planning to develop new ones,

in response to the modernisation of the motorway and road network

in the CR. In developing new types, we co-operate both with the Road

and Motorway Management of the Czech Republic and the Ministry of

Transport, as well as with project design organisations.

Crash barriers must pass demanding tests. Which certifi cation authority

carries out the testing and what are its main requirements?

The testing of crash barriers is carried out under the supervision of the

Technical and Testing Institute for Construction Prague at the airport

near Pelhřimov. It consists of two separate bumps of cars against the

crash barrier. The fi rst bump is carried out by a Peugeot 205 weighing

900 kg and running at a speed of 100 km/hr. After the crash barrier

has been repaired, it is subjected to another bump, this time by a bus

weighing 13 000 kg and running at 70 km/hr. Both vehicles hit the crash

barrier at an angle of 200. For the test to be passed, the vehicle must not

get through the crash barrier and no longitudinal element of the crash

barrier may be disrupted during the test.

What proportion of the output does ArcelorMittal Ostrava account for?

The complete crash barrier safety system, except the joining mate-

rial, consists of sections, all of which are made by our company, the

same as the input material for those sections. Profi ling, pressing, and

most of the surface treatment by zinc coating is done in our Minihuť

pásová Division.

�

ARCELORMITTAL OSTRAVA A.S. is the largest metallurgical fi rm in the Czech Republic and belongs to the world’s lar-

gest steel group, ArcelorMittal. It makes more than 3 million tonnes of steel a year and

exports approximately 60% of its output to more than 80 countries the world over. It

employs 7 450 people, and together with its subsidiaries its workforce totals 10 300.

Its largest shareholders are MITTAL STEEL HOLDINGS A.G. (71.579% of shares), Havr-

ton Investment Ltd. (13.881% of shares), and the Ministry of Finance (10.969% of

shares). In the 2007 fi nancial year (ended on 28 February 2008) the company generated

a consolidated profi t of EUR 331 million after tax, with revenues amounting to EUR 2

billion. ArcelorMittal Ostrava is one of the largest tax payers in the Czech Republic.

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Road barriers from ArcelorMittal Ostrava line most Czech roads

| 2 0

C Z E C H T O P

Forging Line for India – Important Export Deal of ŽĎAS, a.s.

Eva Losenická, ŽĎAS, a.s.,

e-mail: eva.losenicka@zdas.cz, www.zdas.cz

ŽĎAS, a.s., based in Žďár nad Sázavou,

started production more than 57 years

ago. It has 2 720 employees and the

volume of its output in 2007 was worth

approximately EUR 150 million. ŽĎAS

belongs to the Železiarne Podb rezová

Group, whose leader is the world-

renowned tube manufacturer ŽP a.s. Pod-

brezová, Slovak Republic. The core pro-

gramme of ŽĎAS joint stock company is

the manufacture of forming machines,

forging presses, scrap processing equip-

ment, and machinery for the processing

of rolled products, castings, forgings, in-

gots and tools, especially for the automo-

bile industry.

ŽĎAS Forging Set to IndiaIn June 2008, ŽĎAS Company handed

over to India’s Bharat Forge Limited (BFL)

based in Puna its integrated forging set

with a CKW 4 000 press. The equipment

was installed in the factory’s new hall.

The ceremony marking the putting into

operation of the new equipment, which

was attended by all BFL’s important cus-

tomers, was addressed by the compa-

ny’s managing director B. Kalyani and his

deputy G.K. Agarwal, who expressed their

appreciation and thanks to ŽĎAS for the

fulfilment of all its commitments and for

the delivery of the equipment ahead of

schedule.

ŽĎAS Uses the Most Up-to-Date Technologies Hammer forging is one of the most ad-

vanced methods employed in the manu-

facture of semi-finished products for all

sectors of heavy engineering. This technol-

ogy is used to make forgings in the shape of

rods and shafts, cubes, disks, rings, spheres,

slabs, and other complicated shapes ac-

cording to the customer’s special order.

Hammer forging presses are used mainly

to make single pieces and small series of

products.

The integrated set for hammer forging

consists of a forging press with hydraulic

drive and one or two forging manipula-

tors. Part of its electrical system is a pro-

grammable controller enabling both man-

ual and automatic control, including the

manipulator.

Attendance of the Set Is Very Easy and Highly Automated The forging press is controlled by a single

operator from the central control desk,

located in a noise-free, air-conditioned

cabin. The operator chooses the suitable

mode of control with regard to techno-

logical requirements. Automatic forging

with a ± 1 mm shape accuracy of forg-

ings, the equipment of the press with

technology and defect diagnostics and

automatic tool exchange have substan-

tially reduced the requirements for physi-

cal attendance. The result is better qual-

ity, strongly reduced material allowance,

and high productivity of labour.

�

QKK 35 hydraulic forging rail-borne manipulator from ŽĎAS, a.s. Žďár nad Sázavou at Bharat Forge Limited, India.

Every important step in the course of the work carried out at the customer’s end in India (e.g. the installa-tion and assembly of the equipment, its start-up, etc.) is accompanied by a small religious celebration, called puja. During the fi nal testing and the handover of the ŽĎAS forging set in July 2008, all parts of the set were decorated with fl owers before the start-up of the equipment and the manufacture of the fi rst large piece – an ingot weighing 31 tonnes.

CKW hydraulic forging presses are plunger-type two-column structures used primarily in shops with less space above the ground at the expense of a deeper sub-base.

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E N T E R P R I S E

Czech Plate Is Used for Building the World’s Largest Ships

Kateřina Krumpochová, EVRAZ VÍTKOVICE STEEL, a.s.,

e-mail: krumpochova@crestcom.cz, www.vitkovicesteel.com

EVRAZ VÍTKOVICE STEEL, a.s. is a leading

metallurgical company producing steel,

heavy plates, rolled sections, sheet piles

and cut shapes. It turns out up to 950 mil-

lion tonnes of steel a year and employs

nearly 1 650 people. In November 2005,

the company closed the fi nal phase of pri-

vatisation, when it was bought by a lead-

ing Russian steel manufacturer – EVRAZ

Group S.A. Thanks to the massive support

of EVRAZ Group S.A. and its strong position

on the world and the Russian steel markets,

the company could enter the Russian pipe-

line market.

EVRAZ VÍTKOVICE STEEL Dominates European Heavy Plate ProductionThe vision of EVRAZ VÍTKOVICE STEEL is to

become one of the leaders of the Euro-

pean plate manufacturers’ market and to

supply its customers with products of the

highest quality with the best use prop-

erties and the highest possible added

value. In the Czech Republic, the compa-

ny is the only manufacturer of heavy plate

and a dominant producer of this article

on the European scale. It is also the only

manufacturer of sheet piles in the Czech

Republic. The company’s long-term effort

is to maintain its position on the market,

as well as to strengthen it. The company

is increasing the share of its production

of pipeline plates, quenched plates, and

plates made of high-grade steels for spe-

cial uses. Its metallurgical products are

used in sectors such as ship-building,

steel and bridge structures, transport

engineering, building machines, power

engineering and pipelines.

The Company’s Product Range is Very WideThe company’s core product is heavy

plates. The plates are made from con-

tinuously-cast slabs and are rolled to

thicknesses of 5 to 80 mm and widths

of 1000 to 3300 mm. Hot-rolled heavy

plates are processed into basic semi-fin-

ished products designed for further me-

chanical working. Cut shapes are made

on modern CNC controlled flame-cut-

ting machines. They are fitted with top

standard plasma burners and oxygen-

natural gas burners. The follow-up tech-

nological processing includes shot blast-

ing and painting. Apart from plates and

cut shapes, the production programme

also includes beams, angles, sheet piles,

crane rails, rims, round bars, and special

sections.

The Company Is Scoring Success in Ship-buildingSo far the last of the Freedom class cruise

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Shipbuilding is an important outlet for the company’s products

2 3 |

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

out on its maiden voyage last May. The

ship is the third in the series and was

built in Finland’s STX Europe ASA ship-

yards, until recently known as Aker Yards.

EVRAZ VÍTKOVICE STEEL supplied plate

for those ships, which was used espec-

ially in the most heavily stressed parts of

the keel below the water line. Altogeth-

er 6 042 tonnes of plate, approximately

one-quarter of the plate used in build-

ing the ship, came from EVRAZ VÍTKOV-

ICE STEEL.

Freedom of the Seas, Liberty of the

Seas, and Independence of the Seas are

currently the world’s largest passenger

ships. They are 339 metres long, 39 me-

tres wide, and can take up to 5 000 peo-

ple, 1 400 of whom are crew members.

In future, the largest cruise vessels will

be “Genesis” class ships, which will be 360

metres long, 47 metres wide, and will

have a capacity of 8 400 people. EVRAZ

VÍTKOVICE STEEL supplies plate also for

this new class of ships.

�

EVRAZ VÍTKOVICE STEEL IN FIGURES:

Steel and rolling-mill production in tonnes

Production unit Product Year 2007

Steel mill Steel total 891 200

of which: slabs 891 200

Section mill Steel sections 163 230

3.5 four-high rolling mill Plate 732 882

Cut shapes cost accounting centre Cut shapes 28 374

Selected economic indicators for 2007

Output EUR 686 million

Revenues from the sale of own products and services EUR 647 million

Output consumption EUR 495 million

Added value EUR 191 million

Operating profi t EUR 139 million

Profi t before tax EUR 114 million

| 2 4

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

Original Solution of Reducing the Environmental Impact of Foundries

Pavel Szturc, ForSTEEL, s.r.o.,

e-mail: forsteel@forsteel.cz, www.forsteel.cz

ForSTEEL, s.r.o. was established at the end

of 2004 by scientific workers, specialists

and project managers in the area of ap-

plied metallurgical research. This area is

the core subject of the company’s busi-

ness, which comprises especially metal

forming, material engineering, targeted

promotion of steel products, and of late

also the strongly forward-looking area

of using waste heat from metallurgical

processes. ForSTEEL has its offices within

the Scientific and Technological Park in

Ostrava, which enables it to co-operate

closely with innovation firms of a similar

orientation. Another advantage of its lo-

cation in Ostrava is the proximity of the

Technical University of Mining and Met-

allurgy. In co-operation with the Univer-

sity, the company is preparing a number

of joint projects with the participation of

students and doctorands. In this way, the

company wants to help to create the op-

timum environment for the professional

growth of young, technically educated

people.

ForSTEEL Works on an Environmentally Friendly Project for MetallurgyIn recent years, the company has been con-

cerned with the use of waste heat and the

heat pipe technology (HPT) in metallurgy.

The use of waste heat from burnt gas is

currently one of the most widely discussed

subjects in the energy management of

foundries. The problem covers not only the

economic issue of wasteful burning of natu-

ral gas in consequence of the uneconomi-

cal use of the heat obtained from burning,

but also the environmental consequences

caused by the high volume of emissions.

Successful Launching of the TechnologyTo examine the possibilities of using the

heat pipe technology, a complete analy-

sis was made in 2007 of technological pro-

cesses taking place inside several furnaces

in VÍTKOVICE HEAVY MACHINERY a.s., used

both for the technological heating of mate-

rial and for the heat processing of products

from their forge. The purpose of the analysis

was to obtain the parameters of the con-

sumers with regard to the potential use of

waste heat. On the basis of this analysis, one

forge furnace was chosen to examine the

possibility of connecting it to an exchanger.

After that, project documentation of the

pilot equipment was prepared. In the fi rst

phase of the project, the waste heat was

used for heating service water in combina-

tion with the heating of the production halls

in the winter season.

A great benefi t, besides clear economic

savings, is the reduction of CO2 emissions.

The heat obtained from the fume conduit

makes it possible to reduce CO2 emissions,

which helps to meet emission limits. Ac-

cording to expert estimates, the return on

investment for similar equipment is one or

two years after being put into operation.

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HPT IN BRIEF:HPT exchangers work on a principle diff erent from that used by conventional

exchangers. HPT is used to transfer heat from one place to another by means of

working medium vapours. The main part of the exchangers is hermetically closed

heat tubes forming a separate heat circuit. One end of the tube is heated by a me-

dium which transfers its heat (e.g. burnt gas), while the other end conveys the heat

to a cooling medium (e.g. pre-heated air, heating water, pre-heated combustion

air, etc.). The two parts are separated by a partition formed by the separating wall

through which the pipes pass. At the heated end, the working medium enclosed

inside the tubes evaporates as a result of the heat of the outgoing burnt gas, and

at the other end it transfers the heat released by its condensation to the medium

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| 2 6

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

Research of Metals, a Way to Higher Efficiency of Production

Vladivoj Očenášek, VÚK Panenské Břežany, a.s., e-mail: vuk@volny.cz, www.vuk-pb.cz

The research and development of non-

ferrous metals and alloys in today’s VÚK Panen-

ské Břežany a.s. Research Institute has a tradition

of more than fi fty years. Currently, the Institute

co-operates with manufacturers of non-fer-

rous metal products in the area of basic and

especially applied research. This co-operation

is focused on the development of new alloys,

optimisation of production technologies, and

the provision of consulting and expert services

to a wide range of enterprises operating in the

area of production and the use of non-ferrous

metals and their alloys. It also participates in the

integration of European standards into the Czech

standard system. The Institute has created very

good conditions for this work, both as regards the

equipment of its workplace with experimental

de vices and its personnel, which consists of a team

of researchers and technicians. An integral part of

VÚK Panenské Břežany are its testing rooms and

laboratories, which are members of the Czech

Testing Laboratories Association (SČZL).

The workplace occupies itself with research

and development projects supported by the

state and projects supported fi nancially by

both the state and production enterprises.

Its current work involves grant projects in the

area of basic material research and projects for

the development of new types of alloys and

the development and optimisation of produc-

tion technologies.

Research Helping the Development of Substitutes for Materials Containing Toxic MetalsA very important area of VÚK’s research work

involves materials and technologies aimed at

reducing the impact of harmful substances on

the environment, in response to growing en-

vironmentalist pressures for the elimination of

alloys containing toxic elements. That is why

stricter criteria are being applied to stand-

ards regulating the content of heavy metals

in water, foodstuff s, and the environment as

a whole. Another important environmen-

tally friendly source of saving is reducing the

weight of structures, especially in transport

engineering. In co-operation with univer sities

and non-ferrous metallurgy enterprises, VÚK

is currently tackling two projects: for the re-

search and development of materials which

do not contain toxic lead and materials and

technologies leading to the reduction of en-

ergy costs in their production and use. The

former involves machinable aluminium and

copper alloys with a limited or zero content

of harmful lead and lead-free solders used in

electronics.

The latter concerns the use of light metals

(aluminium and magnesium) and their alloys,

which are used in transport engineering with

the aim of decreasing the weight of structures

and signifi cantly reducing harmful emissions.

In the case of modern technologies, this re-

search is focused on the continuous casting of

aluminium alloy strips combined with cold roll-

ing. In comparison with the conventional ingot

technology, the new method brings consider-

able energy and material savings. These com-

pletely new materials and new production

technologies result in surprisingly better use

properties of products based on them.

Co-operation with Enterprises and Universities Is Benefi cial for Both SidesToday, research work and development in

the area of material research is unimaginable

without close co-operation between the re-

search institution, the manufacturer, and uni-

versities. That is why VÚK Panenské Břežany

has as its partner’s industrial enterprises which

are concerned with production in the area of

casting, forming, and heat treatment of non-

ferrous metals and alloys and with technical

universities. Its most important partners are

enterprises grouped in the Czech Nonferrous

Metal Industry Association (SKP), especially

sheet and pressed and forged piece manu-

facturers in the Czech Republic, such as AL

INVEST Břidličná, a.s., KOVOHUTĚ HOLDING

DT, a.s., Rio Tinto Alcan Děčín Extrusions, s.r.o.,

STROJMETAL KAMENICE, a.s., and KOVOHUTĚ

ROKYCANY, a.s. Its most important partners

among universities are Charles University in

Prague, Faculty of Mathematics and Physics,

Czech Technical University in Prague, Faculty

of Nuclear Sciences and Physical Engineering,

and Brno University of Technology.

VÚK Co-operates with Partners AbroadVÚK also co-operates with institutions in other

countries. For example, in the area of modern

technologies, such as friction stir welding, it co-

operates in tackling Project 5 of the framework

programme with its partners, GKSS Geesth-

acht in Germany and TU Lisbon, and under

the Eureka project in the use of continuous

casting of strip material for the manufacture

of thin aluminium alloy sheets with Marmara

Research Centre in Turkey.

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| 2 8

S U R V E Y

Poll of Successful Companies Operating in the Metallurgy and Metalworking Sector

Bezručova 300, 735 93 Bohumín, phone: +420 596 081 111,

fax: +420 596 082 801, e-mail: info@zdb.cz, www.zdb.cz

ŽDB GROUP a.s.

ŽDB GROUP, which is part of the KKCG fi nancial and investment

group, has a tradition going more than 120 years back. The com-

pany supplies a wide range of wires and wire products, such as

ropes, steel cords, springs

and metal fabrics. It also

makes cast iron boil-

ers and central heating

bodies, commercial cast-

ings, steel shapes and

bars, and ingots.

You have the most

up-to-date wire drawing

equipment. What benefi t

will you get from this

investment?

In 2008, we invested large

sums in our Drátovna wire

mill and put fi ve new wire-

drawing lines in operation.

This new manufacturing

equipment boasts the

highest world standards

and its installation marked

the termination of the fi rst

stage of the mill’s moderni-

sation, which ranks it among Europe’s leading wire manufacturers.

How do you reduce the impact of your production on the

environment?

In 2008, we completed a vast improvement project by investing large

sums in a modern, environmentally friendly heating system and the

reconstruction of our old boiler room. Work on the project started in

January 2006, in co-operation with our Service Centre. Besides heating,

the system will make it possible to use the steam also for technologi-

cal purposes. This investment will help to improve the quality of the air

in Bohumín, the town where ŽDB GROUP has its headquarters.

Number of employees: 2 898Contact: Ms Petra Wodeckáe-mail: pwodecka@zdb.czExport: Germany, Poland, Slovakia and Italy, the USA, Asia,

Africa and Australia

Ing. Fr. Janečka 147, 257 41 Týnec nad Sázavou,

phone: +420 317 703 111, fax: +420 317 703 541,

e-mail: metaz@metaz.cz, www.metaz.cz

Metaz a.s.

Metaz a.s. is one of the most important aluminium alloy and

steel cast product manufacturers in the Czech Republic. Since

its establishment in 1931, the company has built a stable posi-

tion for itself as a supplier of products to customers in Western

and Central Europe, and overseas. The steel foundry is certified

under EN ISO 9001:2000 standards and holds also other certifi-

cates, e.g. for the manufacture of railway equipment.

What production technologies do you use? What competitive

advantages do these technologies provide?

The basic technologies used by the aluminium alloy foundry

are low-pressure metal mould casting, gravitation casting,

and sand casting. A special, high-precision method is plaster

mould casting, which is used, for example, in the manufacture

of turbo-blower parts. Much in the focus is the quality of the

castings, which is controlled by special measuring and testing

equipment (3D measuring, X-Ray examination, spectral analy-

ses, etc.).

The most commonly used technology is sand casting. A spe-

cial technology is centrifugal casting, which is used for castings

requiring high inside quality and homogeneity. The main advan-

tage of the above technologies in combination with very strict

control of castings is high quality.

Where can your castings be found?

The main products of the steel foundry are special alloy castings

used as parts for the automobile industry, grates and fi re bars,

plough blades and plough edges for farming machines and glass

moulds. The castings turned out by the alu-

minium-alloy foundry are used mainly in

the automobile and aircraft indus-

tries and in electrical engineering,

e.g. to make suction piping,

engine girders, car wheels,

cylinder heads, slide bends,

fuel injection pumps, etc.

Turnover: EUR 13 millionNumber of employees: 380Contact: Ms Eva Muškováe-mail: eva.muskova@metaz.czExport: EU states, the USA

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Metaz specialises in the production of aluminium and steel castings

2 9 |

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

Křižíkova 68 h, 660 00 Brno,

phone: +420 532 041 700, fax: +420 530 041 701,

e-mail: sales@kpslevarna.cz, www.kpslevarna.cz

Královopolská slévárna a.s.

Královopolská slévárna is a company with a tradition of more than

one hundred years, which makes steel castings, centrifugal cast

tubes, and special shapes. Its main customers are companies in

the ship-building and power industries. The foundry supplies large

quantities of materials, including high pressure resistant metals and

stress, corrosion, and water resistant materials.

Recently you scored an important success among suppliers of

sections for the ship-building industry. What does this success mean

to you and how are you going to use it for the future development of

your company? What other achievements can you boast?

We managed to strengthen our position as suppliers for the ship-

building industry and have become established manufacturers

of strictly certified cast sections. In our opinion, the ship-build-

ing industry is a very stable and very reliable customer for our

products, which accounts for 30% of our turnover. In addition to

ship-building, we are endeavouring to strengthen our position

in the power industry, which is responsible for a comparable

share of our growth. Our latest success worth mentioning is the

certificate we obtained from Czech Railways for castings of up

to 4 000 kg.

On a competitive market, such as metallurgy, a very important

factor is strategy. What are you doing to raise your competitiveness?

We focus on smaller deliveries with high material and weight

flexibility, which enables us to satisfy a wide range of customers.

Our strategy with regard to competition is placing emphasis on

quality and fast delivery rather than on low prices. This policy is

helping us to succeed in demanding regions such as West Eu-

rope and Scandinavia.

Turnover: EUR 8 millionNumber of employees: 180Contact: Mr Karel Ryšavýe-mail: sales@kpslevarna.czExport: Russia, Scandinavia, Germany, Canada, the UK, Slova-

kia, Poland, and France.

Mostecká 1487, 419 01 Duchcov,

phone: +420 417 835 141, fax: +420 417 835 156,

e-mail: kucirekj@kovosreal.cz, www.kovosreal.cz

KOVOSREAL s.r.o.

KOVOSREAL s.r.o. is a leading Czech metal sheet processing

company. It supplies a wide range of products made in se-

ries or to the customers’ individual orders. Its specialisation is

sheet punching, cutting out and bending, pressing, varnish-

ing, and welding. The company has its own tool shop provided

with equipment for making and servicing special tools (cut-

ting, bending, drawing, progressive and combined tools). The

company is certified in accordance with ISO 9001:2001 and ISO

14001:2005 standards.

Your company has just invested in very modern technology in

the area of sheet processing. What benefit do you expect to draw

from this investment?

We have invested in metal sheet processing equipment, specifi-

cally a cutting-out machine. TRUMPF cutting-out centres and

press brakes are very modern machines, which can work sheet

up to 4 mm thick. The new equipment will make it possible to

raise the quality of our products and shorten delivery terms.

Your company is a purely Czech firm, with no foreign capital.

What are the advantages of this arrangement?

The main advantage is that we can develop our company com-

pletely according to our own ideas, independently of any for-

eign influence. This arrangement, however, means that we must

depend completely on our own resources, even at moments

when a foreign owner could help us.

Turnover: EUR 3.6 millionNumber of employees: 85Contact: Mr Jan Kučíreke-mail: kucirek@kovosreal.czExport: Germany, Belgium

Special emphasis is placed on the quality of material

TRUMATIC 5000R Equipment

| 3 0

I N F O R M AT I O N

Exhibitions and Trade Fairs Concerned with Metallurgy and Metalworking

IN THE CZECH REPUBLIC

IEF – International Engineering Fair51st International Engineering Fair

14-18 September 2009

Veletrhy Brno, a.s.

Výstaviště 1, 647 00 Brno, Czech Republic

e-mail: msv@bvv.cz, www.bvv.cz

FOND-EX13th International Foundry Fair

11-14 May 2010

Veletrhy Brno, a.s.

Výstaviště 1, 647 00 Brno, Czech Republic

e-mail: fond-ex@bvv.cz, www.bvv.cz

OFFICIAL PARTICIPATION OF THE CZECH REPUBLIC IN FOREIGN EXHIBITIONS AND TRADE FAIRS

CIMT11th China International Machine Tool Show

6-11 April 2009

China International Exhibition Centre

e-mail: gaojingjing@ciec.com.cn,

http://chinapoo222298.chinapoo.cn/enshow.shtml

IMTEX Bangalore14th Indian Metal-cutting Machine Tool Exhibition

21-27 January 2010

Indian Machine Tool Manufacturers‘ Association (IMTMA)

Bangalore International Exhibition Centre (BIEC),

10th Mile, Tumkur Road, Bangalore

e-mail: imtma@imtma.in, www.imtex.in

MINISTRIESMinistry of Industry and Trade of the Czech Republic

www.mpo.cz � e-mail: mpo@mpo.cz

Ministry of the Environment of the Czech Republic

www.env.cz � e-mail: info@env.cz

ASSOCIATIONS AND UNIONSConfederation of Industry of the Czech Republic

www.spcr.cz � e-mail: spcr@spcr.cz

Association of Foundries of the Czech Republic

www.svazslevaren.cz � e-mail: svaz@svazslevaren.cz

Hutnictví železa a.s.

www.hz.cz � e-mail: hzas.pha@telecom.cz

Czech Constructional Steelwork Association

www.caok.cz � e-mail: sekretariat@caok.cz

Czech Nonferrous Metal Industry Association

www.kovohute.net � e-mail: info@kovohute.net

Institut ocelových konstrukcí, spol. s r.o.

www.iok.cz � e-mail: rozlivka@iok.cz

UNIVERSITIES AND RESEARCH WORKPLACES Brno University of Technology– Faculty of Civil Engineering,

Institute of Metal and Timber Structures

www.fce.vutbr.cz � e-mail: melcher@fce.vutbr.cz

Czech Technical University in Prague, Faculty of Civil

Engineering, Institute of Steel Structures

web.fsv.cvut.cz/k134 � e-mail: studnicka@mat.fst.cvut.cz

Czech Technical University in Prague, Faculty of Civil

Engineering, Department of Steel and Timber Structures

www.fsv.cvut.cz � e-mail: k134@fsv.cvut.cz

Technical University of Ostrava, Faculty of Metallurgy and

Material Engineering

www.fmmi.cz � e-mail: katerina.koronkova@vsb.czP

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