Vitkovice Steel may be relocated to Russia

Jiří Cienciała, government commissioner for the regions of Moravia and Usti, said there was a possibility that the operations of Czech steel producer Vitkovice Steel would be relocated to Russia and that almost all employees would be fired. The social risks of the North Bohemian region will be discussed by the government.

Vitkovice Steel reported in mid-February that it would close its steel plant by September 30, 2015 and lay off 200 to 250 people. Dmitry Shchuka, Chairman of the Board of Vitkovice Steel, said that other enterprises of the company continue to operate. At the same time, Jaromir Krisica, a spokesman for Vitkovice Steel said that "This information is not true and we declare that this is absolute nonsense."

Vitkovice Steel in the Czech Republic is the third largest steel company that was part of the Russian mining and metallurgical group Evraz from 2005 to 2014. In early April last year, a group of private investors from companies in Cyprus acquired a 100% stake in Vitkovice Steel.

Jiří Cieńciała, the regional government commissioner, also said in his report that layoffs are likely to continue at OKD's coal division. The OKD currently has about 11,000 employees. Another 3,000 people work for its suppliers. OKD said in February that about 1,600 people would leave the company this year. The miner will lay off 300 people by the end of April, and another 500 jobs will be cut naturally, such as retirement and retirement.

Cieńciała also said that the government had not fulfilled its promise to revive the extraction and production of steel in the Moravian-Silesian region. Ultimately, the region will have the highest unemployment rate in the long term.