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Power Plant to Become Subsidiary of ArcelorMittal Ostrava
03/22/2010 - The Board of Directors of ArcelorMittal Ostrava recently decided at the general meeting to carve out the part of the company that engages in the generation of electricity, in favor of creating a 100% subsidiary, ArcelorMittal Energy Ostrava s.r.o.
The Board of Directors of ArcelorMittal Ostrava recently decided at the general meeting to carve out the part of the company that engages in the generation of electricity, in favor of creating a 100% subsidiary, ArcelorMittal Energy Ostrava s.r.o.
“This step will enable us to obtain a part of the CO2 allowances for electricity generation free of charge,” said Chairman of the Board and CEO Augustine Kochuparampil. “In conformity to the legislation, the company will then use the means saved to implement projects to reduce emissions. We have had a number of meetings, mainly with the Ministry of the Environment, and the carve-out of the Power Plant and foundation of a subsidiary appears to be the only way of meeting the requirements.”
The new company has to commence its operation by March 31, 2010.
This step is the company’s response to the provisions of Act N.695/2004 Coll. regulating the terms of the emissions trading scheme for greenhouse gases allowances.
ArcelorMittal Ostrava a.s. is the largest steelmaker in the Czech Republic and part of the world’s largest steel group, ArcelorMittal. Its yearly capacity is 3 million tonnes of steel. It exports approximately 50% of its output to more than 80 countries. The company has 5950 employees; the total number of employees including the subsidiaries is more than 9300. In the fiscal year of 2008, the company generated a consolidated profit (after taxation) of CZK 6.077 billion.
