Sev.en Global Investments, a company headquartered in the Czech Republic, has agreed to supply the Ostrava steel mill Nova Hut with a square billet from its 7 Steel Nordic plant in Norway, Kallanish notes.
The Ostrava plant plans to install an electric arc furnace with a capacity of up to 1.5 million tons of steel per year after its blast furnaces were decommissioned when the company became insolvent under former owner Liberty Steel. Since then, the plant has been operating as a processing plant on a toll-free basis, purchasing raw materials from the companies Vítkovice Machinery Trade (VMT) and Donquixote. Company
Nova Hut, owned by former Czech Interior Minister Martin Pechina through his investment fund Iromet SICAV, acquired the plant in Ostrava last October.
Sev.ru Global Investments, owned by Czech businessman Pavel Tykach, acquired the Celsa steel plant in Norway and the UK last year. Earlier this year, the first steel supply to the Czech Republic was carried out at an electric steelmaking plant in Mo-i-Ran, powered by renewable hydropower.
Nova Hut needs several hundred thousand tons of raw steel per year for its rolling mills, which 7 Steel is able to provide, Libor Czerny, head of Sev.en Global Investments' steel business, told Kallanish. This cooperation can continue until the Ostrava plant puts its electric steelmaking plant into operation.
The billet will be shipped from Port 7 Steel in Moravia across the Baltic Sea to a port in Poland, and then by rail to a steel mill in Ostrava.
"This is the beginning of cooperation between Nova Hut and other companies. Sev.en Group of companies in the field of supply of environmentally friendly steel. We are pleased that this cooperation has been successfully launched and that Sev.en Group is thus supporting the restoration of Nova Hut," says a Nova Hut representative. "The volume of supplies under the contract is several thousand tons of steel. Both sides look forward to long-term cooperation."
Cerny adds: "We are also considering the possibility of supplying billets supplied to Nova Hut from 7 Steel UK in Cardiff, Wales. However, this remains only a potential option at this stage, and no specific agreement has been reached yet."
He declined to comment on how the price is calculated in the supply agreement, stressing that it is "commercially attractive and creates long-term value for both parties."Prices will depend on market conditions, "this is mainly the price of scrap metal," concludes the representative of Nova Hut.
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, ,By Adam Smith,
, , , , kallanish.com
