Company History

Short history

• 1833 - Charles Iron Mill
• 1991 - Válcovny plechu a.s.
• 1998 - Nová huť, a.s. became the majority shareholder
• 2005 - Mittal Steel Ostrava, a.s. became the majority shareholder

Sufficient iron ore deposits in the valleys of the Beskydy mountains and then the discovery of the high-quality bituminous coal and introduction of its excavation led to the foundation of the metallurgical industry in the Northern Moravia. One of the iron-mills, called “The Charles Iron-mill” after its founder, archduke Charles Frederick, came into existence as soon as in 1833 within the limits of the Lískovec village near Frýdek-Místek, which represents the beginning of Válcovny plechu Frýdek-Místek (VPFM).

Since its foundation VPFM went through several changes and finally specialized in production of a large scale of grades and designs of hot rolled thin and thick steel sheets and plates. The company development experienced a significant change in the sixties. The cold-rolling mill (including pickling, annealing and final treatment) was built producing not only low-carbon steel sheets, but also stainless steel sheets and silicon steel sheets with oriented structure specially designed for electrical industry.

The company Válcovny plechu having been owned by the state became a joint-stock company in 1991. In the nineties, the company suffered the consequences of decrease in the metallurgical production in the Central Europe and many changes in its management. Different standpoints within its top managers and controversies related to company management brought about considerable uncertainties concerning its future strategic orientation. Uncertain ownership and management structure even increased these problems, which finally resulted in financial difficulties in particular. As a result, the company production decreased to 50% in comparison with the situation in the early nineties.

The extraordinary general meeting held in October 1999 led to stabilization and settlement of mutual relations among the shareholders. In consequence, a new supervisory board elected a new board of directors which then appointed the company new management.

Further development of VPFM directly witnesses these changes. There was initiated a profound restructuring process leading to a decrease in the number of management levels and employees. Financial problems ware being solved based on tolling financing. This tolling settlement represented the only way for VPFM to get input materials and generally continued until LNM took over a major share in Nová huť and VPFM.

In July 2005, the final change related to property shares was realized. Mittal Steel Ostrava bought a share of state companies ČKA, a.s. (16,97% of shares) and KONPO, s.r.o. (25,42 % of shares). The company Mittal Steel Ostrava thus became the owner of 33 774 363 pcs. of shares the total nominal value of which represents 98,15% of its basic capital.

On December 22, 2005, the extraordinary general meeting approved a transfer of all shares owned by other shareholders to the major shareholder. In April, the company Mittal Steel Ostrava became 100% owner of the company Válcovny plechu.

The company Válcovny plechu is an integral part of business and development policies of the Mittal Steel group and synergic effect still develops, which brings a long-time prospect for our company.

Last update: 30.6.2008