Czech Republic

“ArcelorMittal Ostrava a.s. is the largest steelmaker in the Czech Republic and makes a substantial contribution to the Moravian-Silesian region. We employ 7,226 people and create employment for thousands more, we have the capacity to produce 2 million tonnes of steel annually, destined mainly for use in construction, machinery and energy industry. We are the largest manufacturer of safety road barriers in the Czech Republic and one of world’s nine producers of grain-oriented electrical steel. Besides the Czech Republic, we also supply our products to more than 40 countries around the world.

We have been producing sustainability reports since 2008, to regularly inform our stakeholders about activities that help us build the status of a responsible partner in the region and which also affect our good reputation significantly. In recent years, we have also started to use the GRI methodology.

Thanks to a number of environmental capex projects completed in 2015, the company produces crude iron and steel with the lowest possible impact on the environment.

The sole shareholder is ArcelorMittal Holdings A. G.”

http://ostrava.arcelormittal.com/

What we did in 2015

Message from Leadership

Vijay Mahadevan, Chairman of the Board
Tapas Rajderkar, CEO

Leading the way

ArcelorMittal Ostrava becomes a non-smoking company

Message from Leadership

Ladies and gentlemen,

It is a great honour for me as the newly appointed Chairman of the Board of Directors that I have my first opportunity to invite you to read this report on our activities in the year 2015. On this occasion, I would like to thank my predecessor and colleague Tapas Rajderkar, who led the Ostrava steel mill over the past four and a half years, for all his achievements. Apart from the completed greening programme, I have been much impressed by the mill’s employees, among whom there are some of the greatest experts in their field I have ever met. I will do my best to successfully continue the best achievements of the preceding management and to lead our company a few steps further on its way.

The steel industry is currently undergoing a difficult period, which we, however, perceive as an opportunity. We are fully aware that it is necessary to constantly adapt to changing market conditions. Therefore, we have compiled for the whole ArcelorMittal Group the Action 2020 plan, which introduces a medium-term strategy, with concrete, specific goals set for our Ostrava steel mill to improve the economic performance by 2020.

In Europe, the plan will be put into action mainly by increasing the output volumes, particularly by expanding our portfolio of products with higher added value and also by implementing our transformation programme. Within our division, this transformation will focus on achieving operational, procurement and commercial excellence. All these areas will be closely connected with our Finance and IT departments, which will play an important supporting role. In Finance, strategic investments management, expense control and effective working capital management will play a fundamental role. During the transformation programme key parameters for each division will be set and the results achieved will be carefully monitored.

What does it mean for this company? The aim of the Action 2020 is to increase output to 2.4 million tons of crude steel using the existing facilities. Ambitious this plan may seem, though, in 2016 we should be able to produce 2.3 million tons of steel if the market situation remains favourable. By 2020 we could thus even have surpassed this goal while improving our productivity. We will do our best to fulfill this aim and if we succeed, ArcelorMittal Ostrava will become an even stronger and more stable company, which will bring much benefit to this region.

The following pages will inform you on everything we have been doing in the field of sustainable development. I came to Ostrava in May and I am glad to be here.
People are friendly and hardworking and the city is beautiful and filled with energy. I believe we will be meeting in the future and I really look forward to cooperating with you.

Vijay Mahadevan
Chairman of the Board

 

Ladies and gentlemen,

Corporate responsibility has always been more than just words for us. It has always been closely connected with all our activities. However, we would like to move our responsible behaviour in the community even further. We now want to behave sustainably and diligently deal with all our impact on the local communities. Therefore, we have defined 10 indicators to be followed by the entire ArcelorMittal group about which you will find more detailed information in this report. It is minimisation of the impact of our production on the environment that is an inherent and long-term priority for us. Although we have complied with all environmental limits and we also met the EU limitations four years ahead, which only came into force by March 2016, we voluntarily continue our greening projects beyond our legal obligations. We want to minimise our impact on the environment. In 2015 we built 13 new green technologies for our coke oven plant, sinter plant and blast furnaces, which are now able to capture 520 tonnes more dust than in the past. Thanks to this above-standard greening worth two billion, we have ranked among the cleanest steelmakers in the world.

Exceptional care for our employees has always been an integral part of our strategy. Our staff not only draw an above average income for their work, but they are also offered a wide range of benefits. Thanks to our strict guidelines, prevention and innovations in the field of health and safety we have also reduced the number of injuries to a historical minimum. Our permanent goal is complete elimination of injuries, and every year we come closer towards achieving this goal. An important achievement in caring for our employees’ health has been becoming a fully non-smoking company in September 2015. As a modern company we do not just want to go with the times, but we also want to set new trends. We believe that this involves extra health care for employees, too. All employees who decided to quit smoking, were offered significant support. A comprehensive free of charge smoking cessation treatment was offered to all of them and, in addition, professional medical and psychological assistance was available.

We also continued to support various activities in our region. Dance for Life has become a well-known part of our activity, in which people have fun and they can help at the same time. During the Colours of Ostrava festival we “danced up” 400,000 crowns for non-profit organizations. Furthermore, traditional employee grants brought an extra 750,000 crowns for 55 projects. In 2015, we supported charity and culture projects worth more than 22 million crowns altogether. Our company also supports employee volunteering. Last year our employees dedicated 600 of their working hours to 18 non-profit organizations.

Tapas Rajderkar
CEO

Leading the way

On 1st September 2015, 300 areas that used to be designated for smokers on the premises of the Ostrava steel plant disappeared.  And so did the smokers. On that day, ArcelorMittal Ostrava became a non-smoking company.

Employees were informed about the company’s intention to put an end to smoking a year before the ban was applied, and support was offered to smokers. The ban on smoking also applies to electronic cigarettes and it is binding for all persons entering the company’s premises including lorry drivers, external contractors’ employees or visitors.

A complex stop-smoking treatment programme, under the supervision of a medical specialist, was offered to employees and selected agency staff, which was free of charge provided that the treatment was a success and they did in fact stop smoking. Ninety-seven employees, both white-collar and blue-collar workers, including management and trade union members, joined the treatment procedure. For a further number of employees, simply the establishment of a non-smoking company gave them the impulse they needed to quit smoking without even using the treatment offered.

One of those who gave up smoking thanks to the non-smoking programme, was Jaroslav Vystrk, head of legal affairs, who reflected, “The motivation for me to stop smoking were my children”.

The company’s non-smoking programme was awarded the Performance Excellence Award of the ArcelorMittal Group. Our attitude towards smoking was appreciated by a commemorative medal from the Association for health support and oncological prevention.