Date: 08.11.2024
Thanks to tolling, VÍTKOVICE MACHINERY TRADE has managed to renew the almost 70-year tradition of pipe production in LIBERTY Ostrava. These are carbon steel pipes that are used worldwide, especially for oil production, fluid distribution and construction. Josef Bělica, the newly elected Governor of the Moravian-Silesian Region, also attended the resumption of production on site.
VMT, a company of the CE Industries group, continues to resume production at LIBERTY Ostrava through the tolling project, specifically at the roughery and flat products rolling mill, which are currently under the disposition of the insolvency administrator TP Insolvence. Production within tolling is carried out by 1,350 employees, of which approximately 700 work in the pipe mill.
Thanks to its financial backing, business connections and experienced team, VMT has secured the input material for the tolling plant and production could be resumed these days. Pipe production at the pipe mill is being restarted. This means that seamless pipes are rolled again on both Stiefel lines and spiral welded pipes are produced on the welding plant.
Carbon steel tubes are mainly used in the energy and construction industries. Pipes for oil extraction, fluid distribution, heating and power plant boilers, low-temperature and structural pipes and for further mechanical processing are produced here.
"Our goal was to preserve the long tradition of production here at the pipe mill. We are fulfilling our plans. In cooperation with the insolvency administrator, we have resumed the production of pipes in Ostrava, which we supply to more than 30 countries. We are a renowned European manufacturer, which is confirmed by the good outlook for orders in the coming months," says VMT director Tomas Mischinger.
"At the end of November, a creditors' meeting will take place. My goal was to bring Liberty Ostrava to a state where we can talk about a sustainable business, which we are doing thanks to tolling and the resumption of operations. Plants 15 and 16 are key parts of the business with significant potential for a future owner. According to the results of the economic analysis, tolling is beneficial to the estate and ultimately to the creditors. At the same time, we can maintain jobs in production and service operations," adds insolvency administrator Šimon Peták
The newly elected Governor of the Moravian-Silesian Region Josef Bělica, who has long been interested in the steelworks and steel industry and is in regular contact with the management of the steelworks, toller and the insolvency administrator, also attended the restoration of production on site.
"We very much appreciate the visit of the Governor, who has been communicating with us intensively since the beginning of the crisis. The Moravian-Silesian Region, under the leadership of Josef Bělica, reacted very quickly to the non-payment of wages in May and offered our employees assistance in the form of interest-free loans, which helped the smelter to maintain employment, " adds Kateřina Zajíčková, Director of Communications and External Relations at LIBERTY Ostrava.
"I am glad that Liberty Ostrava has managed to restart the traditional pipe production and the flat products rolling mill has also started up. Qualified and experienced employees will not lose their jobs and the Ostrava smelter will not lose a unique production item. The chance to return to the position of the domestic leader in the production of road girders and pipes and to supply its products to dozens of countries around the world is thus greater," said Josef Bělica, the Governor of the Moravian-Silesian Region.
"Thanks to "toller", the pipe mill can continue the production that began at the smelter almost seventy years ago. Our products have passed demanding audits, for example for non-destructive testing of welded pipes, which opens the door to strategic tenders for gas and heat pipelines. We also meet a number of certifications, including those for pressure purposes or drinking water. What is unique about our products is that we use internal and external insulation with cement and polyethylene to prolong their service life, " recalls Pavel Šedivý, Managing Director of LIBERTY Ostrava.
The core product range is seamless pipes rolled on two Stiefel lines in smooth, threaded, flanged and oil pipes. The most demanding products are seamless oil pipes - casing, pumping and oil pipes. Since 1957, the plant has been authorized to mark oil pipes with the American Petroleum Institute - API monogram. Spiral-welded pipes are also an integral part of the production program and their main application is in the construction, gas and water industries.