Mittal Steel Ostrava’s production facilities are located in Ostrava, Czech Republic. The majority of its facilities are whollyowned.
Mittal Steel Ostrava’s principal production facilities currently in operation are three coke oven batteries, two sinter plants,
four blast furnaces, four open hearth tandem furnaces, three continuous casters, one hot strip mill, two section mills, one wire rod
mill, two seamless tube mills, one spiral welding shop and one power plant.
steel industry. Mittal Steel made capital expenditure commitments totaling $243 million over 10 years (including $20 million for
environmental improvements), including $135 million from 2003 through 2007. Mittal Steel has made capital expenditures of $99
million as of December 31, 2006 towards this commitment. Upon the acquisition, Mittal Steel rescheduled the debt obligations of
Mittal Steel Ostrava with a consortium of Czech and international banks led by the International Finance Corporation.
In connection with the acquisition, Mittal Steel Ostrava also committed to follow the medium-term restructuring plan approved
by the European Commission. This plan includes certain reductions in capacity and employment levels.
Mittal Steel Ostrava produces mostly long products. Approximately 43% of Mittal Steel Ostrava’s production is sold in the
domestic market, and the remainder is sold primarily to customers in other European countries. Mittal Steel Ostrava sells most of its
production directly to end users, primarily in the engineering, automotive and construction industries, as well as to “stockists” (smalllot resellers).
The significant downstream subsidiaries of Mittal Steel Ostrava are Jakl Karvina a.s. (wholly-owned), Valcovny Plechu a.s.
(wholly-owned) and Nova Hut-Valcovna za Studena, spol s.r.o. (wholly-owned). Jakl Karvina a.s. has an annual capacity of 255,000
tonnes of welded pipes. Valcovny Plechu, a.s. has an annual capacity of 210,000 tonnes of cold rolled products. Nova Hut-Valcovna za Studena, spol s.r.o. has an annual capacity of 42,000 tonnes of cold rolled strips.
