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ArcelorMittal Ostrava and MG Odra Gas have extended contract for technical gasses supply till 2030

Ostrava November 21, 2018 – ArcelorMittal Ostrava and MG Odra Gas (JV of Messer and ArcelorMittal Ostrava) have agreed on the extension of the contract for technical gasses supply to 2030. The contract guarantees the supply of oxygen, nitrogen and argon to ArcelorMittal Ostrava for a three tandem furnaces operation and production of up to 2.7 million tonnes of liquid steel after the completion of investments by the supplier.

Technical gasses supply (oxygen, nitrogen, argon) for the Ostrava steelmaker is now based on a contract valid till 2020. Thanks to the extension of the valid contract, the supplies will continue after 2020. “The signing of this contract is an important step towards securing sustainable production at Ostrava steelworks on a long-term basis. It guarantees seamless flow of technical gasses for the following 10 years, with possible extension after 2030,” says Ashok Patil, CEO of ArcelorMittal Ostrava.

The prolongation of the contract requires a major investment: Construction of a new Cold Box and other auxiliary equipment. This investment improves production efficiency with a favourable cost of production and supplies.

“To both MG Odra Gas and Messer, the contract on the extension for technical gasses supply to ArcelorMittal Ostrava is an important prerequisite for the investment in modernization of the production facilities. We will achieve greater efficiency and reliability of supplies to the Ostrava steelworks. The investment will also include the increase in the production capacity of the liquid gas production. The liquid oxygen, nitrogen and argon from the new facility will also be distributed to the customers of Messer, which will strengthen its position of a reputable supplier of technical gases,” adds René Hrnčárek, managing director of MG Odra Gas.

ArcelorMittal Ostrava a.s. is part of the world’s largest steel and mining group ArcelorMittal. Annually it produces over 2 million tonnes of steel, which is mainly used in construction and machinery. It is the biggest manufacturer of road safety barriers and steel pipes in the Czech Republic. Besides the domestic market the company delivers its products to more than 40 countries around the world. ArcelorMittal Ostrava and its subsidiaries employ nearly 7 000 people. The 2017 average monthly income was CZK 36 646. As a result of the completion of a range of above-standard emission control technologies, the company produces its products with the minimum possible environmental footprint. The sole shareholder is ArcelorMittal S.A.

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News release Barbora Černá Dvořáková - PR manager & Spokesperson >