Annual report 2016

ANNUAL REPORT 2016 • Železiarne Podbrezová a.s. 14 vestments this year in terms of technological innova- tion was the installation of the tube division system di- rectly on the drawing bench, and we plan to install the same division system on another drawing bench next year. In 2016, we also purchased a device for preserving the inner surface of tubes before galvanisation to elim- inate laborious manual cleaning of the preserved outer tube surface. Continuously cast steel blooms, seamless hot-rolled tubes and precision cold-drawn tubes accounted for almost 99% of the total production of Železiarne Pod - brezová a.s. in 2016. Other products – butt welding elbows and reducers comprised a supplementary product range. We pro- duced 2 302 tonnes and sold 2 343 tonnes of welded elbows in 2016. We also produced and sold 56 tonnes of reducers in 2016. The reduction of material inputs was also significant - ly impacted by changed bevels of mandrel rods of the push bench. In 2016, hard-metal rollers were used for the first time in the standard production in the bas - kets of the push bench, which extended the roller life and the surface quality of tubes. In December 2015, we changed the cooling control system for the stands of the drawing reduction mill, and throughout 2016, we changed cooling parameters in cooperation with ŽP Výskumno-vývojové centrum s.r.o. This cooling op - timisation will continue in 2017 and will allow us to achieve higher rolling finish temperatures and im - proved structural and mechanical properties of rolled tubes. In 2016, we produced 47 312 tonnes of precision cold- drawn tubes and sold 46 911 tonnes of precision tubes to external customers, of which 1 369 tonnes were galvanised tubes, 1 887 tonnes were divided precision tubes and 79 tonnes were hydraulic tubes. The break - down of precision tubes by use shows a stable situa- tion in terms of orders in most major product groups of the tube drawing plant: standard, construction, heat exchanger and boiler tubes, and tubes for hydraulic and pneumatic lines. One of the most important in- Sales of main products in 2016 Total Sales of Products Slovakia - 8% Export - 92% tonnes EUR ‘000 Share in sales tonnes EUR ‘000 tonnes EUR ‘000 Con cast steel blooms 76 443 29 696 17% 24 9 76 419 29 687 Seamless hot-rolled steel tubes 111 832 78 286 44% 11 192 8 693 100 640 69 593 Precision cold-drawn steel tubes 46 911 65 309 37% 4 075 6 142 42 836 59 167 Butt welding elbows and reducers 2 399 3 792 2% 91 165 2 308 3 627 Company store (1) 233 245 0% 233 245 0 0 Total 237 818 177 327 100% 15 615 15 254 222 203 162 074 (1) Retail of seamless and welded tubes and butt welding elbows REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS, AND FINANCIAL PERFORMANCE IN 2016 AND INFORMATION ON THE BUSINESS PLAN