Annual Report 2008

REPORT BY THE BOARD OF DIRECTORS ŽELEZIARNE PODBREZOVÁ For the purpose of saving thermal energy, we completed the second and final stage of the heat management rationalisation at the old plant in 2008; to replace the steam heating system, local gas boiler rooms and gas infrared heaters were installed. We invested a total of SKK 110.1 million (EUR 3.7 million) in construction. Reconstruction of the steel mill social building combined with the canteen refurbishment represented a key construction investment. Another major construction investment was the refurbishment of the former Piesok dormitory: the facility was transformed into an accommodation facility, allowing Železiarne Podbrezová to provide rental apartments to its employees for stabilisation purposes. In order to ensure operational reliability of the technological equipment and, with regard to the maintenance of buildings and structures, we invested a total of SKK 823.5 million (EUR 27.3 million) for repairs in 2008. We made a substantial change in organising and managing maintenance and repairs in Železiarne Podbrezová, when after more than a decade we fully centralised all main– tenance activities into the Centra! Maintenance Unit. ENVIRONMENTAL POLICY A responsible approach to environmental issues is a prerequisite for retaining a Železiarne Podbrezová's leading position in the competitive environment. The Certified System of Environmental Management under EN ISO 14001 is a permanent instrument used for environmental protection and the promotion of the positive environmental profile of our company. The efficient maintenance and improvement of the Environmental Management system under the new standard EN ISO 14001 2004 was confirmed by the supervisory audit carried out in 2008 by SGS Slovakia spol. s.r.o. With respect to waste management,we implemented the Programme for the Decontamination and Replacement of Equipment Containing Polychlorinated Biphenyls and constructed an isolated waste deposit for the disposal of neutralisation and phosphate sediments from production. In 2008, the five-year Kyoto trading period commenced for Železiarne Podbrezová as a participant in the trading scheme for carbon oxide emission quotas. Železiarne Podbrezová was actively involved in the entire process of the preparation and allocation of emission quotas. In compliance with legislative requirements, during the previous year we ensured the monitoring and regular evaluation of produced carbon oxide emissions. Research and Development In 2008, R&D activities focused mainly on the verification of the creep features of boiler alloyed and construction tubes designated for the automotive industry. We focused on optimising the technological parameters of steel and tube production, and extending the useful life of shaping tools. Actual R&D costs amounted to SKK 1 308.0 thousand (EUR 43.4 thousand).