Annual report 2015

Purchase of Strategic RawMaterials and Energy Compliance with ISO standards in business relationships with suppliers of raw materials and a stringent payment dis - cipline has enabled us to improve our supply activities still further in terms of quality and delivery times. The purchase prices of scrap metal and cast iron declined throughout 2015. The decline in prices of steel scrap had a positive im - pact on the Company’s costs of raw materials and partially compensated for the downward pressure on the sales prices of finished goods. In 2015, we purchased raw materials in the total amount of EUR 105 726 thousand, of which 18.3% were imports. As usual, our priorities included the purchase of scrap steel, ferro-additives, pig iron, and heat-resistant materials and spare parts. When purchasing raw materials, we traded with more than 800 business partners in 2015. In 2015, we purchased a total of 268 165 tonnes of scrap steel, of which 88.8% were supplies from our subsidiaries ŽP EKO QELET a.s. and KBZ s.r.o. In 2015, we purchased a total of 180 371 MWh of electricity, a 7.9% decrease compared to the previous year. Our small hydroelectric power plants and the co-generation unit pro - duced 62 331 MWh of electricity, which represents a 26.3% share of internal generation of our total annual consump - tion. The purchase price of electricity decreased by 3.5% compared to 201 4 . In 2015, we purchased a total of 40.9 million m3 of natural gas from Slovenský plynárenský priemysel, a. s. for our consumption, a 5.6% decrease. Železiarne Podbrezová a.s. Annual report 2015 Capital Investments and Care for Technologi- cal Equipment Whereas 2013 was one of the most important milestones in the Company’s history in terms of capital investment, we invested only EUR 6.79 million in 2015, which does not even represent a renewal level. However, in terms of eco - nomic benefits, the implemented investment projects are of a great importance for the Company. One of the most significant technology investments in 2015 was the modernisation of the Carta reduction mill control system, which was installed in 1997. The new generation of the control system optimises the produced dimensions of tubes and minimises technological waste during the reduc - tion. Other major investment projects include the modernisation of the punch press in the tube rolling mill and the cooling of rollers of stands in the reduction mill (SRW). In the energy sector, we modernised the controller and cap of the TG 1 turbine at the Dubová hydroelectric station. The most significant construction investment was the recon - struction of a football stadium- ZELPO Arena, co-funded by the Ministry of Education, Science, Research and Sport of the Slovak Republic. The Company performed repairs in the total amount of EUR 25 362 thousand, which is a decrease of EUR 227 thousand compared to 2014, to ensure the reliable operation of the technical equipment and to maintain the structures and buildings. Report by the Board of Directors on Business Activities, Assets, and Financial Performance in 2015 and Information on the Business Plan 16