Annual report 2019

18 Železiarne Podbrezová a.s.: ANNUAL REPORT 2019 One of the most significant investments in technology in 2019 was the upgrade of the push bench of the rolling mill, both mechanically and electrically, by moving from a 5-piece toothed bar to a 3-piece bar, which should be significantly more resistant to the stresses on critical joints. Another important investment was the installation of new shears for cutting continuous castings. In early 2019, we completed an automated treatment line for small-diameter tubes. Our warehouse management changes involved a complete upgrade of the spare parts warehouse, including semi-automatic warehousing. In the drawing mill, we installed another tube division system directly on the drawing bench. We also bought a modern grinding centre for saw tools, including measurement. We also started preparatory work on the rolling mill to streamline the process of tube treatment using the bypass. We expect that this technology will be installed and launched during the next regular December shutdown of the rolling mill. A significant construction investment in 2019 was the conversion of an unused building into staff accommodation quarters for the employees of subsidiaries. The Company performed repairs in the total amount of EUR 33 659 thousand, an increase of EUR 1 136 thousand compared to 2018, to ensure the reliable operation of the technical equipment and to maintain structures and buildings. RESEARCH AND DEVELOPMENT In 2019, we spent EUR 927 thousand on R&D. R&D was performed primarily by contractual cooperation with the subsidiary, ŽP VVC s.r.o., which worked on six research tasks for the Company. The tasks were focused on research into the optimisation of the technological process of chemical treatment of tubes, cleaning of slag channels from stuck EAF slag in the steel plant, optimisation of technological flows at the tube drawing mill and several smaller operational tasks. ENVIRONMENTAL POLICY Železiarne Podbrezová is a company whose long- term priority is protection of the environment and of the safety and health of employees at work. It has a functional safety and health management system, which is a permanent part of the Company’s business activities. Based on the previous effectiveness and functionalityanalysesof individualmanagement systems, the Company implemented a joint internal combined audit of the two management systems for the environment and occupational health and safety. The integrated management system combines: - The environmental management system (SEM) under ISO 14001; and - The occupational health and safety management system (SRBP) under ISO 45001. In 2019, SGS Slovakia spol. s r.o. performed a supervision audit of SRBP and a recertification audit of SEM. The audit results showed that the integrated management system works. We fulfilled a total of 10 environmental objectives (EUR 294 thousand) and performed 42 tasks to improve occupational health and safety at work (total costs: EUR 10 355 thousand) under the SEM programme in 2019. REPORT BY THE BOARD OF DIRECTORS ON BUSINESS ACTIVITIES, ASSETS AND FINANCIAL PERFORMANCE IN 2019 AND INFORMATION ON THE BUSINESS PLAN