REGION

Our Products Contribute

to the Journey

Towards Carbon Neutrality

Ivo Chmelík

předseda představenstva GO Steel a.s.

CEO GO STEEL a.s.

The rolling mills in Frýdek-Místek have been an inseparable part of the town for more than

200 years and they are one of the biggest employers in the region of Frýdek-Místek. Let’s look

back at the history and present with Mr Ivo Chmelík, chairman of the board of directors of the

current operator, GO Steel a.s.

GO Steel plays a key role in the region of

Frýdek-Místek. Could you please describe

its history?

Our company was established in 1833 under

the name ‘Karlova huť’. In the beginning it

focused on refining the iron from the blast

furnaces in Baška and Ustroň in Poland

and produced various steel products for

agriculture and crafts in the region. Over the

course of 180 years, there were many periods

of changes, growth and even downfalls. Its

development was affected by the industrial

revolution, both world wars, the collapse of

the Austro-Hungarian Empire, nationalization

and privatization. From producing hot-rolled

steel plates and galvanized plates through

to the production of cold-rolled steel plates

through to the present day, we are one of

only eighteen manufacturers of transformer

steel in the world.

You mentioned the transformer steel,

which are your pivotal product. Could you

describe what it means?

The transformer steel is a strategic

product which is used for the production

of distribution and power transformers,

various regulatory components in power

engineering and for the production of

some generator types. Therefore you

cannot imagine the development of

electrification without this product. It is

a special silicon anisotropic steel, which

has the rolling direction identical with the

direction of easy magnetization. And this

property is used by the transformers to

achieve the lowest losses possible. More

than 3 million tons of transformer steel is

produced in the whole world, with more

than 60 % of that being produced in

China. China also has the largest excess

production capacity and they try to sell it

on export markets.

Who are your biggest competitors?

Transformer steel is a global product that

we supply around the world; this is why

all of the seventeen world producers are

our competitors. But the EU, including

Turkey, is the most important market

for us. Also, the EU market is protected

against unfair antidumping imports by

the European Commission regulations,

but this ends this year. We believe

that the EU will continue to protect its

market. Otherwise the manufacture

of transformer steel in the EU would

probably end, and our investments of

almost 2 billion CZK in technology and

ecology would be wasted. Not only

would thousands of jobs be in danger

but European producers would also

be dependent on imports from Asia or

America.

Where do you see the future of your

products?

Our goal is to contribute to carbon

neutrality via electrification, which

wouldn’t

be

possible

without

transformers. Charging stations, new

technology devices -- all of them need

to transform electric energy and our

transformer steel also fulfills the stricter

ecological standards.

Thank you very much for the interview,

Mr Chmelík.

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