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5th Anniversary of U. S. Steel Kosice

5th Anniversary of U. S. Steel Kosice



Kosice, November 24, 2005 - Today it is five years since John H. Goodish, the first president of U. S. Steel Kosice, started the new history of the Kosice steelworks. At the press conference and meetings with employees he informed employees about the six principal business drivers of the new company: safety, environmental compliance, customer service, quality, productivity and cost saving. For five years U. S. Steel Kosice (USSK) has been the largest employer in the region employing on average 16000 people. Following the undertaking by U. S. Steel in 2000, from being a company in debt the Kosice steelworks has become one of the largest producers of flat rolled products in Central Europe. The monthly salaries of U. S. Steel Kosice employees are well above average in Slovakia. Employees participate in a unique program of profit sharing that enables them to increase their yearly income. "It is significant that exactly in the days of the 5th anniversary of USSK the Company of the Year award has gone to USSK," said David Lohr, President of U. S. Steel Kosice. "USSK scored highly in practically all the growth indicators. But for the company itself, its six business drivers are crucial, " added President Lohr.

Safety is the first and most important business principle for USSK. This means the safety of employees as well as contractors or other partners working around the USSK plant. No production record or even a ton of produced iron or steel would have any meaning if human life was endangered. Through the HELP training program USSK has been convincing employees that safe conduct represents their own need and responsibility. Due to the effort made the number of injuries has been lowered by 70 %. In addition, USSK have prepared a program called "Professionals work safely" intended for students and general public. Professionals from various areas will join the campaign, since life and health protection is relevant in any human activity today.

Environmental protection is one of the basic strategic objectives of USSK. Since the year 2000 the amount of solid pollutant emissions per ton of liquid steel produced has been reduced by half. The company has invested more than 200 million USD into ecological projects, of which the new, efficient dedusting systems at the cokery division, sinter plant, blast furnaces and steelshops are the most important. Besides direct investments, the employee environmental education training program CITE represents an active approach to increasing employees' environmental awareness. Moreover USSK supports development of positive attitudes to environmental protection and improvement among elementary, secondary school and college students through several ecological projects organized year by year (Where we will live, What we did not know, EKO, Ekotopfilm).
Though very active in environmental protection, USSK has started law suits against the European Commission and Ministry of Environment of the Slovak Republic because of illegitimate cuts in the CO2 National Allocation Plan. USSK understands CO2 issue as an economic means (not an environmental one) by which European Commission is attempting to obstruct the growth of the Slovak economy.

USSK considers its product quality and quality management systems to be a crucial factor for distinguishing the company from its competitors. USSK is certificated in accordance with the international ISO 9001:2000 standard and ISO/TS 16949 for the automotive industry. An environmental management system in line with ISO 14001 criteria has been implemented as well, and an occupational health and safety management system is also being implemented. In 2002 USSK was awarded the Slovak National Award for Quality in the category of large manufacturing enterprises.

To provide excellent services to customers and business partners USSK has established a new business culture and organization. Apart from being a leader in ethical business conduct, USSK focuses on end users' satisfaction providing customer technical service and direct contact via its European distribution network.

Increased productivity of USSK operations has been the main target since the moment of acquisition. In 2000 the company committed itself to investing approximately USD 700 million within a 10-year capital improvement plan. In April 2002, USSK commissioned a vacuum degasser, which gave the company access to the low-carbon and silicon steels markets. In 2003, there was the starting of the second continuous annealing and tinning lines. In 2004 the third dynamo line for electrical steel was commissioned.
On June 23th, 2005 USSK held a groundbreaking ceremony for its new automotive grade hot dip galvanizing line. With an annual capability of 350,000 metric tons, the new facility will serve the growing demand for high quality coated sheet products in the Central European automotive and construction industries. Start-up of the $160 million facility is scheduled for early 2007. Over the past five years, as a part of the overall capital spending commitment, USSK has invested USD 605 million to enhance its capabilities and performance, environmental systems, and infrastructure.

Low cost production is crucial to success in competitive markets. Though prices of raw materials have risen extremely, the company has been able to lower production costs through efficient management systems at all levels and its continuous improvement process. Hundreds of improvement projects submitted by USSK employees and managers have been implemented, saving millions of dollars yearly. Savings in primary metallurgy, power production and finishing operations are the most significant.

USSK recognizes and accepts its role as a responsible community partner and is a leading contributor to the economic, environmental and social development of Kosice and Eastern Slovakia. In November 2000, as a part of the commitment to the Slovak Government, U. S. Steel established the Economic Development Center in Kosice with the aim of promoting economic growth in the region and the creation of new jobs. To date, the EDC has successfully attracted 14 foreign investors with total investment of 100 million US dollars. When fully staffed, the companies will employ 2350 people.

As a community partner, during the past five years USSK has supported thousands in need through more than 1027 projects in the healthcare sector, charity, education, sport and culture with a total contribution of SKK 420 million. Ice-hockey, the Kosice marathon, handball and tennis dominate sports activities. U. S. Steel Kosice has not only been supporting Kosice Ice-Hockey Club, but is also actively contributing to completion of the construction of the STEEL ARENA with financial, legal and technical help and advice.
All cultural and public events organized by U. S. Steel Kosice have become traditional and have been warmly accepted by the people of the region (Days of Kosice, International Children's Day, Kosice Christmas) .
USSK focuses its support on young people. Talented singers, dancers and musical groups from Eastern Slovakia are promoted by the "U. S. Steel Talent Night" competition. Besides the U. S. Steel Kosice Scholarship Program the latest activity is to support 12 libraries in the biggest towns of Eastern Slovakia by donating books and publications for children. With this idea USSK wants to fulfill the intention of Andrew Carnegie, who was interested in furthering the education of young people.

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Further information:

Jan Baca
Director Public Affairs
U. S. Steel Kosice, s.r.o.
Tel.: +421 55 673 4476
Fax: +421 55 673 0330
E-mail: jbacask.uss.com

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