Brief history of OKD

OKD after 1990

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As a result of state-planned economy where the coal district was meeting high mining requirements exceeding its capacity on a long-term basis and due to insufficient investment in the company’s development, OKD found itself in a very difficult economic situation at the beginning of the 1990s. The transition to free market economy in 1989 made the transformation of business even more necessary.

 

On 31 december 1990, the state-owned OKD was dissolved without liquidation and the joint-stock company Ostravsko-karvinské doly (OKD, a.s.) exclusively owned by the government was established as its legal successor on 1 January 1991. OKD, a.s. then launched a restructuring process: mining and surface activities were merged into larger organizational entities and internal business units (BU) and OKD subsidiaries were formed.

 

The key restructuring steps involved a swift closure of Ostrava mines, subsequent headcount reduction and a gradual privatization of the company. Between 1990 and 2001, mining activities were idled in 14 mining licneses in the Ostrava and Petřvald part of the coal district over an area of 180.0 km2.

 

In 1998, there was a change in the ownership structure of OKD. The state lost its majority share and KARBON INVEST, a.s. became the majority shareholder. In autumn of 2005, this company bought out the state’s share and became the main shareholder of OKD (95.89 %). In the very same year, RPG Industries, Ltd. based in Cypres acquired a majority share in KARBON INVEST, a. s.; RPG Industries, Ltd. is owned by a group of international institutional and private investors led by the Czech financier Zdeněk Bakala. At the end of 2005, ČMD merged with OKD.

 

In December 2005, the OKD Board of Directors approved the proposal to split the company. This process was concluded by dissolution of the previous OKD that was deleted from the Companies’ Register establishing several independent entities as its legal successors. The core (mining) activity was passed over to OKD, a.s. (a successor joint-stock company with a new company ID and Tax ID). Other activities not related directly to core mining activities were split off and integrated in other successor companies.

 

 

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