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The company OKD continues its transformation. It changes the organizational structure and the names of mining operations and merges the mines Karviná and Darkov

The company OKD continues its transformation. It changes the organizational structure and the names of mining operations and merges the mines Karviná and Darkov

KARVINÁ (30 December 2014) – The company OKD takes further steps in its complex restructuring process that began in the middle of 2013 and whose aim is to set the company’s business to a more effective and sustainable level at the extremely challenging current situation in the hard coal market. As of 1 January 2015 the mines Darkov and Karviná will be merged and the new Mine 1 shall come into existence. The names of the two other mines have also changed.

The company continues with the rationalization measures and regarding the fact that its operations in Karviná region are interconnected underground, it is considered reasonable to merge them from organizational aspect also on the surface. The merger of mines Darkov and Karviná should have brought a number of synergetic effects.

„It is obviously all about increasing the efficiency during the period when hard coal companies around the world are struggling for survival and thousands of them close down every year. The company OKD reduced its costs in 2014 throughout the entire company with the exception of measures leading to the enhancement of safety. The current strategic decision will help us, for example, in a situation where there is shortage of workers at one workplace but at another one there are other workers in their profession that are currently not needed. We will be able to move them flexibly. The positive effects will also reflect back in administration,“ says a new director of Mine 1 Boleslaw Kowalczyk.

The increased productivity may at first be apparent for example by the possibility to move the equipment and liquidation crews between the former two mines and from the second half of the year flexible transfers of development (they make new blocks accessible for mining by drivage) and longwall (they exploit coal) crews are also expected. Savings will be also visible in administration. Some activities will no longer have to be carried out separately for each of the former mines.

The working team has at the same time analyzed the possibility of merging the remaining mine in the Karviná part of the coal district - the ČSM Mine. Especially regarding the possible future developing projects they have finally decided to keep the mining operation separate with a new name Mine 2. The Paskov Mine in Frýdek-Místek region will be renamed Mine 3 as of 1 January 2015.

„The world of hard coal has significantly changed within the last three years. The undoubted truths ceased to exist. Therefore we cannot look at OKD in a narrow perspective of each mine. We have to understand the company as a whole because the economic results of one part imminently influence the other part. That is one of the reasons for the present changes in the organizational structure. I firmly believe that it turns out to be a step in the right direction that will lead to further increases in productivity and thus reduce the costs in OKD,“ says the Chief Operating Officer of OKD Pavel Hadrava.