Czech VHM plant goes bankrupt

The Regional Court in Ostrava declared bankruptcy of the Ostov steel producer Vítkovice Heavy Machinery. According to the court, there are several reasons why VHM went bankrupt. The proposal to reorganize the company, which was originally put forward by the majority shareholder of CE Power Industries, came after VHM was heavily influenced by the epidemiological situation and measures to contain the coronavirus. In addition, the company found that it did not have sufficient support from its lenders to initiate the reorganization. VHM currently owes over 1.7 billion kroons. As of June, the company employed more than 560 employees

Vítkovice Heavy Machinery was born at the birth of the metallurgical industry in Vitkovice. Along with the decision to found a metallurgical plant in 1828 by Archbishop Rudolf Jan of Olomouc, a mechanical workshop was also opened in Vitkovice for the production of steam engines, bridges, railway cars, mining tools and furnace machines. Over the 190 years history of heavy engineering in Ostrava, the company has built an impressive reputation with global reach, thanks to its vision and experience in heavy industry and energy, influencing the Czech industrial environment, as well as the transition to international investment and development projects to a large extent. Its product portfolio includes products for a wide range of industries, from supplying complete engineering solutions for steel mills, rolling mills,