Ostrava - The largest Czech steel producer, ArcelorMittal Ostrava, has announced plans for an unspecified number of redundancies, saying the global crisis has reduced demand for the company's products.

"The management believed that we would never have to make such a decision. Unfortunately, it is necessary to react to the economic reality we are facing," said Sanjay Samadaar, company chairman and chief executive.

The company said the redundancies would affect the departments of sales, administration and production support. "Our goal is to cut the costs so the company can adapt to the extraordinary economic situation," said spokeswoman Věra Breiová.

Samadaar said that details would not be published before a meeting with the unions scheduled for this week. He indicated that those made redundant would receive appropriate severance pay.

ArcelorMittal Ostrava (formerly Nová Huť) is part of the largest global steel group ArcelorMittal. The Czech unit produces over 3 million tonnes of steel per year. Together with its local subsidiaries ArcelorMittal Ostrava has more than 10,000 employees.

ArcelorMittal has more than 300,000 employees around the world and plans to lay off up to 9,000 globally.