AMP suspends new line order: contractor

ArcelorMittal Poland (AMP) has suspended its order from Mostostal Zabrze of a new bending line for V shapes at its flagship Dabrowa Gornicza steelworks due to deteriorating steel industry conditions, says the Polish contractor.

The conditions of the contract allow for the full or partial suspension of the order for a period of up to 12 months. The two sides are now in the process of working out a new schedule for the contract.

Mostostal Zabrze has already completed almost all of the project’s design work and part of the prefabrication of steel structures and specialist devices. During the suspension the contractor is obliged to maintain the hitherto completed work in a good condition. All related costs will be settled by the ordering party.

In May AMP announced it will temporarily idle its blast furnace and converter operations in Krakow due to increased volumes of imports, higher costs and reduced demand. However, it postponed this decision on Thursday (see related Kallanish story).