Polish plate mill Huta Czestochowa commenced cold recommissioning on Friday under its new lessee, state-owned coal exporter and steel re-roller Weglokoks, a company spokesperson confirms to Kallanish.
After over a year of being idle, the plant’s equipment was not in the best shape, but workers managed to start commissioning on schedule, new Huta Czestochowa chief executive Adrian Sienicki tells Wirtualny Nowy Przemysl (WNP). The technological problems nevertheless allow Weglokoks to evaluate the condition of the plant and its investment requirements.
Weglokoks already operates plate re-roller Walcownia Blach Batory (WBB), which supplies plate to Polish arms manufacturer Polska Grupa Zbrojeniowa (PGZ). The relaunch and potential acquisition of Huta Czestochowa, which can produce armour plate, could strengthen Weglokoks’ position in this market, Sienicki notes.
The plant enables a quicker supply chain, which is important in the current uncertain geopolitical climate, he adds. Weglokoks is already in talks with Poland’s defence ministry and PGZ about supplying plate from Czestochowa.
The firm is not concerned that Czestochowa could cannibalise WBB’s market share, as it is looking into converting production at the latter to smaller volumes of specialist, high-margin products.
Although Weglokoks shelved plans for its electric arc furnaced-based hot strip mill project in Ruda Slaska, Huta Czestochowa will eventually need additional slab supply. Its EAF has a 700,000 tonnes/year crude steel capacity, while the plate mill is 1.2m t/y. Currently, however, Czestochowa can be used to supply slab to Weglokoks’ other rolling mills, Sienicki notes.
“In the case of Huta Czestochowa, we see some opportunities for modernisation, but it is too early to talk about this. We believe the potential acquisition of this steelworks would be an excellent investment, which would complement the assets we have in the Weglokoks group,” he tells WNP.
Adam Smith Poland
