Konsorcjum Stali (KS) has decided to expand its 2019-2021 investment plan to include the development of its branches in Czestochowa and Radom. The Polish distributor says this will, in the longer-term, improve its trading and processing potential.
The move will see the firm purchase land on which a production hall and storage warehouse are already built, as well as land on which it will construct a new warehouse and sales office.
The entire investment plan will therefore cost PLN 68 million ($17.8m) compared to the original estimate of PLN 39m, while completion of work has been pushed back to end-2023 from end-2021.
The firm initially announced the plan in May, saying it wants to increase processing and distribution capacity, thereby strengthening its market position thanks to increased quality and cost optimisation (see Kallanish passim).
In the first half of 2019 KS’s steel product sales declined -5% on-year to 219,900 tonnes, while KS-produced or processed product sales fell dropped -4% to 111,500t. Revenue was down -7% to PLN 851m and net profit plunged -79% to PLN 3.6m.