The Polish cabinet has approved the classification of Huta Czestochowa as a strategic company, which means its acquisition will not be possible without the approval of the Polish government.
Bankrupt plate producer Huta Czestochowa, formerly owned by Liberty Steel, is being leased by state-owned Weglokoks. The tender for its sale will take place on 17 February, with the starting price set at PLN 226.95 million ($54.7m). Right of first refusal will go to Weglokoks. According to media reports, Metinvest and a Middle Eastern firm will also take part in the tender.
The mill is of great importance to Polish national security as it is the only unit in the country capable of producing hardened plate for the defence sector, the government points out. It also has one of the largest production halls in the EU, which allows for the renovation of military equipment, it adds. Following the cabinet decision, the mill will come under the control of Poland’s defence ministry.
The firm’s EAF has a 700,000 tonnes/year crude steel capacity, while the plate mill is 1.2 million t/y design capacity. However, after a year of being idle and with current staff numbers, plate production capability is currently at around 40,000 t/month. Besides defence, the mill is expected to supply plate to the growing wind power industry.
Adam Smith Poland
