Poland declares Huta Czestochowa a strategic asset
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
Huta Czestochowa commences recommissioning
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
Węglokoks considers acquisition of pipe producer Rurexpol
The company promises to resume production at Huta Częstochowa in early 2025
Poland’s Węglokoks is considering acquiring pipe producer Rurexpol, which was one of the divisions of the Czestochowa steel mill before it was sold to Alchemia. This is reported by WNP.
In November 2024, Alchemia began the process of liquidating Rurexpol’s branch in Czestochowa due to the expected loss of its ability to compete in the market amid the deteriorating situation in the European steel industry.
“We are considering this potential transaction. When Rurexpol was part of a steel plant, its operating model was cost-effective due to access to resources and sharing of some services. The plant produces interesting products, including drill pipes, and we believe it would be a very interesting business to acquire. However, it is too early to talk about it,” said Tomasz Ślęzak, President of Węglokoks.
As for the Huta Częstochowa steel mill, which Węglokoks has been selected as a tenant, the company’s launch plan is designed to take 45 days. The cold start is scheduled for December 20 this year, with production resuming in January 2025. Maintenance services have already started preparations.
The plant is expected to produce 10 kt of steel in the first month of operation and double this in the second month. In addition, salary payments to employees have already begun.
Węglokoks also notes that it is interested in acquiring Huta Częstochowa, as it “fits into the company’s operational logic” and will reduce dependence on raw material suppliers.
“The big advantage of the plant’s foundry facilities is that they can cast billets and slabs. We can supply raw materials to the plate mill in Batory and to Huta Łabędy,” explained Tomasz Ślęzak.
Jarosław Guptysz, Production Director of Huta Częstochowa, believes that there are no threats to the implementation of the estimated 45-day launch plan for Huta Częstochowa.
On November 19, Węglokoks signed a lease agreement for the Czestochowa steel plant with the company’s insolvency administrator. To fulfill the agreement, Huta Częstochowa sp. z o.o. was established to take over the employer’s obligations to the bankrupt plant’s employees and will be responsible for restoring its operations.
Source: gmk.center
Celsa rejects bids for Polish plant: sources
Polish steelmaker Celsa Huta Ostrowiec has received acquisition bids from at least two southern European long steel producers, but both were below the valuation of its Spanish parent company, multiple sources tell Kallanish.
Celsa has been looking to divest a number of its European operations, including in Poland and the UK, to raise cash to alleviate financial problems. Sources indicate the group has set a sales price target of €800 million ($890m) for its Polish electric arc furnace-based steelworks that produces around 1 million tonnes/year of rebar, beams and merchant bar.
The operation has good prospects considering Poland is expected to receive and utilise new EU funds from 2025, which will be put towards construction projects that are expected to increase steel demand.
Representatives from one other European steelmaking company are meanwhile visiting Celsa’s 1.2m t/y EAF-based UK plant in Cardiff this week, for which the group is seeking €200m, sources reveal.
Celsa could not be reached for comment.
Celsa’s is not the only Polish plant up for sale. Plate maker Huta Czestochowa, owned by Liberty, is looking for a new owner after being declared insolvent, with at least five potential suitors in the running.
Adam Smith Poland
Metinvest confirms interest in Polish plate mill
Metinvest is among the parties interested in acquiring insolvent Polish plate maker Liberty Huta Czestochowa, says the Ukrainian steelmaker’s commercial director, Dmitriy Nikolayenko.
Huta Czestochowa was declared insolvent by the Czestochowa regional court and appointed an administrator last month after hitting financial difficulties amid challenging European market conditions, including high import penetration.
The firm’s administrator, Adrian Dzwonek, has since been looking to rapidly secure a firm to lease the plant in order to restart production, with that firm then later potentially acquiring the works in full. The same model was used in 2019/20 when Huta Czestochowa was last separated from its previous owner, ISD, and eventually acquired by Liberty. Metinvest was also said to be interested in Huta Czestochowa back then.
“We can confirm that we have been invited to consider leasing the steelworks’ assets, with the possibility of acquiring them later,” Nikolayenko says in a note seen by Kallanish. “At this time, we do not yet know in what state the previous owner left the plant. We have to conduct a thorough assessment, including a comprehensive due diligence study, which would determine the date of the steelworks’ launch.”
Were the Ukrainian firm to acquire the Polish plate mill, it would plan for its long-term development, serving all available markets including Ukraine and the EU. Ukraine will need significant steel for its post-war reconstruction, providing a strong potential market for Czestochowa’s products. Metinvest could also supply the plate mill with feedstock given its proximity to and existing rail connection with Ukraine.
According to media reports, Sunningwell International, which leased Czestochowa in 2019 but missed out on acquiring it, is also in the running this time and is conducting due diligence. The firm is however this time acting on behalf of a special purpose vehicle created by a large unnamed North American steel investor. Sunningwell did not respond to request for comment before deadline.
Another potential suitor is Polish state-owned coal exporter and steel fabricator Weglokoks. The firm’s chief executive, Tomasz Slezak, made no secret of its interest at an industry event attended by Kallanish in May when he said Weglokoks would consider acquiring Czestochowa if the opportunity arose.
Liberty Czestochowa has a 700,000 tonnes/year EAF and 1.2 million t/y heavy plate capacity.
Adam Smith Poland
