Weglokoks agrees restructuring for Huta Pokoj
Weglokoks has signed a restructuring agreement designed to inject financing into stockist and fabricator subsidiary Huta Pokoj and prepare it for investments into upgrading production capacity, Kallanish learns from the Polish state-owned group.
The agreement was prepared over months with the help of external advisors. It entails cost and process optimisation, debt relief and asset reorganisation, and the implementation of an investment package across the Huta Pokoj Profile and Huta Pokoj Konstrukcje business units.
The plan will “allow us to sort out the situation and prepare the firms for further development. Given the current market realities, there is no room for inefficiency – what’s needed to ensure continuity are specific actions and stable foundations,” says Weglokoks chief executive Tomasz Slezak.
The plan foresees the construction of a new welded structures fabrication hall and the modernisation of selected technological lines. No layoffs are envisaged. In future, a similar agreement is planned for the third unit, Huta Pokoj SA, which however does not possess any production assets.
Weglokoks is also leasing plate maker Huta Czestochowa.
Adam Smith Poland
