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.
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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
