EU will approve of the restructuring of Polish steel industry

opublikowano: 17-01-2007, 11:53

Warsaw (Puls Biznesu) – Steel plants have so far implemented the restructuring program quite well. They have managed to save a lot of public funds.

Warsaw (Puls Biznesu) – Steel plants have so far implemented the restructuring program quite well. They have managed to save a lot of public funds.

 

In March, the Ministry of Economy will present the report on the restructuring of the steel sector. An EU audit will be conducted soon. Poland pledged in the accession treaty to implement the restructuring in the years 2004-2006. Part of the tasks were shifted to this year but the reports for 2006 should be positive. The steel plants saved PLN 640m (EUR 165.1m) out of PLN 3.24 billion of public subsidies. Mittal Steel Poland saved most, or PLN 400m because it decided to build a new plant instead of modernizing an old one. It shifted many projects to this year but at the same time increased the value of its investments from PLN 2.37 billion to PLN 3.6 billion.

 

On the other hand, Arcelor Huta Warszawa did not manage to get Brussels’ approval for its changed plans. EU started investigation and may demand the steel plant to pay back the subsidies. Arcelor Huta Warszawa wants to launch production of steel products used in the homebuilding industry. Huta Batory steel plant used only 1.6 percent of PLN 52m of public subsidies but it was because it went bankrupt.

(PLN 1 = EUR 0.258)

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