Huta Stali Czestochowa steel plant waits for politicians

APA - Austria Presse Agentur
opublikowano: 23-03-2005, 12:40

Warsaw (Puls Biznesu) – Mittal Steel, which bought Polish PHS steel plant group and now controls 70 percent of the market, has exclusivity in negotiations to buy Huta Stali Czestochowa steel plant and the assets of Huta Czestochowa (HCz) it leases.

Warsaw (Puls Biznesu) – Mittal Steel, which bought Polish PHS steel plant group and now controls 70 percent of the market, has exclusivity in negotiations to buy Huta Stali Czestochowa steel plant and the assets of Huta Czestochowa (HCz) it leases. Before to the transaction, the assets must be excluded and transferred to Majatek Hutniczny (MH) company, which will be owned by the steel plant’s creditors. ‘Although MG has been founded, there are political reasons to delay the transaction’, a person close to the sale said.

Polish Ministry of Treasury must approve the exclusion of assets. Creditors, which have pawns against those assets, must first agree for the pawns to be put away. ‘I’m afraid no decisions will be made. The Treasury has difficulties in making decisions because it’s afraid of their political consequences. The tender was lost by Ukrainian Donbas, while Poland would like to have good relations with this country’, one of the negotiators commented.

Decisions should be made quickly, however. In August, the agreement with creditors expires. Creditors may not want to wait any longer for their money – PLN 1.2 billion (EUR 290.4 m). ‘Whether the assets are to be sold to Mittal Steel or Donbas, decisions should be made or the steel plant will go bankrupt’, a person close to the selling party said. The business-plan for HCZ provides for the steel plant to keep present capacity and for the investor to spend PLN 200 m in the plant modernisation.

(PLN 1 = EUR 0.242)Poland/Enterprises/Metals and Mining

 

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Podpis: APA - Austria Presse Agentur

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