CORPORATE NEWS:
Mittal Steel modernises in Poland
Mittal Steel, the Netherlands, has announced that its Polish subsidiary, Ispat Polska Stal (IPS) – to be renamed Mittal Steel Poland pending required approvals – has signed agreements for the modernisation of its wire rod mill in Sosnowiec, and the installation of a colour coating line in Swietochlowice. These represent the first two of four key capital investments agreed as part of the privatisation agreement for IPS, signed between Mittal Steel and the Polish Treasury. The four key investments will total PLN 2.4 billion and are to be implemented before the end of 2006.
The contract to modernise the wire rod mill in Sosnowiec was signed with Danieli & Meccaniche SpA, Italy. This will facilitate increases in efficiency, production and product quality. It will also reduce manufacturing costs and expand the range of quality steel products. The value of the investment is estimated at PLN 130 million, with work anticipated to begin in July 2005 and to take 19 months to complete. The agreement to construct a new colour coating line in Swietochlowice was signed with Voest Alpine Industrieanlagenbau GmbH, Austria. This will increase annual capacity by 100,000 tonnes and improve IPS’s strategic position as the primary domestic producer of high quality coated steel strips.
It will broaden IPS’s product portfolio and enable the company to enter new market segments such as the white goods industry. The project’s total investment value is estimated at PLN 130 million and it should take 20 months to complete.
Commenting on the signing of the agreements, Frantisek Chowaniec, Chairman of the Management Board of IPS said: “We have made great progress at revitalising IPS since its acquisition on March 5th, 2004 and the company is now viewed as a stable and reliable producer of steel. The signing of these contracts is vital to the future success of the company and further proves our commitment to fulfilling the capital expenditure programme agreed to as part of the privatisation of IPS. The investments will enable us to expand our product range and manufacture higher value-added products. Ultimately, the goal is to turn
IPS into not only one of the premier steel producers in central and eastern Europe, but in Europe as a whole.”
IPS is simultaneously holding talks on implementing the other two key investments – a hot rolling mill in Cracow and a third continuous casting line in Dabrowa Gornicza.
Company: |
Mittal Steel NV |
Country: |
The Netherlands |
Fax: |
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Website: |
www.ispat.com |