Mar 22 2005
Mittal Steel Company N.V. has
announced that its Polish subsidiary, Mittal Steel Poland, has signed a letter of intent to
construct a new continuous caster at Dabrowa Gornicza.
This investment forms a significant part of the PLN 2.4 billion capital expenditure programme
agreed with the Polish Ministry of State Treasury under the terms of the privatisation
agreement for Polskie Huty Stali. The announcement follows earlier agreements, finalised in
December 2004, to modernise Mittal Steel Poland’s wire rod mill in Sosnowiec, and install a
colour coating line in Swietochlowice, for a total consideration of approximately PLN 260
million.
The letter of intent to build the new continuous caster has been signed with the German
company SMS Demag, who will be the turnkey supplier for the project. Contracts are
expected to be finalised next month, with the project expected to be on-line by the end of
2006.
The new continuous caster will significantly improve the yield of steel produced, ultimately
leading to the production of higher quality slabs. It will also enable Dabrowa Gornicza to stop
the outdated route of ingot casting, bringing numerous environmental benefits.
Commenting on the signing of the agreements, Frantisek Chowaniec, CEO and Chairman of
the Management Board of Mittal Steel Poland said:
“Signing the letter of intent with SMS Demag provides further evidence that we are
committed to fulfilling our capital expenditure programme in Poland. These investments are
vital to the future success of Mittal Steel Poland, and our final investment commitment is
likely to significantly exceed the PLN 2.4 billion figure established as part of the privatization
agreement. It is important to remember that prior to privatisation PHS was heavily in debt
and struggling to survive. We have already made significant progress at revitalising the
company and it is now a stable and reliable producer of steel. These investments will help us
to push on and achieve our goal of creating one of Europe’s leading steel producers.”
Mittal Steel Poland is simultaneously holding talks on implementing the other key investment
– a hot rolling mill in Cracow.
http://www.mittalsteel.com/