ArcelorMittal Poland (AMP) will close its factory in Chorzow, also known as Huta Krolewska, by the end of the year. Despite the fact that the company produces specialized products, the funds needed to modernize outdated equipment make it economically unprofitable to continue operating in the current conditions of the European steel industry, the company said in a statement.
Chorzow belongs to several selected companies that are part of ArcelorMittal's rail and special profile division, as well as AMP's flagship metallurgical plant in Dombrowa Górnice, as well as Gijón in Spain and Rodange in Luxembourg. It produces sections for mountain supports.
In 2021, the Chorzow plant invested 27 million Polish zlotys ($7 million) in the production of new rail profiles that were previously unavailable in Poland, which helped it attract customers from Belgium, the Netherlands, Lithuania, Hungary and Estonia (see Kallanish passim). The investments included a descaling plant, modernization of rolling stands, a new marking machine, and a new rail monitoring and measuring device.
AMP has also attempted to find a strategic investor and establish a joint venture, the statement said.
Despite the production of specialized products, the plant's share in AMP production is less than 1%. "The age of the plant also means that ensuring safe working conditions at the enterprise will pose a serious challenge in the coming years. Significant financial costs are needed, which, given the current difficult situation in the European steel sector, we cannot afford, as it would be economically unjustifiable," says Marek Kempa, AMP's director of long products, in a letter sent to Kallanish.
All 270 employees of the Chorzow plant will be transferred to other AMP divisions, the company notes.
Earlier this year, AMP commissioned the Danieli RH2 rail hardening system at the Dabrowa Gornicza plant, one of the few facilities in the world capable of producing 120-meter rails (see Kallanish passim).
Steel production in AMP in 2024 increased by 22% compared to the same period last year and amounted to 3.8 million tons after a very weak 2023.
Adam Smith Austria
Kallanish.com
