ArcelorMittal Poland has announced that production at the Huta Królewska steel mill in Chorzow has been completely shut down, and all installations are scheduled to be shut down by the end of December this year.
The company is preparing solutions to support the 270 employees currently working at the plant, prioritizing the transfer of jobs within the group.
According to Marek Kempa, managing director of the long products division, the plant accounts for less than one percent of the total production of ArcelorMittal Poland.
He noted that the age of the installations makes it increasingly difficult to ensure safe operation, requiring large capital expenditures that cannot be justified in the current situation on the European steel market.
Before making this decision, the company made significant efforts to maintain operations at Huta Królewska.
In recent years, ArcelorMittal Poland has invested 30 million zloty (US$8.21 million) in projects aimed at expanding the product range and improving quality.
These included a new scale crusher, an upgrade of the rolling stand, a rail marking machine, and a new measurement and control unit for rail production.
The company was also looking for a strategic investor and exploring options for setting up a joint venture, but to no avail.
"This was a very difficult decision, given the long tradition and history of Huta Królewska," said Wojciech Kossuth, President of the Board and CEO of ArcelorMittal Poland.
He emphasized the company's appreciation for the dedication of its employees and confirmed that everyone who wishes to remain in the ArcelorMittal Poland structure will be offered opportunities.
Steelorbis.com
