ArcelorMittal enters into negotiations on state aid to Poland: reports
The Polish government has begun negotiations with ArcelorMittal on the provision of state aid in the amount of 1 billion Polish zloty ($268.5 million) for the "modernization" of a blast furnace at a steel mill in Dombrowa Gornica, local media reported, citing Deputy Speaker of the lower house of the Polish parliament Wlodzimierz Charzasti.
Negotiations have begun, in particular, with the Ministry of Finance on the support of the steel mill. "We understand that this is a private company, but we want to ensure the modernization of one of the furnaces in order for steel production to remain and operate in Dombrova-Gurnice," he was quoted as saying during a press conference on Monday.
Dombrova-Gurnica is the flagship metallurgical plant of ArcelorMittal Poland (AMP), producing 3-4 million tons of steel per year. AMP plans to gradually transfer the plant from blast furnace production to steel smelting in electric steelmaking furnaces, while long products will primarily be produced in electric steelmaking furnaces. The company is likely to continue to operate another plant along with the original EDP, taking measures to reduce emissions.
ArcelorMittal had not responded to Kallanish's requests for comment by Tuesday's deadline.
Adam Smith Poland
kallanish.com