The Polish cabinet has approved the classification of Huta Czestochowa as a strategic company, meaning its acquisition will not be possible without the approval of the Polish government. The bankrupt plate producer, formerly owned by Liberty Steel, is currently leased by state-owned Weglokoks. The tender for its sale is scheduled for February 17, with a starting price set at PLN 226.95 million ($54.7 million). The right of first refusal will go to Weglokoks, but other interested parties, including Metinvest and a Middle Eastern firm, are expected to participate in the tender.
Huta Czestochowa is of great importance to Polish national security as it is the only unit in the country capable of producing hardened plate for the defense sector. It also has one of the largest production halls in the EU, which allows for the renovation of military equipment. Following the cabinet decision, the mill will come under the control of Poland’s defense ministry. The firm’s electric arc furnace (EAF) has a 700,000 tonnes/year crude steel capacity, while the plate mill has a design capacity of 1.2 million tonnes/year. However, after a year of being idle and with current staff numbers, plate production capability is currently at around 40,000 tonnes/month. Besides defense, the mill is expected to supply plate to the growing wind power industry.
