Celsa to initiate production at Huta Ostrowiec in November

Celsa to initiate production at Huta Ostrowiec in November

Celsa of Spain, selected as preferred bidder in early July, has finally reached an agreement with trade unions and is going to hold negotiations with Huta Ostrowiec's receivers within two weeks for the finalization of sales/purchase agreement. However, Celsa is not expected to take full ownership of the long and forged product mill until early 2004 as government's approval will be received at least in two three months. According to latest reports, Spanish longs producer stated that they plan to commence production on November 1 and reach an annual capacity of 600'000 tons in medium term. Furthermore, output will be sold mostly to Polish market and maybe to Germany. Their plans also include improvement in capacity of the meltshop. On top of that, Celsa expressed that they may decide to sell the forged product unit due to their inexperience in forging business. Meanwhile, some reports from the industry reveal that Celsa considers to acquire Ferrostal of Poland which would help the company to focus on light section and bars in thickness of 8 mm or below.