LNM progresses in acquisitions of Polish steel producers
According to a recent announcement made yesterday, LNM Holdings took a major step for the finalization of acquisition of Polskie Huty Stali (PHS) and finally signed a social package agreement with trade unions. As reported by SteelOrbis last week, LNM had settled the issue with the unions. It is highly possible that the acquisition, which is subject to the approvals of Polish antimonopoly and Ministry of Interior, will be concluded by this day week. And investment program will be initiated shortly once PHS is integrated to LNM.
Under the scope of the social package agreement, employees will be granted bonus payment between PLN (Polish Zloty) 2'500-3'000 (around $640-768) on account of the privatization and a wage increment after three months upon the signing of the agreement. Besides, employment is guaranteed until end of 2009.
Meanwhile, after being selected as the winning bidder for the tender held for Polish Huta Czestochowa (HC), LNM is invited to exclusivity talks by the State Treasury. Chairman of LNM, Mittal, expressed that they are planning to improve HC's rolling capacity from its current level of 1.2 million mts. Steel
production capacity of the facility is reportedly over 700'000 mts.
Having said that, recent news from the industry report that the Ukrainian embassy in
Poland requested an official statement from the Foreign Affairs Ministry on the results of the subject tender, in which Industrial Union (ISD) and Donbas of
Ukraine had participated, and the conditions that made LNM the winning bidder.