Poland consolidates steel mills to gain cash
On May 6, the Polish government made its long-awaited move to consolidate four steel mills with the aim of restructuring. The goal behind the move is to lower debt and attract a strategic investor who would buy a majority stake.
The new company will account for 70% of
Poland's steel
production and has an investment of over $225 million. Officials say they expect that 51% of the company will be offered to a strategic investor some time at the end of this year. Restructuring costs are expected around $1 billion. Meanwhile, the Polish government has submitted its plans to restructure its steel industry to the European Commission for approval.
Coupled with the restructuring move, the Polish government also plans to introduce its own protective tariffs on steel in June. These would be similar to tariffs used by the EU in response to U.S. duties on foreign steel.