Poland-based coking coal exporter Węglokoks has announced that it has concluded an agreement to lease bankrupt Polish steelmaker Liberty Częstochowa. The agreement will enable Węglokoks to use the production capacity of Liberty Częstochowa’s plants to supply semi-finished products to the group’s steel segment companies, manage its supply chain more efficiently and reduce dependence on external suppliers. The resumption of production is planned for the beginning of next year.
At the end of October, Liberty Częstochowa, a subsidiary of UK-based steelmaker Liberty Steel, was officially declared bankrupt due to its financial troubles, as SteelOrbis previously reported.
To implement the leasing agreement, Węglokoks has established a company called Huta Częstochowa, which has employed over 900 employees of the bankrupt company.
“The takeover by Węglokoks is a chance to rebuild the Polish steel industry, which has struggled for years with difficulties resulting from competition from foreign producers and unfavorable market conditions. Thanks to this step, we can not only secure jobs in the region, but also ensure stable supplies of raw materials for our domestic companies, including the defense industry,” Robert Kropiwnicki, secretary of state at the ministry of state assets, said.