Poland-based coking coal exporter Węglokoks has signed an amendment to its investment agreement, adopting an updated business plan for the development of its steelmaking segment with planned investments exceeding PLN 500 million (about $132 million), according to the statement from the Polish government.
Four steel companies included in investment program
The updated business plan covers investment projects at four companies within the Węglokoks Capital Group:
- Huta Pokój Profile
- Huta Łabędy
- Walcownia Blach Batory
- Huta Pokój Konstrukcje
According to the statement, the revised plan has been adapted to current market conditions, the group's new business strategy and the objective of building a strong, integrated steelmaking segment.
Focus shifts to profitability and operational efficiency
Węglokoks said the original investment plan had been prepared under different market conditions characterized by high steel prices, strong demand and optimistic market forecasts. As market conditions have changed, the investment program has been revised accordingly. The updated business plan focuses on improving profitability and operational efficiency while strengthening the market position of the group's steel businesses.
The projects include improving logistics and production at Huta Pokój Profile, expanding large-diameter pipe production at Huta Łabędy, developing abrasion-resistant steel sheet production at Walcownia Blach Batory, and constructing a new steel structures facility at Huta Pokój Konstrukcje.
Steel to become a strategic pillar
According to Węglokoks, the updated business plan is directly linked to the group's 2025-2030 Strategy, which aims to gradually transform the company by reducing its dependence on traditional sources of revenue and expanding higher-growth industrial activities. The company said the steelmaking segment will become one of the key pillars of this transformation.
Węglokoks added that the broader restructuring program also includes measures to strengthen the group's asset base and value chain, with Huta Częstochowa serving as a strategic production center for semi-finished steel products.
Minister highlights importance of domestic steel
Wojciech Balczun, minister of State Assets, said the revised business plan provides a market-oriented investment program that will support the transformation of Węglokoks into a modern industrial group. He added that Poland faces significant investment in energy, defense and infrastructure over the coming decade, emphasizing the importance of maintaining domestic steel production to supply these strategic sectors.
The company stated that the objective of the updated business plan is to build a more resilient, profitable and modern steelmaking segment capable of competing with imported products while supplying strategic industries.