TMK plans to acquire Polish mill WRJ

TMK plans to acquire Polish mill WRJ

According to the news reports, major Russian tube maker TMK Steel is planning to grow around the world, increasing its total production figure as high as possible. The company's priority plans include the acquisition of Polish mill Walcownia Rur Jednosc (WRJ). WRJ is also a tube making plant in Poland. Discussion for the acquisition of 100% stakes of WRJ is ongoing between TMK and the Polish government. TMK assesses the infrastructure and technology at WRJ as workable and estimates that an investment of about $5 million to $15 million. The only problem that seems to concern TMK is the lack of understanding between the shareholders and creditors of the mill, which puts the restructuring of debt into difficulty. Industry sources emphasize that TMK has to compete with companies such as Industrial Union of Donbass of Ukraine, or Polish Zlomrex for this acquisition, which are stated to have possibly better bids for the mill. Furthermore, Industrial Union of Donbass states that much more investment than what is stated by TMK is required at the mill for the purchase of additional equipment.