Danieli could call off zl.2.75 bln Huta Katowice investment

Italian steel group Danieli could follow the example of British-Dutch Corus and back out of its zl.2.75 billion planned investment in ailing steel mill Huta Katowice (HK). According to Danieli spokesman Roberto Borsi, the decision depends on whether the government is really willing to support the company with a loan for its operating activities. According to HK president Miroslaw Wrobel, if the company does not get the loan this year, one of its two main furnaces will be switched off in January 2001. Meanwhile, the government decided to boost HK with shares in state-owned firms. HK Stal, a company meant to provide financial backing for the steel mill, will receive a 4.89% stake in Fiat Auto Poland, 7.85% of truck and bus maker Jelcz and 31.54% of Energoservice. The shares will serve as collateral on a loan for completing the construction of tube-rolling plant "Jednosc". The value of the shares is difficult to estimate, as none of the three companies is listed on a stock exchange. (Puls Biznesu, p.4, Gazeta Wyborcza, p.26) P.J.