EU gives Huta Sendzimira steel mill go-ahead for zl. 800 million face-lift

Huta Sendzimira steel producer, a member of Polish Steel Mills (PHS), has been given the green light from the European Union to begin modernization of its plate mill, a project valued at around zl. 800 million. Most of the financing will come from banks, which will grant the steel mill zl. 700 million. "We are holding negotiations with two foreign banks which can grant loans of zl. 600 million, and with PKO BP concerning a loan of zl. 100 million," said Andrzej Szarawarski, the deputy economy minister. Edyta Siwinska of PKO BP's press office said, "We are at the project's preparation phase, of which the main organizer is Societe Generale." According to unofficial information, talks are also being held with Kreditanstalt fur Wiederaufbau of Germany, which has been showing interest in financing the project for a long time. The final decision, however, will be based on the value of budget guarantees for the Huta Sendzimira project. In May 2001 the government granted guarantees on 50% of loans plus interest. Currently, the steel mill and the Economy Ministry are trying to force an increase in guarantees up to 60%. (Puls Biznesu, p. 6) A.K.