Government plans restructuring in several sectors

Domestic Sugar Company (Krajowa Spółka Cukrowa, KSP) will, in about 2 years, become the basis for a national food concern, consisting of KSP, six state-owned Polmoses (spirit producers) and a few other state-owned food processing factories. First, KSP is going to undergo restructuring: its costs are to be reduced by half and 6 to 9 (of the current 17) plants belonging to KSP are to switch from sugar to biofuel production, in which they would be supported by the Polmoses. Some Law and Justice politicians have suggested restructuring in other sectors. They would, for example, like to merge the Polish Post Office (PP) with PKO BP: PP would get capital essential for restructuring, while PKO BP would gain a vast distribution network. The PiS politicians also plan to establish a new state telecommunications company, consisting of Polkomtel, fixed line operators and data transfer providers. The energy sector is already undergoing consolidation, while the government has given up plans to consolidate shipyards. (Rzeczpospolita, July 29-30, pp.A1, B1) J.L.