Government to create company to save Huta Katowice

The government decided Friday to establish a special company aimed at financing the activities of the ailing state-owned steel mill Huta Katowice (HK). The new entity will be owned entirely by the Industry Development Agency (ARP), with the Treasury Ministry providing capital for it through the transfer of shares from nine other companies, notably Zywiec, Pekao S.A., Anwil, Ekodrob, Kety, Polfa-Kutno, Orbis, Bielbaw and Jelfa. According to deputy Treasury Minister Barbara Litak-Zarebska, the shares provided will enable the company to obtain credit totalling zl.150 million, the amount needed for HK to financially keep its head above water. HK's restructuring plan, which was presented to the government yesterday, envisages creditor banks obtaining shares in HK Long, a company producing long steel. HK has been struggling since the beginning of November, when the Dutch-British concern Corus backed out of negotiations to take over part of HK Long. (Rzeczpospolita, Dec. 9-10, p.B2; Gazeta Wyborcza, Dec. 9-10, p.27)