Huta Katowice investors backing out one by one, first Corus, now CVRD

Brazilian iron ore company CVRD, which earlier signed an initial agreement to invest in HK Stal, one of the three divisions of ailing steel mill Huta Katowice (HK), did not place a final bid for the stake, signalling that the deal now looks very unlikely. Meanwhile, it is also uncertain whether Italian steel group Danieli will invest in another HK division, HK Flat, in line with its original plans. The investor was only willing to put up zl.4 million for the construction of a new steel rolling facility at HK Flat, expecting the vast majority of the investment to come from HK's own funds and bank loans. "I don't know if the talks with Danieli will be finalized after [British-Dutch steel group] Corus withdrew from its investment plans," said Tadeusz Torz, head of the Steel Industry and Trade Chamber (HIPH). Corus was originally expected to invest in the third HK division, HK Long, but backed out. It now seems that nothing may come out of the original plans to introduce a foreign investor to each HK division. (Puls Biznesu, p.12) T.J.