Investment mistakes blamed for decline in steel output

Poland's steel output declined sharply in the first quarter, despite massive investment in the sector over the past three years. Figures from the Steel Industry Trade Chamber (HIPH) show a 14.5% fall in steel production from the same period of last year. This compares to a decline of just 0.7% in EU countries. Official estimates put investment in the sector since 1999 at zl.2.3 billion. However, economy minister Janusz Steinhoff has said on various occasions that the investment has been misdirected, with steel concerns putting money into the raw materials side of the business and not into finished goods, where the greatest profits are to be made. Another reason cited for the sector's poor showing is the downturn in the construction industry. But despite the disappointing figures, the economy ministry's updated program for steel production still envisages an increase this year, to 8 million tons from 7.5 million tons last year. (Puls Biznesu, p.3) M.T.