Ispat promises $400 million investment in steel mills

Indian steel concern Ispat may be prepared to spend as much as $400 million up until 2005 on the Katowice, Sendzimira, Cedler and Florian steel works, if its privatization offer is accepted. In addition to this, Ispat has committed itself to taking over a plot of land in Katowice and building on it an Integrated Sheet Metal Molding and Milling company, at a cost estimated at $500 million, but which could be as high as over $600 million. Ispat has also expressed an interest in the EC Nova thermal power plant, currently owned by the Katowice steel works. According to unofficial sources, the privatization of the four steel works may now take place after they are formed into the Polskie Huty Stali giant steel concern. Ispat is keen to invest in the four steel works once the Treasury and Economy Ministries have allowed them to use planned restructuring instruments to reduce their debts. (Puls Biznesu, p. 5) K.K.