KERM gives green light for steel sector restructuring

The Cabinet Economic Committee (KERM) yesterday gave the go-ahead for the restructuring of Poland's steel sector to begin in the second half of the year. Under the plan, the main change will be the formation of a new entity, Polskie Spolki Stali SA, which will control around 60% of total steel production in Poland. Polskie Spolki Stali is to be created by bringing together four steel mills, namely Huta Katowice, Huta im. Sendzimira, Cedler, and Florian. The new steel giant's estimated worth would be zl.8 billion, and its annual sales would be valued also at zl.8 billion. Under the draft restructuring bill, Poland's steel producers would have their debts, totalling almost zl.900 million, written off or restructured. The draft approved by KERM also provides for the privatization of the gas sector. This, however, would not take place before 2006. In an interview with the Rzeczpospolita daily, deputy prime minister Janusz Steinhoff said he gives the bill a good chance of being passed by parliament before the elections, which are scheduled for September. (Rzeczpospolita, p.B2) J.K.