Kluczbork makes an Italian connection

The Italian company Marcegaglia is to build a steel-pipe factory in Kluczbork, in the Wałbrzych Special Economic Zone. Investment in the new factory will reach approximately E250 (zł.951) million, making it the most expensive plant in the region. The new production facility is also expected to provide work for 1,000 people. Production in the new plant will begin in 2008.

"We decided to locate our investment in Poland and particularly in Kluczbork, to focus our production on the Polish and European markets," the company's president, Steno Mercegaglia, said. He underlined that the firm was influenced by the future plant's geographic location, in particular its proximity to Germany. "The high opinion of Polish workers" also helped draw Mercegaglia to Poland in the president's estimation.

The latest decision signals a change on Mercegaglia's part - the Italian firm's earlier investment plans had amounted to E40 (zł.152) million. Moreover, the just-announced investment is unlikely to end with the production plant. Along with the pipe factory, a logistics center for "servicing" the steel, and a plant producing specialist drawn tubes will be set up in the next five to six years.

Globally, Marcegaglia has 47 production plants in countries such as the US, Brazil and the UK and employs over 6,000 people. The firm's turnover in 2006 amounted to E3.4 (zł.12.9) billion and its production reached four-and-a-half million tonnes of steel.