McKinsey plan could save Huta Katowice zl.500 million

Huta Katowice (HK) steel mill could save more than zl.500 million by the end of 2003, under a restructuring program agreed with consultancy McKinsey & Company. The savings would be achieved by such means as the elimination of intermediaries and the restructuring and selling off of subsidiaries. HK vice president Lech Skrzypczak has confirmed the mill's support for the plan, saying, "The program drafted by HK experts and McKinsey will be implemented." The plan envisages the entire staff and management of HK deciding on practical ways of putting the McKinsey recommendations into effect. The employees would be divided into 50 teams, which would come up with restructuring ideas and implement them. A similar restructuring model was employed in the past by British Steel. The bulk of the savings, over zl.350 million, would come next year. Jerzy Podsiadlo, CEO of the Katowice and Sendzimira steel mills, estimates HK's losses in 2001 at zl.600 million. (Puls Biznesu, p. 8) T.J.