Pipe mill in Siemianowice faces bankruptcy after modernization plans fail

Despite the huge investment in the Walcownia Rur Jednosc (WRJ), pipe mill in Siemianowice, it is on its way to bankruptcy, with many debts, including a zl.250 million credit guaranteed by State Treasury. The investment designed to turn the enterprise around and transform it into a modern steel pipe factory has already cost zl.550 million. WRJ shares are owned by state-owed and private companies, such as Weglokoks and Weglozbyt, Stalexport, PGNiG, Kulczyk Holding and Fundusz Gornoslaski, but the biggest, 23% stake is owed by a private company Enpol. Steel market experts warned that the pipes from WRJ would have difficulties in finding customers on the domestic and international markets and this now means that the enterprise will have no money to pay off its debts. Enpol chairman Eugeniusz Majza, says he has already signed contracts with receivers. However, his statements are not credible after he lied to the Economy Minister and to the court about Enpol's liabilities in Elektromontaz as an sub-contractor. Enpol owes Elektromontaz zl.5.7 million and is responsible for its bankruptcy in which 300 people lost their jobs. If WRJ does go bankrupt zl.250 million of public money will be used to pay off company liabilities. (Rzeczpospolita p. B6) A.D.