Polish Steel Mills unveil extensive restructuring plans

The Management Board of Polish Steel Mills (PHS) has announced extensive restructuring of the mills belonging to the holding. Three sections are to be closed at the Sendzimira Steel Mill and employment is to be reduced from 9,000 to 5,000 by the end of this year. A proportion of those laid off will join new companies spun off from the mill and at the Katowice Steel Mill a rolling mill is to be closed down. Sendzimira Steel Mill produces 90 tonnes of goods monthly although in order to break even it should produce around 150 tonnes. Despite very tough conditions in August the mill produced 140 tons of goods which, with reduced costs, probably allowed it to cover its expenses. Those sections earmarked for closure were "structurally deficient" according to the PHS president. PHS plans to proceed with the liquidation of unviable sections, or parts of them, in other mills also. Katowice mill will have its two obsolete installations closed as they contribute to the mill's total annual loss of around zl. 120 million. The mills' restructuring also includes changes in the steel market to eliminate intermediaries at points of sale. (Rzeczpospolita, p. B3) P.W.