Privatization adviser, ministry argue the investment needed in Polish Steel

The adviser on the privatization of four major steel plants has prepared a business plan that says zl. 2.8 billion will be needed to modernize the plants' facilities. The four steel works -- Katowice, Sendzimira, Cedler and Florian -- will create the Polish Steel (PHS) conglomerate. The business plan was criticized by the Economy Ministry, which claims the business plan is zl. 600 million to zl. 800 too high. On the other hand, a zl.600 million bond issue to restructure the plants and pay off debt is seen as too low. According to Edward Nowak, the deputy economy minister, the steel mills have to look for money in increasing sales. LNM Holdings, a subsidiary of the Indian Ispat group, is also said to be considering investing in the steel mills. (Puls Biznesu, p. 3) P.W.