Stalexport to dispose of steel mills in cost-cutting program

Debt-ridden Stalexport says it will dispose of its steel mills and instead focus on steel trading and toll highway maintenance. On Friday, the management of the Katowice-based company presented a report on its financial situation. According to Stalexport chairman, Emil Wasacz, the company's most pressing problem is its debt, currently standing at zl.900 million, which has dragged it to the verge of collapse. On Thursday, the company took legal steps to settle its financial disputes with its creditors, and hopes to reach an agreement with them before the end of the year. The company is planning sweeping cost cuts, which include reducing its workforce by almost 40%. Stalexport will also sell off all its non-trade related assets, including a hotel in Wisla, as well as shares in the BDM brokerage house and BWR bank. The company's main goal, however, remains the sale of the Huta Ostrowiec steel mill, its biggest loss-maker. It also plans to dispose of its stakes in two other steel mills, Labedy and Szczecin. (Gazeta Wyborcza, June 23-24, p. 27) J.K.