Steel distributors welcome PHS privatization

Distributors of Polish Steel Mills (PHS) products argue they have the most to benefit from the privatization of the concern. The new owner of the company plans to increase its share on the domestic market through the use of existing sales channels. In 2003, about 7 million tons of steel were sold in the country, of which 40% was imported, while PHS has a production capacity of 6 million tons a year. "We do not have our own distribution network, but use external intermediaries, which are sometimes financially linked to us," said Krzysztof Lis, PHS' sales director. Distributors are content with the fact that LNM has so far not announced any ideas of creating its own distribution network. "The main problem with PHS is related to lack of investment, which may now be overcome by the sector investor," said Stalexport director Marek Cywiński. (Rzeczpospolita, p. B3) M.M.