Steel mills face rising debts as output falls by 1.5 mln tons

The output of domestic steelworks will reach an estimated nine million tons this year, or nearly 1.5 million tons less than a year ago, the Metallurgical Chamber of Industry and Commerce (HIPH) has announced. According to HIPH president Romuald Talarek, the main reasons for the fall are increased foreign competition and the worsening economic climate. Output has also been affected by recent production line problems at Poland's largest mill, Huta Katowice. Talarek explained that meeting modest investment needs would reduce long-term indebtedness, although the sector's short-term liabilities grew by zl.150 million to zl.200 million in the third quarter and may reach as much as zl.8 billion by the end of the year. While no financial results forecasts have been published, it is widely anticipated that the sector's losses will be significantly higher than their mid-year level of zl.674 million. (Puls Biznesu, p. 13) M.K.