Steel producers' consolidation proposed with PGNiG

The Economy Ministry plans to create groups of steel product producers. "We plan to create a holding of pipe producers which would be closely linked to Polish Oil and Gas [PGNiG]," said Deputy Economy Minister Andrzej Szar awarski. PGNiG is a customer to those producers and supplies them with gas. Steelworks which produce pipes are often controlled by private owners and support the idea of consolidation. President of Huta Buczek, Marian Ber, thinks that such a move would make it easier for steel producers to gain access to raw materials and would also be profitable for Polish Steel Producers (PHS), which supplies such materials. "Capital consolidation of pipe producers is hard to achieve, but one could easily create a group based on commercial co-operation," said Ber. President of the Steelworks Chamber of Commerce and Industry (HIPH), Romuald Talarek, claims that consolidation would be possible if the producers found a sector investor. PGNiG might be a good candidate for such an investor, but the problem is that fertilizer producers - the largest consumers of gas - are also hoping for consolidation with the company. "Bondholders and prospective investors might not be happy that the company is involved in such a diverse range of projects," said Orest Nazaruk of the State Treasury. (Puls Biznesu, pp. 1, 6) M.M.