Voest Alpine Stahl decides against euro 1 bn investment

Shareholders of Austria-based steel company Voest Alpine Stahl (VAS) yesterday decided not to invest roughly euro 1 billion into the construction of a Szczecin-based steel mill, as earlier planned. Additionally, the concern announced it is not interested in holding negotiations with the Treasury Ministry on the privatization of the steel mills Huta Sendzimira (HTS), Huta Katowice, Cedler and Florian. VAS also says it is not going to build a steel mill in any European country. Polish officials indicated that the Austrians' departure will make the restructuring process of domestic steel mills easier. Piotr Janeczek, president of Huta Sendzimira steel mill, said the expansion of steel production by the Austrian firm would have hindered attempts at curing the Polish steel sector because of increased competition. The Treasury Ministry, however, still hopes that VAS will return to its privatization plans of the steel sector in Poland. Earlier VAS had shown interest in HK and HTS. (Puls Biznesu, p.5)