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Polish steel plant, Huta Katowice, set to modernise with EBRD finance
ALKAT Sp. z o.o., a Polish industrial gas company and joint venture between Air Liquide and Poland's Huta Katowice, is to receive a loan of FF 120 million (ECU 18.2 million), arranged and partially financed by the European Bank for Reconstruction and Development (EBRD). The loan is to finance the construction of a new air separation unit and to modernise existing industrial facilities at the Huta Katowice site. The loan is expected to have an environmental benefit by reducing levels of air pollution.
"As part of the European Union accession process, great efforts are being made to modernise Poland's important heavy industries. In particular, the EBRD has been working closely with the private sector to help restructure Poland's steel sector. This shows that there is private sector funding available," said Alain Pilloux, Director of the EBRD's Poland team. "It is also the first EBRD financing for a partial privatisation of a Polish steel plant's industrial facilities."
Under the financing, FF 32.3 million (ECU 4.9 million) of the loan has been syndicated to two commercial banks, Crédit Lyonnais and Société Générale. "This syndication is clear evidence of the confidence the commercial banks have in Poland's future and in the proven expertise of the sponsors," commented Noreen Doyle, Deputy Vice President at the EBRD.
"By outsourcing an essential component of steelmaking to ALKAT, Huta Katowice can also accelerate the privatisation of its main ancillary service, which is part of Huta Katowice's long-term modernisation programme," commented Stanislas Jurkiewicz, Chairman of ALKAT's Board of Directors. "In addition, the new industrial gas unit will set higher environmental and performance standards in the country, bringing it in line with the European Union."
Jointly managed by Air Liquide, the new gas plant will supply high-quality gases, such as oxygen, nitrogen and argon, direct to Huta Katowice for use in its steel production facilities. Being of higher quality, the gas products will improve performance in Huta Katowice's primary operations, bringing lower operating costs as well as significant direct savings as consumption in fuel and energy is reduced. Combined with higher technological efficiency, this plant will reduce the negative impact on the environment by lowering levels of pollutants in air emissions. Some of ALKAT's products will also be sold commercially, increasing revenues for the joint venture.
ALKAT is located on Huta Katowice's site in Dabrowa Gornicza, near Katowice in southern Poland. Huta Katowice is the largest and most modern Polish steel plant, with 1996 sales of PLN 3,345 million (US$ 1.2 billion). Its annual liquid steel production is over 4.5 million tonnes.
Air Liquide is a global specialist in industrial and medical gases and related services, with over 27,000 employees and operations in over 60 countries. It provides innovative solutions, which improve the industrial performance of its customers and help protect the environment.
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