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EBRD makes deal to strengthen Poland's steel industry
€20 million loan supports Celsa Huta Ostrowiec restructuring
A €20 million EBRD loan to Celsa Huta Ostrowiec should contribute to the
revitalisation of a company which only a year ago was facing grave
difficulties. It now stands a good chance for a strong revival and to
participate more effectively in the major infrastructure improvements that are
expected to follow Poland’s recent accession to the EU.
Huta Ostrowiec was bought in 2003 by Compania Espanola de Laminacion (Celsa)
of Spain. Since then its performance has improved significantly. Annual
production, mostly reinforcing bars, is being restored to its previous level.
The main market for the mill is the construction industry, but it also has a
sizeable forging operation, producing shafts for the European marine and power
industries.
While the first restructuring measures have started to bring results, the EBRD
loan will finance investments in the production facilities to raise quality
and productivity standards and strengthen the company’s competitive position.
It will also improve customer services (e.g. direct deliveries within 24
hours), widen the product range and create a logistical department.
EBRD President Jean Lemierre said the agreement demonstrates the Bank’s
commitment to the restructuring of Poland’s industry. By providing the loan,
the EBRD hopes soon to attract followers.
Francisco Rubiralta, Chairman and CEO of Celsa, said he believes that Poland
will enjoy in the next years a similar economic growth as Spain experienced
after its accession to the EU in 1986.
Celsa started in 1967 in Barcelona as a small reinforcing bar re-rolling mill.
Following acquisitions and strong organic growth, the privately owned Celsa
Group today is one of the largest long products producers in Europe, with
forecasted sales of €3.0 billion and 7.0 million tonnes of finished steel
products sold in 2004. Celsa has recently taken over the assets of Allied
Steel & Wire in Wales and achieved the turnaround of the company.
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