Celsa Huta Ostrowiec II



Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

20 Nov 2007



PSD disclosed:

19 Oct 2007

Project Description

The Project consists of an extensive capex programme implemented in order to increase the Celsa Huta Ostrowiec (CHO) production capacity and to diversify its product range. In addition the Project includes working capital investments, expansion and improvements in the CHO energy efficiency that would lead to significant reduction of gas and energy consumption of the Company.

Transition Impact

The transaction will be the Bank’s second investment supporting the modernisation of Celsa Huta Ostrowiec.

The operation also supports further efficiency improvements in the Company. By facilitating the introduction of new products the operation is expected to lead to increased competition in the market.

The loan will also be used to finance energy efficiency investments designed to generate energy and gas savings and therefore improve the environmental performance.

The Client

Celsa Huta Ostrowiec (CHO) is a mini-mill based on metal scrap and electric arc furnaces with forge operations attached. In 2003 CHO was acquired by Celsa from the receiver and successfully expansioned with EBRD financial support. In 2006 the Company sold over 1 million tonnes of steel. The Company belongs to Celsa Group which produces 8.5 million tonnes of steel a year.

EBRD Finance

Non-recourse, up to EUR 158 million unsecured senior medium and long term loan composed of:

  • senior unsecured medium term tranche of up to EUR 108 million (with EUR 28 million provided by EBRD and EUR 80 million by two commercial banks)
  • EBRD senior unsecured long term tranche of up to EUR 50 million


Project Cost

EUR 408 million.

Environmental Impact

Environmental impacts associated with the proposed project are not considered to be significant and can be readily identified and quantified and remedial measures can be readily prescribed. For this reason, the project was screened B/1 requiring an environmental audit of the existing facilities and an environmental analysis of the proposed modernisation programme. The environmental due diligence confirmed that the proposed new project is unlikely to be associated with any significant environmental issues and that it has been structured to fully meet Polish regulatory requirements and EU environmental, health and safety standards. The equipment to be installed for the project will meet all provisions under the BAT requirements of the EU IPPC Directive and represents state-of-the-art technology which allows for significant reduction of CO2 and NOx emissions as well as for low energy consumption.

The due diligence did not identify any significant social or labour issues. The project will support the underdeveloped region as its realisation will additionally lead to creation of new jobs in the region suffering from high unemployment. There will be 200 jobs created within the Company and an additional number in related services (e.g. deliveries, supplies).

To date, CHO’s performance has been exemplary. Under the existing project, CHO has diligently implemented all environmental requirements agreed with the Bank. The monitoring confirmed that the new electric arc furnace has met Polish regulatory requirements and the provisions under the EU IPPC Directive.

The Company will monitor the environmental impact of the project and its operations in accordance with the environmental law of Poland and with its agreements with the Bank. The Company will provide an annual environmental and health and safety report to the EBRD as well as notify the EBRD on any changes, incidents and accidents that may have material effect on the environment or safety. The modernised facilities will need to meet Polish and EU environmental standards.

Technical Cooperation

The company benefited from an energy efficiency audit carried out under an existing framework contract with the Greek consulting firm Energo Group SA, financed by the Greek Government. The total value of the framework is EUR 200,000. The total expenditure for this specific assignment was EUR 20,000

Company Contact

Narcís Giralt Vives
E-mail: ngiralt@gcelsa.com


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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