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Non-resident Indian steel baron L N Mittal's LNM group has submitted an offer for the privatisation of selected production assets of Poland's leading steel company Huta Czestochowa.
Huta Czestochowa (HCz) is Poland's leading producer of steel plate, employing over 2,000 employees, with steel making capacity in excess of 7,00,000 metric tonnes and shipments of approximately 4,20,000 metric tonnes in 2002.
In addition, LNM has expressed interest in certain core business related subsidiaries of HCz and the shares of another Polish company Huta Stali Zcestochowa.
Commenting on the offer Aditya Mittal, vice chairman, LNM, said, "There are a number of exciting opportunities for the Central and Eastern steel producers currently and these opportunities will continue to grow as we see the emergence of a large Europe."
In order to take advantage of these opportunities, companies need a partner with the right experience and knowledge of both the international and local markets and LNM is not only the most experienced global steel producer, but also the largest producer in Central and Eastern Europe, with considerable success in turning around under-performing assets, Mittal said.
The offer is a further demonstration of the LNM group's intention to build on its existing strong presence in Poland and Central and Eastern Europe, according to a company release in London.
As part of an international group, HCz could also benefit from a number of synergy effects, including the purchasing of strategic raw materials and access to the group's global marketing network, Mittal said.
In October this year, LNM group signed the privatisation agreement with the Polish ministry of state treasury for the acquisition of PHS, Poland's largest steel manufacturer. The group has expanded its presence in Romania through the acquisition of Siderugica SA and Petrotub Roman SA.
The company has consolidated its position as the largest steel producer in the region with 14 million tonnes of production. It is the second largest steel producer in the world.