Total investments in the primary operations in the Krakow plant will amount to PLN 200 million (more than €40 million), which also includes modernisation of the basic oxygen furnace No. 3.

Additional projects in the downstream operations will also be implemented. These include the extension of the hot rolling mill capacity by 0.9 million tons per annum and increasing the hot dip galvanising capacity by 0.4 million tons per annum. The value of those two projects exceeds PLN 300 million (€90 million) in total.

In total, the group will invest more than PLN 500 million (more than €130 million) in its operations in Krakow, including both upstream and downstream installations. 

“With these investments, ArcelorMittal Europe confirms the strategic importance of the Central- and Eastern-European market in which the Krakow plant is the centre of flat products operations in Poland", commented Sanjay Samaddar, chairman of the board at ArcelorMittal Poland. "We also welcome the recent declarations of the government, which recognise the importance of steel for the value chain, and the essential impact of steelmaking on other branches of industry, such as mining, energy, transport, construction and others".

He added: "We expect a level playing field for the energy-intensive industries in Poland, which will avoid competitive disadvantages and allow us to offer cost competitive and high quality products. We aim to cater to the growing demand of our customers in this region, hence the decision on capacity extension in the downstream operations of our plant in Krakow". 

ArcelorMittal Europe has conducted a comprehensive review of the conditions for sustainable and cost-competitive steel making in Central- and Eastern-Europe, linked to the long-term cost of energy, environmental framework, and demand-supply evolution. The conclusions of this study, supported by discussions with all relevant stakeholders, have led to the finalisation of the investment strategy for flat products operations in Krakow, Poland. The decision-making process included discussions and mutual agreement with our trade union partners on the concept and implementation of productivity improvement targets which are necessary to remain a sustainable steel producer for the future.