Mittal to expand production in Poland
Mittal Steel accounts for 70% of Poland's total steel production and it has already invested more than $3 bn.india Updated: Mar 05, 2006 10:49 IST
Global steel giant Mittal Steel is planning to invest $450 million in 2006 to increase the production capacities of its plants in Poland.
The investment will allow the company to meet the constantly rising demand from car manufacturers. Many West European car companies have set up their plants in Poland because of easy availability of cheap technical labour.
Mittal Steel accounts for 70 per cent of Poland's total steel production and it has already invested more than $3 billion in different steel plants that it had brought from the Polish government in the last three years.
The company is also planning to put up a new plant in Krakow, besides modernising the existing plants in Sosnowiec, Dabrowa Gornicz and Swietochowice.
The company has also put in its tender to acquire few coalmines in the Katowiec region. The tender is close to $70 million.
Poland, which was famous for its coal and steel production during the communist days, has again come on the map following huge investments by Mittal Steel.
To bring more efficiency in its business, the company has launched a voluntary severance package for its workers to leave the company. More than 2,200 have so far opted to go for voluntary retirement.
"We want to run and modernise our plants at par with the other steel mills anywhere in the world," a company spokesman said.
"Mittal steel has become a well known brand throughout Poland and people appreciate what a business company owned by an Indian family can do in their country," Indian ambassador Anil Wadhwa said.
First Published: Mar 05, 2006 08:47 IST