Alchemia Group sells seamless pipe plant in Poland

Alchemia Group of steel companies is selling a fully functional seamless pipe plant in Poland to Alchemia Walcownia Rur Andrzej (WRA). The asset is being sold by KRUDO Industrial, a global industrial asset monetization company, Kallanish reports.

Alchemia Group liquidated the Walcownia Rur Andrzej division in early 2024. This step was taken against the backdrop of WRA’s inability to compete in the market due to outdated production technology and high production costs. The divestment is part of a restructuring effort to adapt to unstable market conditions.

The production equipment included in the sale includes presses, rolling, drawing, finishing and testing equipment. The plant produces seamless pipes with a diameter of 21.3-114.3 mm and a wall thickness of 2-10 mm, structural pipes, boiler pipes, gas pipelines, shipbuilding pipes and threaded pipes.

In 2023, WRA’s revenue amounted to PLN 183 million ($46.5 million), down 35% compared to 2022. The plant’s capacity is 450 thousand tons of seamless pipes per year.

As GMK Center reported earlier, in 2023, Poland reduced steel production by 13.1% compared to 2022, to 6.44 million tons. Last year, the average monthly steel production in Poland amounted to 536.42 thousand tons, while in 2022 the figure was 617.25 thousand tons (-13.09% y/y).

There are 6 steel mills in Poland, including ArcelorMittal Warszawa (0.75 million tons of steel per year), Celsa Huta Ostrowiec (0.9 million tons per year), Liberty Czestochowa (0.84 million tons per year), CMC Zawiercie (1.7 million tons per year), ArcelorMittal Dąbrowa Górnicza (5 million tons per year), and Ferrostal Labedy Gliwice (0.5 million tons per year).

The total steel production capacity of the plants reaches 9.69 million tons per year. Thus, in 2023, capacity utilization was 66.4%.