ArcelorMittal plans to invest about $25 million in a galvanizing plant in Krakow

The funds will be used to expand the product portfolio and modernize the heat treatment shop

ArcelorMittal Poland, the Polish division of global steelmaker ArcelorMittal, plans to invest about PLN 100 million ($25.2 million) to modernize and expand the product portfolio of its galvanizing plant in Krakow. This is stated in a press release from ArcelorMittal Poland.

By investing, the company expects to expand its product range with new coatings based on zinc, magnesium and aluminum. The Optigal coating reduces the consumption of zinc in the production process and has much better properties and greater corrosion resistance than previous alloys.

«Sheets covered with this coating will be used mainly in the construction industry, e.g. for the production of sandwich panels and trapezoidal sheets necessary for the construction of modern industrial or commercial halls. This application requires very good adhesion and high plastic properties during cold forming,» emphasizes Tomasz Plaskura, member of the Management Board of ArcelorMittal Poland, CMO East Europe.

The new products will be in demand not only in Poland but also in Central and Eastern Europe, including the Czech Republic and Slovakia.

Magnesium electroplating is already used at the company’s Świętochłowice plant, but the one to be produced in Kraków will have a thinner zinc and magnesium coating.

To start producing the new products, the Kraków plant needs to modernize its cold rolling mill. Design work began at the end of last year. A two-bath system is being designed, as the Kraków galvanizing plant currently has only one bath. In addition, it is also necessary to build related facilities, ventilation and an electrical system.

The construction costs of the production facilities for Optigal coated products are estimated at PLN 40 million, and they are scheduled to be commissioned in 2025. Production will begin in 2026 after certification.

At the same time, the company is modernizing its heat treatment shop, which is estimated at more than PLN 52 million. The total cost of current projects reaches PLN 92 million ($23.2 million).

As GMK Center reported earlier, in 2023, ArcelorMittal Poland invested PLN 1.5 billion ($363 million) in modernization and growth projects at three enterprises to improve product quality, energy efficiency, and plant efficiency. Strategic projects are being implemented at the company’s facilities in Silesia, as well as in the Lesser Poland and Opole voivodeships.