ArcelorMittal Poland closes the Huta Królewska plant in Chorzów

ArcelorMittal Poland has announced the permanent closure of the Huta Królewska plant in Chorzów. Production at the plant will be halted by the end of this year. A total of 270 people work at the plant, and the company will make every effort to offer them jobs in other divisions or find alternative solutions, according to a press release.

«This was an extremely difficult decision, taking into account the legacy and history of Huta Królewska. We are aware that this is the end of a historical chapter for the employees, and all those who are passionately connected to the steelworks. As a company, in recent years we have taken many actions to maintain production in this plant, but a combination of several external negative factors wiped out the impact of all our efforts. I would like to thank the employees of Huta Królewska for their conscientiousness, dedication and diligence, and to assure them that everyone who wants to continue working at ArcelorMittal Poland will find a place in our company,» said Wojciech Koszuta, President and CEO of ArcelorMittal Poland.

According to Marek Kempa, Director of the Long Products Division, Huta Królewska manufactures specialized products, which account for less than 1% of ArcelorMittal Poland’s total output.

«The age of the installations means that in the coming years it will be very challenging to ensure safe working conditions for our employees. Significant financial outlays are necessary, which we cannot incur in the current, difficult situation of the steel sector in Europe, as it would be economically unjustified,» he explained.

Before closing the plant, the company implemented a number of projects worth approximately PLN 30 million aimed at expanding its product portfolio and improving product quality. These included a scale removal device, modernization of rolling mills, a new marking machine, and a control and measurement unit for rails. ArcelorMittal also tried to find a strategic investor and set up a joint venture.

Production at the plant will be completed in December.

“In the coming weeks, we will meet with them individually to talk about opportunities and mutual expectations. We will also offer other solutions, which we will agree upon with our social partners,” added Stanisław Ból, HR director.

ArcelorMittal has come under pressure in Europe amid market difficulties, pressure from cheap imports, and high energy costs. In particular, the company is in talks with the Polish government, which has expressed its willingness to consider the possibility of acquiring or even nationalizing the group’s local assets. The situation in France is also escalating: left-wing political forces are pushing a bill to nationalize ArcelorMittal France, accusing the company of insufficient investment and the risk of closing plants.

At the same time, ArcelorMittal continues to reduce its European presence: the company has completed the sale of its assets in Bosnia and Herzegovina and is postponing key decarbonization projects due to high costs and weak demand for green steel. This reinforces the general perception that the company is losing its position in the EU market.