Walcownia Rur Andrzej, Zawadzkie

WRA is unable to compete in the market due to outdated production technology and high production costs

The Polish company Alchemia Boryszew plans to liquidate its seamless pipe manufacturing subsidiary Walcownia Rur Andrzej (WRA) in Zawadzkie, in southern Poland. This was stated by the plant’s management, reports.

The decision was made against the background of WRA’s inability to compete in the pipe market due to outdated production technology and high production costs.

“Increased maintenance and modernization costs are unjustified from a technological and economic point of view. Liquidation of the unit will bring higher economic benefits than its retention,” the company said.

Walcownia Rur Andrzej employs 435 people, making it one of the largest employers in the Strzelce County (Opole Voivodeship).

“The decision to liquidate was made for economic reasons. The liquidation process will last until the end of September. We can assure you that we plan to pay severance pay to our employees,” explains Anna Janocha, spokesperson for Boryszew Capital Group.

On June 4, the unions plan to hold a picket outside WRA to protest the liquidation. They emphasize that the liquidation of the company is not only due to external factors, but also due to a lack of investment in production lines.

In the first quarter of 2024, Boryszew Group’s revenue amounted to PLN 1.3 billion and EBITDA to PLN 60 million. In particular, the automotive segment’s revenue amounted to PLN 420 million, and the metallurgical segment’s revenue amounted to PLN 719 million, with EBITDA of PLN 12 million and PLN 33 million, respectively.

In April 2024, Poland reduced steel production by 9.9% compared to the previous month and increased by 7.8% y/y – to 583 thousand tons.

In 2023, the country’s steelmakers reduced steel production by 13.1% compared to 2022, to 6.44 million tons.