Polish JSW launches strategic transformation plan

Polish coking coal producer Jastrzebska Spolka Weglowa (JSW) is launching a strategic transformation plan. This is stated in the company’s message.

The document envisages the implementation of tasks in four key areas: increasing production efficiency, optimizing procurement processes, rationalizing investment costs and optimizing auxiliary functions.

The economic impact of the plan adopted by the company’s management is expected to be approximately PLN 8.5 billion by the end of 2027. It is also emphasized that this does not pose a risk of job loss for JSW employees.

“PLN 8.5 billion is our target potential that can be achieved as a result of the implementation of the measures envisaged by the strategic transformation plan. This amount consists of increasing production volume and margin, implementing a number of changes in procurement planning and material management, reducing unnecessary capital expenditures, as well as simplifying and digitalizing the processes of support functions in all companies of the group,” explained Ryszard Janta, Chairman of the Management Board of JSW.

The company justifies the need to implement these initiatives by the changing market reality. It is about the growing supply of low-cost coal from Asian and Australian mines for the European market and the associated price reduction. Cheap coke from Indonesia also affects JSW’s operations. JSW Group also faces the need for rapid changes in efficiency and optimization.

The biggest effect is expected from the implementation of the Efficient Mine model. It includes 15 initiatives that, among other things, should increase the efficiency of mining machines and, consequently, the teams. In addition, a number of measures have been proposed to reorganize work and maximize the use of equipment, apply innovative solutions to prevent cave-ins, and increase the emphasis on the quality of preparatory work.

“The implementation of the Effective Mine model will allow us to produce 14.5 million tons of coking coal. Thanks to a number of transformational measures to build the Efficient Mine model, JSW expects to generate approximately PLN 4.2 billion in additional profit over the next three years,” said Adam Rozmus, JSW Vice President for Technical and Operations.

In November 2024, Jastrzebska Spolka Weglowa declared the third force majeure this year due to the increased risk of fire at one of its key production facilities, the W-3 longwall at KWK Pniowek mine. The company plans to close this area, which has coking coal reserves of about 100 thousand tons. As a result, JSW has lowered its coal production forecast for 2024 to 12.35 million tons, compared to the previously expected 12.45 million tons.