Węglokoks considers acquisition of pipe producer Rurexpol

Poland’s Węglokoks is considering acquiring pipe producer Rurexpol, which was one of the divisions of the Czestochowa steel mill before it was sold to Alchemia. This is reported by WNP.

In November 2024, Alchemia began the process of liquidating Rurexpol’s branch in Czestochowa due to the expected loss of its ability to compete in the market amid the deteriorating situation in the European steel industry.

“We are considering this potential transaction. When Rurexpol was part of a steel plant, its operating model was cost-effective due to access to resources and sharing of some services. The plant produces interesting products, including drill pipes, and we believe it would be a very interesting business to acquire. However, it is too early to talk about it,” said Tomasz Ślęzak, President of Węglokoks.

As for the Huta Częstochowa steel mill, which Węglokoks has been selected as a tenant, the company’s launch plan is designed to take 45 days. The cold start is scheduled for December 20 this year, with production resuming in January 2025. Maintenance services have already started preparations.

The plant is expected to produce 10 kt of steel in the first month of operation and double this in the second month. In addition, salary payments to employees have already begun.

Węglokoks also notes that it is interested in acquiring Huta Częstochowa, as it “fits into the company’s operational logic” and will reduce dependence on raw material suppliers.

“The big advantage of the plant’s foundry facilities is that they can cast billets and slabs. We can supply raw materials to the plate mill in Batory and to Huta Łabędy,” explained Tomasz Ślęzak.

Jarosław Guptysz, Production Director of Huta Częstochowa, believes that there are no threats to the implementation of the estimated 45-day launch plan for Huta Częstochowa.

As GMK Center reported earlier, on November 19, Węglokoks signed a lease agreement for the Czestochowa steel plant with the company’s insolvency administrator. To fulfill the agreement, Huta Częstochowa sp. z o.o. was established to take over the employer’s obligations to the bankrupt plant’s employees and will be responsible for restoring its operations.