NEWS
2007-07-20
PAP: Summary of Częstochowa Metallurgical Plant privatization
“ISD Polska is interested in the Gdańsk Shipyard, but the final decision depends upon the structure of the transaction that is to be recommended by the privatization adviser”, said Konstanty Litwinow, president of ISD Polska. The ISD Polska Company owned by the Ukrainian Donbas Industrial Union expressed its intention to buy a majority stake in the Gdańsk Shipyard already in January 2007. In reply to questions concerning company’s acquisition plans Litwinow said that apart from metallurgical and shipbuilding industries ISD Polska is interested in the steel structures sector.
At a press conference held on Thursday, Litwinow recapitulated the two-year presence of ISD Polska in Częstochowa Metallurgical Plant in which the Ukrainian investor has owned 100% of shares since 2005.
Andrzej Gwiazda, the head of the Trade Unions in Częstochowa Metallurgical Plant, who accompanied Litwinow, said that the investor has exceeded the agreed fringe benefits. The company promised to maintain the employment level (a ten-year employment guarantee contained in the fringe benefits) and additionally it employed 500 more people. At present, there are 4,800 workers hired in the plant. The employees of Częstochowa Metallurgical Plant received the promised privatization bonus in the amount of PLN 21 million and the investor set aside PLN 1.5 billion for pay rise. In the years 2005 to 2006, employees’ wages increased by 11.4 %.
ISD investment commenced a new chapter in the Polish-Ukrainian economic relations. In 2004 all Ukrainian investments in Poland exceeded USD 350 million while in 2007, they went beyond USD 800 million. Half of that sum constitutes ISD’s investments. Apart from ISD, another important Ukrainian player on the Polish investment market is Avto ZAZ, which bought the FSO car production plant in Żerań. A Ukrainian company Astarta is listed on the WSE.
Sergey Skribka, the head of the Trade and Economic Mission of the Ukrainian Embassy, stressed that the ISD investment was of exceptional importance, because it was a turning point for the bilateral trade relations which changed dramatically. “Until then, Polish businessmen were interested in trade with Ukraine, investment on Ukraine but did not search for Ukrainian investors. Now, the situation has changed”, stresses Skribka.
Litwinow said that Częstochowa Metallurgical Plant had been the only European metallurgical plant to have received Russian certificates for highly specialized sheets for the production of pipes to high-pressure pipelines. This resulted in USD 120 million worth exports of highly processed sheets.
ISD Polska plans to invest PLN 400 million by 2008. Litwinow said that investment agreements amounted to PLN 185 million in the period before June 2007. The company invests in undertakings that will allow to improve production quality.
(PAP, 19 July 2007)
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“ISD Polska is interested in the Gdańsk Shipyard, but the final decision depends upon the structure of the transaction that is to be recommended by the privatization adviser”, said Konstanty Litwinow, president of ISD Polska. The ISD Polska Company owned by the Ukrainian Donbas Industrial Union expressed its intention to buy a majority stake in the Gdańsk Shipyard already in January 2007. In reply to questions concerning company’s acquisition plans Litwinow said that apart from metallurgical and shipbuilding industries ISD Polska is interested in the steel structures sector.
At a press conference held on Thursday, Litwinow recapitulated the two-year presence of ISD Polska in Częstochowa Metallurgical Plant in which the Ukrainian investor has owned 100% of shares since 2005.
Andrzej Gwiazda, the head of the Trade Unions in Częstochowa Metallurgical Plant, who accompanied Litwinow, said that the investor has exceeded the agreed fringe benefits. The company promised to maintain the employment level (a ten-year employment guarantee contained in the fringe benefits) and additionally it employed 500 more people. At present, there are 4,800 workers hired in the plant. The employees of Częstochowa Metallurgical Plant received the promised privatization bonus in the amount of PLN 21 million and the investor set aside PLN 1.5 billion for pay rise. In the years 2005 to 2006, employees’ wages increased by 11.4 %.
ISD investment commenced a new chapter in the Polish-Ukrainian economic relations. In 2004 all Ukrainian investments in Poland exceeded USD 350 million while in 2007, they went beyond USD 800 million. Half of that sum constitutes ISD’s investments. Apart from ISD, another important Ukrainian player on the Polish investment market is Avto ZAZ, which bought the FSO car production plant in Żerań. A Ukrainian company Astarta is listed on the WSE.
Sergey Skribka, the head of the Trade and Economic Mission of the Ukrainian Embassy, stressed that the ISD investment was of exceptional importance, because it was a turning point for the bilateral trade relations which changed dramatically. “Until then, Polish businessmen were interested in trade with Ukraine, investment on Ukraine but did not search for Ukrainian investors. Now, the situation has changed”, stresses Skribka.
Litwinow said that Częstochowa Metallurgical Plant had been the only European metallurgical plant to have received Russian certificates for highly specialized sheets for the production of pipes to high-pressure pipelines. This resulted in USD 120 million worth exports of highly processed sheets.
ISD Polska plans to invest PLN 400 million by 2008. Litwinow said that investment agreements amounted to PLN 185 million in the period before June 2007. The company invests in undertakings that will allow to improve production quality.
(PAP, 19 July 2007)
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