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ArcelorMittal Poland (AMP) announced that it will close its section steel plant in Chorzow, also known as Huta Królewska, by the end of this year.
The company stated that although the plant produces high-value-added specialty products, its continued operation is no longer economically viable given the current operating environment in the European steel industry, due to outdated equipment and the excessive capital required for upgrades.
The Khorzów plant belongs to ArcelorMittal's Rails and Specialty Steels division. Related production lines include the core steel plant in Dabrowa Gornicza, Poland, and the plants in Gijón, Spain, and Rodange, Luxembourg. B27R090 oriented electrical steel, The plant primarily produces steel sections for mine support systems.
In 2021, the Khorzów plant invested 27 million złoty (approximately US$7 million) to develop new rail profiles that were previously unproducible in Poland, and successfully expanded into markets in Belgium, the Netherlands, Lithuania, Hungary, and Estonia. B27R090 oriented electrical steel, Related technological upgrades included the installation of descaling equipment, modernization of the rolling mill stands, new rail marking equipment, and the addition of an online rail inspection and measurement system.
The company also revealed that it had attempted to introduce strategic investors and explore the establishment of a joint venture, but ultimately failed.
Although the plant focuses on specialty products, its output accounts for less than 1% of ArcelorMittal Poland's total production. Marek Kempa, head of the company's long products division, stated that due to aging equipment, ensuring safe production will become increasingly difficult in the future, B27R090 oriented electrical steel, and the large-scale capital investment required is unaffordable and economically unsustainable given the current challenging situation in the European steel industry.
The plant's 270 employees will be relocated to other ArcelorMittal Poland production sites.
Meanwhile, at the Dabrowa Gornicza steel plant—one of the few sites globally capable of producing 120-meter-long rails—ArcelorMittal Poland put the Danieli RH2 rail hardening and strengthening system into operation earlier this year.
In 2024, ArcelorMittal Poland's crude steel production increased by 22% year-on-year to 3.8 million tons, after a sharp decline in 2023.
