ArcelorMittal Poland Halts Production at Huta Królewska
ArcelorMittal Poland announced the permanent closure of its Huta Królewska plant in Chorzów. Production will cease by December 2025. The facility employs 270 workers, who the company aims to relocate internally or support with alternative solutions.
Wojciech Koszuta, CEO of ArcelorMittal Poland, emphasized the difficulty of the decision due to the plant’s legacy. “We implemented numerous measures to maintain operations, but external pressures outweighed our efforts,” Koszuta stated.
The plant specialized in niche steel products, representing less than 1% of the company’s total output. Marek Kempa, Director of Long Products, highlighted safety concerns and the prohibitive cost of modernizing aging installations.
Strategic and Market Challenges Behind the Closure
Before shutting down, ArcelorMittal invested around PLN 30 million in modernization, including new rolling mills, marking systems, and quality control units. The company also explored joint ventures and potential strategic investors.
ArcelorMittal faces growing challenges in Europe due to cheap imports, high energy costs, and softening steel demand. Nationalization discussions in Poland and France reflect political pressure and concern over declining domestic steel capacity.
The closure aligns with the company’s broader European restructuring. ArcelorMittal has sold assets in Bosnia and Herzegovina and postponed decarbonization projects due to rising costs and weak demand for green steel.
SuperMetalPrice Commentary:
ArcelorMittal Poland’s Huta Królewska closure highlights the fragility of Europe’s steel sector under economic and political pressures. Investors should monitor the impact on niche steel product availability and the broader EU steel market. Rising energy costs and import competition continue to reshape production strategies, potentially accelerating consolidation among smaller steelmakers.
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