Liberty Steel Acquires Huta Częstochowa
Czech media reported that an agreement was signed on 28 May 2021 for the purchase of Huta Częstochowa by Liberty and the entire purchase amount due
Czech media reported that an agreement was signed on 28 May 2021 for the purchase of Huta Częstochowa by Liberty and the entire purchase amount due was paid. Huta Częstochowa bankruptcy receiver Mr Mateusz Bienioszek said “Today, on May 28, 2021, I signed a contract for the sale of ISD Huta Częstochowa sp. Z oo in Warsaw, and Liberty Częstochowa sp. Z oo paid the entire sale price in the amount of PLN 190 million. Thus, the steelworks has a new owner. The buyer is already a tenant of the plant and runs it, so there is no need to wait for its formal transfer to new hands.”
Huta Częstochowa has existed since the beginning of the 20th century. During the Polish People's Republic, it specialized in the production of pipes and plates for the shipbuilding and defense industries. Like many plants, it fell into decline in the 1980s. Privatized in 1998, a few years later it was on the verge of bankruptcy. In 2005, it was taken over by the Ukrainian concern ISD, which did not improve the situation much. The company sold some of its assets, but the collapse of the shipbuilding industry significantly limited its possibilities
Huta Częstochowa was declared bankrupt on 4 September 4 2019. A tender was scheduled for April 2020, but it was declared invalid due to the lack of bids. A new tender was scheduled for June 2020, but the auction again did not take place. Third tender was held in January this year and Liberty Częstochowa won the third tender for its purchase and was to pay PLN 190 million
Liberty restarted the plant's 700,000 tonnes per year electric arc furnace in January and had previously fed the 1.2 million tonne per year plate mill with slab from its own steelworks.