Puls Biznesu reported that Poland's largest steel producer ArcelorMittal plans to invest PLN 220 million in its plant in Kraków despite its plans for major job cuts.
Mr Jacek Wolinski, Kraków unit director at ArcelorMittal Poland, told reporters that "Despite the steel industry's difficult economic situation we have not given up on investment projects."
The largest part of this year's investment outlays will be spent on the modernization of the Kraków coking plant's chemical facility. However, ArcelorMittal also plans to cut employment by 1,000 workers by the end of 2012.
A spokesperson for the firm said that demand for steel in Europe still remains at just 75% of pre crisis levels and nothing indicates a return to 2008 levels in the near future.
Therefore, ArcelorMittal is implementing a strategy to adjust the level of production to current demand.
Factors weighting on demand for Polish steel exports are cheaper imports from developing countries and the uncertainty in global markets.
Sourced from Puls Biznesu