ArcelorMittal's hot-rolling mill in Kraków will get a new inspection system this year Courtesy of ArcelorMittal Poland

ArcelorMittal is planning to invest almost zł.30 million in its Polish operations this year. The firm, which is responsible for around two-thirds of the country’s annual steel production, is also expected to re-open the second blast furnace at its Dąbrowa Górnicza steel mill this week.

The majority of ArcelorMittal’s 2010 investment spending – zł.24 million – will go to the construction of hot metal desulphurization stations at the firm’s Dąbrowa Górnicza steel mill, which is scheduled for delivery in July. Other investments will include a zł.2 million strip-surface inspection system in Kraków, which should be ready by October.

According to Sanjay Samaddar, CEO of ArcelorMittal Poland, these investments are part of the company’s strategy to meet its clients’ evolving quality expectations. The restart of the Dąbrowa blast furnace, which was closed in Q4 2008, appears to be in anticipation of a growth in demand, rather than in response to one.

“We’ve noticed some increased activity in Q1, from a recovery of technical demand driven by re-stocking; however, we have not yet observed any significant increase in real consumption,” Mr Samaddar told WBJ.

The global steel industry suffered an eight percent y/y drop in production in 2009, according to the World Steel Association. Poland was the 20th largest producer last year, although its output fell by almost 26 percent.

ArcelorMittal’s Polish operation, meanwhile, took a significant hit to production last year. “The average crude steel capacity utilization at ArcelorMittal Poland was 50 percent throughout 2009. This year is looking somewhat better and infrastructure projects, which were postponed due to the severe winter, will be under way soon,” Mr Samaddar said.

The firm, whose dominance of the market is unchallenged, plans to monitor demand and to be ready to adapt to change.