ArcelorMittal hit as energy crisis inches closer

Spokesperson Sylvia Winiarek said ArcelorMittal Mining - formerly Huta Katowice in Dąbrowa Górnicza in the south – had stopped production after the grid operator, the Polish Power Grid Company (PSE), imposed restrictions on the supply and consumption of electricity at 10am on Monday.

PSE last Friday called for a reduction of power consumption during periods of peak demand.

The restrictions are associated with the ongoing Polish heatwave, with temperatures in the mid 30s since the end of July, and the low level of rivers and thus water used in cooling circuits.

"Certainly the situation is difficult, especially when it comes to plants using raw materials, namely blast furnaces and steel mills," Winiarek said, adding that it is hard to predict what will be the impact of this situation on the level of production.

ArcelorMittal is the largest steel producer in Poland, with approx. 70 percent of the Polish steel industry capacity. The group also includes Zdzieszowice Coke Plant, the largest coke producer in Europe, with production capacity of 4.2 million tons of coke per year. ArcelorMittal Poland employs over 11,000 people, and together with its subsidiaries more than 14,000.

"I want to ensure that there is no reason to panic, and appeal to all of our civic attitude, that in this difficult period for all of us, especially in the hours between 11.00 and 15.00, where you do not need to use electricity, save energy. This will help in resolving this situation," Prime Minister Ewa Kopacz told an anti-crisis team set up to deal with the situation, adding that individual energy users would not be affected. (jh/rk)