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August, 25th 2019

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JUL 16
10:52

Polish pipe mill enters liquidation

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Walcownia Rur Silesia (WRS) has entered into liquidation, according to Katowice regional court documents monitored by Kallanish.

The firm, owned by state-owned finance group Towarzystwo Finansowe Silesia (TFS), had planned to double annual revenue and ensure sustainable profitability within five years as part of its strategy for 2017-2022. Last year it purchased a new pipe bending unit from Italy-based Star Technology (see Kallanish passim).

WRS operates on the territory of the former Walcownia Rur Jednosc (WRJ), declared bankrupt in 2008. It had been producing around 4,000 tonnes/year of seamless and welded pipe mainly for use in the energy sector.

WRS liquidator Beata Lapuszynska told Polish media that the firm has been consistently unprofitable since 2008 and its financial position has worsened in recent months. Officials will aim to find employment for as many of WRS’s workers as possible following the liquidation.

WRS’s outdated technology resulted in high costs and low production quality, while profitability also suffered from the small scale of operations and distribution network, Lapuszynska added.