Reshaping Poland's Coal Future: Defence Industry to Aid JSW Overhaul

Polish Prime Minister Donald Tusk announced plans for the defense sector to assist in restructuring JSW, the EU's top coking coal producer. The plan includes potential wage cuts to combat rising costs and pressures from imports. JSW could benefit from investments in Poland's defense industry.

Poland is eyeing its defense industry for a key role in revitalizing the beleaguered state-controlled coal company JSW, Prime Minister Donald Tusk revealed on Tuesday. This move is part of a broader plan, soon to be unveiled, aimed at overhauling the European Union's largest coking coal producer.

The restructuring strategy, Tusk announced, may include wage reductions to address challenges like surging energy expenses, decreasing coal prices, and competitive low-cost steel imports. 'We will do everything to transform JSW and save this company, or at least a significant part of it,' Tusk stated during a press briefing, noting that the plan features co-financing of voluntary redundancies.

In light of heightened investments in the defense sector due to regional tensions following Russia's invasion of Ukraine, Tusk suggested JSW might gain from industrial activities in Poland's southwestern Silesia region. Tusk indicated that the Polish Armaments Group's involvement could positively impact JSW, capitalizing on the area's mining and heavy machinery production traditions.

(With inputs from agencies.)