CMC ZAWIERCIE S.A. (Zawiercie)

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The steel mill dates back to 1897 when a group of shareholders of Pipe and Iron Works located in Sosnowiec, Poland, formed an Association (the Association). The share capital was owned in a great part by Huldschynsky Hüttenwerke A.G., Gleiwitz. The Association's main task was to build a steel mill in the territory of Zawiercie. After the purchase of the land and the acceptance of the structural plan, the first construction works began in 1899 with the construction of railway siding and the digging of foundations for the blast furnace. Since that time Zawiercie has become a significant metallurgical center in Poland. The first director of the steel mill was Julian Appel.


In 1900, construction of a steel melt shop began, and by 1903, two 40-ton, open-hearth furnaces were complete. The blast furnace was started and the first heat was poured in 1901. Production at the steel mill during that period was about 69 thousand tons of pig iron. Because demand for iron as a raw material was decreasing, steps were taken to start production of finished products which had much greater demand at that time. During 1903-1904, the mid-sized and small rolling mills were built and opened allowing the production of sections called shaped iron. In 1905, the Association was acquired by Oberschlesische Eisenach-Bedarf AG. At the same time, further development of the steel mill was progressing with the wire rod mill opening in 1906 with a capacity of more than 177 thousand tons. The promising future of the steel mill was halted by the outbreak of World War I which was catastrophic for the steel mill, as well as the whole steel industry in Poland. The steel mill was closed from 1914 through 1918. At the end of 1918, the company was purchased by French capital and the steel mill was gradually reopened the following year. The years between World War I and World II were difficult for the steel mill, and the economic crisis which overwhelmed the world in 1925 exerted its influence on the Zawiercie mill. Many divisions of the steel mill were closed, and employment contracts with workers were terminated. With the improved economy, the blast furnaces were started up once again in 1936 and, together with the melt shop and rolling mill, more than one thousand people were employed. During the first few days of September 1939, Zawiercie and the land of the then Zawiercie District found itself in the center of the outbreak of World War II. On September 8, by virtue of Hitler's decree, Zawiercie and the Zawiercie District were merged with the Third Reich. During the occupation, all divisions of the steel mill were open with production geared to the war needs of the Third Reich.


After the liberation of Poland in 1945, the steel mill was nationalized, and the technical state of the steel mill was clearly different from that of the Western European states. In 1946, a three-year plan was established to modernize the steel mill. During 1947-1948 the original blast furnaces were rebuilt and the newest furnace, number 3 with a capacity of 50 tons, was built and started up in 1948. In the years 1950-1955, investments were geared towards modernization, manufacturing of new products, and the purchase of modern equipment. In April 1963, construction of two 125-ton furnaces began, and a year later the first cast of steel was made from blast furnace number 6. The 1970's was a time of great investments. By virtue of a decision of the then Government, construction of the industrial complex was approved in 1970 comprised of a large rolling mill with a cogging mill (semi-finishing mill). During construction of the semi-finishing mill, actions were taken to build and start electric arc furnaces. The appropriate and necessary decisions were made in 1972. On June 30, 1974 the electric arc furnaces began, and the first heat in the electric arc furnaces was poured on August 31, 1975.


The 1980's was a period of technical modernization and upgrading of the product line. The steel mill became the main Polish producer of wire rod for wire, wire rope, and rounds for mining chains. It also became a well-known producer of steel for the automotive and construction industries. At the initial stage of economic transformations (1989-1990) the Polish steel industry was not prepared for the wide scale changes to a market-based economy. The steel mill in Zawiercie had an exceptionally unfavorable sales structure because it produced 80% semi-finished products. Therefore, the steel mill had to transform itself by restructuring the technological process and reorganizing the labor and management.


In 1992, the first modern continuous caster manufactured by the Italian company Danieli, was started in Poland. Due to the successful start up and satisfactory results of the first continuous caster, a decision was made to install an additional Danieli caster. Start up commenced on April 13, 1995. During the years 1989 through 1996 the company invested more than 130 million PLN to modernize the steel mill, efforts that made the mill the modern steel producer it is today. In 1995 the mill was privatized by Impexmetal, acquiring the majority interest of Huta Zawiercie. A series of organizational changes were made during 2002-2003, especially in larger units of the steel mill dealing with scrap and new steel sales. 2003 brought a change of ownership. A 71% interest in Huta Zawiercie S.A. was acquired by Commercial Metals (International) AG, a subsidiary of Commercial Metals Company, on December 3, 2003 from Impexmetal S.A. Together with the steel mill, CMC also acquired thirteen subsidiaries which provide the steel mill with scrap metal and other services such as repairs, power supply and transport. The change in ownership provided an increase in production, an increase in market share, more efficient marketing, and increased financial security for the mill.