The Management Board and Supervisory Board of Jastrzębska Spółka Węglowa adopted the JSW SA Remedy Program for 2026-2035, including Subsidiaries. The document outlines a comprehensive action plan covering key areas of JSW's operations and those of its Group. The Program combines short-term measures aimed at ensuring the Company’s financial liquidity during the preparation and implementation of structural changes with long-term initiatives focused on sustainable improvement of operational efficiency and profitability. A significant portion of the measures is already being implemented and the rest will be introduced gradually.
The most important elements of the Program include, among others, measures to improve financial liquidity, including securing prepayments and selling selected assets, deferring payments to the Social Insurance Institution (ZUS), reducing capital expenditures, optimizing operating costs, adjusting headcount, and a set of initiatives aimed at improving efficiency in key areas of the Group’s operations.
“The Remedy Program is a concrete plan that sets the direction for actions leading to sustainable improvement of JSW’s situation. A significant portion of the initiatives outlined in the plan have already been implemented; we are reducing costs, improving efficiency, adjusting our workforce and taking steps to ensure stable financing. We are set to consistently implement dozens of new initiatives covering all key areas of JSW’s operations. This requires responsibility, good cooperation and commitment of the entire organization. Our goal is clear: to sustainably improve the Company’s situation and create the conditions for its stable operation and growth, regardless of volatile and challenging market conditions," said Bogusław Oleksy, President of the JSW SA Management Board.
The Program calls for an increase in coal production from 13 million tons in 2025 to 14 million tons in 2029. In the coming years, production is expected to remain at 14.1 million tons. At the same time, JSW plans to increase the share of coking coal in total coal production – from 85 percent in 2025 to 94 percent in 2029. Another key objective is to reduce the mining cash cost. According to the Program’s assumptions, MCC is expected to decrease from 738.02 PLN/t in 2025 to 587.86 PLN/t in 2026 and to 560.16 PLN/t in 2029.
As part of the preparation of the Program, a comprehensive review of the JSW Group’s investment portfolio was conducted. As a result, capital expenditures for the years 2026-2029 were capped at the average level of approximately PLN 2 billion per annum. The investment levels set forth in the Program are also intended to ensure that the targeted production volumes are achieved. This means focusing resources on investments necessary to maintain and develop production capacity while ensuring the safety of employees.
An important organizational change envisaged in the Program is the reorganization of JSW's units with a view to optimizing their resources and achieving organizational integration. The reorganization is intended to enable the company to achieve economies of scale, increase operational flexibility and improve cost efficiency. Another key objective is to reduce operational risks and increase production stability under changing geological and mining conditions. The integration of the units will enable a more flexible response to market needs. In practice, this means effective implementation of production plans, reduction of downtime and increase in production predictability. The integration of production management is also intended to facilitate the development of an appropriate product mix, including the maintenance of stable quality parameters for coking coal. This is important for maintaining business relationships and strengthening JSW's competitiveness and supply stability.
Another key element of the Remedy Program is adjusting the number of employees to the target production volume. JSW makes use of the safety net mechanisms provided for by law, including mining leaves, leaves for coal processing plant workers and one-off cash severance pays. According to the Program’s assumptions, a total of up to approximately 4,200 JSW SA employees may benefit from the safety net measures in 2026. It is estimated that, within this group, more than 3,000 people will be eligible for leaves for miners and coal processing workers, and just under 1,200 will be eligible for one-off cash severance payments. As a result, the number of employees at JSW SA may drop from over 20,000 to just under 16,000. The layoff process is being conducted with due regard for safety and the continuity of mining operations, in a manner that ensures the safe and uninterrupted operation of JSW’s units.
The Remedy Program covers not only JSW SA but also the companies from its Group. A key component of the Program is the restructuring plan prepared by JSW KOKS, which outlines measures aimed at improving efficiency and stabilizing the company’s operations. It calls for stabilizing coke production at 3.4 million tons per year, as well as optimizing headcount, aligning the structure of operations and assets with the target operating model, and implementing strict cost controls.
Tomasz Gawlik, JSW’s Vice-President for Development, emphasizes that the Program was developed with the tremendous commitment of JSW’s employees and with the support of experts who analyzed the Company’s various areas of operation.
“The Remedy Program is not just a collection of general statements. This is a concrete plan with clearly defined tasks that we need to carry out. It was prepared by people who are familiar with JSW and the unique nature of our industry. We analyzed the Company's operations in great detail – from procurement, through production, to work organization and administrative operations. We know which areas need to be changed and what steps need to be taken. The most important thing now is to consistently implement the adopted Program. The goal is to build JSW and the entire Group so that they can operate stably in the demanding and volatile coking coal and coke market. The scale of the challenges is significant, but failing to take action would pose an even greater risk to the Company's future and to jobs," said Tomasz Gawlik, JSW's Vice-President for Development.
The implementation of the Remedy Program will be a multi-stage process. Some of the measures have already been launched and others will be implemented in the coming months and years. Their common goal is to restore JSW’s financial stability, improve operational efficiency, adapt the organization to challenging market conditions and strengthen the foundations of the entire JSW Group’s operations.
