Key investment projects carried out by other Group companies in 2017
Capital expenditures in other Group companies in 2017 amounted to PLN 168.7 million and were 47.6% lower than in 2016 (resulting, among others, from the sale of SEJ, PEC and WZK Victoria in 2016). Capital expenditures in the coke segment and other segments in 2017 accounted for 16.5% of the Group’s total expenditures. The expenditures on non-current assets incurred by the companies were allocated for execution of key projects and tasks securing their on-going operating activities.
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Modernization of coke oven batteries in Przyjaźń coking plant
The Przyjaźń Coking Plant (JSW KOKS) is performing its investment program as a part of which in 2011 modernized battery no. 1 was commissioned for use and further coke oven batteries are to be modernized. On 15 September 2011, the company signed an agreement with BP Koksoprojekt Sp. z o.o. from Zabrze, selected in a tender procedure, to perform formal, legal and design work for the purpose of modernization of coke oven batteries no. 3 and 4, and execution designs for modernization of coking battery no. 4. Completed in 2014 was the stage of preparation of working designs for modernization of battery no. 4. In 2017, no capital expenditures were incurred for modernization of battery no. 4 (the execution of the physical scope of the project was postponed).
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Construction of a power unit at the Radlin coking plant
This project, performed by JSW KOKS, aims to use coke oven gas to generate electricity and heat for own needs and for sale. Planned as part of the project is the construction of a power unit fired with own coke oven gas, of a thermal power 104 MW, with an extraction and condensing turbine of a capacity of 28 MWe and a heat-generating segment of a capacity of 37 MWt which will ensure the supply of electricity, steam and heat to the Radlin coking plant as well as heat to the nearby KWK Marcel and the inhabitants of the town of Radlin. In 2017, expenditures of PLN 0.02 million were incurred in connection with the execution of this capital expenditure project.
On 22 December 2015, JSW KOKS and Agencja Rozwoju Przemysłu S.A. signed an “Agreement defining the key terms and conditions of execution of the planned joint venture involving construction and operation of the Radlin CHP Plant, including the conditions of entering into the investment agreement” (Term Sheet). In 2016, the Investment Manager and General Contractor selection procedure was conducted in the procedure to award a public procurement contract, conducted pursuant to the provisions of the Public Procurement Law in the form of a limited tender which was announced on 14 January 2016. On 19 December 2016, JSW KOKS cancelled, in accordance with Article 93 Section 1 Item 4 of the Public Procurement Law, the procedure in a limited tender to execute the project. Due to the amount resulting from the tender procedure, ARP S.A. withdrew from the provision of financing for the project. -
Construction of a power unit at the Radlin coking plant
This project, performed by JSW KOKS, aims to use coke oven gas to generate electricity and heat for own needs and for sale. Planned as part of the project is the construction of a power unit fired with own coke oven gas, of a thermal power 104 MW, with an extraction and condensing turbine of a capacity of 28 MWe and a heat-generating segment of a capacity of 37 MWt which will ensure the supply of electricity, steam and heat to the Radlin coking plant as well as heat to the nearby KWK Marcel and the inhabitants of the town of Radlin. In 2017, expenditures of PLN 0.02 million were incurred in connection with the execution of this capital expenditure project.