Commercial Metals Company Poland signs a 10-year financial Power Purchase Agreement (Corporate PPA) with Statkraft
Zawiercie/Amsterdam, 16 January 2020: Statkraft and Commercial Metal Company Poland (CMC) have become strategic partners, commencing with the signing of a long-term financial power purchase agreement. The agreement fixes the price for 20 per cent of CMC Poland’s power consumption, starting in 2021. CMC Poland, a wholly owned subsidiary of the global steel market leader Commercial Metals Company, is one of the largest electricity consumers in Poland. Statkraft is wholly owned by the Norwegian state and Europe’s largest generator of renewable energy.
CMC and Statkraft developed together a customized product suited for the needs of energy-intensive industry. The financially settled PPA will co-exist with the physical supply contract, while providing a fixed price to CMC. Statkraft is able to provide this contract on the back of its Polish renewable PPA portfolio. While owning its own global assets, Statkraft provides bankable PPA offtake agreements to renewable generators both in Poland and across the EU.
“As a market integrator, Statkraft enables the development of renewable projects and simultaneously ensuring long term price stability to customers such as CMC. This transaction shows CMC’s leadership in the energy-intensive industry, which I expect will be followed by others” said Koen Dejonghe, Business Development Manager at Statkraft.
“Partnerships like these make it possible to support the growth of the industry. It also demonstrates our engagement and support to new technologies of energy generation in Poland” said Jerzy Kozicz, President of the Management Board of CMC Poland Sp. z o.o.
About Commercial Metals Company:
Commercial Metals Company and its subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network of facilities that includes seven electric arc furnace ("EAF") mini mills, two EAF micro mills, two rerolling mills, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the U.S. and Poland. Based in the United States, CMC is listed on the NY stock exchange with over 12,000 employees globally, whereas 2,000 are employed in Poland. The main seat of the company in Poland is located in Zawiercie, where the steel mill is placed.
Press contacts CMC:
Susan Gerber, Manager of Public and Investor Relations
Tel. +1 2146894300 | Susan.Gerber@cmc.com