The Industrial Development Agency wants to recapitalize the Power Cable Factory in Będzin

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The Industrial Development Agency (ARP) intends to recapitalize Fabryka Przewodów Energetycznych (FPE) located in Będzin to enhance its role in Poland’s energy transition, as reported by the Agency. It has been indicated that as a strategic investor, it will contemplate holding off on divesting any of the company’s assets.

Since 2023, FPE has been undergoing a restructuring process and is working on an arrangement with its creditors. „Despite previous years of losses, the company’s current performance is satisfactory. The aim of the restructuring is to stabilize its financial status and prepare for future growth,” ARP stated.

The agency mentioned that it is in the final stages of recapitalizing FPE, which is designed to bolster its growth and reinforce its position within the context of Poland’s energy transformation. „There are no plans to relocate the company’s headquarters. Strengthening FPE is a top priority, and the recapitalization will facilitate the execution of essential investments,” it highlighted.

ARP’s Vision for the Company in Będzin

What intentions does ARP have for this enterprise, and is it seeking an investor?

„ARP will act as the strategic investor for FPE, becoming its majority stakeholder with over 80 percent of the shares after the recapitalization. Subsequently, we will commence the development of a multi-year growth strategy for the company. In the long run, we do not exclude the possibility of collaborating with a co-investor who could aid in FPE’s expansion, particularly regarding its potential in the energy and rail sectors,” ARP informed.

The agency underscored that FPE possesses substantial growth potential. „It plans to invest in the energy and rail industries, both domestically and internationally. FPE is actively engaged outside of Poland, and further expansion in this area is one of its key objectives. The capital infusion from ARP will lay the groundwork for achieving these ambitions,” the report added.

Power Cable Factory, Bedzin. Google Maps

Is a tender off the table?

Previously, on March 11 of this year, ARP announced a tender for the sale of land accompanied by an administrative building belonging to Fabryka Przewodów Energetycznych (FPE) in Będzin. The tender was scheduled for April 30 of this year; however, according to ARP’s information, the plans regarding the sale of this property might change.

„The decision to sell the specified real estate is based on FPE’s restructuring plans aimed at optimizing the company’s asset structure. Concurrently, considering the intended development of FPE, the company is currently contemplating withdrawing from this transaction. A decision on this matter will be reached following a comprehensive assessment of the company’s strategic requirements,” the Agency reported.

According to the Office of Competition and Consumer Protection (UOKiK) website, on April 15 of this year, the Industrial Development Agency sought approval from the office for the concentration linked with its intention to acquire Fabryka Przewodów Energetycznych based in Będzin, which is presently owned by the State Treasury. ARP currently holds management oversight over it.

In September 2024, the then-president of ARP, Michał Dąbrowski, when questioned regarding the future of Fabryka Przewodów Energetycznych Będzin, acknowledged that the factory had „significantly declined” in recent years. He stressed that the importance of FPE Będzin within the ARP portfolio would be „considerably enhanced” and noted that the factory is crucial in the context of energy transformation.

Read also: There is a new president of the Industrial Development Agency

ARP’s Initiatives

The Industrial Development Agency assists in the advancement of Polish enterprises by financing investments and facilitating restructuring efforts. ARP possesses stakes in 76 companies, with majority interests in 51 of them (these entities are part of the ARP Group). The primary sectors in which the ARP Group operates include: shipbuilding, rail transport, metallurgy, mining, foundry, packaging, textiles, tourism, modernization, and machinery manufacturing. Additionally, ARP oversees 89 companies in which the State Treasury has a stake.

ARP also manages two Special Economic Zones in southeastern Poland (Mielec and Tarnobrzeg) and owns castle and park complexes in Baranów Sandomierski and Krasiczyn (managed by the Pro Arte et Historia Foundation). As part of the Polish Development Fund Group, ARP collaborates with Polish institutions that support enterprise development.

FPE has been operational since the 1920s and has been state-owned since 1998. It produces cables for the power sector, railways, and automotive industries for both domestic and international markets.>

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