Cognor Holding plans to issue up to 27.84 million shares, equivalent to 12% of its existing share capital, to strengthen its finances and support sales growth after investing more than PLN 1.5 billion in its plants. The Polish steelmaker is looking to infrastructure, energy and defence projects for additional orders.
By the CEO editorial team. Polish original published on 10 November 2026 at 18:05 UTC.
The group spent more than PLN 1.5 billion over the past five years expanding and modernising production facilities. Its focus is now shifting towards making greater use of that capacity and increasing sales, which requires more working capital to fund inventories, fulfil new contracts and expand operations.
Management expects conditions in Europe’s steel market to improve gradually. It points to rising distributor orders, higher steel prices and changes to EU rules aimed at limiting competition from imports.
Shareholders to vote on 7 December
Cognor proposes offering a maximum of 27,840,000 new shares without pre-emptive rights, meaning existing shareholders would have no statutory priority to subscribe. The shares would represent 12% of current share capital and about 10.7% of the enlarged total if the issue were completed in full.
The amount raised is not yet known. Pricing will be determined through a bookbuilding process that assesses investor demand, while a general meeting called for 7 December 2026 will consider resolutions relating to the capital raising.
The proceeds are intended primarily to strengthen the balance sheet, increase working capital and improve the structure of financial liabilities.
Investment shifts from new capacity to funding sales
Cognor has completed the main part of its multiyear modernisation programme, which expanded production infrastructure and upgraded steelmaking technology. A major project was the rolling mill in Siemianowice Śląskie in southern Poland, where commissioning began in early 2026. Management says the gradual increase in output and sales from the plant is already improving operating results.
With the major construction phase over, financing production, inventories and trade receivables becomes more important. Higher sales require more spending on raw materials and stocks of finished products, and several weeks or months may pass between the start of production and payment by the customer.
Additional equity could help Cognor increase sales faster without a proportional rise in short-term borrowing. The outcome will nevertheless depend on actual order growth and margins: greater production capacity alone does not guarantee better profitability.
EU trade rules could help European steelmakers
Changes in EU trade policy are an important part of Cognor’s outlook. Measures intended to protect the European market from excessive imports aim to limit inflows of steel from outside the bloc. The “melt and pour” approach identifies the country where steel was originally melted and cast, making it harder to circumvent trade restrictions by processing it in an intermediary country.
The EU’s Carbon Border Adjustment Mechanism (CBAM) is another significant measure. It covers products including iron and steel and is designed to account for the cost of emissions associated with goods imported into the EU.
Cognor expects these changes to improve European producers’ competitiveness. Initially, however, management says distributors built up stocks bought at earlier, lower prices, delaying the effect of the new rules on current orders.
Chief financial officer Krzysztof Zoła says inventories have now normalised and the company is seeing stronger demand and rising prices. That is management’s assessment of current conditions, rather than a guarantee that the trend will continue in subsequent quarters.
Infrastructure and energy projects could lift demand
Cognor identifies infrastructure investment in Poland and neighbouring countries as a potentially important source of future demand. Railway modernisation and expansion, ports, logistics infrastructure and energy projects could all contribute.
Poland’s first nuclear power plant, offshore wind developments and expansion of transmission networks require substantial quantities of steel with different technical specifications. Funding from Poland’s National Recovery Plan, known locally as KPO, remains an additional source of finance for infrastructure projects. Management also points to opportunities under SAFE, the European instrument supporting security and defence investment.
Announced spending will not automatically translate into orders for Polish mills. Project schedules, technical requirements and domestic suppliers’ participation in individual contracts will determine how much business they secure.
155 mm ammunition offers a specialised market
Defence remains an important area of potential growth. Cognor supplies steel to Polish producers of 155 mm artillery ammunition and expects the expansion of domestic manufacturing capacity to generate more orders.
According to management, planned ammunition production in Poland could reach as many as 180,000 rounds a year in 2028. Achieving that level would depend on investments being completed and new production lines starting on time.
Cognor sees an opportunity both to increase delivery volumes and to sell specialised products with higher added value. Steel for defence applications must meet quality standards, deliver consistent material properties and be supported by suitable production technology. Those requirements may limit the pool of potential suppliers, although they do not eliminate competition.
First deliveries to Ukraine
The group is also seeking to expand exports, including to Ukraine. Chief executive Przemysław Sztuczkowski says Cognor has made its first deliveries of long steel products to the country and is receiving further enquiries.
Demand includes steel for maintaining and rebuilding infrastructure and for industrial use. Future sales will depend on security conditions, access to finance and the ability to deliver supplies. Management has disclosed neither the value of completed contracts nor a revenue forecast for the Ukrainian market.
Power costs remain a constraint
High electricity costs continue to weigh on European steelmakers, particularly plants using electric furnaces, where power accounts for a significant share of production costs. Cognor sees scope for improvement through planned Polish support measures for energy-intensive industry.
The company says the relevant legislation has been sent to the president for signature. Any effect on earnings will depend on the final rules, eligibility criteria and the amount of support available.
Lower power costs could make Polish production more competitive, especially against mills operating in countries with cheaper energy.
More financial flexibility, but dilution for shareholders
The proposed issue has two main implications for shareholders. It would increase equity and reduce the need to fund expansion entirely through borrowing, potentially giving Cognor more financial flexibility as production and inventories grow.
It would also dilute the stakes of shareholders who do not subscribe. If the maximum number of shares were issued, their percentage ownership would fall by about 10.7% relative to its pre-issue level.
The issue price will also matter. A price below the prevailing market quotation could put pressure on the stock, while a successful capital raising could reduce the risks associated with financing operations.
Cognor has not disclosed a target fundraising amount or a detailed allocation of the proceeds between working capital and changes to its financial liabilities.
