Poland-based coking coal producer Jastrzębska Spółka Węglowa (JSW) is facing what local media describe as the most serious financial crisis in its history, with weak coking coal prices, high production costs and operational disruptions putting pressure on the company as it implements a major restructuring program.
The company recorded a net loss of PLN 427.5 million in the second quarter of 2026 amid challenging market conditions and lower coking coal prices, as SteelOrbis previously reported.
JSW's supervisory board has approved its 2026-35 Recovery Program, aimed at stabilizing liquidity and restoring operational profitability. The plan includes significant reductions in employment and capital expenditure alongside measures to improve production efficiency. JSW employed 20,488 people at the end of 2025, while the restructuring plan envisages reducing the workforce to fewer than 16,000.
At the same time, JSW has been lowering its mining costs. According to Polish media, the company's coal production cost fell below PLN 600/mt in the second quarter of 2026, compared with an average of more than PLN 800/mt in 2024. Its longer-term target is around PLN 560/mt.
JSW also plans to limit average annual capital expenditure to PLN 2 billion during 2026-29, concentrating spending on maintaining production capacity and occupational safety. The company has additionally sought financing and liquidity support, including a loan from Poland's Industrial Development Agency (ARP).
Despite expenditure reductions, JSW plans to raise coal production from approximately 13 million mt in 2025 to 14 million mt in 2029, before stabilizing it at around 14.1 million mt per year. Subsidiary JSW Koks is expected to produce up to 3.4 million mt of coke annually under the restructuring program.
