Polish JSW intends to reduce production costs and increase coal production as part of a restructuring plan

Polish coking coal producer Jastrzębska Spółka Węglowa (JSW) is facing what local media are calling the most serious financial crisis in its history. The company is under pressure from low coking coal prices, high production costs and operational disruptions, while it implements a large-scale restructuring program.

In the second quarter of 2026, the company recorded a net loss of PLN 427.5 million due to difficult market conditions and lower prices for coking coal, as previously reported. SteelOrbis..

JSW's Supervisory Board has approved a recovery program for 2026-35 aimed at stabilizing liquidity and returning to operational profitability. The plan provides for a significant reduction in the number of personnel and capital expenditures, as well as measures to improve production efficiency. At the end of 2025, JSW employed 20,488 people, while the restructuring plan calls for a reduction in staff to less than 16,000 employees.

At the same time JSW reduces mining costs. According to Polish media, the cost of coal production by the company in the second quarter of 2026 fell below 600 zlotys per ton, compared with an average level of more than 800 zlotys per ton in 2024. The company's long—term goal is about 560 Polish zlotys per ton.

JSW also plans to limit average annual capital expenditures of 2 billion Polish zlotys in 2026-29, focusing costs on maintaining production facilities and ensuring occupational safety. In addition, the company applied for financial support and liquidity, including a loan from the Polish Industrial Development Agency (ARP).

Despite cost reductions, JSW intends to increase coal production from about 13 million tons in 2025 to 14 million tons in 2029, and then stabilize it at about 14.1 million tons per year. The JSW Koks subsidiary is expected to produce up to 3.4 million tons of coke per year as part of the restructuring program.