Cognor is a fully vertically integrated and one of the most technologically advanced steel producers in Europe, with a growing share of high value-added products — including those dedicated to the Polish and European defence industries.
Its main investment cycle — with CAPEX exceeding PLN 1.5 billion over the past five years — has now been completed, giving the company a strong competitive edge ahead of the expected market rebound, supported by a structural return to reindustrialisation policies and strategic autonomy in Poland and the EU.
The Management Board estimates that the completed investments will enable the company to return to generating strong free cash flow from 2026 onward. The newly raised capital will be allocated primarily to enhancing production technologies for the defence sector and increasing billet output at the Gliwice plant to achieve full raw material self-sufficiency within the Group.
Public Offering — Up to 60 Million New Shares
Cognor Holding plans to carry out a public secondary offering (SPO) of up to 60 million shares. Proceeds will be used, among other purposes, to expand production capacity for special steel amid a surge in demand from existing clients manufacturing ammunition, including 155mm artillery shells.
The capital will also support the expansion of billet manufacturing capacity in Gliwice, ensuring 100% feedstock self-sufficiency for Cognor’s rolling mills — reinforcing vertical integration, operational stability, and cost control.
“We have just completed a major five-year investment cycle, allocating over PLN 1.5 billion to expand and modernise our production capabilities. This puts us among the most advanced steel producers in Europe. Our competitors are only now entering their investment cycles — much longer, more capital-intensive and burdened with execution risks. We have already done the hard part,” says Przemysław Sztuczkowski, CEO of Cognor Holding.
“To fully leverage our competitive position and upcoming market momentum, we want to execute complementary investments — primarily in the defence sector, where we have successfully served both Polish and international clients for years. The capital raised will also support billet production to secure full self-sufficiency. As founder and main shareholder, I fully support this plan and remain committed to further capital participation.”
Strategic Expansion into Defence Supply Chains
Cognor is the only steel supplier in Poland for 155mm artillery shells, and also delivers steel plates for combat vehicle hulls — including the ROSOMAK APC and KRAB self-propelled howitzers.
“We have long been part of the Polish defence supply chain, working actively with PGZ Group. We deliver armour plates for Rosomak APCs, vehicle hull components, artillery parts and steel for ammunition. Following recent talks with PGZ, we are ready to significantly expand this cooperation — especially in 155mm calibre, where demand is expected to multiply,” adds Sztuczkowski.
“With the capital raised, we will upgrade our technological infrastructure to produce the highest-purity and most advanced steel grades. This will allow us to expand our customer base and reinforce our leadership in premium steel — including obtaining certifications from global defence leaders such as Rheinmetall. This is not only a strategic step for Cognor, but also a major boost for Polish and European defence capabilities.”
Cognor confirms that orders for ammunition steel are expected to grow several times over in the coming years, driven by PGZ’s rapid expansion. The company is also in talks with a wide range of export clients, with negotiations at various stages.
Deepening Vertical Integration — Full Control Over Supply Chain
A portion of SPO proceeds will strengthen billet production capacity at the Gliwice steel mill, enabling total self-sufficiency in upstream inputs for Cognor’s rolling operations — improving cost efficiency, supply stability and profitability ahead of market recovery.
“Full self-sufficiency in the production chain will allow us to optimise capital allocation and achieve stronger cost control — a critical lever for margin expansion when market conditions improve. We are confident that the investments already completed will drive a return to strong free cash flow from 2026,” says Krzysztof Zoła, CFO and Management Board Member.
One of Europe’s Most Modern Steel Producers
Cognor has invested over PLN 1.5 billion in recent years, including PLN 830 million in the new Light Section Mill (LSM) in Siemianowice Śląskie. This fully automated plant has an annual production capacity of up to 450,000 tonnes and enables a broader portfolio of steel bars and profiles used not only in construction but also in energy and machinery industries.
Share Offering Terms
According to the proposed resolutions, Cognor plans to issue up to 60 million new shares, with exclusion of pre-emptive rights, but with preferential allocation rules to protect current shareholders holding at least 0.2% of shares.
Upon shareholder approval, the shares will be offered through a public offering under a private subscription, without the need to prepare or publish a prospectus. The issue price will be set based on the bookbuilding process.
