The restructuring process of the ALSTOM Konstal S.A. in Chorzów

Abstract

The aim of this paper is to analyse the restructuring of ALSTOM Konstal SA in Chorzów in the period 1997-2003. The reasons for this change fall into two main categories.Firstly, GEC ALSTOM Concern, which specializes in infrastructure of power generation and power service (60% of production), rail transport (28% of production), industry and naval constructions (6% of production), purchased Konstal SA in 1997.These days ALSTOM Konstal SA is one of the best European producers of constructed carriagesfor trams, rail transit systems, fully automatic systems and metro systems. These products are produced mainly for three big cities in Poland: Katowice, Gdansk and Warsaw, and for the EU countries.Secondly, the modernization brought new technology and staff training. To this aim, in the period 1997-2003 GEC ALSTOM invested 28 million € in Konstal SA, for renovation and modernization, new technology purchase, new hall and production line building and people capital.These restructuring processes and previous production experience allowed the company to become successful in designing and producing rail transport.