Kremikovtzi's New Owner Must Invest 120 Mln Euros By End Of Year

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Kremikovtzi's New Owner Must Invest 120 Mln Euros By End Of Year

There are no loss-making metallurgical plants in the world, but the new owner of Kremikovtzi must implement the plant's vitality plan by investing 120 mln euros by end of 2008.

This is what Jeliazko Hristov, leader of the Confederation of Independent Trade Unions in Bulgaria (CITUB), said after his meeting with Minister Plamen Oresharky. According to CITUB, the plant is making a loss because the current owner Paramod Mittal “is withdrawing” 20 mln leva each month instead of posting 10 mln euros as profit.

Jeliazko Hristov also said that Global Steel has acquired Kremikovtzi bonds worth 125 mln dollars.

The Confederation leader also said Sofia's mayor Boyko Borisov has received a letter from the European Commission's environmental department, informing that the EC is about to start a procedure against Kremikovtzi because of the pollution the plant causes.

Meanwhile, Kremikovtzi's CEO Alexander Tomov said at a press conference that there is a meeting scheduled tomorrow between PM Sergey Stanishev and Ukrainian investor Konstantin Zhevago. Mr. Zhevago has signed papers and committed to making investments to the plant's capital and towards the implementation of its social and ecological program.

Tomov said he could not disclose the price of the deal.

Shares of the steel plant were traded at levels between 20.51 and 23 leva today on BSE.

For more articles on Kremikovtzi click here.

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