Bulgaria's largest steel mill Kremikovtzi may suspend its chemical coke production and close its blast furnaces if no foreign raw material supplier shows up. This, as stated at the meeting between Bulgarian Economy Minister, Kremikovtzi's managers, receivers and trade union leaders, could lead to the shutdown of the mill.
According to the agreement reached between the mill's management, trade unions and the Bulgarian Economy Minister, the Bulgarian government is to support Kremikovtzi to complete and sell the production currently manufactured at the mill, in order to pay out the delayed salaries of workers, who intensified their protests and blocked downtown streets in Sofia on Thursday.
Meanwhile, Vorskla Steel Bulgaria, part of the Konstantin Zhevago-controlled financial group Finance and Credit, has also warned of the risk of the shutdown of Kremikovtzi steel mill as a single production complex.
Vorskla Steel stated in its press release that the shutdown of blast furnace production and the coke and chemical process, the selling off of the plant in parts, and the annihilation of the entire production complex will result in the lay off of more than 1,000 workers.
In addition, Vorskla Steel claimed that Kremikovtzi owed it over BGN 9.8 million (approx. $6.4 million), as well as over 28,000 mt of products, for which it delivered over 60,000 mt of raw material. On the other hand, the Ukrainian company said that the claim that it owes Kremikovtzi BGN 26 million (approx. $16.9 million) is unfounded.
Furthermore, in its release Vorskla Steel has made clear its intention to use all legal means to defend its interests and reputation in its disputes with Kremikovtzi, and states that it could restart its investment projects in the Bulgarian mill, but only if it holds management control. Meanwhile, the leader of the Kremikovtzi division of the Confederation of the Independent Syndicates in Bulgaria, Vasil Yanachkov, has announced that another Ukrainian company Smart Group, a part of Rinat Akhmetov's Metinvest Holding, is interested in running and eventually acquiring Kremikovtzi.
The talks between Smart Group and the Bulgarian Minister of Economy and Energy are expected to be held soon.