Bulgarian steel producer Kremikovtzi has confirmed to SteelOrbis that its present owner Indian Global Steel Holdings is currently negotiating the sale of the plant to the Ukrainian businessman Konstantin Zhevago, who is the owner of the Ukrainian iron ore deposit Poltava GOK through the mining company Ferrexpo.
Although no further details of the talks have been provided, Kremikovtzi has stated that the deal is expected to be finalized within two to three days.
The possible reason for the sale of the Kremikovtzi plant may be found in the obligations imposed on its current owner to invest €140 million in the steel mill, which already incurs losses, to meet EU ecological requirements.
Meanwhile, the Bulgarian government, which holds a 25.3 percent stake in the mill, has stated that it will not obstruct the sale of Kremikovtzi to Ukrainian businessmen, but nevertheless asserted that any potential buyer of the mill would have to give commitments to make the necessary investments to bring the mill up to EU environmental standards.