Following the reports that the owners of Bulgarian steel producer Kremikovtzi Indian Global Steel Holdings Limited (GSHL) are about to sell the plant to the Ukrainian businessman Konstantin Zhevago, much speculation regarding the issue has been heard in the market.
One of the main points of speculation concerns the strategic cooperation of Kremikovtzi with as yet undisclosed companies as regards raw material supplies and investments.
While a Kremikovtzi representative recently confirmed to SteelOrbis that GSHL was negotiating the sale of the plant with Mr. Zhevago, Kremikovtzi subsequently issued an official release saying that GSHL is rather holding discussions with a group of companies for long-term supplies of raw materials and investments to improve productivity, efficiency, profitability and long-term stability, thus implying that the plant will not be sold.
Furthermore, once the company's release regarding possible cooperation with a group of companies on raw materials and investments had cooled the market down a bit, news broke that US Steel had entered the arena in a bid to buy Kremikovtzi. As yet, neither Kremikovtzi nor US Steel has issued a confirmation of such sale negotiations.
In an attempt to shed some light on the issue, SteelOrbis has requested some clarification from Kremikovtzi, which stated in response that as of the current time the plant cannot give any reliable information concerning the investors with which the owners of the mill are holding negotiations. Thus, questions regarding the nature of the negotiations still remain unanswered.
Meanwhile, as the owners of Kremikovtzi decide whether or not to sell the mill and, if a sale is in question, then to whom they should sell, the European Union (EU) has reopened infringement procedures against Bulgaria over the issue of pollution at Kremikovtzi, and workers at the plant are also protesting over unpaid wages.