Vorskla Steel Bulgaria, part of Konstantin Zhevago-controlled financial group Finance and Credit, has signed a memorandum of understanding (MoU) with Bulgarian workers' unions Metalitzi, Kremikovtzi, Metalurgiya and Podkrepa.
The MoU stipulates that the company is obliged to implement measures to revive Kremikovtzi and to carry out the steelmaker's "vitality" plan without restructuring and reducing staff numbers. Meanwhile, the workers' unions guarantee their overall support for the investor's programs.
Vorskla Steel Bulgaria is expected to immediately supply to Kremikovtzi 170,000 mt of raw materials, which have already arrived at the Bulgarian ports of Lom and Burgas, and also to invest $90 million as working capital.
The management of Vorskla Steel Bulgaria has stated its intention to maintain Kremikovtzi and to invest up to $720 million by 2012 for the modernization of the production facilities, for technological renovation, environmental projects and social security programs for employees.