Bulgarian Steel Workers Rally Again as Shutdown Looms

Business » INDUSTRY | April 10, 2009, Friday // 08:36
Bulgaria Bulgarian Steel Workers Rally Again as Shutdown Looms: Bulgarian Steel Workers Rally Again as Shutdown Looms Kremikovtzi's future looks increasingly bleak amidst workers' rallies over pay and the pulling out of investors. Photo by BGNES

Workers from Bulgaria's Kremikovtzi steel mill are keeping up unabated their protests as the closure of the indebted plant looms large.

Kremikovtzi workers will stage yet another rally on Friday, protesting against unpaid salaries and the government's lack of interest in their fate. They insist on governmental help in finding an investor or an alternative scenario in case no investor shows interest.

The protesters have announced plans for more aggressive actions and a nationwide rally of the people working in the sector in a bid to protect the mill.

Meanwhile it emerged that the worst scenario for the plant future with all investors withdrawing, is very likely. Officials have repeatedly denied claims that Brazilian CSN, the only potential bidder for Bulgaria's insolvent Kremikovtzi steel mill, is no longer interested, but contradictory reports continue to emerge.

At the beginning of last week Bulgaria's Economy Minister Petar Dimitrov set a seven-day deadline for reaching a tolling deal to buy coke from Kremikovtzi with the Brazilian giant.

That was the only reason why state gas monopoly Bulgargaz decided not to cut gas supplies to Kremikovtzi over unpaid bills. The distribution firm warned it would cut off deliveries in a week, closing the smelter's major production units.

Should gas supplies be cut off, the total shutdown of the company except for the final units in the production chain is very likely.

Kremikovtzi provides jobs for over 5 000 people and its future is a politically sensitive issue ahead of the general elections in the summer.

 

 

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