Vorskla Steel is Already Supplying Materials to Kremikovtsi

Business | July 15, 2008, Tuesday // 00:00

This week Bulgaria's infamous steel mill Kremikovtsi begins to fulfill the contract with "Vorskla Steel" for the production of steel with materials supplied by the customer.

The announcement was made by the Chair of the Federation "Metallurgy" from the "Podkrepa" Trade Union, Lyudmil Pavlov.

The contract was signed late night on July 10th while Monday the mill's Managing Board decided to recognize the contract.

It is also expected that by Wednesday the May salaries of all Kremikovtsi workers would be finally paid.

According to Pavlov, Vorskla Steel was already supplying materials to the steel mill.

The contract is for the production of between 70,000 and 90,000 tons of steel per month.

Pavlov further stated that by the end of July, the June salaries would also be paid as well as all food expenses, adding that the funds for the May salaries were provided by the mill's Managing Board and not by "Vorskla Steel."

The Union leader appealed to the Economy and Energy Minister to stop blackmailing the candidates for the mill's ownership by asking them to pay "Kremikovtsi's" old debts. Those debts to "Bulgargaz" only are estimated at BGN 9 M.

The new operator must sign a three-party agreement with the materials supplier and the mill, according to Pavlov.

Pavlov further explained that talks with the Environmental Ministry regarding the mill's complex permit were forthcoming.

There is a need to invest a minimum of EUR 300 M in the mills' modernization in order to adhere to the plan and to not be forced to return the BGN 450 M loan granted to the mill by the State, Pavlov concluded.

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