Vorskla Steel to Supply Materials to Bulgaria's Kremikovtsi

Business | July 22, 2008, Tuesday // 00:00

Bulgaria's infamous steel mill Kremikovtsi has officially signed the contract with "Vorskla Steel" for the production of steel with materials supplied by the Ukrainian company.

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

"The document defines the conditions for using materials supplied by the customer. Their deliveries will be immediately launched," Pavlov explained.

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

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

Pavlov further stated that by the end of July, the June payments 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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