Brazil Investor CSN Sends Scouts to Check out Kremikovtzi
The news about CSN's investment interest in Kremikovtzi was announced on November 19 when the management of the company had a working meeting with the Bulgarian Minister of Economy Petar Dimitrov during his official visit to the Brazilian city Sao Paolo last week.
Representatives of the Kremikovtzi management and syndicates also took part in the meeting from Sofia via video satellite.
According to the Technology Director of the Bulgarian steel plant Stoyan Pirlov, the Brazilian company, which is a large producer of iron ore and had really strong positions on the domestic market, was interested in acquiring a plant in Europe.
The visit CSN's scouts to Kremikovtzi is expected to shed more light on the plans of the Brazilian company with respect to the plant.
According to sources from the plant management, the Ukrainian company Smart Group was still interested in bidding for the purchase of Kremikovtzi.
CSN was founded in 1969, and is presently the second largest steel-maker in Brazil. Its main plant is located in the city of Volta Redonda in the state of Rio de Janeiro.
- » Almost 12 million Passengers Have Passed Through Bulgarian Airports in 2018
- » Canadian Velocity Minerals Became the Majority Owner of a Bulgarian Gold Extraction Project
- » Wizz Air - Best Low Cost Airlines For 2018 in the Central and Eastern Europe
- » Bulgarian Commission for Protection of Competition Allowed Businessman Domuschiev to Buy Nova Broadcasting Group
- » Bulgarian Companies Could Participate in the Construction of Infrastructure Projects in Saudi Arabia
- » Bulgarian Tourism Minister: We are Expecting Important Guests in Sunny Beach on May 31st
The Global Slow Down in Chinese Construction, Machinery and Automobiles will decrease the value of Kremilkovtzi.
It is a bad time to sell or invest in steel.
Brazil's only interest in foreign steel is to enter the African Market which is a future high scale market in logistical support.
Bulgaria should look closely at the African Market with a South African Joint Venture.
Brasil indeed has a lot of high quality iron ore and extracts a lot - in fact most of the iron ore for the huge ThyssenKrupp plant in Duisburg comes from Brasil.
The only merit of Kremikovci is that it doesnt cost too much money to the state because they always find some idiot who thinks Kremikovci is a bargain and after one year understands its a burden.
I dont really see any possibility for kremikovci to be profitable unless they restructure a lot and start producing some high quality steel. But this restructuring may cost more than simply close Kremikovci and build a new modern plant.