Zhevago may soon buy the largest steel plant in Bulgaria

Konstantin Zhevago new owner of the largest steel plant in Bulgaria - Kremikovtzi - will be decided on Feb. 7, 2011. This will be the third attempt of the Bulgarian authorities to sell the bankrupt steel assets Two previous attempts failed because there was no devoutly to buy Kremikovtzi at the price offered by Bulgarian officials. Recall the first auction for the sale of Bulgarian steel mill, which was scheduled for Sept. 13, did not take place due to lack of proposals. For the company was asked to pay 377 million dollars, says Case. The intention to buy plant in late July claimed Vorskla Steel Bulgaria, owned by Konstantin Zhevago, the main shareholder of the mining company Ferrexpo (owns the Poltava GOK). "We will participate in a public tender for the sale of plant assets," - noted then executive director of the Bulgarian Vorskla Victor Demjanjuk. However, a top manager also said that Kremikovtzi - «pimped it, which is sold at Mercedes. A second attempt to sell the steel plant was held on November 5. In this case, the starting price of the asset was reduced to 323.3 million dollars, however, and this discount is not attracted the attention of potential buyers. As promised the organizers of the auction, February 7, the proposed price will be lowered even further - up to 265.73 million addition to the company Konstantin Zhevago, the tender for the sale of plant can participate largest metallurgical holding in the world, ArcelorMittal Lakshmi Mittal. It should be noted that in 2008 ArcelorMittal was interested in buying Kremikovtzi. In addition, at present the majority of shares owned enterprise Global Steel Holdings Limited, which is owned by the brother of Lakshmi Mittal - Pramod. For Zhevago Bulgarian asset is important for two main reasons. First, he examines plant as a potential consumer of iron ore, which produces one of his enterprises in Ukraine - Poltava GOK. Besides, buying a metallurgical assets, he can finally close the production chain, "ore-steel-rolling." Secondly, Kremikovtzi is on the EU territory. It will give its owner the ability to directly enter the European market metproduktsii, bypassing all the barrier, which are valid for non-EU countries. Kremikovtzi - Iron and Steel Works with a design capacity of 2.2 million tonnes of hot-rolled steel a year. Is the largest metal processing enterprise in Bulgaria. Manufactures sheet, bars, ferro alloys, coke and chemical products. Most of the plant's production is exported to Turkey, Greece and Italy, but some of it is consumed on the domestic market. The main shareholder of the Bulgarian plant is Pramod Mittal. He owns about 71% of the shares. 25% - in state ownership.