Bulgaria - 2005 September 28
India's Global Steel Holdings Ltd GSHL, has earmarked $300 mln for investment in Sofia based metallurgical plant over the next 4 years as per a statement of Mr Alok Gupta, ED of Kremikovtzi. GSHL did not reveal how it intends to finance the large-scale investment program. The cost of aligning the metallurgical plant to EU standards is seen at $60-70 mln. As much will be spend on environmental projects. Productivity and capacity utilization will be improved on another $180 mln. Mr Gupta has said that GSHL intends to have Kremikovtzi operating at its full annual capacity of 2 mln tons within 2 years. Despite some ongoing renovations, this year's steel output is expected to exceed the 1.25 mln tons produced in 2004. Production is seen further rising by 30-40% in 2006 to 1.6 mln tons. GSHL finalized the acquisition of Kremikovtzi's from majority owner Bulgarian Finmetals Holding, which controlled 71-per cent in Kremikovtzi, at unknown amount in August although industry sources valued the deal at around $100 million. Kremikovtzi steel production is expected to see a rise of 30 to 40 pct within next year and to double within two a half years time. The Bulgarian steel giant is to point on increasing domestic sales and keeping its present market share in Spain, Italy, Greece and Portugal, the new company CEO added.