Mittal refuses to sell; the political pressure increases

31.01.2008 Source: FFBH

In a new twist to the Kremikovtzi saga, the owner Pramod Mittal announced that he is not going to sell the plant and that it is up to him how he invests his money. This provoked the resignation of the management team and strike action from the employees, who marched the streets of Sofia this morning. In the mean time, Metinvest withdrew from the negotiations for a potential sale, but Ukrainian billionaire Jevago, who met with the Prime Minister Stanishev, confirmed both his interest in the plant and his commitment to honour all ecological, compensation and investment obligations of KREM. Also, reportedly, there are representations of a US steel company in the plant, supposedly doing a preliminary due diligence. In the mean time, the Economic Minister has confirmed publicly his determination to not let KREM be closed down and has announced that he will send prosecutors to investigate alleged cash draining of the plant, and the compliance with the investment obligations stipulated in the privatisation agreement.