Bulgargaz Cuts Gas Supply to Bulgaria Steel Mill Kremikovtzi

The steel factory has been warned of the shut down in order to prevent technical failure, and be able to prepare to use alternative fuels in order to prevent technical failure, Bulgargaz CEO, Dimitar Govo, said Tuesday. Photo by BGNES

Bulgarian state-owned Bulgargaz will cut the natural gas supply to the troubled steel mill Kremikovtzi Wednesday at noon.

The steel factory has been warned of the shut down in order to prevent technical failure, and be able to prepare to use alternative fuels in order to prevent technical failure, Bulgargaz CEO, Dimitar Govo, said Tuesday. In his words, Kremikovtzi owes the gas supply company BGN 100 M.

The Bulgarian Economy Minister, Petar Dimitrov, confirmed Bulgargaz's intentions. He explained that Kremikovtzi would pass the way of every company that had been declared bankrupt.

"Kremikovtzi is extremely valuable for Bulgaria, because of its closed production cycle - from the ore mine to the end product. If the company looses some of its powers, the cycle will not be complete", Dimitrov said.

It is still unclear how many of the mill's employees will be fired, and there will be production lines which will continue working, the minister added. In his words, the blast-furnace and coking plant powers will be closed down for sure. The worker's syndicate should decide how many employees are needed for the factory to work, Dimitrov said.

Earlier Tuesday Brazil CSN officially withdrew its interest in buying Kremikovtzi. The Brazilian company was the only investor after the Ukrainian Smart Group withdrew its interest in buying or running the Bulgarian steel factory. Currently, there are no investors interested in the mill.

 

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