Brazilian CSN Confirms Pull-out from Bulgaria Ailing Steel Mill Deal

Brazil's CSN was the only potential investor after the Ukrainian Smart Group withdrew its interest in buying or running the Bulgarian steel factory. Photo by BGNES

Brazilian CSN, the only potential bidder for Bulgaria's insolvent Kremikovtzi steel mill, has confirmed it is no longer interested.

"We have no intention to buy assets abroad, namely the Bulgarian steel mill Kremikovtzi. It is very likely that this year we are not going to make any acquisitions," the financial director of the company Otavio Lassano was quoted as saying by the online edition Metaltorg.

At the beginning of last week Bulgaria's Economy Minister Petar Dimitrov set a seven-day deadline for reaching a deal with the Brazilian giant. That was the only reason why state gas monopoly Bulgargaz decided not to cut gas supplies to Kremikovtzi over unpaid bills.

The minister was positive that the Brazilian metallurgy giant, CSN, has agreed to sign a contract for the mill's coking plant. The company itself has repeatedly announced it is not planning to make such investments.

 

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