Bulgarian Agro-Chemical Plant Himko back in Business by End 2010

The town of Vratsa, in north-west Bulgaria, site of the giant agro-chemical plant Himko AD. Photo by childrensrightsedu.com

Nikolay Galchev, a Bulgarian building contractor, has announced on Friday that he has bought the Vratsa-based Himko agro-chemical works for an undisclosed sum.

The "Galchev Engineering Group" had formally bought out "Novo Himko", an enterprise that went bankrupt at the end of 2004, some five months ago. Galchev refused to divulge the purchase price, for reasons of commercial confidentiality.

The plant will be ready to begin production in October or November 2010, he stated.

An agreement has been reached with the Bulgarian state by which the works’ liabilities are to be deferred. Payments will begin in May 2010, and will continue over the next 18 years.

Galchev did not specify the size of the current debts of the company. At the end of 2007, "Novo Himko" had acquired the works for BGN 85.7 M, an amount equal to the liabilities of the Vratsa works. The biggest debts owed by Himko are to Bulgargaz, NEC and the State Receivables Agency.

The capacity of Himko will be brought into operation in stages, said Galchev. According to him, they would adhere strictly to the implementation of the recovery program for the plant, which had also been approved by the state.

"We're having negotiations with seven or eight candidates, mainly foreign companies, to work out a strategic cooperation for the supply of gas," said Galchev. "Separate negotiations are being held to provide markets for the production of the basic raw materials of the company - carbamide and agricultural fertilizer."

When asked about the options if the company fails to work again in October, Galchev replied: "I do not want to think about such an option."

During the socialist period, the chemical giant in Vratsa was one of the mainstays of the local economy. After the democratic changes, however, the company was reduced to bankruptcy, and production stopped.

However, shares of Himko are among the most traded on the Bulgarian market. Yesterday the price per share was BGN 0,09.

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