Bulgarian Steel-maker Buys Danube Port of Svishtov

Bulgarian steel-maker Stomana Industry Jsc has bought the port in the Danube town of Svishtov from the troubled local paper factory Sviloza Jsc, Stomana Industry announced.

Stomana Industry has a plant in the city of Pernik, and is part of the Greek-owned Viohalco Group.

The sum of the deal has not been revealed. The port of Svishtov has been purchased through a company – Port Vidin Nord Jsc – which is 90% owned by Stomana Industry and 10% owned by the Germany Michael Preimesser Beteiligungs Gmbh. It was set up in 2007 in order to participate in the concessions of the Vidin Port.

Stomana Industry is going to direct its export through the port of Svishtov. It has been working mostly the port of Lom on the Danube but this will be changed by the acquisition.

The Port Svishtov terminal is going to continue to service all other companies who wish to use it. The Stomana Industry shareholders intend to restructure and expand the port in order to increase it capacity.

The Sviloza Jsc paper plant has sold the port complex after it registered a consolidate financial loss of BGN 11,7 M in the first nine months of 2009, a loss of BGN 15,6 M in 2008, and a profit of BGN 2,1 M in 2007.

The financial crisis led to a ten-month termination of the production operations at the Sviloza plant, and they were resumed only in December 2009.

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