Construction of Zinc Plant in Bulgaria's Kardzhali to Start in 2014

Business | December 7, 2013, Saturday // 20:30|  views

The premises of the Kardzhali-based Lead and Zinc Complex (LZC, OTZK), photo by BGNES

The construction works for the new zinc plant at the site of bankrupt lead and zinc smelter OTZK Kardzhali are to start in June 2014.

The clearing of the production site is to start in early 2014, according to Kardzhali District Governor Biser Nikolov.

Nikolov, as cited by the BGNES news agency, presented the plans on Saturday, expressing hopes that the municipal authorities would make sure that the necessary permits were issued as soon as possible.

"The Canadian company which signed a contract for the construction of the plant with the new owner of the lead and zinc smelter, Harmony 2012, is a representative of the Bloomberg Holding," Nikolov said.

In early November, Harmony 2012 announced that Canadian company SNC Lavalin had been selected as the main contractor for the project for the overall renovation and upgrade of the zinc plant at the site of OTZK in Kardzhali.

Harmony 2012 plans to conduct a large-scale reconstruction and modernization of the factory buildings, to replace all of the machines and equipment, and to build a modern lead and zinc smelter by Bulgarian and Balkan standards.

The company has assured that the new plant will be in line with environmental standards.

Offshore company Harmony 2012 was registered at the time when the news broke out that the previous owner of the lead and zinc smelter, Valentin Zahariev, would have to sell the heavily indebted plant.

In September 2012, Harmony 2012 bought the plant, which had run up debts of BGN 350 M, for BGN 8.6 M.

Harmony 2012 has been largely associated with Bulgaria's First Investment Bank, which is one of the biggest creditors of OTZK.

The debt of OTZK to First Investment Bank amounts to EUR 30 M.

In end-November 2013, the Kardzhali District Court declared OTZK bankrupt due to huge debts of the previous owner to creditors, partners, etc.

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Tags: Lead and Zinc Complex, Lead and Zinc Factory, OTZK, Kardzhali, Biser Nikolov, bankrupt, First Investment Bank, Harmony 2012 Ltd.


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