Financed ProjectsKremikovtzi

Identification Code:

OP/06/0547

Total Operation Cost:

0

Maturity:

84 months

Operation Status:

Description and Purpose of the Operation:

The post privatization capital expenditure program is developed to improve product quality, to cut costs and to offer a wider product range. The program aims at the restructuring of Kremikovtzi into a modern, highly efficient steel maker that would capitalize on the emerging markets in the region by selling high-quality flat steel products. The scope of the program includes the automation of the production facilities of Kremikovtzi, replacement of outdated installations and related investments in the plant’s infrastructure and installation of new systems for environmental control. The capital expenditure program will also address the environmental clean-up costs, which are required for EU compliance.

Countries of Operation:

Bulgaria (100,00 %)

Financial Product:

Loans

Sector:

Materials

Domain:

Private

Borrower/Client:

Kremikovtzi AD is manufacturing and selling a variety of flat products, coke and ferroalloys to clients in Bulgaria, the EU and the Black Sea region. Kremikovtzi AD generates around 2% of the Bulgarian GDP and over 10% of Bulgarian exports to the European Union.

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

BSTDB participation in the Operation would: - Generate additional export and tax revenues; - Contribute to the activities of a successful company in Bulgaria - Promote cooperation among member states of BSTDB via exports and imports

Environmental Classification and Impact (summary):

Steel, coke and ferroalloys manufacturing has the potential to trigger significant negative Environmental, Health & Safety (EH&S) impacts. These are associated primarily with air emissions, liquid effluents, solid wastes, including hazardous, as well as occupational health and safety issues. The industry is also highly energy and raw material intensive, and it generates high quantities of wastes, including hazardous. The initial documentation review showed that the Borrower is aware of the EH&S implications of the industry and is willing to make extensive environmental expenditures, aiming at improving the overall EH&S performance of the Plant, as well as ensuring its environmental legal compliance with Bulgarian and EU subject rules and regulations. For this purpose the Borrower developed long-term environmental investment program, as part of the overall plant modernization program.

Operation Leader:

General Industries, Transport, Tourism 2

E-mail:

gitt2@bstdb.org