After Sofia chief architect Petur Dikov told journalists that Kremikovtzi steel factory should be shut down and a modern high-tech business centre built in its place, Kremikovtzi spokesperson Roumen Zankov told The Sofia Echo the steel producer had “no intention or reason to stop its activity”.
Kremikovtzi also had no intention at present of selling any of its land.
Zankov said the steel mill had land not being used for manufacturing, and it would sell it in the future, but no date had been decided. He said that there was confirmed investors interest in the land, and negotiations had been held, but so far no agreement had been reached.
Kremikovtzi chairman Pramod Mittal and the factory’s managing board were of the view that the “aggressive approach without conversations (with the factory) and through social pressure is not the most correct approach”.
Zankov said that Kremikovtsi was seeking contact with Sofia municipality, and according to the steel producer’s board, there was “a lot to be done together with the city, the local authorities and non-governmental organisations”.
He said that European environmental funds could be used in regard to the future of the plant.
Concerning the development of Sofia in the direction of Hemus Highway and Botevgrad sko Chausse, Zankov said that this was a question that had to be considered. Kremikovtzi would soon come up with a clearly-defined project for an industrial-commercial zone but not only a financial centre, as Dikov had suggested.
Because of this, the steel producer was trying to attract finance for organising new ecologically clean production to enable the development of business offices, commercial zones and “last but not least, for residential zones”.
Zankov said that Kremikovtzi could develop this project earlier than the Sofia city proposes.
“Ecologically clean production and a factory that does not pollute is the future of the plant,” he told The Sofia Echo.
On September 26, Kremikovtzi chief executive director Alexander Tomov held a news conference to respond officially to media reports about Dikov’s proposal to close down the metallurgical plant and to build an international finance centre in its place.
Kremikovtzi AD and Global Steel Holding Limited management were adamant that the steel manufacturing company was working normally, and was in a process of successful fulfilment of its viability plan to 2008, approved by the European Commission and the Economy and Energy Ministry.
Mittal, the shareholders and the management of the company “have not had and do not intend” to have any discussions about the closure of, or any other change to the status of, the company.
At the news conference, the management also announced that the production programme was being implemented successfully. It is expected that by the end of 2007 production will increase by 20 per cent compared to last year.
At the moment the company’s environmental programme was in the process of implementation, Tomov said.
“Kremikovtzi is not the factory through which Sofia’s city planning problems will be solved,” Deputy Economy and Energy Minister Nina Radeva said in an interview with Bulgarian National Radio.
She said that Kremikovtzi’s viability plan was part of Bulgaria’s engagements undertaken in accordance with the country’s European Union accession treaty. The plan includes technological changes, an investment programme, an environmental programme and financial rehabilitation.
On October 5, Focus news agency reported that the Confederation of Independent Trade Unions in Bulgaria (CITUB) and the Economy and Energy Ministry would jointly keep an eye on how Kremikovtsi was fulfilling its engagements.
Economy and Energy Minister Petur Dimitrov and CITUB’s Zhelyazko Hristov agreed that representatives of the ministry and the unions would monitor Kremikovtzi’s metallurgy production viability plan engagements. The ministry and unions both held that the plant should continue operations, while also implementing its eco-investment programme. According to Dimitrov and Hristov, the statement about shutting down the steel producer was “irresponsible”. Dimitrov said that Kremikovtzi was very important for Bulgaria’s exports, and according to Hristov, possible closure of the factory could affect thousands of employees. Radeva will report to Dimitrov monthly on progress in implementing the viability plan, and these reports will be forwarded to CITUB.
