Creditors initiated cases against Stomana JSC, announced the Executive Director Mr. Spas Hristov. The company with a personnel of 30 people, is the last state-owned structure of the metallurgic company. It exists with only one purpose - to execute the reconstruction plan. From the beginning of 2002 to November were initiated 19 cases and in December they are 40. Stomana JSC owes BGN 23 million to all creditors. The main capacities of Pernik-based metallurgic company are property of Viohalco and are under the name Stomana Industry.
Source: BTA (09.01.2003)

The cabinet announced its decision to establish a Consultative Council with the Ministry of Economy for monitoring the fiscal discipline and fiscal performance of the companies in which the state owns more than 50% of the capital. The council will be chaired by deputy prime minister and minister of economy Nikolay Vassilev and will include the ministers of finance, economy, regional development, agriculture and forestry.
Source: Pari (22.01.2003)

Three are the major producers of ferrous metals in Bulgaria - Kremikovtzi, Stomana and Promet. Only Kremikovtzi is entirely ownership of our country, the other two are foreign property. The plant was privatised in 1999 against the symbolic price of USD 1. The buyer - Daru Metals was obliged to pay the debt of the company in amount of BGN 645 million and to invest in it another BGN 300 million by 2005. Promet, Burgas was privatised by Neva Holding in 1999 and bought 77 per cent of its capital for a little over USD 1 million.The main production of the metallurgic plant Stomana is a Greek property. Stomana Industry, a joint venture between Greek Sidenor /75 per cent/ and Bulgarian company Eurometal /25 per cent/ became owner of the bankrupted in June 2001 Pernik-based metallurgic plant for the amount of USD 16.5 million. Sidenor is a subsidiary of the Greek Industrial Group Viohalco. The Group owns two steel-processing plants in Greece - Sidenor and Sovel. The Viohalco Consortium is a major owner also of the Sofia-based plant Sofia Med, and of the plant for aluminium profiles Steelmet, which is a green-field investment.
Source: Capital (27.01.2003)

This year is anniversary for the contemporary Bulgarian metallurgy since in the far 1953 was launched the metallurgic plant in Pernik. In this period also finishes the construction of the zinc production in Kurjali. Now in the metallurgic sector are working over 27 000 people which is 0.94 per cent of the employees and 4.27 per cent of the employees in the industry but they form over 7 per cent of the industrial production. Nowadays this sector is orientated mainly for export. For 2001 the metallurgic and manufacture of metal articles realize export for BGN 1 872.7 million. This is 16.78 per cent of the export and 11.35 per cent of the total export of the country.
Source: Pari (04.03.2003)

About 700 Bulgarian companies owe to the National Social Security Institute over BGN 400 million together with the interest rates, was reported from the institute. Only the 50 biggest debtors have to pay back BGN 213 205 056. Stomana-Pernik is also among the first with a debt of BGN 21.6 million. At the same time Stomana executes a reconstruction programme on which also owes contributions, the company is in procedure of insolvency.
Source: Trud (05.03.2003)

Sofia Med received a quality certificate ISO 9002, announced the Director of the company Mr. Andreas Deligianis. Sofia Med is property of the Greek concern Viohalco, who also owns Stomana Pernik.
Source: 24 chasa (14.03.2003)

KNSB trade union officially supported the protest, organized by BTA journalists against the General Director Mr. Stoyan Cheshmedzhiev. During one of the protest meetings on Monday afternoon in front of the building of BTA, KNSB trade union leader Mr. Zhelyazko Hristov demanded that Mr. Cheshmedzhiev should hand in his retirement. The meeting was joined by representatives of the miner trade unions, the workers in Stomana - Pernik and Kremikovtzi.
Source: BTA (18.03.2003)

The General Staff assured the population, that there is direct military threat for Bulgaria. The intelligent services, however, do not exclude the possibility of terrorist attacks due to our firm US support in their strikes against Saddam, and also due to the US military base in Sarafovo. The military officials have been repeating for three months now, that the protection of risk targets in Bulgaria, such as NPP Kozloduy, Stomana-Pernik, Chimco-Vratza and LUKoil Neftochim is guaranteed.
Source: Trud (20.03.2003)

Stomana-Pernik opened a competition for the election of an auditor of the annual accountant report of the company as of 2003. By this year with a decision of the parent company – Viohalco the independent financial audit of Stomana, Steelmet and Sofia Med was executed by Ernst & Young Assurance Ltd., announced the representative of the Greek holding for Bulgaria Mr. Anton Petrov. Greek company is an owner of the majority production of Stomana, Steelmet and Sofia Med. The management of Viohalco has decided for this year the independent auditor to be selected trough a competition. The contract with Earnest & Young has expired with the end of the accounting year in the end of March. I think that for large company as Stomana it is better to by used a competition method for selection of auditor, said Mr. Anton Petrov. He explained that the competition is opened and all interested auditing companies could submit offers. The dead-line is May 15, 2003.
Source: Dnevnik (14.04.2003)

In 2002 the incomes of Stomana JSC are BGN 52.998 000. From them BGN 41.445 000 are from sales and the financial incomes are BGN 11. 549 000. BGN 3 155 000 are from the sale of assets. The incomes from paid debts to the creditors have the biggest share – BGN 37 240 000. In accordance with the execution of the reconstruction plan of Stomana in the company came BGN 8 905 000. From them to ÒSBank were paid BGN 3 040 000. For the receipts were paid BGN 553 000 VAT, BGN 1 898 000 to National Social-Security Institute, BGN 306 000 on Corporate Income Taxation Act and BGN 394 000 to the budget. In the warehouses of Investors’ control directorate were found out lacks in amount of BGN 2 336 715. The shareholders of Stomana changed the Board of Directors. The Chairman of the Board of Directors Ms. Raina Ivenova was replaced by Ms. Olga Shishkova from the Ministry of Economy. Mr. Spas Hristov remains Executive Director of the company.
Source: Pari (23.04.2003)

The tangible assets at a value of BGN 3 079 545 and stocks at a value of BGN 176 754 , property of Stomana Pernik are missing, was the conclusion of the commissions which performed the revision of the company by an order of the former Executive Director of the company Mr. Spas Hristov.
Source: Pari (24.04.2003)

Pernik-based metallurgic company Stomana owes to its employees over BGN 4 million for salaries and BGN 10 million for social insurances. The total amount of the company's debt to its workers is BGN 14 million, announced the Deputy Chairman of SITUB Mr. Valentin Nikifiorov. Mr. Nikiforov explained that despite the difficulties the current salaries of the employees in Pernik mines and Stomana will be paid.
Source: Monitor (07.05.2003)

A consortium with Bulgarian participation is among the five companies that declared interest in the privatization of 57.99 per cent from the capital of the Monte Negro metallurgic plant Jelezara Nikshich holding company. According to Reuters it is about a union between Rua invest and trade and Fiost Alpine intertrading. The rest candidates are the Swiss company – Technosteel holding, Kurum Demir from Turkey, Global infrastructure holding – Great Britain and the company from Nishich Rusmontesteel corporation. The tender is expected to take place in the beginning of June. The capacity of the plant is 300 000 tons per year and produces concrete and profiled irons. Analyzes of this production in Bulgaria are developed by Kremikovtzi, Stomana-Pernik and Promet-Burgas. The company Rua invest can’t be found in the registers of the lectronic issues APIS and Daxy. According to sources from the steel market these are undertakers from Plovdiv who have not so far in the field of metallurgy.
Source: Dnevnik (22.05.2003)

The position of the biggest debtors to National Social Security Institute is headed by the metallurgic plant Kremikovtzi and the taken measures are distressed bank accounts. The plant is followed by Stomana-Pernik. There is an approved sinking plan for a part of the debts and a reconstruction programme for this company.
Source: Pari (11.06.2003)

Mr. Ludmil Stoykov, a President of Ladimex holding and Executive Director of Dujni JSC: How is developing the company Stomana-Pernik? - We entered Stomana-Pernik in January, 2000. We have worked independently for one year and a half and financial result was a profit. The plant recovered and international companies started to take interest in it. In June, 2001 we chose for our partner the Greek metallurgic company Viohalco to which we sold the major stake of shares. Besides its good financial state, the Greek company has very good credit rating which gives opportunity for using credits and financing from different banks. The Greek banks will be the main partners in our future investments in the metallurgy. Did you make any real investments in the metallurgy? - It was made a huge investment – we bought a new machine of Danielli. It is a brand new in the metallurgy and started to work in November, last year. Thanks to the investment we can produce qualified products, to enlarge the group and markets, to reduce the prime cost and in this way to be more rentable. We increased the manufacture with 30 per cent in comparison with 2002 and 2001. What are your joint plans with Viohalco? - We have a very ambitious programme together with Viohalco in the next 5 years to invest about USD 70 million and the plant to become one of the modern in Europe. Where do you sell the metallurgic production? It is mainly for export. We are known almost all over the world. In Europe Stomana had traditional partners in Spain, Italy, Portugal, Greece, Germany, Belgium. This year we have increased our partners – we export to Tunis, Maroco, Egypt. About 50 000 tons are exported to China. We also penetrated in America and Canada. How do you cope with the competition in the State? - The metallurgic plants in Bulgaria are not competitors because they produce different types of products. We complete a little bit with Promet – Debelt and with Kremikovtzi but only in some degree. We are not competitors even at foreign markets because we export different sorts of products. More specifically we produce and export sheet-irons with gauge exceeding 8 mm for the construction, ship and machine-building. In Kremikovtzi are produced sheet-irons from 2 to 8 mm. Promet produces the thin profiles of 25 mm, set squares up to 50 mm and we – over 50 mm.
Source: Dnevnik (13.06.2003)

The Greek industrial group Viohalco JSC was established in 1937 as a company for processing and manufacture of copper and aluminum articles. Nowadays the group is placed at first place by turnover in Greece. The main part of the companies, included in the group has a certificate for quality ISO 9002. The biggest among them are Elval S.A. – a plant for roller production of aluminum sheets, bands and foil, Halcor S.A. - pipes, rods, sheets and copper and brass bands. The plant is among the few in the world that started the manufacture of copper pipes with inner threading. The production is exported to EU, USA and Japan. It has certificates for quality ISO 9002, RAL, BS. The plant Etem S.A. which is the major owner of Steelmet, manufactures aluminum profiles used in the construction of Grand Arche a la defence in Paris. In Viohalco family is also included the company for brass articles Fitco S.A., delivered the copper bands for Chaira Pumped Storage Power Plant by order of Toshiba. The main competitors of the Greek company are the three Bulgarian plants – Kremikovtzi, Stomana and Promet which, according to data of Ferrous and Non-ferrous Branch Chamber, have capacities for about 4 million tons annually while their manufacture is a little over the half of this quantity.
Source: Dnevnik (23.06.2003)

TeProMetal SP JSC is the biggest exporter of raw-materials and products of ferrous and non-ferrous metals from Bulgaria to Greece. The net annual turnover exceeds USD 30 million. In 2001 it bought the thermal gauging work-shop of Stomana JSC. So far have been invested BGN 7.5 million and other BGN 1.5 million are about to be invested.
Source: Dnevnik (23.06.2003)

Stomana Industry is the biggest company of Viohalco in Bulgaria and was created in the middle of 2001 when the Greek company bought a part of the assets of Pernik-based plant for ferrous metals Stomana. The planned investments are EUR 60 million. In the company are produced mainly steel products and the annual capacity is 1 million tons. The employees in the company are 1800.
Source: Dnevnik (23.06.2003)

Damages for totally BGN 9.972 million were found by the financial supervision bodies of the Agency for state internal financial supervision during audits in July, was reported from the administration of Ms. Ginka Draganinska. 240 internal audits are finished and are opened 170 new. Most of the violations were found in Pernik – for BGN 8.556 million, Kuystendil – BGN 408.9 thous., Sliven – BGN 331 000, Vratza – BGN 175 000, Veliko Turnovo – BGN 124.2 thous. More significant violations were found during the inspection of Stomana JSC-Pernik. The damages there are for about BGN 8.553 million. According to the analysis of the agency, the damages are as a result of sales of assets at prices, lower than their reported value, of irregularly calculated compensations on the Labour Code, of not calculated taxes and installments on Corporate Incomes Taxation Law. Some incomes from rent or interests in the company were not properly registered by the accountant.
Source: Pari (13.08.2003)

The companies and enterprises from Pernik district owe to the National Social Security Institute BGN 34 421 775, was reported from the Social Security department of the district administration. Among the greatest debtors are the metallurgic factory Stomana with a debt in amount of BGN 24 172 000, followed by Bestechnika-TM Radomir - BGN 5 300 000.
Source: Monitor (26.08.2003)

The former President of FC Miner – Mr. Kiril Alexov, who was in this post until 1994, is a candidate to become mayor of Pernik. Mr. Alexov was also deputy Director of the Radomir-based football team Strumska Slava, he has worked in Tezhko Mashinostroene, the cement factory in Batanovtzi, and is currently head of the Sales Department in the warehouse base of Stomana.
Source: 24 chasa (26.08.2003)

The Deputy Prime Minister Ms. Lydia Shuleva will demand at the Ministers’ conference of WTO in Kankun Bulgaria to be extracted from the list of countries that caused damages on Canadian steel production. According to experts, for the last decade Canada at least 5 times started such investigations, which often ended with a sharp increase of the duties. In spite of the insignificant import and insufficient proofs for any damages, Bulgaria may also be sanctioned. Bulgaria is included in the list of countries together with Czech and Romania that caused damage on the local production of steel, decided the authorities in Canada, was reported from Viohalco, the owners of Stomana industry. There is not still a decision, taken by Canada whether will be imposed duties on our import for this country. In June Canada started an investigation against dumping import of Bulgarian, Romanian and Czech steel products. This happened by demand of the local producer Algoma. The Canadian company presented proofs that in November, 2002 Bulgaria imported 1.8 thous. tons hot-rolled flat iron. The selling price was USD 485 per ton at the price of the Canadian producers of USD 569 per ton. Canada is considered to be a huge producer, importer and exporter of steel and in 2002 in the country were produced 16 million tons steel, the import is 7.5 million tons, and the export - 5.6 million tons. In 2001 Canada imposed a duty on Bulgaria for products that are produced by Kremikovtzi although then the plant did not export to this country at all. We are in one group with countries that have very well-developed steel-extraction, was commented from the Ferrous and Non-ferrous Metallurgy Association. In 2002 Czech produced 6.5 million tons steel and exported 4 million tons. The production of Romania reached 5.5 million tons and the export - 2.7 million tons. For this period Bulgaria produced 2 million tons and exported 1.1 million tons. From them to Canada the export of hot-rolled flat iron is hardly 10 000 tons, according to the association. Stomana JSC was pointed by the Canadian authorities as exporter from Bulgaria. However the producer of this production is Stomana industry. Stomana JSC ceased its activity in 2001. It has to be specified whether there is a technical error in the name and to be found the declared origin of the products. Stomana industry categorically rejected these accusations and even the parent company in Greece is involved in the case.
Source: Pari (09.09.2003)

Most probably the Canadian authorities will impose anti-dumping duties on the import of hot-rolled flat iron from Bulgaria. This became clear when last week Stomana industry – the company owner of Pernik-based metallurgic plant, received the decision of the Canadian Court, according to which the import of products from Bulgaria, Romania and Czech causes damages to the local manufacture. The decision was taken in the middle of August but the motives for it have not been still specified before the main suspect for the dumping import – Stomana industry, not even before the Ministry of Economy. In June Canada started an investigation for dumping import of hot-rolled flat iron from Romania, Czech and Bulgaria because of complaint from one of its major producers – the company Algoma. In the survey is quoted that in 2002 Bulgarian company Stomana sold at the Canadian market 1814 tons hot-rolled flat iron at prices, which were lower with about 20 per cent than the local production. The quoted quantity is quite few in order to cause any loss of the local Canadian production, was commented from Stomana industry According to their data, neither the quantity of the export, nor the company-exporter are true. The accusations quote Stomana, not Stomana industry, which is wrong, declared Ms. Lilly Samarjieva from the company-owner of the metallurgic plant. Stomana ceased its activity in 2001, reminded she. According to data of Stomana industry, during 2002 the company had a single export to Canada and in the near future does not plan new deliveries. According to the representative of the industrial group Viohalco in Bulgaria Mr. Anton Petrov, the export was not realized directly but through a mediator. Kremikovtzi doesn’t export to this market as well. So the eventual introduction of anti-dumping duties will not influence on the Bulgarian export but this is not good for the country’s image. And yet Canada is a big producer and market and its opinion is quite important in this sector, commented Mr. Anton Petrov. Canada is a huge producer of steel products and in 2002 in the country were produced about 16 million tons steel. It has not been so far clear why Bulgaria and Czech are included in the list of the accused of dumping countries when the import of each of the them in Canada does not exceed the 3 per cent of the total consumption in the country, which are necessary for starting of such a survey. According to Canadian authorities, the share of the two countries is respectively 3.3 and 3.6 per cent. However, Bulgarian statistics reveals an export only of 163 tons hot-rolled flat iron in 2002. In 2001 was not registered the export of such production. Only Romania with its 10 per cent share at the Canadian market could be a threat to the local producers. As a response of the accusations of dumping, the Deputy Prime Minister Ms. Lydia Shuleva demanded a special meeting with the Canadian authorities during the meeting of World Trade Organization in Kankun, Mexico. The Ministry of Economy does not have information about the implementation of this meeting. This is the consecutive dumping investigation, initiated by the Canadian Government because of a complaint of local producers. During the last decade are known several similar cases, which ended with increased duties for import from the charged countries.
Source: Capital (13.09.2003)

The International Financial Corporation (IFC), which is a part of the World bank, whose activity is investments in the private sector, grants a loan to Stomana industry – the owner of Pernik-based metallurgic plant. The amount of the credit line is by EUR 30 million, which can be spent by the end of 2006. The credit line is approved by the Board of directors of IFC in the beginning of August and the final sign is expected to realize in the beginning of October. The aim of the loan is improvement of the production’s quality, diversification of the products and investments in the environment, specified Mr. Anton Petrov who is a representative for Bulgaria of the industrial group Viohalco, which is the major owner of Stomana industry. The main part of the credit will be for the more rational use of waste waters in the manufacture, collecting of the filter dust and processing of some waste products that can be used as additions in the manufacture of cement. In the end of the period the investments in the environment of Stomana industry will reach EUR 13 million of the total planned investments for the period in amount of EUR 44 million. The fund will not be spent for increase of the production capacity of the company. At the moment Pernik-based plant produces about 800 000 tons products per year. The Greek industrial group Viohalco is owner of 75 per cent of the assets of Stomana industry JSC through its subsidiary Sidenor. The rest 25 per cent are held by Pernik-based company Eurometal Ltd. Stomana industry JSC purchased the major production of Pernik metallurgic plant Stomana for USD 16.5 million. Through other own companies, Viohalco is owner in Bulgaria of Sofia med JSC, the company for aluminum profiles Steelmet JSC and the wood-processing company Lesko JSC in Blagoevgrad.
Source: Capital (13.09.2003)

The debts of the fifty greatest debtors of the National Social Securities Institute (NOI) by the end of the June reached BGN 218 973 319. This sum includes the principal and the accumulated interests. The leader among the debtors is the metallurgic plant Kremikovtzi, whose bank accounts are restrained, followed by Stomana-Pernik, for whose debts was adopted a payment scheme and reconstruction programme. Varna Shipyards occupies the third position, whose assets were sold to Navigation Maritime Bulgare and the full amount of the sum was transferred to Bank Consolidation Company. The fourth position is occupied by Vidachim, whose debts are compulsory collected by the State Receivables Agency.
Source: Pari (17.09.2003)

The average insurance in the 20 most loyal companies insuring a staff to 15 employees is BGN 898, the National Social Security Institute’s information showed. 263 people work in these companies. The companies with a staff of 100 to 250 people employ a total of 4252. The average insurance income there is BGN 699. Top 20 of the most loyal employers in these criteria includes the names of Media Holding, Sheraton ­ Sofia-Balkan, publishing house 168 Hours, Tax Administration, Central Cooperative Bank, Bulgartabac Holding, Economic and Investment Bank, Municipal Bank, Privatization Agency. Etc.
Source: Pari (17.09.2003)

The Prime Minister Simeon Saxe-Cobourg and the Greek Minister of Economy and Finances Mr. Nikolaos Hristodulakis will be among the guests at the 50-th anniversary of Stomana JSC and the official establishment of Stomana Industry. The Co-Chairman of the Board of Directors of Stomana Industry Mr. Anton Petrov announced that the development of the company is stable.
Source: Pari (19.09.2003)

Steel production in Bulgaria started 50 years ago in the metallurgical plant Lenin in Pernik. 10 years later, Kremikovtzi was founded, and in 1987, the construction of Promet near the village of Debelt began (the so called Third Metallurgical Base). The capacities are enormous for a country as small as Bulgaria. They, however, work mostly for export. Nowadays, the situation is the same - 90 per cent of the metals produced in Bulgaria are exported to EU member states and USA. Steel production in 2003 will amount to around 2 million tons. The biggest peak was marked in 1986 - 2.9 million tons.
Source: Trud (07.10.2003)

- Mr. Petrov, the period after 1989 was difficult for the Bulgarian metallurgy. Do you consider that the worst has already passed? - At the moment, in a world scale, there is a surplus in the steel production. This reflects also in Bulgaria, which means that the sector has to be altered considering the quality and product structure. - How much did you invest in Stomana – Pernik after the privatization? - The Greek company Viohalco became major shareholder of the company two years ago. It had to estimate the real capacities’ status and after that the new machines to be designed, ordered and mounted. All of this had to be realized in extremely short terms because Stomana is the first metallurgic plant in Bulgaria and many of the machines have dated since 1956. Our investment programme exceeds EUR 60 million. The first stage of its has just finished. The machine for permanent casting was launched in 2002 and then the electric furnaces were reconstructed. The reconstruction of the rolling manufacture has also finished. With other words the core of Stomana industry is renewed. By the end of the year will be also installed a shredding machine, after which the main capitals will be pointed to the ecology. For this purpose are envisaged EUR 13 million. Thus, at the 50th anniversary of the plant, we could say that it is in good hands and has a serious shareholder – the Greek company Viohalco. The company possesses in Greece two similar companies, which is a precondition for Stomana to take the necessary know-how. The other precondition is the markets. Relying on the structures of Viohalco, we are assured that we will find a realization of our production. - How many are the companies of Viohalco in Bulgaria? - The company has in Bulgaria 8 companies. Except Stomana industry, these are the plants Stilmet, Sofia med where are envisaged investments over EUR 88 million, Blagoevgrad-based company Lesko, the company for investment equipment Sigma, Teprometal and Steelmet. Our total investment programme is EUR 180 million by the end of 2004. This programme will be exceeded or EUR 200 million will be invested in the Bulgarian ferrous and non-ferrous metallurgy. But that’s the way it is in the metallurgy. It can’t do without big investments in the metallurgic sector. The companies need a stable investor, know-how and markets. - Will the accession of Bulgaria to EU influence on the steel extraction and how? - The sole requirement of EU is the companies, which have received state-owned aid, to stop their capacities. Stomana has not received such aid and we won’t reduce the capacities. Excluding this factor, the accession of Bulgaria to EU will affect positively the sector because will be used many accessioning funds. The export will become easier with equation of the production standards and the abolition of the customs.
Source: Trud (07.10.2003)

Viohalco invested BGN 60 million in Stomana – Pernik. The investment programme in amount of EUR 60 million of the Greek company Sidenor has already been halved, said Mr. Anton Petrov who is a representative of Viohalco for Bulgaria. In 2001 the Greek industrial group Viohalco acquired through its subsidiary Sidenor the assets of Pernik-based metallurgic company Stomana and became a major shareholder. The Greek investors established a new company called Stomana invest 3, which officially opens its new production capacities today. So far BGN 60 million were invested in Stomana invest 3. The volume of the produced articles by Stomana in 2002 was 450 000 tons. The expectations for 2003 are the production to reach 700 000 tons, which is a higher result of over 50 per cent. The investment is financed through an equity capital, provided by Sidenor, International Financial Corporation and Hypovereinzbank. Viohalco is also owner of Sofia-based companies Steelmet and Sofia med.
Source: Other (08.10.2003)

The Chairman of the Parliament Mr. Ognyan Gerdjikov and the Minister of Finances Mr. Milen Velchev were at the 50-th anniversary of the production of the first Bulgarian steel in Pernik. The Prime Minister was also invited, but he did not come. The Minister of Economic and Finances of Greece Mr. Nikolaos Hristodulakis and the former Prime Minister Mr. Konstantinos Mitzotakis examined the new production of Stomana, in which the Greece group Viohalco has invested over EUR 609 million.
Source: Sega (09.10.2003)

Stomana Industry celebrated 50 years since the production of the first steel in the Pernik-based plant through official inauguration of its restored electrical steel-producing workshop. The restored workshop is a part of the four-year investment program for re-structuring of the enterprise coming up to a total of EUR 60 million. Its start was set in 2001 by Sidenor, a subsidiary of the Greek industrial group Viohalco. Back then, Sidenor became owner of the assets of the state-owned factory Stomana and established the company Stomana Industry to manage those assets. Machines produced by the Italian company Danielli have been installed in the new workshop. They were bought last year for EUR 18 million. According to Viohalco's representative in Bulgaria Mr. Anton Petrov, environmental protection holds an important place in the investment program. BGN 26 million will be invested in this direction and for improvement of labour conditions. BGN 600 000 will be used for improvement of the company's staff qualifications. The rest of the investment program will be implemented over the coming two years. Its financing has been provided by Sidenor's owner, by the International Financial Corporation, which is a part of World Bank's group, as well as by Hypovereinsbank. Stomana Industry exports 90 per cent of its produce, mostly to USA and Western Europe. "If we manage to sell the remaining 10 per cent of our production on the Bulgarian market, we would consider it a success", Mr. Anton Petrov said. According to forecasts, this year's production will increase with 50 per cent compared to last year and will reach 700 000 tons of steel. The Greek company Viohalco is operating in Bulgarian industry through another two companies that it owns - Steelmet and Sofia Med
Source: Banker (13.10.2003)

The International Financial Corporation invested USD 22 million for improvement of the environment. The money will be used for the modernization of Stomana JSC. International Financial Corporation, which is a part of the group of the World Bank, will invest USD 22 million in the modernization of Stomana JSC. Stomana JSC is the biggest employer in Pernik-district and the second biggest producer of steel in Bulgaria. The loan from IFC will be added to the investment, made by Sidenor – a leading producer and distributor of steel products in Greece. Sidenor is a part of Viohalco group, which processes metals and a recognized client of the International Financial Corporation. As a part of its investment programme Sidenor will renovate the equipment, it will assists for the implementation of a wider range of products and will aid the work for the protection of the environment. About USD 15 million from the investment, which is in total amount of USD 94 million, including the working capital, will be used for protection of the environment, which will be a step ahead in the implementation of higher standards in the metallurgic industry in Bulgaria. The Vice President of IFC Mr. Asaad Djabre signed the agreement for granting the finances. At the ceremony Mr. Djabre commented that the encouragement of a competitive private sector is a priority for the Group of the World Bank in its attempts to limit the poverty and to support Bulgaria in its way to accession to the European Union. By supporting this project IFC assists the efforts of Bulgaria in the area of privatization and post-privatization restructuring of this sector, which has a strategic importance. The Regional Director of IFC Mr. Sudjata Lamba added that in a long-term is expected that project for modernization of the metallurgic factory will become an example for the further development of the private sector in Bulgaria, by showing the successful implementation of modern management methods, attracting of first-class investors and the support of the best practices in the area of corporate management. It is also planned that the project will satisfy the highest requirements of the Group of the World Bank in the area of social development and protection of the environment. By this moment IFC has adopted investments for USD 340 million for 21 projects in Bulgaria, at total value of USD 1.1 billion. The mission of IFC as a part of the World Bank is to support the stable investments in the private sector as a way of lowering the poverty and improvement of the life standard. IFC finances investments in the private sector, mobilizes capitals from the international financial markets, supports its clients in their efforts to improve their social development and provides technical support of the governments and private sector.
Source: Other (17.10.2003)

Two of the biggest federations members of the Podkrepa labour confederation, disjoined from the syndicate, and a new labour confederation surprisingly appeared on Thursday, claiming to be representative. Metallurgists and workers in the light industry are listing as members of the two new syndicates in large numbers. At least 5000 people are expected to join the newly registered National Syndicate of Metal Workers in Bulgaria. It will include people working in the field of metallurgy, engineering, electronics and mining. Its founders are hoping its members will be more than any other similar organization, except for KNSB and Podkrepa. They are also hoping to put an end to the two-pole model of syndicalism. Meanwhile, yesterday surprisingly a new labour union appeared – General Central of Branch Syndicates. The formation submitted its documents in the Ministry of Labour and Social Policy for participation in the counting of employees and syndicates. This means that the union claims it has at least 50 000 members. Neither the other labour unions, nor the Ministry are able to give any more information about the new union. The reason for the separation from Podkrepa is discontent with its management, which does not protect the interests of the workers, it is corrupted and has merged with the employees’ structures, according to members of the new union. The latest reason for protest is the situation in the metallurgical plant Kremikovtzi, where the workers don’t receive their salaries regularly, while the so called syndicate leaders do not even come to visit the plant and use preferences, provided by the employees, Mr .Krassimir Mitov, former chairman of the Metallurgy federation with Podkrepa said. On September 27, at an extraordinary conference, the federation has decided to dismiss itself. This is a precedent. On this conference, the decision a new syndicate structure to be established has also been taken, which should include all workers in the field of metallurgy. This is the common practice in EU member states. Yesterday, Podkrepa’s syndicate section in Stomana Industry dismissed itself also giving the same reasons for this action. Meanwhile, the branch is developing with an upward trend – the company operating in the field of ferrous metallurgy Debelt – Burgas, is exporting to USA more than its production amount over the past three years. Alumina – Shumen also reports growth in production output; a foreign investor has demonstrated interest in Eliseyna; Stomana, Umikore Pirdop, and other enterprises are operating without any serious problems. Although the number of people employed in this branch has decreased from 50 000 to 15-16 000 since 1997, according to syndicate members there is no danger of enterprise closings over the next couple of years.
Source: Dnevnik (17.10.2003)

The International Financial Corporation (IFC), which is a part of the group of the World Bank will invest USD 22 million in Stomana. The contract for the loan was signed yesterday by the Vice President of IFC – Mr. Asaad Djabre and representatives of the Greek Viohalco Group, which is the owner of Stomana JSC – Mr. Stavros Teodoropulos and Mr. Dimitris Paraskevopulos. Mr. Assad Djabre announced that the corporation has invested over USD 200 million in 20 projects in Bulgaria. IFC intends to support the privatization of the energetics companies as well.
Source: Standart (18.10.2003)

The International Financial Corporation (IFC), which is a part of the group of the World Bank will invest USD 22 million in the modernization of Stomana – Pernik. The loan will be added to the investment in amount of USD 94 million of the Greek company Sidenor, part of Viohalco group, which is the owner of Stomana JSC. The management of Viohalco and IFC concluded an agreement for granting the finances. Since 1992 the Corporation has invested over USD 200 million in 20 projects.
Source: Novinar (18.10.2003)

Promet steel JSC, Sofia will invest USD 20 million in a project for creation of own steel-extraction plant, announced the Executive Director of the company Mr. Miroslav Borissov. He specified that the new production will be based on the territory of the metallurgic plant Promet near Burgas. There won’t be extracted ores but will be processed scrap. The future plant will produce about 450 000 tons wires per year and the raw-material will supply the manufacture of Stan 300. With the realization of the project will be closed the production cycle and will be solved the problems of the company with the delivery of raw-material. Besides, the profitability of Promet will increase because the production’s prime cost will fall with about USD 30 per ton. The construction of the steel-extraction plant near Burgas will start in May, 2004. In November 2002 Mr. Miroslav Borisov declared investment intentions in amount of USD 30 million and expectations for partnership with the Austrian company Foestalpine. The project was not realized. In June, 2003 the Manager Projects and engineering in the Turkish company Ismir Delir chelik Mr. Ihsan Cholak declared that Promet steel JSC would invest USD 25 million in a new plant for steel extraction. According to the Executive Director of Promet steel, in Bulgaria are offered about 35 000 - 40 000 tons scrap per month. Stomana – Pernik uses about 15 000 – 20 000 tons of this quantity. The rest 10 000 – 15 000 tons will be exported.
Source: Dnevnik (31.10.2003)

The witness evidence of Rosseximbank’s major shareholder – Mr. Emil Kulev was the major event during the session of Sofia City Court held on October 31 2003 in relation to the criminal case against Mr. Emil Hursev – managing partner in Hursev & Co., and Mr. George Tanned – Minister of Agriculture in the Cabinet of Mr. Luben Berov. Mr. Hursev and Mr. Tanev have been accused in service crime, for “not taking the necessary care of the management and economy of the money, gained from the sale of 157 000 tons of corn in their capacity of company officials.” The corn was imported in 1993 from USA with a loan of USD 15 million, which Bulgaria borrowed from the US Commodity Credit Corporation. The corn was sold on the Bulgarian market, but only USD 7 million were received in the accounts of the Ministry of Agriculture and Forests from its sale. This money were given for trust management to Hursev & Co. By proposal, made by the company, Ministry of Agriculture and forests used them to acquire a receivable of TSBank from Stomana – Pernik (in this period, Mr. Emil Kulev was Chairman of its Managing Board). In 1998, the company was announced in insolvency and Ministry of Agriculture lost the money. In court, Mr. Kulev emphasized that in 1993 and 1994 Stomana had the reputation of a stable company and there were no signs it would become insolvent. This statement supported the version that Mr. Emil Hursev and Mr. George Tanev had acted accurately by using the money from the sale of the American corn. The judge in this lawsuit Ms. Daniela Atanasova announced the lawsuit will continue on February 17 2004, when the last witness – the former syndic of TSBank Mr. Alexander Popov, will be heard.
Source: Banker (03.11.2003)

If we have to count the biggest corporations in America, Japan or Germany, the only necessary thing is to look the exchange screens at Wallstreet, Tokyo and Frankfurt. In every developed economy the stock market is the background of the huge business. There are situated the industrial concerns, banks and insurance companies, big trade chains and the giants in the sector of services. There are also the new technologies – the engine of the growth of every economy. It is quite prestigious to appear at the exchange stage where the whole world sees and assess you. It is also a business question because the capital market feeds the economy and takes the temperature every minute. 345 companies in Bulgaria have a statute of public companies. Almost all of them are on the capital market with a state force and by administrative order of the new legislation. The experiment mass privatization brought shattered shareholders’ structure in many giants of the social economy and in few privatization funds, which hold 15 per cent of the Bulgarian economy. As a result on the exchange came out state monopolists and whole industries. These are the metallurgic giants Kremikovtzi, Stomana and OZK-Kurjali, almost the whole chamical and pharmaceutical industry /ahead with LUKoil-Neftochim, Chimko, Polimeri and Sopharma /, the sea and winter resorts, a big part of the food-processing industry /including the whole tobacco production /, former monopoly structures in the wholesale /Petrol and Toplivo /.
Source: Pari (17.11.2003)

By the end of the year, Bulgaria will submit the final reading of the National Steel Industry Development Strategy in Brussels. EU is expected to finish the analysis of the program a month thereafter. The second part of the program will be consulted with the Competition Protection Commission and EC. According to Ms. Evgenia Koldanova, Deputy Minister of Economy, the major requirement set by EU is for a minimum state aid for the enterprises. The investment programs of Kremikovtzi, Stomana and Promet are included in the program. Kremikovtzi’s new EUR 240 million investment in cast iron production is also included in it.
Source: Monitor (10.12.2003)

Burgas-based Promet is losing thousands of USD from non-executed orders for delivery of reinforced iron to USA, due to the ship Elena incident. This was announced by the Chairman of the company’s Supervisory Board Mr. Penyu Donev. The ship was loaded with 2000 t of steel materials. The products were supposed to be delivered to Promet for its US order. Currently, Promet is trying to buy the same steel materials from Stomana – Pernik, but the Pernik-based company refused to provide the materials, explaining its schedule was full. At present Elena is still located in Port – Varna. The crew is on duty, the ship has a new captain. His name is Mr. Georgi Kalchev, Mr. Doichin Doichev – President of Board Marine – Burgas, announced. The company is manager of the ship.
Source: Dnevnik (10.12.2003)

National Social Security Institute imposed distraint on the accounts of Stomana, announced the Director of Pernik-based company Mr. Spas Hristov. The institute demands for BGN 22 461 308, from which BGN 14 018 691 are the principal and the rest – interests. The funds on the deal for sale of the major capacities are also blocked. The new owner of the capacities is the Greek group Viohalco. Each quarter from the Greek holding come BGN 584 000. The funds will be used for payments of debts to former workers and employees of Stomana.
Source: Standart (22.12.2003)

The Prime Minister and Minister of Economy Ms. Lidia Shuleva received the big award of Darik radio for contribution in the economy and finance Golden portfolio. The award was handed by the Chairman of the Board of Directors of Darik radio Mr. Radosvet Radev at a ceremony in Electroimpex hall. In the category investment of the year was honoured the Greek company Viohalco – for the investment in Stomana Pernik. According to the jury, the company contributed for the boom of one branch of Bulgarian economy, recently considered to be undeveloped – metallurgy. Prista oil was selected for company of 2003. The nominations and the awarded were defined by 9-member jury, including representatives from Market Economy Institute and Economic Development Centre and among them were Mr. Luchezar Bogdanov, Mr. George Ganev and Mr. Alexander Bojkov.
Source: Dnevnik (24.12.2003)