Stomana Pernik

completed

The proposed Euros 73.8 million project represents a post privatization restructuring of a Bulgarian steel mini-mill, Stomana Industry A.D. (Stomana, or the company). Headquartered in the Pernik industrial area, Stomana is the largest employer in a depressed region, notorious with the unsuccessful privatizations of a number of big state-owned companies. Moreover, with production of about 600,000 tpy of long and flat steel products and more than 1,300 employees, Stomana is the second largest steel producer in Bulgaria and one of the most important enterprises in the country. The project will be implemented by Sidenor Steel Products Manufacturing Company S.A. (Sidenor or the Sponsor). As part of the project, Sidenor will refurbish the plant, improve production methods and environmental performance, and facilitate transition to higher value-added products. After the completion of the overall investment program, Stomana's production is not expected to divert significantly from current levels as planned investment is in cost reduction and quality improvements, and not in capacity increases.