Kremikovtzi AD

Kremikovtzi AD (Кремиковци АД)

Type
Industry	metalworking
Founded	1963
Headquarters	Sofia, Bulgaria
Products	cast iron, steel and others
Number of employees	6979
Website	http://www.kremikovtzi.com/

Kremikovtzi AD (Кремиковци АД) was Bulgaria's largest metalworking company. The construction of its facilities began on 5 November 1960 and the first production capacities were put into operation in 1963 to produce cast iron and coke, with production extending to cover other areas in the 1960s and 1970s. The company was privatised in 1999, 71% of it was acquired by a Bulgarian owned company — Daru Metals (later to change its name to Finmetals Holdings). In 2005 Valentin Zahariev and Kiril Zahariev sold 100% of Finmetals Holdings for US$110 million to Global Steel Holdings Limited (GSHL), owned by Pramod Mittal, brother of the highly successful Lakshmi Mittal. Kremikovtzi is not related to the Arcelor Mittal group.

The new management brought by the Global Steel Holdings Limited has embarked on an investment program aiming to increase the product quality, reduce the production costs and widen the product range. The key focus of this was the finalization of the new Continuous Caster and a new Converter; both of these were finally put in full operation in November 2006, after being under construction for more than 15 years.

Most of Kremikovtzi AD's production was exported to the European Union, Turkey, some of the former Yugoslav countries, the United States and China. The profit was 120 million leva in 2003 and 80 million leva in 2004. However, bad management and other factors led to the company generating losses of more than BGN 200 million for 2005.

Kremikovtzi AD acquired 70% of the LEMIND-FPL polyester-covered sheet iron factory in Leskovac, Serbia in January 2005, for €1.4 million. The company also made another acquisition in April 2005, purchasing the Llamkos galvanised sheet iron factory in Vucitrn, Kosovo for €4.15 million. Both plants were disposed of upon Kremikovtzi's takeover by GSHL.