Indias Global Steel Holdings Ltd (GHSL) plans to invest more than $350 million in up to seven years to upgrade its Bulgarian steel mill Kremikovtzi.
In the next five to seven years, GSHL intends to invest over $350 million in different investment projects for the modernisation of Kremikovtzis production, Dimitar Kouzmanov, the plants newly appointed executive director in charge of development, said in a statement.
This will enable production not only of regular market quality steel but also of high-tech products with higher value added, Kouzmanov said.
The new plan restates a five-year investment programme of $250 million to $300 million, announced by the plants CEO Vilas Jamnis in February. GSHL has projected to carry out a capital repair in almost all Kremikovtzi units in order to reduce losses, improve automation of the plants 40-year old equipment and raise reliability.
We plan to complete our projects and reach production of 150 000 tons of hot rolled coils monthly as soon as possible, Jamnis said in the statement, issued by Kremikovtzi on July 21.
Kremikovtzi, Bulgarias largest steel mill, produced 1.39 million tons of steel, 1.08 million tons of iron and 1.09 million tons of rolled products last year.
It has said earlier it plans to raise output to 1.5 million tons of hot rolled produce in 2006 and to double finished steel production to two million tons in 2007. The plant exports around 95 per cent of its steel output.
Kremikovtzi has raised its net loss for last year to 201.6 million leva from a preliminary estimate of 154 million leva loss reported last month, figures showed on July 21.
Kremikovtzi had a net profit of 80.8 million leva for 2004.
