Summary of Proposed Investment
Project Number
25090
Company Name
STOMANA-INDUSTRY AD
Date SPI Disclosed
May 8, 2006
Country
Bulgaria
Industry
Manufacturing
Projected Board Date
Jun 15, 2006
Status
Completed
Sector
Iron and Steel
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Jun 20, 2006
Signed : Jun 22, 2006
Invested : Aug 15, 2006
Project Description
Steel mini-mill Stomana Industry A.D. (Stomana or the company), an existing IFC client, is the second largest steel producer in Bulgaria. The company plans to bring into operation a new hot rolling mill, to be located within its existing facilities. The project, expected to cost about Euro 43 million in capital investment, is going to be implemented over a one and a half to two-year period. It is not going to affect Stomana''s crude steel capacity as planned investment is in downstream operation.
The installation of a new long products rolling mill in Stomana is an important strategic investment for Sidenor allowing it to:
- rationalize its total production and take a full advantage of Stomana’s upstream capacity.
- gradually replace low value added products with the higher added value long products; and
- improve cost competitiveness due to:
- reduction in overall transportation costs;
- more efficient new equipment and processes of the new rolling mill; and
- lower labor cost in Bulgaria than those in Greece.
The project will be sponsored by Sidenor Steel Products Manufacturing S.A. ("Sidenor") a large Greek manufacturer and marketer of steel products, listed in the Athens Stock Exchange, who acquired Stomana in 2001. After Sidenor’s acquisition, Stomana was turned around and transformed into a sound and quite profitable enterprise. Sidenor is part of Viohalco, Greece, the largest metal processing group in the country, which also sponsored two other IFC projects.
The installation of a new long products rolling mill in Stomana is an important strategic investment for Sidenor allowing it to:
- rationalize its total production and take a full advantage of Stomana’s upstream capacity.
- gradually replace low value added products with the higher added value long products; and
- improve cost competitiveness due to:
- reduction in overall transportation costs;
- more efficient new equipment and processes of the new rolling mill; and
- lower labor cost in Bulgaria than those in Greece.
The project will be sponsored by Sidenor Steel Products Manufacturing S.A. ("Sidenor") a large Greek manufacturer and marketer of steel products, listed in the Athens Stock Exchange, who acquired Stomana in 2001. After Sidenor’s acquisition, Stomana was turned around and transformed into a sound and quite profitable enterprise. Sidenor is part of Viohalco, Greece, the largest metal processing group in the country, which also sponsored two other IFC projects.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Konstantin Stamenov
Stomana Industry
1, Vladaisko Vastanie St.
2304 Pernik, Bulgaria
The ERS will be disclosed on Stomana’s factory gate in Pernik and on Stomana’s website.
Stomana Industry
1, Vladaisko Vastanie St.
2304 Pernik, Bulgaria
The ERS will be disclosed on Stomana’s factory gate in Pernik and on Stomana’s website.
For Inquiries and Comments About IFC, Contact
General IFC Inquiries
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Telephone: 202-473-3800
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