Stomana Industry AD (Bulgaria)

One of Bulgaria's largest steel mills Stomana, which was established in 1953, is based near the western town of Pernik. In November 1999, Bulgarian authorities leased the core facilities of the indebted state-owned steel mill to Germany's Metal Traders and Bulgaria's Evrometal. The two firms had previously extended credits to the Stomana, supplied the company with raw materials and purchased its produce. In June 2000, Evrometal became the sole owner of Stomana after its German partner refused to join the new controlling venture called Stomana Industry. Shortly afterwards, Bulgarian court suspended insolvency proceedings against Stomana and approved a rehabilitation programme for the company.
Stomana had an outstanding debt of USD 80 million in mid-2001 that was being covered by sales of assets unrelated to its core production. In June 2001, Greek steel products firm Sidenor, in partnership with local Bulgarian firm Evrometal, bought the core production facilities of Stomana, which equalled a 75% stake in the plant. Sidenor held a 56.25% stake and Evrometal an 18.75% stake, as the overall purchase was estimated by local media at USD 16.5 million. Sidenor unveiled plans to invest between USD 60 million and USD 100 million to upgrade and expand Stomana's steel production. The majority owner invested some EUR 30 million in the steel mill by 2005. In January 2007 Stomana completed an upgrade of its one slab caster, which increased capacity from 600,000 tons to 1.1 million tons per year. In February 2008 Evrometal sold its shares to Sidenor.