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Voestalpine inks pact with Bulgaria for possibility of steel plant

Austrian steel major Voestalpine AG ahs agreed with Bulgarian to study the possibility of building a 5.5 million ton steel plant on the Black Sea coast and has signed an agreement in this regard, reported Bloomberg.

Under the agreement signed today, Bulgaria committed to provide the land and infrastructure for the mill, in case it gets chosen, while Voestalpine will provide the investment and committed to observe EU environmental safety requirements. The Bulgarian government will hire through a public tender a law firm to advise on the negotiations.

Alfred Dusing CFO of Voestalpine’s steel unit after the signing in Sofia said that it will decide by the yearend where to build the €5 billion plant. Dusing said that “It is going to be a very difficult decision because each of the countries has different advantages. The main criteria we are looking for is European Union membership, good port conditions, access to the Danube River and availability of skilled steelworkers. It is difficult to find all in one country.”

Romania, Ukraine and Turkey are also being considered as locations. It has picked potential sites in each country, including the area around Bourgas in Bulgaria, Constanta in Romania, Odessa in Ukraine and Samsun in Turkey. (SteelGuru, India)