It is reported that Ukrainian based Smart Group controlled by Mr Vadim Novinsky has prepared a five year rehabilitation plan for the troubled steel mill Kremikovtzi and will present it on December 2nd.

According to the plan, the Smart Group will inject EUR 30 million in the strained plant and will make investments in environment protection technologies. The plan also envisages that the new investor in Kremikovtzi will pay the plant's debts to the Bulgarian state and the bondholders in installments.

A total of five companies have expressed interest in investing in ailing steel mill Kremikovtzi. The government said that Ukrainian Smart Group, a consortium between Czech investment company ML Moran and consultancy Mr AT Kearney, Bulgarian Mr Valentin Zahariev owner of lead and zinc smelter OCK, Russian company Prominvest and Brazilian CSN steel maker are the companies interested in supplying raw materials, signing a tolling agreement or operating the plant.

Kremikovtzi is 71% owned by GSHL, a subsidiary of Indian steel maker Ispat Industries, while a 25.3% stake is held by the state. In October, Ukrainian company Vorskla Steel Bulgaria decided to discontinue its raw materials supplies to the plant over allegations that the trade unions manipulated the workers for political purposes.

As a result, the factory suffered a severe coal shortage and had to shut down two of its blast furnaces. In August, Kremikovtzi was declared insolvent after reporting a BGN 1.7 billion debt.