Turkish ASLANLI Metallurgy Bids for KVV Liepāja Metalurgs
Latvian Television reported April 30 on new developments regarding the future ownership of the former KVV Liepājas Metalurgs Steelworks in Liepāja in
Latvian Television reported April 30 on new developments regarding the future ownership of the former KVV Liepājas Metalurgs Steelworks in Liepāja in western Latvia located on the Baltic Sea, which has already been the subject of numerous legal wrangles and controversies. According to LTV, an agreement has been signed to sell the plant's electrical steel melting complex and real estate to a Turkish investor ASLANLI Metallurgy for an undisclosed amount, though LTV suggested the sum was around 3 million euros. However, the management of Liepāja City Council and Special Economic Zone is considering using its pre-emption right to purchase the works themselves to prevent the sale.
On April 30, 2021, SIA FeLM has entered into a purchase and sale agreement for movable and immovable property of the electric steel smelting complex located in Liepāja with ASLANLI Metalürji ve Metal Ürünler Sanayi ve Ticaret A.Ş. owner of the company Hamdi Alaedins Ejuboglu SIA Liepāja Steel. The terms of the agreement concluded between the parties contain a trade secret and are therefore not disclosed.
As previous atempts to auction off the assets had not yielded the expected result, in December 2020, changes were made to the sales strategy by organizing a tender. Several potential buyers from Europe and Asia participated in the tender and the buyer who offered the highest price was ASLANLI Metalürji ve Metal Ürünleri Sanayi ve Ticaret AŞ. The administrator said "The buyer acquires the property rights to the assets after payment of the purchase amount in full and provided that the Liepāja Special Economic Zone Authority does not exercise the pre-emption right to the real estate included in the transaction."
According to LTV the company's planned investment amount in the next 3-5 years is estimated at 200 million euros. Initially, 400 to 450 employees would be needed to restart the company's operations, but when activating the operation, the average number of employees would reach 700 to 1,000. The company's turnover is planned to be 500 to 600 million euros, working at full capacity.
In March 2018, Austrian company Smart Stahl GmbH had won the auction for the sale of the insolvent KVV Liepājas metalurgs with its price of EUR 1.9 million. The initial price of the assets in question was set at EUR 1.33 million. Smart Stahl GmbH’s sole owner is Cyprus-based Segoa Ventures Limited.
KVV Liepājas metalurgs was declared insolvent in September 2016.