New owner vows to switch on idled Chimco in 2010

New owner vows to switch on idled Chimco in 2010

Bulgaria’s troubled fertiliser maker Chimco will resume operations in October or November 2010, the plant’s new owner, construction entrepreneur Nikolay Galchev, told Dnevnik.

The businessman said his holding company Galchev Engineering Group as acquired the plant, which has been dead for a few years, from Novo Chimco around five months ago.

Quoting a commercial secret, Galchev was mum about the financial details of the recent transaction.

He revealed an agreement has been reached with the government, including a reschedule of the plant’s debt, Galchev said. Payments are scheduled to begin in May 2010.

In end-2007, Novo Chimco got hold of the facility after paying BGN 85.7 million, the amount t it owed to its creditors.

The businessman said he is negotiating with seven or eight candidates, mostly foreign companies, seeking a strategic gas supply partnership.

Separate talks are underway to secure markets for the plant’s core produce of carbamide and fertilisers.

Galchev will stick to the rescue plan for the facility that has got the nod of the government.

Asked about the possible scenarios if the plant failed to come back to life in October, Galchev he “don’t dare even think about it.”