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EBRD facilitates privatisation of Bulgaria's Sodi Devnya
To facilitate the privatisation of the Bulgarian soda ash company, Solvay Sodi JSCO - the largest operational synthetic soda ash plant in the world - the European Bank for Reconstruction and Development (EBRD) is investing US$ 40 million (ECU 35 million) alongside SOLVAY, a Brussels-based international chemical and pharmaceutical group and SISECAM, a Turkish glass and chemicals manufacturer.
"Sodi's privatisation is the first cash privatisation of a major state-owned company in Bulgaria," said Olivier Descamps, Director of the EBRD's Bulgaria team. "Not only is it the most sizeable foreign investment in the country but, more importantly, it symbolises the changing economic climate in Bulgaria. It is a clear indication that investing in the private sector has become attractive for strategic investors."
Following the privatisation, Solvay Sodi's management intends to implement a US$ 67 million five-year investment programme, the first step of which is to invest US$ 25 million in a dense soda ash plant at Devnya, north-east Bulgaria, which will allow the company to double its dense soda capacity to 800,000 tons a year. A new 18,000 ton silo will also be built to improve overall storage capacity.
The long-term improvements will ultimately result in an annual capacity of 1.2 million tons of dense soda ash and will also bring increased product quality and worker safety as well as a reduction in energy consumption. The planned environmental improvements in the plant's operations will bring it up to the best international practice.
At the shareholder's general assembly held on 13 June, Olivier Descamps was elected to represent the EBRD on Sodi's Board of Directors.
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