Global Steel Holdings faces workers' wrath in Bulgaria

16 January 2008

Mumbai: Trade unions in Bulgaria have demanded that the government intervene and force out the Indian owner of steelmaker Kremikovtzi, Global Steel Holdings Ltd (GSHL), which they accuse of poor management that may lead to the mill's closure.

GSHL is owned by Pramod and Vinod Mittal, the younger brothers of steel tycoon Lakshmi Mittal.

Two of Bulgaria's biggest trade unions have accused GSHL of failing to keep the steelmaker - once known as the industrial glory of the former communist regime - financially viable.

Speculation has also been rife that the loss-making plant, which accounts for about 10 per cent of Bulgaria's exports, would be shut down.

The trade unions have threatened to hold protests if the government did not take measures to protect the country's biggest steelmill, which employs 8,000 people directly and another 100,000 indirectly.

GSHL has a 71 per cent stake in Kremikovtzi and the state has 25.3 per cent. The remainder of the shares are with the public.