Metalsnab Bulgaria AD (Bulgaria)

Metalsnab, which was established in 1950, is the largest metal trader and distributor in Bulgaria. The company is active in production of electrically welded steel pipes, galvanised steel sections, profiled hot-dip galvanized steel sheets and welded wire meshes for concrete reinforcement. It also trades with ferrous and non-ferrous metals, metal products, raw materials and metal scrap. It is a successor to state enterprise Metalsnab, which supplied all metals, metal products and raw materials for the industrial sectors during the communist regime in Bulgaria.
In June 1998, Bulgaria's Privatisation Agency sold a 75% stake in Metalsnab to Metalsnab's management and German steel and metal handler Kloeckner & Co AG for USD 6.7 million. Under the contract, Metalsnab 96 - a company set up by its management - acquired 90% of the total stake and Kloeckner acquired 10% of the stake, comprising equity in Metalsnab and state stakes in its 12 subsidiaries. The new owners pledged to invest DEM 4.78 million in the companies within the next three years. Of the remaining 25 percent, some 20% were offered as non-voting shares to Metalsnab employees and the rest was set aside for covering restitution claims by pre-communist owners. In October 2004, Metalsnab launched a EUR 400,000 production line for welded steel pipes.