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Greece will restart the steel plant in Thessaloniki


, the Greek Authorities decided to correct the mistakes of de-industrialization and restart steel mill in Thessaloniki. The American company has decided to revive the stopped 5 years ago Hellenic Steel.

Greece will restart the steel plant in Thessaloniki

Prime Minister of Greece Kyriakos Mitsotakis visited the plant in Thessaloniki on Friday, noting that it is a living history of deindustrialization of the country.

Metallurgical company Hellenic Steel was founded in 1963 in Thessaloniki the American Republic Steel. The plant was built in a favorable geographical position, in the area of NEA Ionia, close to the industrial area of Sindos and just six kilometers from the port of Thessaloniki, which provided easy access to the markets of South-Eastern Europe and the Middle East via the road network, sea and railway.

the Company has made a significant contribution to the economy of the country, covering almost all the needs of Greece in the cold-rolled steel for about 50 years, as well as sending a significant quantity of steel exported.

in 2005 the company's turnover amounted to 218,47 million dollars, a decrease of up to 126,9 million in 2010 and 85,83 million in 2012. By this time the losses in the Hellenic Steel plant reached 74,57 million dollars. In 1997, the factory in Thessaloniki has 530 permanent employees and 150 through contractors, while in 2014 the total number was less than 270.

problems with the steel production actually started, when the main shareholder of Hellenic Steel, Italian ILVA was placed under the control of the government after lengthy litigation by environmental scandal in the Gulf of Taranto.

in the Fall of 2014 Hellenic Steel was liquidated in accordance with the provisions of Law 2190/1920 and ceased operations.

In 2016 and 2017, the company tried to sell as an integral property complex, but not received any confirmed application.

a New Chapter in the history of the Hellenic Steel began to develop in October 2018 with the signing of the restructuring plan of the company and filing a lawsuit in the Court of first instance of Thessaloniki in accordance with article 106B of the bankruptcy Code.

the Court of first instance of Thessaloniki in June 2019 approved the restructuring plan of Hellenic Steel with a strategic investment from the American company Jordan International, controlled by brothers Milikovsky. It is noted that Jordan International was one of the biggest clients of Hellenic Steel in the last few years, buying about half of the total annual steel production.

After the official confirmation expected immediate re-starting of the plant, which is expected to provide significant benefits for the Greek economy. In particular, after signing the transfer, which took place the day before, Jordan International has promised to invest in the company over 100 million euros.

it is Planned that the Greek plant will produce about 350 000 tons of finished products per year, providing regular employment to about 400 workers.

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