SKF (Gothenburg, Sweden) is seriously considering a bid to acquire at least part of the VMZ-Sopot bearing works as part of Bulgaria's privatization initiative.

As reported here on January 15, the Bulgarian government in Sofia recently approved a plan to privatize the government-run Vazovski Mashinostroitelni Zavodi Co. machine works in Sopot. The massive facilities were built in 1936 for a wide array of military-oriented manufacturing operations. Today, the facilities are producing everything from bicycles to guided warheads, including bearings and bushings.

SKF's Vice President for Business Development, Kaj Thoren, met yesterday with Bulgarian Economy Minister Peter Zhotev to discuss the initiative.

Zhotev has promised that the privatization process will be fair and open, and that full details will be available soon, giving potential bidders enough time to perform the necessary due diligence. All privatization transactions are being handled by Bulgaria's State Privatization Agency.

Minister Zhotev said the privatization of VMZ-Sopot will involve multiple transactions for various parts of the machine works. He noted earlier this year that the Bulgarian government expects the bearing production facilities to attract the most interest from outside investors.

The bearing works of VMZ-Sopot has production capacity for ball bearings and tapered roller bearings, along with linear-motion bearings and bushings.