EMCC European Monitoring Centre on Change

Kostenetz Paper Mill

Company/Organisation:
Kostenetz Paper Mill

Geographic Location

Country: Bulgaria
Region: Sofia; Yugozapaden; Yuzhna Bulgaria
Location of affected unit(s): Kostenetz

Company

Sector: Manufacturing
Manufacture of wood and paper products, and printing
17 - Manufacture of paper and paper products
Number Employed: 180

Employment Effects

Announcement Date: 18-09-2017
Planned Job Reductions min: 150
Planned Job Reductions max: 180
Type of Restructuring: Closure
Employment Effect Start: 18-10-2017

Additional Information

In September, the management of one of the oldest paper factories in Bulgaria Kostenetz Paper Mills announced that it will cut 150 employees of a total of 180 staff as of 18 October 2017. The reason for the job losses is an explosion that destroyed the building and the machinery of the paper mill in Kostenetz nine months ago. The insurance, which was to cover the damages amounting to over EUR 20 million, has not yet been paid.