EMCC European Monitoring Centre on Change

Rudmetal

Company/Organisation:
Rudmetal

Geographic Location

Country: Bulgaria
Region: Smolyan; Yuzhen tsentralen; Yuzhna Bulgaria
Location of affected unit(s): Rudozem

Company

Sector: Mining / quarrying
Mining and quarrying
07.29 - Mining of other non-ferrous metal ores
Number Employed: 350

Employment Effects

Announcement Date: 22-04-2020
Planned Job Reductions min: 195
Planned Job Reductions max: 300
Type of Restructuring: Closure
Employment Effect Start: 01-06-2020
Foreseen End Date: 31-08-2020
Direct Dismissals: 250

Additional Information

The Bulgarian underground mining and mining construction company Rudmetal announced forthcoming closure of the mine and collective dismissal of all minе workers, who account for 195 out of 225 employees at Rudozem plant, near Smolyan. Further, 55 workers, employed by partnering companies, will also lose their jobs at the mine. According to the mayor of Rudozem, the number of redundancies may go up to 300. The management has notified the local labour inspection that at the end of April 2020 it will send official notices to affected workers. The dismissals will be carried out between June and September 2020.

The restructuring is due to business unsustainability and incresing production costs. In addition, the situation was worsened in the first quarter of 2020 by the outbreak of COVID-19 and drop of metal prices on international markets.

Rudmetal is an important enterprise for Rudozem and its closure will be a big hit for the local economy. The mine’s history dates back to the 1950s.

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