EMCC European Monitoring Centre on Change

Stomana Industry

Company/Organisation:
Stomana Industry

Geographic Location

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

Company

Sector: Manufacturing
Manufacture of basic metals and fabricated metal products, except machinery and equipment
24.2 - Manufacture of tubes, pipes, hollow profiles and related fittings, of steel
Number Employed: 1175
Group: Viohalco

Employment Effects

Announcement Date: 22-03-2020
Planned Job Reductions min: 301
Planned Job Reductions max: 301
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-04-2020

Additional Information

Bulgaria's largest steel manufacturer Stomana Industry will lay off 301 workers from all departments at its production plant in Pernik. According to the representative of Viohalco, the holder of the company, the reduction is necessary, as the company has experienced 40% decline of orders and drop of steel prices, paired with increasing power supply and carbon emission prices. Moreover, the automobile industry shift to electric vehicles manufacturing and excess steel production worldwide lead to a slow decline of orders already in 2019. According to the company's management, the outbreak of the COVID-19 is worsening the economic perspectives and is making the restructuring programme inevitable. 

Currently, there is no information about negotiations with trade unions, type of workers to be dismissed or type of jobs lost.

Stomana Industry has been present on the Balkan and international market for more than 50 years and manufactures a wide range of products, including reinforced steel, heavy plate, merchant bars, special steels, special profiles and sections. It is fully owned by the Greek-based Sidenor Holdings, which merged into the Belgian-based Viohalco.

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