The largest paper mill in the country to close at the end of the year

The largest paper mill in the country, the one in the Southern Bulgarian town of Stamboliyski closes at the end of the year.

The decision of the foreign investor, which owns the plant, will leave over 300 people from the Plovdiv region unemployed, thousands more employed in the timber industry will also be affected.

Today, November 6, the trade unions called on the state to intervene and seek a strategic investor to revive the enterprise, which is the biggest taxpayer in the municipality of Stamboliyski. The caretaker prime minister has also been informed of the problem.

In Stamboliyski they call the paper mill an emblem of the town. Established 70 years ago as the State Pulp Mill, it was privatised in the period after the transition to democracy and changed hands several times.

However, in the new year, the plant will close. Because of the severance packages already being negotiated, employees don't want to comment. Residents of the municipality do not hide their concerns.

The management of the plant declined to comment in front of BNT camera, they sent a written statement saying that they are aware that difficult times are coming for the employees who will be laid off.

They cite heavy economic losses following the fire at the end of September as the reason for the plant's closure.

According to the company, the fire destroyed a paper machine with a capacity of 100,000 tonnes per year and this led to a halt in the production process. However, according to the trade unions, the reasons are different.

"The main problem they said was the markets and the problems in general of this production, because it is more specific," said Atanas Krastev, chairman of the Podkrepa - Plovdiv trade union.

"As far as the CEO said that in time they wanted to invest 800 million euros in the plant, it means that they were going to make almost a new plant, but apparently, according to him, the state did not give the necessary guarantees," added Petar Nedelev, mayor of Stamboliiski.

The plant is the biggest taxpayer in the municipality and its closure will also affect the local budget.

"We will have to make unpleasant decisions of increasing some fees," said Petar Nedelev, mayor of Stamboliyski.

Finding a strategic investor to save jobs at the plant will be discussed with the district governor tomorrow.