Bulgarias exporting heavy industry companies were the first to feel the pressure of a slowing foreign demand, spawned by the worst economic crisis in decades. Fertiliser makers Agropolychim and Neochim, steel maker Stomana Industry and cast iron foundry Chougounoleene all unveiled measures aimed to address the shrinking market.
Conditions in Europe have changed so rapidly inside a single month that we are having to cut jobs, said Anton Petrov, regional manager of Greek Viohalco, which owns Bulgarian steel maker Stomana Industry though its unit Sidanor. The market was so unpredictable that no one could tell what will happen in the future, Petrov said.
Stomana Industry will slash output by about 30 per cent, and Sidenor will lay off 300 workers from its subsidiaries. The company said it was shedding non-core operations to shield its main business.
Chougounoleene, which ships about 85 per cent of its production abroad, will lay off a quarter of its workforce as Italian, French and German customers are cutting down on orders.
Devnya-based Agropolychim, owned by US company Acid&Fertilizers LLC, will shut down the production of ammonia fertilisers, company director Hristo Petrov (no relation) said. Stockpiles were growing at all major producers as no real deals were struck although prices have almost halved, Petrov said.
The deteriorating market conditions have caused Neochim to postpone resuming operations, now halted for renovation, the company said in a filing to the Bulgarian Stock Exchange, where it is listed.
Source: Dnevnik
