Former state shipping firm Navibulgar, which was put in private hands earlier in August, plans to sack 400 of its employees and sell some of its older ships as part of the re-organisation that will begin in November 2008, company officials told a news conference in Varna on August 27.

The chairperson of the company’s board of directors Kiril Domouschiev, as quoted by Varna-based daily Narodno Delo, said that the payroll cuts, which will make around 10 per cent of its staff redundant, would be mainly in the administration of the company and non-core activities, but would not include any sailors.

Navibulgar had too many side activities, including auto transport, transport repairs and agents’ activities, which shifted the focus from its main activity, Domouschiev said, as quoted by Focus news agency.

International consultants were hired to draft a list of restructuring measures, which the company would implement in November-December, aimed at boosting competitiveness and raising profit margins, Domouschiev said.

Navibulgar would sell 20-25 of the 71 vessels it owns, which were all built more than 30 years ago, Varna-based news website moreto.net quoted Domouschiev as saying. To replace them, the company would order 19 or 20 ships, ranging from 21 000 to 34 000 tons, over the next five to six years, he added.

On August 8 2008, German-led consortium KG Maritime Shipping and Bulgaria's Privatisation Agency signed the deal for the sale of 70 per cent of Navibulgar. The Government decided to sell 7.6 million of Navibulgare shares for a total of 440.1 million leva. The state will own the remaining 30 per cent of the company's shares for the next several years, according to the Government's privatisation strategy.