Internal restructuring
Yuzhna Bulgaria; Yugozapaden; Pernik
Location of affected unit(s)
Manufacture Of Basic Metal And Fabricated Metal Products
Manufacture Of Basic Metals
24.2 - Manufacture of tubes, pipes, hollow profiles and related fittings, of steel

301 jobs
Number of planned job losses
Job loss
Announcement Date
22 March 2020
Employment effect (start)
1 April 2020
Foreseen end date


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.



Eurofound (2020), Stomana Industry, Internal restructuring in Bulgaria, factsheet number 100139, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/100139.