Type
Closure
Country
Bulgaria
Region
Severna Bulgaria; Severen tsentralen; Pleven
Location of affected unit(s)
Pleven
Sector
Manufacturing
Manufacturing Of Machinery And Equipment

1,300 jobs
Number of planned job losses
Job loss
Announcement Date
18 July 2024
Employment effect (start)
1 September 2024
Foreseen end date
31 January 2025

Description

Leoni Bulgaria EOOD, the subsidiary of Leoni AG, which produces cables for the automotive industry, intends to initially reduce and subsequently permanently close its production at its plant in Pleven by the end of the year. 1300 employees will be dismissed until the final liquidation of the company. The layoffs of the workers will begin in September.

The company claims that the decision to suspend production in Pleven is entirely determined by economic factors. The reasons cited for the decision are the lack of a long-term strategic and financially sustainable perspective, difficulties in recruiting sufficient staff from the local labour market, the country's inflation, and the unstable competitive environment in the international automotive industry


Sources

  • 18 July 2024: Bulgarian Telegraph Agency (BTA) (www.bta.bg)

Citation

Eurofound (2024), Leoni Bulgaria, Closure in Bulgaria, factsheet number 201413, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/201413.