Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
MD Elektronik, an automotive electronics manufacturer operating in Bulgaria, announced the closure of its production plant in Vratsa, affecting approximately 550 employees. The shutdown is expected to take place by mid-2026, while in the coming weeks the company will only complete ongoing projects and will not accept any new orders.
The company attributes the restructuring to deteriorating automotive sector market conditions in the Europe, including declining sales volumes, increased competition and changes in customer demand, which require a reduction of production capacity in Europe in order to ensure long-term competitiveness.
Most workers from production, administrative and financial departments will be dismissed, while only a small number of employees will remain temporarily for site security and closure-related activities.
No reactions from trade unions or public authorities have been reported at this stage. The closure is expected to have a significant impact on the local labour market in the Vratsa region, where other automotive suppliers have recently reduced employment.
MD Elektronik has opened the Vratsa facility in 2020 with an investment exceeding 20 million BGN (10.2 million Euro) hiring 300 employers see: MD Elektronik - 2020. It and remains part of the international MD Elektronik Group, which will continue operating its IT hub and global team in Sofia.
Eurofound (2026), MD Elektronik, Closure in Bulgaria, factsheet number 204248, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/204248.