Yuzhna Bulgaria; Yugozapaden;
Location of affected unit(s)
Blagoevgrad, Ihtiman, Musachevo
Manufacture For Transport Equipment
Manufacture Of Motor Vehicles, Trailers And Semi-Trailers
29.32 - Manufacture of other parts and accessories for motor vehicles

1,439 jobs
Number of planned job losses
Job loss
Announcement Date
20 January 2019
Employment effect (start)
20 January 2019
Foreseen end date


ALC Bulgaria, seat cover producer for BMW and Mini Cooper, part of the South African Automotive Leather Company Group (Pty) Ltd. has voluntarily filed a liquidation petition. A trustee is expected to be appointed within the next 14 days. All the 1,439 workers from three production units in Blagoevgrad, Ihtiman and Musachevo are being made redundant.

A month ago, the company’s Canadian based owner Exco Technologies announced that it is shrinking its business in the country due to shortage of qualified labour. According to Exco, due to increase in local operating costs and change in labour conditions over the last several years, ALC’s operations had become unviable without improved pricing.

According to the General Labour Inspectorate (GLI) they, together with the Employment Agency, have planned to provide consultations to the redundant workers. These will be in the form of consultations on finding a new job, information regarding work mobility options, as well as options for training and upgrading. GLI also plans to provide consultations regarding worker’s rights in case of dismissal, according to the Labour Code, such as severance pay and employment termination documents to be provided to workers by the employer. GLI informed that at present the employer has no liabilities to the workers.



Eurofound (2019), ALC Bulgaria, Bankruptcy in Bulgaria, factsheet number 96588, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/96588.