The Bulgarian division of ALC (Automotive Leather Company) filed for bankruptcy with Sofia’s courthouse, announcing the closing down of the 3 plants present in the country, that used to give 1,600 jobs to the local communities. The company, specialized in leather coatings for auto interiors, had opened its first plant in Bulgaria in 2011, when it was still owned by a South African group, while since 2014, the business was owned by Canadian multinational Exco Technologies. According to what reported by press source Bulgarian News Agency, the reason for leaving the country was due to a lack of work-force on the local market, which allegedly caused the backward step of Belgian group Malmar (components for bus and trucks). According to other press sources, the reason for leaving is due to the fact that production costs were increasing, thus mining the marginality of the division’s operations. The country’s labor ministry announced, on January 21st, that the government will assist the 1,600 fired employees to find another position.
Bulgaria, ALC shuts down 3 plants and fires 1,600 employees: it used to produce coatings for the automotive segment
