Invest in Bulgaria - The Preferred Partner of Investors Seeking Opportunities in Bulgaria
GUGUSHEV & PARTNERS is among the leaders on the Bulgarian legal market Comprehensive Organization of MBA and EMBA Study Trips in Bulgaria
FDI in Bulgaria (13)
Health (4)
Macroeconomic Data (49)
Business (361)
Investments (155)
Infrastructure (97)
Financial (126)
Economy (350)
Construction (14)
Politics (62)
Real Estate (27)
Interesting Facts (24)
Sports (10)
Software and Information Technology (28)
Real Estate (56)
Tourism (112)
Waste Management (9)
Automotive (23)
Electronics (3)
General (81)
Renewable Energy (66)
Agriculture (22)
Construction (90)
Food and Beverage (20)
Textile (2)

Bulgaria Launches Privatization of Largest Military Plant
Date: 10/07/2012
Bulgaria Launches Privatization of Largest Military Plant

Energy and Economy Minister Delyan Dobrev and Labor Minister Totyu Mladenov launched Tuesday the privatization of VMZ Sopot, Bulgaria's largest defense industry plant.

The privatization process is to be wrapped up within 165 days, during which the state is to clear all of the company's debts, including unpaid salaries to its workers, according to reports of the Bulgarian Telegraph Agency (BTA).

In three months' time, the plant is to be bought by a strategic investor which is in the same sphere of production.

The bidders are to become clear in 30 days, after which the State Agency for National Security (DANS) and the special services are to launch inspections.

Bulgaria's Energy Minister announced Tuesday that the privatization strategy for VMZ Sopot had already been approved by Parliament.

He vowed that the workers at the military plant would be paid their salaries for May by July 20 and the salaries for June would be transferred on July 28.

On Friday, the staff of VMZ Sopot received their salaries for April and 50% of the salaries for January.

Dobrev argued that the state would ensure the timely payment of the workers' salaries through new orders for the plant.

Employees of VMZ Sopot are to receive over BGN 1.5 M in unpaid salaries.

The trade unions at VMZ Sopot called off the strike and said they would expect the government to keep its promises.

Bulgaria's Energy Minister assured in a Thursday interview that the privatization strategy for VMZ Sopot envisaged a commitment for the buyer to keep the plant's activity, its workers and its human resources expenses.

"Bulgaria's government needs to make clear-cut commitments as regards VMZ Sopot because the company is of crucial importance for Bulgaria's military industry," Sergey Stanishev, leader of the Bulgarian Socialist Party (BSP) stated.

He suggested that VMZ Sopot could be tasked with the utilization of ammunition, instead of the government pouring money into private companies with low-skilled workers.

Stanishev further called for strict monitoring of the privatization process, warning that the plant could be sold very cheaply.

The VMZ Sopot plant, located in central Bulgaria, has a total staff of 3 700 workers.

The plant was founded in 1936, and during the communist period was developed into a large-scale military industrial unit.

VMZ Sopot produces anti-tank guided and unguided missiles, aviation unguided missiles, artillery ammunition, fuses.

It also manufactures civilian products – it makes diamond tools, abrasive discs and grinding wheels, gas cylinders, food industry equipment, and household appliances.

VMZ Sopot has been in a troubled financial condition in the last few years.

In 2007, Bulgaria's Privatization Agency started to sell some of the plant's assets in order to cover part of its debts; some of its assets were also sold at the beginning of 2009.

Topic: Economy

Featured District
Invest Bulgaria Charts
Public Sector External Debt of Bulgaria
Public Sector External Debt of Bulgaria

Foreign Liabilities of Bulgaria
Foreign Liabilities of Bulgaria

See all charts
Did You Know?
Bulgarian Name Days
Bulgarian Name Days
In Bulgaria, Name Days are celebrated in addition to birthdays. A Name Day is celebrated by people ... More

The municipality of Blagoevgrad is located in the southwestern corner of Bulgaria and covers an area of approximately 628 km2, on which Blagoevgrad itself and 25 adjacent villages are situated.

Intelligence Pathways - Outsource your Business, Competitive Intelligence or Back Office to Bulgaria

Bulgaria Translation - Full service Bulgarian Translation company

© Copyright 2004-2020 Invest Bulgaria Group Ltd, Sofia, Bulgaria. All rights reserved.

Please read Conditions of Use, Copyright Statement and Privacy Policy for this web page and web site.

SEO оптимизация Bulgaria Translation Bulgarian Agriculture Bulgarian Textile Sofia Web Works Bulgarian Coins Intelligence Pathways Bulgarian Outsourcing

Crafted by Sofia Web Works. Maintained by Website Maintenance, the kings of Website Migration.

Our Featured Members