Leoni to gradually stop the production at Pleven
Leoni Bordnetz-Systeme GmbH plans to gradually reduce and eventually stop production at its subsidiary, Leoni Bulgaria EOOD, and its plant in Pleven by the end of the year. After this, the local entity will be closed. The company cites challenges in finding enough workers and severe inflation in Bulgaria as the main reasons for the decision.
All existing projects will be fulfilled in Pleven until the planned closure of the plant towards the end of the year and will afterwards be handled within Leoni's global production network.
Leoni has been facing financial difficulties with its Bulgarian subsidiary. However, the decision to downsize and eventually close the Pleven site, which employs about 1,300 people, was not made lightly. The company says that it has explored all options – but alas it became clear that the site has no long-term sustainable future due to challenges in the Bulgarian labour market and the unpredictable global automotive industry.
“We recognize our responsibility for our workforce. We will start duly the information and consultation procedures with the employees’ representatives and will inform the Employment Agency”, plant manager Andrey Kosoukhov explains in a press release..
The production of wiring system is particularly labor-intensive work. A variety of initiatives have jointly been taken by the company and its workforce in order to secure the Pleven operations. This includes, for example, a close cooperation with a local professional school, the establishment of a fully equipped training center, a free transport network for employees as well as intense recruitment campaigns. Teams from other Leoni group plants have been organised in support of the local team amid manpower shortage. However, according to Leoni these initiatives have not been able to provide viable long-term solutions.
