The Bulgarian chemical plant "Svilosa" will fire 97 of its 105 employees in a month over the global financial crisis.

The company has entered an official announcement for the mass discharge in the Svishtov Labor Bureau, officials reported.

This means that all service sections, fire-brigade, security, and transport, will be closed.

The biggest of the companies in the holding, Svilocell EAD, stopped working in February in order to limit expenses and losses.

499 of its workers will be at half working day until the end of June. They have received BGN 120 a month by the government's anti-crisis employment measure.

The problem is not in the low price of cellulose, but in lumber high prices, the company's CEO, Krasimir Dachev, said.

In Bulgaria, raw material's price forms 70% of product's prime cost, while it normally should be 31-33%, Dachev explained.

"Svilosa" is situated in the Northern town of Svishtov on the Danube river. It is the only producer of bleached kraft pulp and products thereof in Bulgaria. It plays a big role in the Bulgarian pulp and paper industry and is a market leader in the country and the region.

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