Bulgarian Vidin-based car tyre maker Vidachim has downsized the scale of planned staff cuts from 314 to 150.

The new plans were announced on Monday after a meeting of Energy Minister Temenuzhka Petkova with workers and senior executives of the plant.

Petkova, as cited by Darik radio, made clear that the authorities would do their best to prevent 300 families from facing redundancy.

At the end of last week, Vidachim informed the local employment office about layoffs of 314 workers due to the reduced production.

Petkova declared Monday that the company was plagued by an irregularity, with electricity production moving to the front burner, leaving rubber items behind.

She argued that the authorities had committed to stimulate the production of rubber products as this was the main activity of the plant.

Petkova pointed out that the revenues of the company in 2013 had amounted to BGN 54 M, including BGN 52 M from the National Electric Company (NEK).

She made clear that Energy Ministry data indicated that Vidachim’s total revenues for the period 2011-2013 stood at BGN 171 M, including BGN 141 M from the sale of electricity.

Bulgaria’s Energy Minister said that one of the options to keep Vidachim functioning and to allow a part of the workers to keep their jobs involved including the company in the cold reserve auction of the Electricity System Operator (ESO) scheduled for the end of April.

Sevdalina Dimitrova, Chair of the Board of Directors of Vidachim, explained that the power plant at Vidachim had been stopped at midnight on March 12, 2015.

She informed that state-owned electricity utility NEK owed Vidachim a total of BGN 11 M, adding that the sum had to be paid to suppliers and workers of the plant.

Dimitrova noted that NEK had transferred BGN 2.4 M to the company on Monday, thereby reducing the debt to BGN 8.7 M.

She said that the tyres manufactured by Vidachim were not competitive, despite the fact that they were sold at the cost price.