Manufacturer of Upholstery for the Automotive Industry Closes its Three Plants in Bulgaria

Business | January 21, 2019, Monday // 13:33
Bulgaria: Manufacturer of Upholstery for the Automotive Industry Closes its Three Plants in Bulgaria

ALC's custom-made upholstery and accessories industry ceases to operate on the Bulgarian market, after more than a month ago, its owner announced that it is shrinking its business in the country because of lack of qualified personnel.

The company, which made BMW model upholstery and Mini Cooper, will close its three factories in the country, employing around 1400 people. According to information provided by the manager of the Bulgarian company Shaun Bosch for Capital, the suspension of the business is a decision of the owner of the ALC group - Canadian Exco Technologies.

There is still no official information on the subject. On 30 January, the results of Exco Technologies will be presented for the first quarter of the financial year ended December 31, 2018. Probably the company's exit from the Bulgarian market will be confirmed.

At the end of November, the owner of the global ALC, which acquired the company registered in South Africa a few years ago, indicated in their previous financial report that they will limit their activity in Bulgaria. It was reported: "The results of the ALC clearly show progress in the efforts of returning the efficiency of the individual business units, which will continue with the aim of reducing the footprint of ALC in Bulgaria."

ALC's first plant in Musachevo opened in 2013. Later, they worked in Ihtiman and Blagoevgrad. The first factory produces leather upholstery for BMW, and for the base in Ihtiman the main customer is Mini Cooper. In recent years ALS Bulgaria has been facing declining revenues, with 24% shrinking to 122.7 million in 2017.

This is not the first such news for the automotive industry in Bulgaria. Nearly a year ago, Belgian Malmar, which makes parts for buses, trucks and is a supplier to companies like Volvo and Renault, plans to withdraw from the Bulgarian market. As a reason for this decision, the labor shortage was again mentioned.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Business » Be a reporter: Write and send your article

Advertisement
Advertisement
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria