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Bulgaria's car tyre maker Vidachim may stop functioning, leaving 600 people unemployed in the poorest region in the country and in the EU.
Tsvetomir Leshtarski, CEO of Vidin-based Vidachim, told the State Commission for Energy and Water Regulation (DKEVR) that the company would stop manufacturing industrial tyres on Thursday.
Leshtarski spoke during an open sitting of DKEVR on a procedure for an update of sale prices of electricity of the company.
Electricity production is currently the main source of revenues for the company, which has made a name as a tyre manufacturer, according to reports of news.bg.
However, the company only manufactures small quantities of special industrial tyres at present.
Vidachim faces closure because Bulgaria’s state-owned National Electric Company (NEK) owes it around BGN 19 M, thereby preventing it from buying coal and paying salaries.
Leshtarski was adamant that all employees of the company would have to be dismissed unless NEK managed to pay back a sufficient portion of its debt.
Vidachim started functioning in 1969.
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