All existing projects will be processed in Pleven until the planned closure of the plant towards the end of the year and will then be handled in Leoni’s global production network.
Leoni is experiencing financial difficulties with its Bulgarian subsidiary. However, the decision to downsize and ultimately close the Pleven site, which employs around 1,300 people, was not an easy one. The company says it examined all options – but unfortunately it became clear that the site does not have a long-term, sustainable future due to the challenges in the Bulgarian labor market and the unpredictable global automotive industry.
“We are aware of our responsibility towards our workforce. We will initiate the information and consultation procedures with employee representatives in a timely manner and inform the employment agency,” explains plant manager Andrey Kosoukhov in a press release.
The production of wiring harnesses is particularly labour-intensive. Together with the workforce, the company has taken a number of initiatives to secure operations in Pleven. These include, for example, close cooperation with a local vocational school, the establishment of a fully equipped training centre, a free transport network for employees and intensive recruitment campaigns. Teams from other Leoni Group plants have been organised to support the local team in the face of staff shortages. However, according to Leoni, these initiatives have not been able to provide viable long-term solutions.
