Management at Bulgartabac has asked Bulgaria's Ministry of Economy and Energy for permission to close down its cigarette plants in Plovdiv and Stara Zagora.

Bulgaria's state-owned tobacco monopoly, Bulgartabac, has revoked the licence of its cigarette plants in Plovdiv and Stara Zagora to produce cigarettes under Bulgartabac-owned brands, which is the first step towards the sale of the two production facilities, said Kornelia Ninova, Bulgartabac's managing board chairwoman, on 13 February 2008, as quoted by investor.bg.
The production of Bulgartabac’s brands would be transferred to Bulgartabac's other two plants, in Sofia and Blagoevgrad, within the next five weeks, while the facilities in Plovdiv and Stara Zagora would keep their generic tobacco products license, Ninova added.
Although trade unions have objected to closing down the two plants with a combined headcount of 500, Bulgartabac's management believes it is the only option for ensuring the continued profitable operations of the company. Ninova said at least eight months were necessary to change the Bulgartabac privatisation strategy, while the company's executive director, Hristo Lachev, added that if all four plants continued running, the holding company could well finish 2008 in the red and there would be nothing left to privatise. (pi)