October 11 (SeeNews) - Bulgarian cellulose producer Svilosa has suspended its activity due to a shortage of wood, CEO Mihail Kolchev said.
It is not clear how long Svilosa's plant in the town of Svishtov will stay idle and whether the company will lay off employees, Kolchev said in an audio file published on the website of public broadcaster BNR on Friday.
The solid wood reserve at the Svishtov plant has already been exhausted and there are no raw materials available, while wood prices have risen, Kolchev said.
"We would not like to lay off staff, but if this supply disruption continues for too long and things get out of control, this could happen," Kolchev added.
The plant needs about 40,000 tonnes of wood per month to operate as normal. Svilosa is the biggest employer in Svishtov municipality, in northern Bulgaria, providing about 500 jobs, according to BNR.
Svilosa, through its main unit Svilocell, is the only producer of bleached kraft pulp and products thereof in Bulgaria. Svilosa plays a crucial role in the Bulgarian pulp and paper industry and is a market leader in the country and the region, according to information published on the company's website.