Bulgaria's Devnya Cement To Cut Production by 20%, Cites Global Crisis - Media

"The plant is in an exceptionally good financial shape but cement production will be reduced by some 20%. [...] The reason is a drop in exports to the U.S. and Turkish markets as a result of the crisis," Dnevnik wrote, quoting the plant's human resource manager, Valentina Grozdanova.

The company official did not say when the production cut will take effect.

Devnya Cement will not cut jobs or put on hold its 250 million euro ($321.9 million) investment programme aimed at boosting output capacity, Dnevnik further quoted Grozdanova as saying.

The upgrade of the plant, launched in July, is aimed at doubling its annual capacity to 3.0 million tonnes of cement and clinker.

Exports to neighbouring Serbia and Romania will not be affected, Grozdanova was quoted as saying.

Devnya Cement accounts for 90% of Bulgaria's cement exports, selling abroad some 1.0 million tonnes, Dnevnik wrote. Bulgaria's two other leading cement producers are the local units of Swiss cement maker Holcim and Greece's Titan.

The combined output of the three producers is seen rising to 4.9 million tonnes next year from an estimated 4.3 million tonnes in 2008, despite slowing demand, Dnenvik said.

Italcementi Group operates in 22 countries worldwide. In Bulgaria it is also present via the Vulcan Cement company, based in the southern town of Dimitrovgrad.