December 21 (SeeNews) - Bulgarian cellulose producer Svilosa [BUL:3MZ] said on Thursday it has stopped operations due to lack of raw material.
State-owned wood producer Severozapadno Darjavno Predpriatie, which is Svilosa's main supplier, has failed to meet its 2016 delivery contract, and most of the supplies scheduled for 2017 have also not been delivered, the company said in a bourse filing.
"This will lead to significant losses for the company and will disrupt international trade contracts and cause damage to the company's reputation," Svilosa added.
Svilosa's management has informed all state institutions about its woes.
Svilosa shares closed 1.26% lower at 4.15 levs ($2.51/2.12 euro) on the Bulgarian Stock Exchange on Thursday.
(1 euro = 1.95583 levs)