High production costs and better conditions in Turkey led the Israeli company to move its production operations, leaving 360 employees out of a job in Ruse.
The Ruse Chamber of Commerce and Industry regrettably informs the public about the closure of the production activity of Delta Textile in Ruse, Bulgaria. The Israeli textile group Delta Galil Industries, which owns the Bulgarian company, has decided to move its production to Turkey. The distribution center will remain in Ruse. The move comes after Delta Textile, Bulgaria's largest sock manufacturer, faced economic challenges due to the effects of the COVID-19 pandemic and the unfavorable economic situation in Bulgaria.
The Ruse-based company with revenues of over BGN 120 million in 2021 produced socks for top brands such as Nike, Columbia, Converse and Pierre Cardin. As of January, the company employed 480 people, which is a decrease from 600 in the previous year. In the regional division of the Employment Agency in Ruse, a notice has been received of a mass layoff of 360 employees, who will be released in stages from May 1 to September 30.
The decision to move production is the result of several factors, including chronic labor shortages, expensive energy and the fact that raw materials are sourced from Turkey. Despite significant investments in modernization and automation, amounting to a total of 8 million euros, the company could not maintain operations in Bulgaria.
The closure of Delta Textile's production in Ruse highlights the growing challenges facing the Bulgarian textile industry. High production costs, energy prices and inflationary pressures have led to rising labor costs and an uncertain market. The future remains uncertain for local apparel and textile companies as they anticipate a potential reduction in orders and reduced production volume due to continued market turmoil.
The Rousse Chamber of Commerce and Industry remains committed to supporting local businesses and industries in these difficult times. We will continue to work with interested parties and partners to attract new investments and create new opportunities for Russians.
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