site.btaKronospan to Appeal Suspension of Part of Its Operation

The wood-processing company Kronospan will appeal a decision to suspend part of its operations, imposed by the Regional Inspectorate of Environment and Water (RIEW) in Veliko Tarnovo, Manager Nikolay Bankov told a news briefing on Friday.

According to Bankov, the order issued on Thursday by the RIEW forces the manufacturer to halt the production activity of the particleboard production line at the facility in the city. He said that the measure is unfounded and unlawful, as the inspections carried out did not establish any objective, measurable, or proven exceedances of the legally permissible emission limits. There are also no actual violations that would justify imposing the most severe possible sanction, namely the suspension of production.

According to Bankov, the order itself and the accompanying inspection report are based on subjective factors, namely organoleptic perception of odour and visual perception of haze. No data have been provided on instrumental measurements, exceedances of specified limits, laboratory analyses, or any evidence confirming such deviations.

Bankov recalled that Kronospan has held an integrated environmental permit since 2018 and conducts its operations in compliance with Bulgarian and European legislation, as well as with the best available techniques in the sector. He added that the company believes the link made between the presence of odours and the alleged failure to comply with a condition of the integrated permit is not unequivocally supported by evidence, and that the imposed compulsory measure to shut down the particleboard  production line is disproportionate.

At present, only the particle board production line is being shut down, but it is directly connected to other lines that add value to the core product, Bankov explained. This has a significant negative economic impact on the company, as it effectively leads to the suspension of half of the plant’s operations.

The commercial director also recalled that the company has taken a number of voluntary and additional measures, which have been publicly announced. Efforts are ongoing to find a long-term solution to the issues.

According to Bankov, the imposed measure is disproportionate, and therefore Kronospan will appeal the order in court as soon as possible. “Every possible step will be taken to prevent the company’s image from being damaged, production from being halted, and people from losing their jobs,” he stated.

About 300 people are employed at the plant in Veliko Tarnovo, and this measure will directly affect 170 directly employed workers, who will have to be sent home, Bankov said. It will also impact more than 130 people who are indirectly employed through orders from the plant.

The annual turnover associated with this main particleboard  line exceeds EUR 100 million, representing revenues for the state and related additional payments to the public treasury. Part of this production has high added value and is sold in Bulgaria, while over 70% is exported, which is in the country’s interest, Bankov said.

Within 24 hours, a plan is to be prepared for the phased shutdown of the round-the-clock continuous production. This must be carried out safely from an environmental and health perspective, without causing damage to the investments made. In Veliko Tarnovo, these investments exceed EUR 300 million, Bankov stressed. For now, Kronospan is not shutting down completely, as the other production lines at the plant will continue to operate, he added.