site.btaSupreme Administrative Court Upholds Closure Order for Kronospan Plant in Veliko Tarnovo

Bulgaria’s Supreme Administrative Court has upheld the provisional enforcement of an order issued by the Regional Inspectorate of Environment and Water (RIEW) to shut down the Kronospan plant in Veliko Tarnovo. The court overturned a ruling by the Burgas Administrative Court and definitively rejected the request by Kronospan Bulgaria EOOD to suspend the provisional enforcement of the order of the Director of RIEW – Veliko Tarnovo, according to a decision published on the court’s website.

With its ruling, the Supreme Administrative Court annulled a January 2026 decision of the Administrative Court in Burgas that had suspended the provisional enforcement of the RIEW – Veliko Tarnovo order. The order provides for the application of a coercive administrative measure – suspension of production activity on the particleboard (PB) manufacturing line, including the dryer and hot-air installations, due to established non-compliance with a condition of the company’s integrated environmental permit. That condition requires that activities at the site be carried out in a way that prevents the spread of odours beyond its boundaries.

In its private appeal, the Director of RIEW – Veliko Tarnovo challenged the first-instance court’s conclusion that the requirements under Article 166 of the Administrative Procedure Code for suspending provisional enforcement were met, arguing that the alleged economic harm does not outweigh the public interest in environmental protection. For its part, Kronospan Bulgaria maintained that halting production would cause significant and difficult-to-remedy damage, including financial losses, failure to meet contractual obligations, and staff layoffs.

The Supreme Administrative Court held that the provisional enforcement of the order is permitted by law under the Environmental Protection Act and is linked to the protection of a significant public interest. In its reasoning, the court stressed that citizens’ right to a healthy and favourable environment is constitutional and has priority. The court further ruled that the alleged economic and financial consequences are foreseeable commercial risks and do not constitute significant or irreparable harm. The ruling is final and not subject to appeal.

At the end of March, the Burgas Administrative Court is expected to examine the RIEW appeal on the merits, RIEW Director Stanislav Stanchev told BTA. On January 25, RIEW experts sealed the particleboard production line at the Kronospan plant.

On Friday, the management of the company said in a statement circulated to the media that the decision of the Supreme Administrative Court does not mean the closure of the Kronospan plant in Veliko Tarnovo. The company stressed that the ruling does not constitute a final decision on the measure imposed by the Regional Inspectorate of Environment and Water. According to the statement, the measure in question is temporary and will remain in force until the case is examined on its merits. The court proceedings are yet to take place, during which all facts and evidence related to the issued order and the company’s operations at the Veliko Tarnovo plant will be reviewed. Only after that will the court issue a final ruling, the company added.