site.btaGovernment Pushes to Preserve Stamboliyski Paper Mill after Mondi Exit

The Bulgarian Ministry of Economy and Industry is trying to find a new investor for the Stamboliyski paper mill, aiming to preserve production capacity and protect local jobs. During a Q&A parliamentary session, Economy Minister Petar Dilov responded to a question from MP Stoyan Taslakov (Vazrazhdane) about the government's actions regarding the plant, which is owned by the UK-based Mondi Group. The company has announced its full withdrawal from Bulgaria in October 2024 via a notice in the Financial Times.

Minister Dilov explained that the ministry was alerted to the issue by the mayor of Stamboliyski and subsequently held meetings with the plant’s management and worker representatives. However, these discussions failed to clarify whether the facilities would be sold or if another investor might be brought in. As a result, the ministry sent a formal inquiry to Mondi’s headquarters in the UK seeking clarification and inviting negotiations. In response, Mondi confirmed the decision to cease operations was final. Nonetheless, the company expressed readiness to cooperate with the ministry and local authorities to ensure a smooth transition, including assisting in the search for a new investor, offering compensation to workers, and supporting retraining initiatives.

A follow-up meeting with a Mondi representative took place in February 2025 to explore options for retaining as many jobs and as much infrastructure as possible at the factory site. Dilov noted that the ministry is actively considering several scenarios, with employment and industrial continuity as top priorities.

He also highlighted that any new investment would need to address longstanding environmental issues associated with the site’s operations. If Mondi opts to sell the factory to a buyer that is not interested in maintaining full paper and pulp production, the government considers the partial preservation of pulp manufacturing an acceptable compromise - this would help sustain demand for softwood raw materials from Bulgaria’s forestry sector.

“The ministry is fully committed to resolving this issue and is engaging actively with all stakeholders,” Dilov concluded. “Our main goal remains securing a new investor, preserving and creating jobs, and safeguarding the production facilities.”