The Privatization Agency announced a public tender with open bidding for the sale of hotel of VMZ-Sopot. The announced initial tender price for the four-storey massive building, located on an area of 1 020 sq. m, is BGN 650 000 and the step of bidding is BGN 50 000. The deposit for participation in the tender amounts to BGN 150 000. The price of the tender documents is BGN 1000 and can be purchased from the privatization agency. Participation in the auction of offshore companies is not allowed. 90% of the auction price will be transferred to VMZ-Sopot.
Source: mediapool.bg (18.02.2009)

The company is registered in Territorial administration Big taxpayers and insurers towards 2009, 04.30
Source: Tax Administration (30.04.2009)

Income of the Privatization Agency for 2009 and 2010 may reach BGN 880 mln if the State manages to sell Bulgartabac Holding JSC, Heat Supply-Sofia SPJSC, Vazov Machine Works SPJSC, Kintex SPJSC and its minority stakes in the electricity distribution companies. The Agency reported BGN 17.6 mln income for the first half of 2009 blaming the financial crisis and the lack of investors interest. PA said that the companies included in BEH may also be considered for privatization at a later stage, but such move is not planned for the time being.
Source: Monitor (03.09.2009)

The current bank accounts of the military complex Vazov Machine Works SPJSC (VMW) were impounded by a court decision two months ago at the request of a supplier of fuel and the State Agency State Reserve and War-Time Stocks, said the newly appointed CEO Ivan Stoenchev. According to trade unions the workers of the factory have not received their salaries since July. VMW is in serious financial condition and must accelerate the process of its privatization, told the Executive Director of the Privatization Agency Todor Nikolov the economic committee in the parliament at the end of last week.
Source: Dnevnik (08.09.2009)

One of Bulgaria's largest military plants, VMZ Sopot, owes about BGN 50 M to the state. This was announced Sunday by Traicho Traikov, Bulgaria’s Economy Minister, after a meeting with Prime Minister Borisov, Defense Minister Mladenov, and the VMZ Sopot Director Ivan Stanchev. Bulgaria’s Defense Minister, Nikolay Mladenov, said the previous governments poured money into the state-owned factory indiscriminately, and that the previous management of the plant was involved in violations together with the government officials. The state loaned money to VMZ Sopot without the plant meeting any criteria; much of those money was used to pay out workers’ salaries but without their social security and health insurance benefits. Mladenov said VMZ Sopot was not an isolated case but that it was an example of the condition of all military factories in the country. In his words, the state will be seeking ways to sell the factory’s produce on markets in Asia, Africa, and elsewhere. According to the VMZ Sopot Director Stanchev, currently the factory works at 10% of its production capacity. No massive layoffs of the plant’s 3 700 workers have been planned but some of the administrative and support staff may be directed towards other activities. VMZ Sopot has been in a troubled financial condition in the last few years. In 2007, Bulgaria's Privatization Agency started to sell of the plant's assets in order to cover some of its debts; some of its assets were also sold at the beginning of 2009. Over the years, the governments have failed to decide on a strategy to privatize VMZ Sopot, and the Privatization Agency is said be expecting a solution from the GERB government and the new Parliament dominated by them. The VMZ Sopot plant is located in the town of Sopot in central Bulgaria, which is the birthplace of Bulgarian writer and poet Ivan Vazov. The plant was founded in 1936, and during the communist period was developed into a large-scale military industrial unit.
Source: Darik Radio (12.10.2009)

Nearly 4000 workers of VMZ Sopot are on the brink of survival, alarmed mayor Veselin Lichev. According to him people there have not received salaries and struggle for four months. They have twice received only BGN 100. The reason is not bad management of the enterprise but the commercial companies that does not offer the production of the arms factory. Two strategies to save VMZ Sopot will be developed by the Ministry of Economy, Lichev explained. The first will be the short term by end of the year and the second - for next period. The situation really hit rock bottom, he said.
Source: Standart (10.11.2009)

Seventy employees of TEREM-Targovishte received lay-off notices. Notices were given to workers with no work for 15 days. The fate of the plant is not clear, but optimization of the workforce it has no chance of survival, management said. Lay-offs in TEREM would continue in the coming weeks. 200 of a total of 530 workers would see their contracts terminated. "The government holds talks with NATO partners about whether they can buy the output of VMZ-Sopot, Prime Minister Boyko Borisov said. "For years the factory was plundered as private companies have won from BGN 50 to 100 million per year, " Borissov added.
Source: Trud (30.11.2009)

Workers at Bulgaria’s arms producer VMZ Sopot came out in a spontaneous protest yesterday to demonstrate against the continuous two-month delay of their wages. VMZ executive director Ivan Stoenchev told Dnevnik the company lagged behind with paychecks but expressed hopes they will catch up with at least a month in January. He blamed the delay on the plant’s former management, which failed to secure new orders. The company is due to complete an order by December 24 before proceeding to two contracts it has won for the New Year, Stoenchev said. VMZ has accumulated BGN 100 million in outstanding debt and orders skidded to a halt in April. The company gives job to around 3,500 people. At a meeting with VMZ senior officials and workers’ representatives on Wednesday, economy minister Traycho Traykov has called for an end of strikes, branding them unlawful. Company officials admitted workers are still waiting for their September and October salaries as well as for the November advance payment. Stoenchev took over as executive director of the plant on August 26, replacing Hristo Ivanov, who spent eight months at the helm.
Source: Dnevnik (18.12.2009)