Military Plant VMZ Sopot Reports 3-Fold Increase in Sales Revenues

Bulgaria's largest arms factory, VMZ Sopot, has registered a threefold y/y increase in sales revenues in Q2, 2014, according to a report published by the Finance Ministry.

According to the report, sales revenues of the state-owned military plant increased from BGN 10.8 M by June 30, 2013, to BGN 33.5 M for H1, 2014.

However, VMZ Sopot registered a decrease in revenues from other activities, dropping from a rate of over BGN 1 B in 2013 to BGN 347 000 for H1, 2014.

Ivan Stoenchev, CEO of VMZ Sopot, said that its revenues had increased as a result of a larger number of contracts for sales of special products.

Stoenchev, as cited by Darik radio, made clear that the plant had secured its workload by the end of 2014 but he did not disclose details.

Speaking in Sopot in end-May, former Economy and Energy Minister Dragomir Stoynev announced that VMZ Sopot had secured a sufficient workload and was expanding its staff and expected to welcome a new investor.

Stoenchev informed Wednesday that the total staff of VMZ Sopot was 2310 and the plant kept hiring new workers.

In early 2013, the workers of the troubled arms factory went on strike over unpaid wages for several months.

In end-2013, around 900 workers of VMZ Sopot were laid off due to a shortage of orders.