Rabu, 07 November 2007

 

A CASE STUDY OF A BULGARIAN WOOLEN TEXTILE FIRM “WOOLTEX AD

A CASE STUDY OF A BULGARIAN WOOLEN TEXTILE FIRM “WOOLTEX AD”∗
The History
Wooltex AD is the biggest joint stock company for the production of wool textile in the country. It has a full production cycle from
the input of washed raw wool to the finished fabric, including a small tailoring workshop.
Wooltex AD is located in a relatively large town in the central-east part of Bulgaria. The town is considered to be one of the three
textile centers in Bulgaria with a high concentration of wool and cotton fabric production. It is also the town with the earliest traditions in
organized industrial wool textile production. The first wool processing factory was established in 1834, which makes it the fist modern
industrial enterprise in Bulgaria, and in the beginning of XX century there were seven factories.
The history of Wooltex started in 1891 when the private company "Andonov & Mihailov" was established. It existed until December
1947 when nationalization took place and the communist government took over the company from its owners and made it a state owned
one. At that time the company was the biggest textile company in the country with modern (for its time) machinery and equipment, full
production cycle and developed wholesale network in Sofia. The number of employees in the 40's was 460.
After nationalization in 1947 till 1953 the company worked without any changes - it was managed by a managerial team, and was
given a new name. It was considered to be owned and run by the workers (a statement which seems quite populist today, but is actually not
far from the truth for that period). From 1954 to 1959 was a period of concentration of production and enlargement of existing companies
into the so called combinats (combined factories). Wooltex became the core of the established wool textile combinat - another six
companies were connected to it. The company was moved to a new site where it still resides. In the 70's and the beginning of 80's a new
machinery and equipment was installed for the replacement of the already depreciated nationalized equipment. At that time the so called
socialist integration was being build up and the Bulgarian woolen textile industry was oriented to the huge Ex-USSR market indirectly,
based on sales to tailoring companies which exported to Russia the finished garments. In the beginning of the 80's the annual production
reached 9 million meters and production capacities were fully utilized. As of 1982 the company was producing 16% of the country's wool
textile production and 25% of wool fabrics. The production program covered all types worsted-type and carded fabrics, blankets, worsted
and carded yarns, as well as curtains, industrial nets, shoe fabrics and other industrial products. It was one of the first companies which
started producing using wool in combination with cellulose and synthetic fibers. The number of employees at that time was 4,500 people.
∗ This is not the real name of the firm.

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