site.btaMechanical Engineering Industry Beset by Understaffing around Its Holiday

ASL Machgroup, the leading mechanical engineering plant in the western Pernik area, marked Mechanical Engineers' Day (October 9) with a 10% output growth. Company CEO Natsko Milenkov told BTA that ASL Machgroup is emerging from the crisis and is inundated with supply orders from Germany, France, Britain and Austria. It exports its entire output. The main problem is understaffing.

ASL Machgroup manufactures mainly bodies for electric motors and generators, bodies for custom-built installations and heavy frames for conveyor belts. Its product list also features components for the energy industry, including for nuclear power plants, and all kinds of non-standard mechanical engineering products.

The plant is a competitive and sought-after partner. It has used EU aid to acquire up-to-date equipment and phase in complex products. However, its output has grown mainly in value, due primarily to rising prices of materials and energy. Only insignificant increases (up to 5%) have been registered in physical volumes.

ASL Machgroup employs 40 people, including 10 retirees. Ninety per cent of its fitters are retired people. Staff shortages are observed in all mechanical engineering occupations. "Such occupations are unattractive. A young person would work in a bank, an insurance company, a shop, rather than weld or smear their shoes," Milenkov commented.

The company participated in an experiment with other similar firms. They teamed up with a local vocational school to provide dual education (education plus apprenticeship). The experiment was unsuccessful due to a lack of enthusiasm on the part of the trainees. "No one wants to practice mechanical engineering occupations," Milenkov explained.

"I am ready to give machine operators as much pay as has been discussed, but money is not the issue. No one wants to do this kind of work," Milenkov said. The staff shortage has left three machines in the plant idle, other machines are operating one shift or half a shift. "I find myself turning down clients with whom I have worked for years. We have no sufficient resources, but there is great demand for mechanical engineering manufacturers like us," he said. The CEO noted that the companies they work with are eager to place their orders for next year amid the uncertain situation.

Milenkov pointed to a need to popularize the manufacturing industries. He also fears problems with energy sources. "Many enterprises depend on natural gas. Electricity is something we all depend on. Our energy consumption doubles in winter and we will face very serious trouble unless state compensation comes as planned."

By old tradition, the company offers its workers interest-free loans. There is no cap, and the loans are repaid from the wages earned. Loans are available for home repairs, buying a car, furnishing a dwelling and other purposes. This is part of the policy of caring for the people, Milenkov said.

ASL Machgroup has superseded Mineralmach, which made stone cutting machines. The current owner bought the plant from funds which could not bring it to its full output capacity. The current range of products has nothing to do with that of the former communist enterprise.

ASL Machgroup and a few other private companies are keeping the flame burning in the former Pernik mechanical engineering complex. The oldest plant, Struma, was razed to the ground. The plants for big metal cutting machines no longer exist, while the welding machine plant has changed its line of operation. The steel mill has long been just a memory. The unique Heavy Machine Construction Plant in the nearby town of Radomir is barely surviving.

Milenkov remembered the communist era, when Bulgaria had an enviable mechanical engineering industry. He vowed to do everything he can to preserve the mechanical engineering tradition in the country, which until recently was very strong and vibrant.