December 2014 issue 11 (14), year 2 InvestBulgaria Agency’s Monthly Online Publication www.investbg.gover n men t.bg HIGHLIGHTS InvestBulgaria Agency – Investment forums 2014 Economic News - Business, Investmen t s, Trad e Headlines from the Euro p ean institutions Analysis of S ec t or Transport mechanical engineering – automotive parts manufacturing Interview with Tomas Jindra, General manager of WITTE Automotive Bulgaria EOOD Chambers of Commerce in Bulgaria – French-Bulgarian chamber of commerce and industry Macroeconomic Indicators Upcoming Events INVESTBULGARIA AGENCY InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000 Tel.: (+359 2) 985-5500, Fax: (+359 2) 980-1320, e-mail: [email protected], http://www.investbg.government.bg
issue 11 (14) / December 2014 InvestBulgaria Agency
WHY BULGARIA
Juan Carlos Peralejo CEO of Nestlé Bulgaria
“Nestlé celebrates its 20th anniversary of in Bulgaria this year. The company is a strategic investor in the development of the Bulgarian economy, only in last ten years we have invested over BGN 146 million. Nestlé has long-term plans for its presence in Bulgaria and we continually invest in new production lines in our factories in Sofia and Varna.”
Anton Stoyanov HDS Group S.A. Paris, France Vice-president Global Technologies and innovation
“International companies which have a choice where to locate their activity look for countries with numerous population, with a well-developed infrastructure, with a well-functioning tax system and access to financial resources. Bulgaria is relatively competent with its tax system, with its labour cost and access to European funds. There is also a programme for support of strategic investors. Several years ago we opened
a service center for international customers in Veliko Turnovo and I may say that we are extremely pleased with that decision.”
*Statements, extracted from interviews for Invest Bulgaria Bulletiin
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Stoian Boev Managing Director of InterConsult Bulgaria-ICB
“More often than not, the public discussions in the country witness the idea that our sector development perspectives should allow Bulgaria to transform itself from “an outsourcing to a sourcing” destination, which is capable of providing innovative solutions, attracting and retaining highly qualified staff, and entering new markets.”
issue 11 (14) / December 2014 InvestBulgaria Agency
1105.6 mln. Euro FDI in Bulgaria for the period January - September 2014
1105.6 mln. Euro (2.7% of GDP) are the attracted FDI in the Bulgarian economy from January - September, announced from Bulgarian National Bank (BNB). These are preliminary, unrevised data, specified the Bank, adding that the current data will be revised in the statement of attracted investment from January to October 2014For the same period in 2013 the economy has attracted FDI 1,160.7 mln. Euro (2.8% of GDP). This are already revised data. If we compare these volumes the result will be 55.1 million euro less investments than the same period last year.If the data is compared with the preliminary data of the same period last year, it would be quite a different picture. The announced volume for the first nine months of 2013, was 854.4 mln. Euro (2.1% of GDP), which is an increase of 29.4%.Investments in equity capital during January-September 2014 are about € 259.4 million or 506.4 million Euro less than the equity capital raised during the same period in 2013 (765.7 million. Euro). The unrevised data for attracted private equity for the same period last year, showed that under this item are entered 618.3 mln. Euro.The incomes from the investment by foreign persons in real estate in the country are 83.1 mln. EUR, while they are 118.9 million Euro in January - September 2013.The investments in other capital in January - September 2014 are 721.8 mln. Euro, while for the same period in 2013 they are only 321.7 million. Euro. On the basis of preliminary data on the financial result, reinvested earnings for the period are estimated to 124.4 million. Euro, while they are 73.3 million for the same period in 2013.By country, the largest direct investments in Bulgaria for January - September 2014 are from Austria(EUR 284.2 million). The largest net negative flows for the period were towards Luxembourg (EUR -19.6 million).By branch, the largest investments for January – March 2014 were in real estate, renting and business activities (EUR 354.1 million), transport, storage and communication (EUR 246.3 million) and financial intermediation (EUR 159.5 million).
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issue 11 (14) / December 2014 InvestBulgaria Agency
Three of the top five outsourcing companieswill start operations in Plovdiv
Three of the top five outsourcing companies will start operations in Plovdiv in the next few months, announced Ivan Totev, mayor of Plovdiv. Details of the investment intentions of the 3 companies will be revealed on 30 October when in Plovdiv will take place the business forum "Outsourcing Destination Bulgaria". About 100 representatives of companies from the IT and outsourcing industry are expected to attend the event.
http://www.plovdiv.bg/
The investments in commercial real estate increased by 54%
The investments in commercial real estate in Bulgaria - mainly retail and office centers, have reached 114 million euro from the beginning of the year until the end of September. This is 54% more than all of 2013, announced the consulting company "Forton". Two months ago another consulting company - "Colliers" gave data on 26 million euro in investments in such properties in Bulgaria for the period January to June, but a week later corrected it to 36 million euro.The two companies expect growth in this market in 2015 and as main drivers of demand are considered the technology companies, business process outsourcing and the development of e-commerce.
http://www.trud.bg/
Bulgaria and Romania to sign memo for two new bridges on the Danube
Bulgaria and Romania are going to sign a memorandum for the construction of two new bridges across the Danube at Nikopol-Turnu Magurele and at Silistra-Kalarash. Construction works for the new facilities will be financed by Bulgaria-Romania 2014-2020 Programme for Cross-Border Cooperation, announced the Ministry of Transport, Information technology and Communications.
bnr.bg8000 new subsidized jobs open in Bulgaria8000 new jobs will be financed under the project “Employment Support” realized by the National Employment Agency. The first framework agreements with employers have already been signed and by the end of October some 5000 unemployed would have jobs, according to the Employment Agency.The Agency has reported a record-high interest by employers. Requests for opening of more than 21 500 jobs have been received in labour offices across the country for a period of just three weeks.
Devnya Cement launches new production facility, announced the Italcementi Group, the owner the company. The value of the investment, which was certified with "Investor Class A" in 2012 was over 160 million euro."This investment is the largest in Bulgaria over the past 25 years. It will help us to improve production efficiency and to be in accordance with the best technology to protect the environment. The new plant will allow us to meet the domestic demand, as well as the demand in Eastern Europe", said Carlo Pesenti, CEO of Italcementi Group. The new facility will start operating at full capacity in early 2015. It will produce 4,000 tons of clinker per day and 1.5 million tons of cement annually.
IndustryInfo.BG – the portal of the Bulgaria industry
Bulgaria has the second lowest public debt in the EU
Bulgaria has the second lowest public debt in the EU, according to the latest revised data of Eurostat. At the end of 2013 the debt of the EU-28 amounted to EUR 11.55 trillion or 85.4% of GDP and grows compared to previous years. The lowest debt as a percentage of GDP was recorded in Estonia (10.1%), Bulgaria (18.3%), Luxembourg (23.6%), Romania (37.9%), Latvia (38.2%), Sweden (38.6%) and Lithuania (39%). Even with the loans taken in 2014 Bulgaria is still before Luxembourg in terms of government debt as a percentage of GDP.
www.Standartnews.com
VMware will double its Bulgarian unitThe American software company VMware will double its unit in Bulgaria over the next few years. The company will open a new center for professional services and integration that will serve customers of its products and virtual services. The company has already hired a new building near its current office at "G.M. Dimitrov" blvd., and it is expected to employe 50 people by the end of the year and at the end of the next, the number is expected to reach 150 people. At the same time VMware will increase the specialists in the research center. The company's plans are to double the staff from 500 to 1000, this number will be reached by "several years."
www.capital.bg
SELECTED DECISIONS OF THE GOVERNMENT
OF THE REPUBLIC OF BULGARIA FOR THE PERIOD
26.11.2014-10.12.2014 Г.
10.12.2014
BGN 300 THOUSANDS ARE PROVIDED FOR APPLIED SCIENCES DEVELOPMENTS IN MOUNTAINOUS AND HILLY LIVESTOCK AND AGRICULTURE
BUSINESS COUNCIL WILL ASSIST THE COUNCIL FOR E-GOVERNMENT
AGREEMENT BETWEEN ECONOMIC MINISTRIES OF BULGARIA AND GERMANY IS PROPOSED FOR RATIFICATION
THE STATE WILL PROVIDE NON-INTEREST LOANS FOR MUNICIPALITIES UNDER TWO OTHER MEASURES FROM RDP
03.12.2014
GOVERNMENT LAUNCHES COMPETITIONS FOR SEARCH AND STUDY OF OIL AND GAS IN BLOCKS "SILISTAR" AND "TERRES" IN BLACK SEA
01.12.2014
IN THE STATE BUDGET FOR 2015 IS PLEDGED ENSURING FINANCIAL STABILITY AND IS LIMITED THE BUDGET DEFICIT TO 3%
26.11.2014
THE RATING TREATY BETWEEN BULGARIA AND MOODY'S IS CONTINUED
A new factory was opened with a Romanian investmentThe executive director of InvestBulgaria Agency Svetoslav Mladenov participated in the official opening of the new factory "VERNADA" in Gorna Rosica, Sevlievo. The factory in Gorna Rosica is specialized in production of hummus based salads under an Israeli technology. VERNADA company has invested over BGN 2.5 million, half of which are European investments provided under Measure 123, and the rest of the funds are provided by its Romanian partner OCEAN FISH. The company’s monthly capacity is 45 tones of packaged salads, most of which are exported to the Romanian market. An export to Israel is being negotiated.
mi.government.bg
Bulgarian export to EU risesIn the period January-July 2014, Bulgarian export to the EU rose by 3.6 percent in comparison to the same period last year and amounts to 7.8 billion euro. The major trade partners of Bulgaria are Germany, Italy, Romania, Greece, France and Belgium. Export to these countries reaches 72.3 percent of total export to the EU. Bulgarian import from the EU in the period January-July 2014 rose by 2.3 percent in comparison to the same period in the previous year and reached 9 billion euro. Foreign trade balance of Bulgaria with the EU is negative and totals in 1.25 billion euro.
bnr.bg
The greenhouse gas emissions will be reduced with € 16 million under operational programme "Energy Efficiency and Renewable Energy"The implementation of the operational programme "Energy Efficiency and Renewable Energy" will lead to reduction of the greenhouse emissions by 35 thousand tons СО2 through innovative technologies for utilization of the energy potential of RES and introduction of energy efficiency solutions into the buildings. The total budget of the programme is around €16 million, and 85% of it is formed by a financial grant (€ 13.3 million), and with an operational period up to April 2017. The initiative is supported by the Financial Mechanism of the European Economic Area on the basis of a memorandum of understanding between Bulgaria and Iceland, Liechtenstein and Norway, that is operated by the Ministry of Economy and Energy of the Republic of Bulgaria. MEE partner fromn the donor’s side is the Directorate of Water Resources and Energy to the Ministry of Petroleum and Energy of Norway.
mi.government.bg
GOVERNMENT ADOPTED THREE YEAR PLAN FOR IMPLEMENTING THE NATIONAL PROGRAMME FOR DEVELOPMENT BULGARIA 2020
UPDATED DRAFT OP "SCIENCE AND EDUCATION FOR SMART GROWTH" IS APPROVED
issue 11 (14) / December 2014 InvestBulgaria Agency
Installation with a new system for production of biogas from animal manure was inaugurated in Dobri dol, Lom municipality
Installation with a new system for production of biogas from animal manure was inaugurated in Dobri dol, Lom municipality. The site is worth BGN 15 million and was built for eight months by Dimitar Zorov. It ranks in the top three installations of this type in Europe. The dairy farm near Dobri dol breeds 2,200 cows, that give 28 liters of milk a day each.The most modern cow-complex on the Balkans and one of the largest in Europe, was built using company funds, financing from the Agriculture Fund and a loan from the Bulgarian Development Bank. The total investment including the installations is BGN 30 million. The farm produces its own fodder for animal feed.
http://pressadaily.bg/
GeoPost France acquired its first large package of Speedy sharesThe French company GeoPost made the first step towards the acquisition of a considerable minority share in the Spedy delivery company by buying 11% of its shares for the amount of BGN 12 million in a deal on the BSE – Sofia. The strategic intention of the foreign investor is to increase its stake to 25% from Speedy’s capital. The move is part of a strategic deal on the Balkans. Meanwhile, Speedy plans to acquire the GeoPost subsidiaries in Bulgaria and Romania with the aim of focusing on the development of the courier and logistic activities in the region and strengthening the connection to the European market.Currently, Speedy is expanding its capital amounting to BGN 20,5 mln. that coupled with an investment loan is going to finance an investment programme with a total of BGN 32,4 mln.
Standartnews.com
83 million euros for projects with neighboring countriesCBC programs of Bulgaria with Serbia, Turkey and Macedonia for the programme period 2014 - 2020
were submitted to the European Commission. With the introduction of the full package of documents on the three programs, the Commission launched procedures for coordination and approval. It is expected that the Commission's decision will be announced by the end of the year.In the new programming period Bulgaria expects about 71 million euros in EU grants designated for funding projects in border areas. With the national co-financing of the partnering countries, the budget of the three programs totals 83 million euros. It will be invested in projects for development of sustainable tourism, environment, youth activities and development of the competitiveness of the local economy.
mrrb.government.bg
The construction of the new waste plant near Sheremetya startedAccording to the project the current wastelands of Veliko Tarnovo, Lyaskovets, Gorna Oriahovitsa, Elena and Strajitsa will become modern parks and recreation areas, and all the waste will be processed near the current landfill near Sheremetya. The investment opens 51 new jobs, but the facility will engage in different ways almost 1,000 people.The project, known as "Regional system for waste management" is worth BGN 33,463,212.
borbabg.comWITTE Automotive opened the new plant in BulgariaMr. Rosen Plevneliev, President of Bulgaria together with Dr. Manfred Pueschel, Chairman of the Advisory Board of WITTE Automotive GmbH, opened officially a new production facility in Bulgaria.“I am a president but I am also an engineer and I have to say that this plant is a very important achievement not only for Ruse but for Bulgaria”, President Plevneliev declared in his opening speech. Dr. Pueschel proudly praised: “On 10th of October 2013, we met here for the laying of the foundation stone. Today, only one year later, we are celebrating the official opening of the most modern plant of WITTE Automotive covering an area of 15,000 square meters and that inclusive the logistics infrastructure.” The amount of investment will reach approx. 10 million euro till the end of the year 2015.
witte-automotive.bg
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issue 11 (14) / December 2014 InvestBulgaria Agency
Bulgaria progressed to 40th place in the ranking of economic freedom
Bulgaria ranks 40th out of 152 countries included in the "Economic Freedom of the World: 2014 Annual Report" prepared by the Canadian Institute "Fraser" and disseminated to Bulgaria by the Institute for Market Economics. The report presents the picture in 2012 - the latest year for which official data are available for all countries.
Bulgaria’s result this year is 7.29 points from the maximum of 10, this is a slight increase compared to last year, when the country had 7.28 points and was ranked to 49th place.Bulgaria ranks 21st among the EU countries and has the same result as Spain. Hong Kong again leads the ranking, followed by Singapore, New Zealand and Switzerland.
ime.bg
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The factory for radiators and heating “KORADO – Bulgaria” AD will invest BGN 25 million in its manufacturing base in Strazhitsa. The company aims to increase its product range and thus, to strengthen its leading position in the country and abroad. The Executive Director eng. Irji Rzheznichek revealed that part of the facilities are to start operating this year. "From the beginning of the year we have started the installation of the second modern line that is fully automated and is over three generations ahead from the existing one. This will expand the production capacities. We will introduce to the market that kind of variety and madels that are currently delivered to the facilities in the Czech Republic. The first investment amounts to about 3 million euro. Production is to begin at the end of the year and the capacity is for around 650 000 units per year", revealed for “Pressadaily” Mr. Rzheznichek.
Source: www.pressadaily.bg
SE Bordnetze Bulgaria
The plant in Mezdra, that produces cables for the Automotive industry, will create 800 new jobs. This is part of a new project for expansion of the capacity of the facility. The management of the company envisages this to berealized by the end of next year. The vacant job possitions are for installers, specialists and supervisors in the departments of quality management and planning.The plant in Mezdra opened in early 2008. The company is a supplier of components to the international automotive industry. It produces cable sets for a variety of automotive platforms. The plant currently employs over 1,100 people in the municipalities of Mezdra, Vratsa, Roman, Slatina and Borovan. The company plans to also start employing people from the municipalites of Cerven Briag, Zlatna Panega, and Rumyantzevo.
Source: www.kmeta.bg
“Provident Financial Bulgaria” OOD
Consumer loan company Provident “Financial Bulgaria” OOD will strengthen its presence in Bulgaria and for this purpose it intends to increase its investment in the country to BGN 12 million during the current calendar year. So far the company has invested in the Bulgarian market BGN 6.7 million, reported Money.bg.The company started its business in Bulgaria in September 2013 and currently has operating subsidiaries in Sofia, Plovdiv, Varna, Burgas, Stara Zagora, Shumen, Veliko Tarnovo, Pleven and Ruse. Reportedly, its client portfolio includes 5,000 customers served by 300 employees. The future investments of Provident Financial is designated to seek expansion of the customer base up to 100,000 people and presence in 30 cities. For this purpose, 1,200 employees are expected to be hired.
issue 11 (14) / December 2014 InvestBulgaria Agency
ANALYSIS OF SECTOR
Transport mechanical engineering- automotive parts manufacturing
Mechanical engineering is an industrial sector with great economic importance. It is a basic industrial sector in Bulgaria, actively contributing to the development of the national economy and revolutionizing the spheres of material production. That’s why it is reasonably believed that the mechanical engineering is the "industry core”.
Our country’s history of the industrial sector is relatively short. By the end of World War II mechanical engineering in Bulgaria had been one of the lagging industries, which due to lack of own metallurgical base, minimum needs of machinery and equipment, small size of the country and impossibility to compete against the developed countries in international markets. There were only a few small engineering enterprises and workshops (total 86 companies with a personnel of 1000 people). They mostly met the needs for rail transport, mining and military. They predominantly performed repairs and manufactured items of metal. The largest mechanical engineering factories were the Muelhaupt and Co. JSC’s factory for farming and milling machines in Ruse, the military workshops in the towns of Lovech, Karlovo, Kazanlak, the railway factories in Sofia, Ruse and Drianovo, the mining workshop in Pernik, the factory for blowers in Debeletz and the shipyards in Varna, Rousse and Bourgas.In the years following World War II the capacity of mechanical engineering increased, new enterprises were built and the existing ones were expanded.
The branch structure of mechanical engineering was formed during the years 1960-1980, when the influence of the “international division of labour” factor was manifested. Mechanical engineering branches such as device manufacturing, radio frequency engineering, electrical engineering, organizational machinery and automotive engineering became more popular.
By the year 1990 mechanical engineering in Bulgaria had ranked first among the industry. The sector experienced particular problems after the changes had occurred and the country's transition from a planned to a market economy.
Today Bulgaria is one of the most attractive destinations in Europe regarding investments in the production of automotive components and parts.
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issue 11 (14) / December 2014 InvestBulgaria Agency
The automotive engineering in Bulgaria is one of the priority sectors and with great potential for growth. For the past five years export of automotive components has estimated to be approximately BGN 3 billion which is about 14% of the country’s total industrial output. In Bulgaria there are currently about 100 companies in this sector. Different kinds of automotive parts and components for brands such as BMW, "Mercedes", "Audi", "Ford”,” Volvo", "Peugeot", "Renault", "Dacia" and others are made in their plants. The manufactured parts and components include upholstery, seats, cables, parts for air conditioners and motors, microchips, rubber seals, glass, spring, electronics, filters, aluminum profiles, belts, etc.
Until 1989 Bulgaria’s main trade partners are the CMEA countries. After the dissolution of this Union country felt an acute need for new larger markets. Since the accession to the European Union in 2007 the country’s export has mainly been directed to member states. Over 75% of the total volume of manufactured goods, which was estimated to be BGN 25 billion in 2013, is exported to this part of the world. Bulgaria’s main trading partners in the EU are Germany, Italy, Romania, Greece, France and Belgium. Other major trading partners of the country are the United States, China, Russia and Turkey.Trends in the mechanical engineering in the EU and Bulgaria show that by 2020 the deficit of cadre will deepen both in a quantitative and qualitative matter. When the mechanical engineering in Bulgaria overcomes the crisis the deficit of skilled and qualified employees will continue to grow. Exacerbating the problem within the EU, expanding and liberalizing of the labor market in the EU, enlarging and easing migration process in the EU will all create additional conditions for the movement of skilled labour to other countries that offer better living and working conditions.
The predicted increase in the number of employees in 2020 compared to 2013 is 15%. It is expected that in 2020 the number of employees in the sector will reach 36,000 people.
In accordance with the accepted initial conditions a 35-percent increase in the turnover can be expected in 2020 compared to 2013. The expected growth in the added value for the same period is 34.4%. The ratio between skilled and unskilled personnel willl change from 5:1 to 6:1, i.e. about 83% of the employed will belong to the category of qualified staff.
Development of the mechanical engineering in Bulgaria is a prerequisite to believe that in the future it will continue to be a major economical force of the country. Bulgaria’s perspectives are related to the introduction of new technologies in the production process and attracting new investment in the sector. These factors would make the country a regional leader in manufacturing automotive components. Changing the export direction towards the Middle East is also an opportunity for the Bulgarian mechanical engineering.
Threats to the development of the industrial sector are mostly related to the lack of skilled and qualified labour. This is a serious obstacle and needs quick response of both the state and private sector, but to achieve the desired results there has to be an interaction between both paries.
1924 The bodywork workshop in Botevgrad produced the first bus
1925 2 aircraft plants were created in Bozhurishte and Kazanlak
1936 The production of the first Bulgarian trams started in Sofia
1951 The first electrocar was manufactured
1966 Assembling of the cars Moskvich, FIAT 850 and FIAT 124 began in “Balkan” plant
1969 Assembling of the cars Renault 8 and Renault 10 began in Plovdiv
1974 Mass production of the “Chavdar“ buses began in Botevgrad
In the period between 1970 -1989 electrical engineering, electronics and mechanical engineering were rapidly developed in Bulgaria. There were 730 factories, 430 000 employees (35 000 engineers) and 5000 scientists in 30 research institutes.The leading role of machine engineering contributed for 30% of the total country manufacture in the late 1980’s.
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issue 11 (14) / December 2014 InvestBulgaria Agency
In 1987 the production of industrial forklift trucks reached about 89 000 units, which represented more than 20% of the world production.Nowadays, the industry is concentrated on manufacture of cars, vehicles and auto-components; manufacture of home appliances and machines for the food industry; hydraulics; metal casting; weapons; etc.Compared to 2007 there was a 134-persent growth of the sector’s FDI in 2010. An average annual amount of the FDI for the last 5 years has been approximately EUR 65 mln.11% of the university students are enrolled in related programs. Currently there are more than 50 000 employees in the industry working in more than 1500 companies. Bulgaria in the center of the emerging automotive cluster of CEE. The Transport and logistics cluster in Bulgaria combines all modes of transport: Land (Road and Rail), Air and Water (Sea and River).
MAJOR INVESTORS IN THE SECTORIntegrated Micro-Electronics Inc.Established in 1993 as EPIQ, since May 2011 it has been part of the international group Integrated Micro-Electronics (IMI). It employs 2800 people. The company is specialized in the design and production of electronics and electro-mechanical modules and systems for the automotive industry. IMI subcontracts for well-known names in the automotive sector, including Valeo, Denso, Brose and EF.
MontupetThe French-based company established its plant in Russe in 2006. It employs 260 people. The plant is for the production of aluminum head gaskets, wheel rims, engine and chassis parts for Audi, Renault, Peugeot, Citroen and Ford. The plant is exporting parts to car factories in Germany, Turkey, Romania, the Czech Republic and Slovakia.
Great Wall Great Wall Motor Company, one of China's biggest automotive manufacturers, started car production in 2011. The plant in Lovech has an annual production capacity of 50,000 units, it employs more than 200 people and assemble four different models – a sports utility vehicle (SUV), a pickup and two passenger car models, which are expected to be sold in EU countries.
Johnson Controls Their technology center was established in 2001 and employs about 500 people. It provides project support and delivery of automotive software development and validation, hardware solutions design and prototyping, mechanical engineering services and global IT support.
IxeticThe German company built its plant in Plovdiv in 2009 and employs 620 people. The main product of the plant in Plovdiv is the steering system equipment for companies like Audi, BMW, Daimler, Porsche, Renault, Toyota, Volkswagen and Volvo.
SE BordnetzeThe German company, started operations in Bulgaria in 2002. It produces equipment and parts for the electrical system for a variety of automobile platforms and employs 1800 people.
YazakiIt started operations in Bulgaria in 2008. The Japanese company produces equipment and parts for the electrical system for various companies in the automotive industry. The company has currently 2 plants in Bulgaria and planns to build a new one. With its 3,400 employees, the Yazaki’s plant in Yambol is one of the biggest companiy’s factories in Europe.
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The University of National and World Economy (UNWE) is the eldest, the largest and the most prestigious higher economic school in South Eastern Europe, a leader in the Bulgarian and European higher education and science.In a regular and distance form of learning at the UNWE are educated more than 20 000 Bachelors (in 47 specialities - 10 of them in the English language) and Masters of Science (in 100 specialities including the joint ones with foreign universities) as well as nearly 300 Bulgarian Doctoral students.The UNWE is organized in eight Faculties: General Economics Faculty, Finance and Accountancy Faculty, Managemenet and Administration Faculty, Business Faculty, Economics of Infrastructure Faculty, International Economics and Politics Faculty, Applied Informatics and Statistics Faculty and Law Faculty. The university has 33 Departments as well as an Institute of Postgraduate Studies Division (having a Center for Facultative Education and School for Foreign Languages Training), Center for Distance Learning (having Regional Centers in Haskovo and Plovdiv), Institute for Intellectual Property and Leadership, Entrepreneurship Development Institute, Inter-University Center for Career Development, etc.
In 2012 the UNWE for a second time (after 2006) has obtained the highest assessment among all Bulgarian universities from the National Agency for Assessment and Accreditation for the next six years (till 2018).The UNWE is a leader in the economic, political and legal sciences. Its scientists are among the vanguard of the Bulgarian and world scientific thought. The university participates in lots of national and international projects.The UNWE has highly competitive positions in the Bulgarian and European educational market. Traditionally, the UNWE has the largest number of prospective students and a record number of excellent students in comparison with the other higher schools in the country. Despite the demographic decline, in the current year the university is the only one in Bulgaria which suceeded to fill all available places for state admission of students.By the National Insurance Institute data 97,5% of graduates from the UNWE succeed to find professional realization at the labour market. The state and private employers accept UNWE as a guarantee for an excellent preparation and high professionalism of its graduates.Since its establishment 94 years ago and up to now the UNWE forms the Bulgarian national elite. Its lecturers and graduates are prominent scientists, state figures, Prime Ministers, Ministers, deputies, politicians, ambassadors, mayors, public figures, businessmen, bankers, etc. Over the last years six of its graduates have been Prime-Ministers of Bulgaria including also the first woman Prime-Minister.The UNWE is a coordinating university for Bulgaria in the Central European Initiative for Inter-University Relations and it cooperates with more than 100 universities from Europe, America and Asia. The UNWE incorporates the most modern world educational practices in the education of its students. At the university are implemented multi-media lectures and seminar studies. There is multi-media equipment in all halls. The elaborated computer lectures and exercises are sent to students by a unified system whereby each student of UNWE is given a personal e-mail valid for an unlimited period.The UNWE is the first and the only university in Bulgaria implementing an electronic testing at all levels: prospective student exams, semester exams, controlling tests and state exams. The overall management of the academic process is implemented by a computer system. An electronic timetable for students and lecturers is elaborated on the base of electronic academic plans, electronic protocols for each exam are generated, the digitally signed electronic protocols of assessments are entered directly into the computer system and each student receives immediately an SMS containing the assessment in the certain discipline.There is also made a computer system giving information in a real time for the administrative status of each student: a timetable for lectures and exercises, passed and unpassed exams, upcoming obligations in the academic process, etc.
issue 11 (14) / December 2014 InvestBulgaria Agency
стр. 16 от 24InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
Since its establishment 94 years ago and up to now the UNWE forms the Bulgarian national elite. Its lecturers and graduates are prominent scientists, state figures, Prime Ministers, Ministers, deputies, politicians, ambassadors, mayors, public figures, businessmen, bankers, etc. Over the last years six of its graduates have been Prime-Ministers of Bulgaria including also the first woman Prime-Minister.
The UNWE is a coordinating university for Bulgaria in the Central European Initiative for Inter-University Relations and it cooperates with more than 100 universities from Europe, America and Asia. The UNWE incorporates the most modern world educational practices in the education of its students. At the university are implemented multi-media lectures and seminar studies. There is multi-media equipment in all halls. The elaborated computer lectures and exercises are sent to students by a unified system whereby each student of UNWE is given a personal e-mail valid for an unlimited period.
The UNWE is the first and the only university in Bulgaria implementing an electronic testing at all levels: prospective student exams, semester exams, controlling tests and state exams. The overall management of the academic process is implemented by a computer system. An electronic timetable for students and lecturers is elaborated on the base of electronic academic plans, electronic protocols for each exam are generated, the digitally signed electronic protocols of assessments are entered directly into the computer system and each student receives immediately an SMS containing the assessment in the certain discipline.There is also made a computer system giving information in a real time for the administrative status of each student: a timetable for lectures and exercises, passed and unpassed exams, upcoming obligations in the academic process, etc.
1700 Sofia, Hristo Botev Students Townwww.unwe.bg
issue 11 (14) / December 2014 InvestBulgaria Agency
стр. 17 от 24InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
Main commitment for the Operational Programme “Human Resources Development” (HRD OP) in thecurrently ending programme period, as well as in the upcoming one, is to provide access to funding from the European Social Fund. In this regard, the HRD OP retains strong prioritization, focusing on the limited set of important policies in employment and social inclusion problems. This, firstly, is to combat unemployment among vulnerable groups in the labor market, with particular emphasis on young people, long-term unemployed and older people. Next, the priority of the program is to increase the adequacy of skills of workers estimated to the actual needs of the business. The program will contribute to poverty reduction and social inclusion stimulating direct efforts towards socio-economic integration of the most marginalized groups and communities, active inclusion of people furthest from the labor market integration of people with disabilities and the deinstitutionalization of children and adults. Also, as far as the achievement of these results requires a well-working policies and institutions, the program will provide support for existing modernization of public policies in the field of labor market, social enable, health, non-discrimination and equal opportunities.
In the period 2014-2020, the HRD OP will have a lot more money for employment policies and social inclusion. Funds allocated for the programme are estimated to be about 1 092 million euro or approximately BGN 2 136 million, including national co-financing. Within the programme the target funds from the EU budget, which are estimated to be just over 55 million euro, will be used to the so called "Initiative for Youth Employment". The total amount of funds to support young people is BGN 257.7 million.
The programme will mostly provide support for the employment policy. The appropriations of approximately BGN 1 266 million are nearly 60% of the programme funds. About BGN 659 million are intended for support of social inclusion policies which is 31% of the programme funds. In order to improve the institutional capacity, about BGN 86 million are allocated whis is 4% of the programme recources.
Employers are included as eligible beneficiaries under Priority Axis 1 "Improving access to employment and the quality of the jobs" under HRD OP 2014-2020. They could be involved in the implementation of measures for the recruitment and training of unemployed persons, providing apprenticeship/internships for the young people. With this assistance, the employees are expected to increase the relevance of their skills to the actual needs of the business and to continue working or take better jobs afterwards. The support will specifically be focused on persons aged over 54, and those with secondary or lower education.
стр. 18 от 24InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
issue 11 (14) / December 2014 InvestBulgaria Agency
Enterprises will be supported for adapting the human resources in priority sectors in the country. Investments will be provided for improving the work conditions and the work organization with a focus on small and medium enterprises.
During the 2014-2020 programming period, substantial financial resources will be allocated within the framework of the operational program, which the so-called Youth Guarantee will be supported by. This is an initiative, which allows the Member States to ensure that all young Europeans will receive job offers; continue their education, professional practice (apprenticeship) or training within four months after leaving school or after becoming unemployed. In this regard, a strong accent on the support of measures for reducing the youth unemployment is placed within the new Operational Programme for Human Resources Development in the 2014-2020 programme period and it already contains measures for the sustainable integration of young people between 15 and 29, who are neither in employment nor in education or training in the labour market.
HRD OP 2014-2020 intentionally will invest in providing seed capital for entrepreneurial ideas among unemployed and employed people willing to start their own business, in addition, will be provided practical skills and related services to support the sustainability of the initiative.
The employers are eligible beneficiary under Priority Axis 2 "Reducing poverty and promoting social inclusion" . This axis will be directed at integrating the marginalized communities in public life; active involvement by improving the quality of life of vulnerable groups by replacing institutional model of care with social services in the community and promoting the social economy and social enterprises.
The new programme will also continue to support the development of social economy, it will provide funds for the start of new and development of existing social enterprises, including municipal.
As far as the problems of socio-economic integration of the most marginalized populations are complex, it will be implemented an integrated approach, combining interventions in each of the following areas: 1) improving access to employment; 2) improving access to education; 3) improving access to social and health services. It should be taken into consideration that beneficiaries could realize measures in additional direction, aimed at development of local communities and overcome the negative stereotypes. In that direction local capacity for implementation of measures for socio-economic integration of the marginalized communities will be developed. Conditions for improving the society attitudes and awareness of the problems of these communities will be created.
Under Priority Axis 4 "Transnational cooperation" the employers will have the opportunity to participate in measures, related to the exchange of information and experience, mutual learning, capacity building, implementation of coordinated joint actions and dissemination of the results achieved within the priority axis transnational cooperation.
The managing authority of OP HRD 2014-2020, continues its efforts for reducing the administrative burden and facilitating the beneficiaries. The application of simplified costs will be an innovation. For the programming period 2014-2020 an opportunity for electronic application and reporting is stipulated. What is also new is that during the period 2014-2020 the so-called "Equipment" will be eligible cost for the European Social Fund.
At present, the Managing Authority of OP HRD 2014-2020 is in negotiations with the European Commission for approval of the final version of the program. The approval is expected to be given by the end of the year. The employers will be able to find actual information on the matter as well as newly started operations on the following website: www.esf.bg.
стр. 19 от 24InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
Mr. Jindra, Your Company is a world leader into the production of parts
for the automotive industry, please tell us little bit more for the
company“.
“WITTE Automotive” is on the Bulgarian market since 2008. Which
are the reasons to choose Bulgaria and to realise the investment
project?
What is the total number of the investment of „WITTE Automotive“ in
BG till now?
Tell to the readers of InvestBulgaria for the new plant, that you opened
soon?
WITTE Automotive Bulgaria EOOD is a daughter company of WITTE Automotive GmbH- Germany. The company is founded in Velbert (nearby Duesseldorf) by Ewald Witte in 1899, and main activity of initial production of latches for suitcases. First steps into the automotive industry were made in 1935, by fittings for Volkswagen. Since 1992 the competitiveness is assured with the establishing of WITTE Nejdek in the Czech Republic- which is the first investment abroad. Expansion of global presence by founding a Strategic Alliance with the American partners STRATTEC Security and ADAC Automotive as VAST - Vehicle Access Systems Technology.WITTE Automotive offers to the custommers the full service in production of different locking systems, front and rear modules, latches, lock system, handles, seats latches etc.
The decision to come to Bulgaria and to realise the investment project in Ruse was made after evaluation of the detailed project. The project included evaluation of the quantitative and qualitative figures of many countries. In the second step in the same way were checked the regions of the four preselected countries. From that Bulgaria and town Ruse became the selected one.
The total number of the investments during the entire 6 years period and put into the accounting books is more than EUR 10 million ). But let us not forget the investment that we make into the training and preparation of our employees, bringing them the know-how and essential of the automotive world. We are transferring the knowledge and rules, which company into the hard automotive world can not exist without. It is rather long and hard process, which I think is the most important investment and the specialists can make a rough calculations only.
After almost two years after start up the first steps in Bulgaria with the new company, the Headquarters of WITTE took the decision to rent a pretty new production building, In May 2010 WITTE Automotive Bulgaria EOOD transferred and installed the first 2 machines for production of small parts, called WITOLs, and step-by-step we reached the full capacity of the building by the middle of 2012. The Bulgarian company showed good results and progress, based down on which the Owners took the decision to invest into own facility. We bought the land in December 2012, which was agricultural status and passed the procedure to change it into industrial, to prepare the design and project of the building and to finish the construction activities within 9 months, which used to be rather ambitious plan and nobody believed that we will keep the terms. The new building
Which world marks and markets your production is dedicated to?
Do you foresee new working places established with the enlargement of
the activity of the company. How many employees do you currently
have in your company?
Do you have difficulties by the recruitment, does the BG education
correspond to the needs of the business ?
How do you evaluate the conditions of making business in our country- strong and week sites of Bulgaria ?
Based down your experience in our country, would you give advice how to make Bulgaria more competitive
and attractive to the foreign investors into the automotive sector?
is designed to cover the modern requirements of the automotive industry and to bring pleasure and excellent working conditions to the employees and workers of company. We have been successful by moving and transferring the entire production from the rented to the new building for more or less 1 month, without making interruption and problems to our Customers, which was our target and we are proud of the free capacity of the new building will be filled in by new projects, which are under preparation or almost to the end of the preliminary tests and will be installed here. This of course means enlarging the number of specialists and workers too.
As a part of VAST alliance, WITTE Automotive supplies almost all markets world wide. WITTE Automotive Bulgaria via the mother company is reaching the relevant clients, such as: VW, Audi, Seat, BMW, Ford, GM, Volvo, etc.. We reach not only the European destinations, but such as Korea, , China, Mexico, etc. from Bulgaria.
The current total number of the employees in WITTE Automotive Bulgaria is app. 320. By reaching the full capacity of this first stage of the project, it is planned to over come 600 in steps.
You know, Bulgaria has no much experience into the automotive industry. The development of this sector of the Industry is rather 'young' here, which is causing the main problems may be. Good news is that by the contacts with the University we see the willing to try to adjust their programs in accordance with our needs. Of course we realise that it is a long process and the results will come in steps.
To make such an evaluation is not that easy. Let us say that all countries and nations have their own specifics, and when these specifics are in compliance with those of the foreign investors, than the positive results are coming soon.
Would be better to try to reduce the administrative procedures- by numbers and duration, as much as possible, which will help the investors not to loose their willing to come. To try to explain the lower levels of the administration (Municipal or Governmental) the importance of the investments and to train them how to support the new comer. Could be better to have a trained person, how will support and guide the Investor and protect him from loosing time mainly. But I feel it is realised by the Government and there are few positive steps made, and the next will come soon.
The French-Bulgarian Chamber of Commerce and Industry is a non-profit organization and a member of CCI France International (Union of French Chambers of Commerce and industry abroad). Established in 2004, the Chamber aims to develop and promote trade and economic relations between France and Bulgaria. Today the members of the Chamber represent more than 170 companies. The French-Bulgarian Chamber of Commerce and Industry provides for its members regular events, meetings with Bulgarian institutions and offers a full range of services to companies who are interested in their development on Bulgarian or French market: organization and support for prospecting and trade missions, partner research, market research and others. The Chamber opened in 2013 its own business incubator, located in the center of Sofia, which offers a perfect solution for installing startup and early-stage companies. Besides renting offices and a meeting room, equipped with video conferencing system, the Chamber offers support for business basics: use of the address, recruitment, as well as business and administrative support.
The French-Bulgarian Chamber of Commerce and Industry cooperates with all French institutions specialized in export in order to support the development of French companies in Bulgaria.
La CCI France Bulgarie est une organisation à but non lucratif et membre de CCI France International (Union des chambres de commerce et d’industrie à l’international). Créée en 2004, CCI France Bulgarie a pour but de développer et encourager les relations économiques et commerciales entre la France et la Bulgarie. Aujourd’hui les membres de la chambre représentent plus de 170 entreprises.La CCI France Bulgarie organise pour ses membres des évènements réguliers, des contacts avec les institutions bulgares et propose une gamme de services complète aux entreprises intéressées à se développer en Bulgarie ou en France : missions commerciales et de prospection, recherches de partenaires, études de marché et autres.La chambre a ouvert en 2013 un incubateur d’entreprises qui se trouve au cœur de Sofia et offre des conditions parfaites pour l’hébergement et la domiciliation des nouvelles entreprises. En plus de la location de bureaux et d’une salle de réunion, équipée d’un système de visioconférence, la CCI France Bulgarie propose la domiciliation juridique et postale, l’aide au recrutement et l’accompagnement administratif et commercial.
La CCI France Bulgarie coopère avec toutes les institutions françaises spécialisées dans l’export pour soutenir le développement des entreprises françaises en Bulgarie.
стр. 22 от 24InvestBulgaria Agency (IBA), 31 Aksakov Str., Sofia 1000
IX X XI XII I II III IV V VI VII VIIIMonths -13.2 10.8 253.8 -268.5 90.0 131.2 225.5 98.1 144.8 61.6 234.9 235.3* Data is updated (as to 12.11.2014 г.) Source: BNB Main economic indicators EU – Bulgaria – France
European Union Bulgaria FranceGDP (purchasing power parity)
$ mln 15 850 000 [2013 est.] 104 600 [2013 est.] 2 276 000 [2013 est.]GDP - real growth rate
