Lidl Bulgaria, a unit of German discount store operator Lidl Stiftung & Co, will expand its logistics and distribution base in the village of Ravno Pole, east of Sofia. The expansion project envisages the construction of 18,000 sq. m of new space, including a 12,000 sq. m of office space. The value of the investment in the project has not been disclosed. The project is part of Lidl Bulgaria's expansion plans for 2021, which also include opening at least five new stores. Currently, Lidl has over 100 stores in 49 locations across Bulgaria and employs about 3,000 people.
Plovdiv-based lead-and-zinc producer KCM has agreed the last portion of the financing for its 130-million-euro project, which will improve raw material usage. In December, the company signed a loan agreement with UniCredit Bulbank, which will provide 25 million euro of the funding. Half of the amount for the project, 65 million euro, was secured from European Investment Bank a year ago. The remainder is borrowed from United Bulgarian Bank and DSK Bank, which provide 20 million euro each. The project, which builds on a previous 150-million-euro investment, is expected to be completed by 2024.
Shumen-based aluminum products manufacturer Alcomet has put into operation its production line for powder coating of aluminum profiles following a 1.4-million-lev (716 million euro) investment in its modernization. The upgraded line has the capacity to produce 600 tonnes of powder-coated aluminum profiles per month, i.e. three times more compared to its output before the upgrade. Alcomet recently launched a new rolling mill, which will boost its capacity by 85,000 tonnes per year in the medium term. The company's output increased by 3.1% year-on-year in the first nine months of 2020, reaching 53,213 mt.
Bulgarian bike manufacturer Leader - 96 will switch to electric bicycles only from 2022. The Plovdiv-based company will equip existing premises at its factory in the village of Rogosh using a 4-million-lev investment. The new production lines are expected to be put into operation early next year. The decision to terminate production of traditional bicycles is due to growing demand for e-bikes in Europe. The company projects a 20-percent increase in revenue for 2020 and strong results in 2021.
Dairy Food Bulgaria is investing 3 million levs in an upgrade of its milk processing factory in the town of Sevlievo where it is based. The project is being financed with the company's own funds and through an investment loan. Half of the investment is intended for the installation of high-technology equipment for the production of dairy beverages, fruit milk and cream. Following the investment, the plant's daily milk processing capacity will increase by 140 tonnes. Over 80% of the dairy products are planned for export.
Construction companies Planex Invest and Danaos Development broke ground for a 60-million-lev residential complex just outside Sofia. The project envisages the construction of 13 three-story buildings and 33 single-family houses on a land plot of 9 hectares located south of Sofia's outer ring road. The Moreni Club Residence complex will have a total built up area of some 54,000 sq. m. Local company Interhold has been contracted to carry out the construction works. The first stage of the project is expected to be inaugurated in 28 months, while the entire project will be completed in 2025.
Canada's Dundee Precious Metals (DPM) said it has achieved a record gold output of 298,300 ounces in 2020, up 29% % year-on-year, as its two gold mines in Bulgaria met or exceeded their guidance for the year. DPM's Ada Tepe mine in Bulgaria exceeded its guidance and boosted its gold output to 118,700 oz in 2020 from 57,200 oz in 2019. The Ada Tepe mine reached full operating capacity in September 2019. The company's other mine in the country - Chelopech, increased its output to 179,600 oz in 2020 from 173,400 oz in 2019. The Chelopech mine also produced 35.6 million pounds of copper in 2020, down from 37.2 million pounds mined in 2019.
Canadian mineral exploration company Velocity Minerals said that its local peer Dundee Precious Metals (DPM) and Bulgaria's Gorubso-Kardzhali have closed investments in the company worth 6.7 million Canadian dollars ($5.2 million) and 250,000 Canadian dollars, respectively. DPM acquired 13,394,000 common shares in Velocity, or 9.99% interest, through the transaction. Velocity has a 70% interest in the Tintyava prospecting license, which includes the Rozino gold project situated near DPM's Ada Tepe mine.
Tex Team is creating a regional hub for sorted collection of used textiles. The company is part of M Holding, which also includes the second-hand clothes chain of stores Mania. Text Team deals in imports, sorting and sale of second-hand clothes. The company's project is valued at a touch above 432,000 levs and is financed under the Environment operational program, which provides the bulk of the financing. The company's own investment stands at 65,000 levs.