There is a notable development when it comes to new investments in Bulgaria announced in 2023. Unlike previous years, when most of the investments were concentrated in the southern part of the country, now they are evenly distributed on both sides of the Balkan range. Plovdiv is losing its dominant position, competing with cities like Shumen, Ruse and Pleven, each of which has two announced investments.
One of the goals of Bulgaria's EU-backed Recovery and Resilience Plan is to fund construction of new industrial parks and infrastructure outside of the country's better developed southern half, in order to create equal distribution of production facilities across its territory. To attract foreign investors, however, Bulgaria will need to offer them a better business climate.
This is Part II of Capital Weekly's list, which will focus on the investment projects in northern Bulgaria announced in 2023.
8. More fertilizers
Sector: Chemicals Company: Agropolychim Location: DevnyaIn the next five years the Devnya-based plant of Agropolychim will invest BGN 490 million in the construction of a new nitric acid installation and related projectsby which it will double the output of nitrogen-based fertilizers. Developer of the project is Switzerland's Casale. The new nitric acid facility is expected to come online some time in 2027. Besides this investment, which Agropolychim is making with its own funds and investment credits, there are also other projects relating to the logistics and energy efficiency of the production plant as well as new facilities for production of ammonium nitrate, calcium-ammonium nitrate and calcium nitrate.
9. Aluminum variety
Sector: Metallurgy Company: Alcomet Location: ShumenAlcomet, the Turkish giant in the sector of aluminum products, will expand its production capacity in Shumen, in norteastern Bulgaria, with two separate investments worth a total of BGN 437 million. The more ambitious of the two, worth BGN 300 million, calls for the installation of a new hot rolling line, which will allow the plant to expand its product range and enter new sectors like aircraft construction. The second investment project, valued at BGN 137 million, is to be completed in the next three years. It involves expansion of the rolling and press capacities, as well as modernization and improvement of the efficiency of the foundries.
10. New furnaces
Sector: Glass industry Company: Rubin Trading Location: PlevenPleven-based glass plant Rubin is implementing a three-stage project for modernization and expansion of its production facilities worth BGN 210 million. The first two stages have already been completed with the construction of two new furnaces with a capacity of 450 tons per day. The construction of a third furnace is underway using German technology. Its construction is expected to complete in the middle of this year to add a further 300 tons of glass every 24 hours. A fourth furnace is also in the works, which would increase total investment in the project to BGN 400 million.
11. Doubling volume
Sector: Food industry Company: Malteries Soufflet Bulgarie Location: PlevenFrench-owned Malteries Soufflet Bulgarie began the long-delayed expansion of its malt production plant in Pleven. Valued at 60 million euro, the new plant will have an output capacity of 60,000 tons per year and will be completed in 2024. It will replace Malteries Soufflet's two existing production sites in Bulgaria - in Pleven and Haskovo, doubling their current combined output of 30,000 tons.
12. Bruschette Maretti
Sector: Food industry Company: Ficosota Food Location: ShumenA new automated plant for baking bruschette chips will be constructed by Bulgarian-owned Ficosota Food with an investment of 30 million euro. New furnaces, a logistics center for ready products, a storage facility for raw materials and an office building will be developed over an area of 15,000 sq. m. in Shumen, northeastern Bulgaria. The investment comes two years after a factory for My Motto wafers was built and is focused on production of Ficosota's Bruschette Maretti brand. The new plant is expected to start operations in 2025, increasing bruschette production two to three times, with annual turnover expected to grow to BGN 400 million.
13. E-mobility
Sector: Automotive industry Company: GG Cables and Wires Bulgaria Location: RuseAn entirely new investment project in the ranking is a cable and wire plant of Austria's Gebauer & Griller (GG) Kabelwerke Gesellschaft in Ruse, currently under construction. The project will be developed in several stages, the first of which is the construction of a plant on 13,000 sq. m. that will create 100 new jobs. At first, the company plans to focus on the production of high voltage cable harnesses for electric vehicles (Evs) of renowned European car manufacturers. Pre-series production is expected to begin this summer, whereas serial production is to start in 2025.
14. Fifth factory
Sector: Appliances Company: Tesy Location: ShumenBulgarian-owned manufacturer of household heating appliances Tesy is investing BGN 50 million in the construction of a new plant for thermodynamic boilers, which will become its fifth production facility. The new factory will spread on an area of over 11,500 sq. m., with 9,000 sq. m. designated for manufacturing operations. The two main halls built have automated lines for water containers for thermodynamic and electric boilers, as well as for final assembly of heat pump units and thermodynamic boilers. The expansion will allow the company to reach a capacity of over 200,000 thermodynamic water heaters per year.
15. Doubling capacity
Sector: Automotive parts Company: Witte Automotive Location: RuseNew workplaces: 300
German producer of automotive locking systems Witte Automotive began the construction of its third factory in Ruse with an investment of 25 million euro, which is expected to be completed in the middle of 2024. The additional space will allow the company to double its assembling capacity and manufacture high technology products like locking mechanisms and chamber modules. The new factory will also double the company's sales capacity to 400 million euro per year.
There is a notable development when it comes to new investments in Bulgaria announced in 2023. Unlike previous years, when most of the investments were concentrated in the southern part of the country, now they are evenly distributed on both sides of the Balkan range. Plovdiv is losing its dominant position, competing with cities like Shumen, Ruse and Pleven, each of which has two announced investments.
One of the goals of Bulgaria's EU-backed Recovery and Resilience Plan is to fund construction of new industrial parks and infrastructure outside of the country's better developed southern half, in order to create equal distribution of production facilities across its territory. To attract foreign investors, however, Bulgaria will need to offer them a better business climate.
