Turkey's Sisecam, which became the largest greenfield investor in Bulgaria 20 years ago by building a glass factory in the city of Targovishte, continues to expand its production facilities in this country. Its latest project is for a second glass coating line worth $30 million (55 million levs), expected to be completed next year. Thus the group's total investment in Bulgaria will reach $925 million.
The facility will be operated by Trakia Glass Bulgaria, the largest of Sisecam's three manufacturing companies in the country with a turnover of over 446 million levs (228 million euro) in 2022. Similar projects will be implemented by the group in two more countries, nearly doubling its capacity for coated glass (used in buildings due to its thermal insulation properties) and expanding its portfolio. The decision is strategic and aims to meet the increasing demand for specialized products.
Advanced products
The new line in Targovishte will have a capacity of 6 million sq. m. annually and will be the second line for coated glass in the factory. The first one was launched in 2013 and produces both standard coated glass for residential buildings and tempered glass, which has higher added value and is used for commercial buildings.
"Our new coating line represents a strategic expansion to complement these existing operations. This capacity increase will provide us flexibility, allow us to more consistently produce sophisticated, temperable coated glass products designed for commercial applications through our first line," Ahmet Kirman, chairman and executive member of Sisecam's board of directors, told the Capital Weekly.
The company's goal is to focus on developing specialized products such as heatable athermic glass which has defrost and solar control function, bird-friendly glass to prevent avian collisions, and glass products engineered for energy efficiency and optimal light transmittance coupled with maximum thermal efficiency.
"The new line affords us greater flexibility for R&D studies. It opens up avenues to trial new technologies and coatings that could revolutionize the way we think about glass in both residential and commercial spaces," Kirman added. In his words, the step is crucial for the group to stay at the forefront of the industry, continually innovating and providing customers with products that meet their evolving needs.
Part of a larger package
The decision for the investment was made by Sisecam's board of directors in early March and is part of a larger package totaling $114 million, which includes the construction of new lines in two more Sisecam factories - in Turkey and Italy, bringing the total to 7 such lines. The three new projects will increase the capacity for coated glass production by nearly 20 million sq. m. to 42 million sq. m.
"With these investments, Sisecam aims to meet the growing demand for coated glass in the sector," the company said. The investments are expected to increase its competitiveness by making production more efficient and diversifying the product range. The goal is also to increase the share of higher value-added products in the group's output.
Sisecam in Bulgaria
Although it is best known for its glass factories in Targovishte, in northeastern Bulgaria, Sisecam's first investment in the country was in another segment of its business: chemical production. In 1997, the group became a minority partner of Belgium's Solvay, which privatized the soda ash plant in Devnya, also in northeastern Bulgaria (now Solvay Sodi). Currently Sisecam holds 25% of the company's shares. Also in 1997, the Turkish group registered Sisecam Bulgaria, which deals with soda ash trade.
The major investments in production began in 2004, when the company announced plans to build a glass factory in Targovishte, becoming the first (and until recently, the only) certified priority investor in the country. Activity was initially carried out by Trakia Glass Bulgaria, before the business was divided into three companies in 2015. Operation started in 2005 with the production of household glass (today Pasabahce Bulgaria). Flat glass production (Trakia Glass Bulgaria) began in 2006 and was the first such line of the group in the Balkans. The third major project is the automotive glass plant, Sisecam Automotive Bulgaria, which started operating in 2010.
According to the latest available reports, the combined turnover of the three Bulgarian companies reached nearly 900 million levs in 2022. Over 2,700 people are employed in them, making Sisecam the largest employer in the Targovishte Region.
Turkey's Sisecam, which became the largest greenfield investor in Bulgaria 20 years ago by building a glass factory in the city of Targovishte, continues to expand its production facilities in this country. Its latest project is for a second glass coating line worth $30 million (55 million levs), expected to be completed next year. Thus the group's total investment in Bulgaria will reach $925 million.
The facility will be operated by Trakia Glass Bulgaria, the largest of Sisecam's three manufacturing companies in the country with a turnover of over 446 million levs (228 million euro) in 2022. Similar projects will be implemented by the group in two more countries, nearly doubling its capacity for coated glass (used in buildings due to its thermal insulation properties) and expanding its portfolio. The decision is strategic and aims to meet the increasing demand for specialized products.