Podemcrane: from electric hoists for Comecon to global markets

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Podemcrane: from electric hoists for Comecon to global markets

After a long privatization process in the 1990s, the Gabrovo-based company today manufactures industrial cranes and components worth 50 million levs

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© Podemcrane


In the 1990s, many state-owned enterprises in Bulgaria were privatized quickly and then even more quickly shut down. The story of Podemcrane - the former Podem factory in the city of Gabrovo - unfolded in a different direction. Established in 1961 to manufacture standard electric wire rope hoists for the economic union of the former Eastern Bloc, the company found itself in a new reality after the fall of communism. Several years of uncertainty about its future were followed by a long and painful privatization in parts and a series of structural transformations, which only finished in 2002. With new private owners and under a new name, the company began expanding its product line and seeking markets to replace those of the former Comecon countries. Today, two decades later, Podemcrane sells in more than 50 countries and its turnover exceeds 50 million levs (25 million euro) a year.

Products and markets

The company operates in two main business areas: production of industrial cranes and crane components. The first division includes both standard and non-standard solutions, while the second is focused on offering a complete base of components to independent crane manufacturers. "The two sectors are completely separate in terms of product offerings, each requiring its own structure because the customer bases are different," explains Georgi Stoimenov, chairman of the board of directors. His Uneeda Industries owns 85% of the company and the remaining 15% is held by Georgi Petrov as an individual. "Industrial cranes are offered only in the countries of Southeast Europe, while components are offered worldwide," adds Stoimenov. Last year the company sold components in 52 countries, with the main regions being Europe, North Africa, the Middle and Far East. After the company's revenue grew by nearly 17% to 44.3 million levs in 2022, preliminary data for last year show that turnover exceeded 50 million levs.

Overcoming crises

In recent years the industry worldwide has been affected by a series of crises that have also impacted Podemcrane. "The COVID pandemic in 2020 had a significant impact, mainly due to reduced consumption and the enormous logistic difficulties everyone faced then," says Stoimenov. The war in Ukraine led to the termination of the company's sales in Russia and a sharp rise in energy prices, resulting in high inflation. "Deciding by how much and when to raise product prices was strategic for companies and their development, including ours," Stoimenov comments. A key factor was the level of inventories that manufacturers managed to accumulate. "We had enough stock of certain materials to hold off on price increases for a longer period. This preserved our market positions and actually helped us achieve the growth we had," he adds.

New challenges

The current economic slowdown in Europe, where Podemcrane makes over 60% of its sales - mainly in Italy, Spain, Poland, the Czech Republic, Slovakia, Ukraine and the UK - also has an impact. "This year we feel a contraction of orders in Spain and France, not yet elsewhere, but there is a decline in orders in our industrial cranes division operating in Eastern Europe," says Stoimenov. The company is currently maintaining last year's sales levels but this is below its budget plan, which projects a 15-18% increase for 2024.

Podemcrane's business is directly linked to industrial development as a whole because the company's products are used in new manufacturing projects. "Deindustrialization, resulting from the Green Deal, also leads to some reorganization and the closure of enterprises. That is especially true for Germany, which is considered Europe's manufacturing hub, and the economic situation there clearly affects us," Stoimenov comments.

The plant employs 270 people, including salaried staff, but finding people is a problem
Photographer: Podemcrane

Feeling part of the world

Locally, the company's major problem is the shortage of workforce. Podemcrane currently employs about 270 people, including personnel from India and Nepal.

"The problem with personnel is extremely serious. We have a wide range of needed specialists - designers, technologists, salespeople, logisticians, workers, production managers - which does not make our lives easier. We make a product that is sold worldwide, and to remain competitive our people must be world-class, part of global thinking and development," says Stoimenov.

Therefore in recent years the company has attracted specialists from other leading companies in the sector worldwide. For example, it has two engineers from Spain, a specialist from Denmark working on a monthly consulting basis and another from Paraguay. "This helps us create a sense among our people that we are part of the world. And that is very important for retaining and developing them, especially the young ones," comments Stoimenov.

Further growth

In the coming years the company sees its development in several directions. One is the development of two new product groups, which is currently in its early stage. There is potential for growth in offering basic products in more distant markets such as the Far East, the USA and South America, where Podemcrane already has sales but they are sporadic. "To become a systematic supplier in these areas we need a different structure, which does not correspond to our current stage of development - we need to become a bit bigger," Stoimenov says. The company also plans to expand the territorial offering of complete crane systems beyond Southeast Europe. According to Stoimenov, all three initiatives could be facilitated by some acquisition opportunities that Podemcrane is considering.

In the 1990s, many state-owned enterprises in Bulgaria were privatized quickly and then even more quickly shut down. The story of Podemcrane - the former Podem factory in the city of Gabrovo - unfolded in a different direction. Established in 1961 to manufacture standard electric wire rope hoists for the economic union of the former Eastern Bloc, the company found itself in a new reality after the fall of communism. Several years of uncertainty about its future were followed by a long and painful privatization in parts and a series of structural transformations, which only finished in 2002. With new private owners and under a new name, the company began expanding its product line and seeking markets to replace those of the former Comecon countries. Today, two decades later, Podemcrane sells in more than 50 countries and its turnover exceeds 50 million levs (25 million euro) a year.

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