The large investments companies make have a chain-reaction effect on their suppliers, which also often grow. Earlier this year Aurubis Bulgaria, part of German copper producer Aurubis, launched its largest program to date-totaling 400 million euro by the end of 2027-and Air Liquide, which produces industrial gases for the copper smelting plant of Aurubis in the town of Pirdop, has also recently announced a large-scale investment project.
Over the next three years, the French group will put a total of 100 million euro into Bulgaria and Germany, with the majority of the funds to be directed towards the site in Pirdop. This will increase the production capacity of Air Liquide Bulgaria by around 10%, allowing it to expand its market in the country and the region, where it also serves hundreds of other smaller customers.
New unit in Pirdop
The investment of 100 million euro will be made at Aurubis's sites in Bulgaria and Germany, where Air Liquide has air separation units (ASUs) for the production of gases such as oxygen, nitrogen and argon. The project follows the renewal of the contracts with the main customer and the planned expansion of the copper refinery in Pirdop. The investment will also support the development of sales to smaller customers (the so-called industrial merchant markets) in both regions, the French company said.
The company did not specify how exactly the investment will be distributed but according to the managing director of Air Liquide Bulgaria, Jan Tremmer, the majority of the funds will be directed to Bulgaria, where an entirely new facility will be built.
"In Pirdop, we have been present since 1999, when we took over the existing air separation units. Now, 25 years later, we are replacing them with a new unit and extending our scope there," Tremmer told the Capital Weekly, adding that overall capacity will increase by 10%.
The investment will allow the company to increase the production of oxygen and nitrogen for Aurubis and other customers, as well as argon for industrial merchant markets in Europe. According to Tremmer, this will be the largest technical gas installation in this country and the biggest producer of argon.
"We will cover the Bulgarian market, but we will also sell to neighboring countries such as Romania and Turkey," he said. The company is currently exporting to these countries, as well as selling some quantities in Greece.
The new unit is expected to start operating by 2027. "This state-of-the-art new ASU will consume 7% less electricity than the ASUs it will replace. Aurubis and Air Liquide will work together so that part of the energy needed to run the site will be of renewable origin. This has the potential to save substantial CO2 emissions every year", the French group said in a press release.
In Germany, Air Liquide will not build a new facility but will upgrade the existing four units at Aurubis's site in Hamburg. Therefore the investment there will be smaller. These units supply the metallurgical plant with oxygen and nitrogen for the production of copper and also serve the industrial merchant and healthcare markets in northern Germany. The entire investment will be financed from the group's own funds.
Air Liquide in Bulgaria
In Bulgaria, Air Liquide operates three ASUs: in Pirdop and the cities of Pernik and Targovishte, which are home to large production facilities. The company also works with hundreds of smaller customers, selling them industrial gases in canisters. There is also a big facility for production of oxygen in Pernik, which supplies hospitals.
The production process itself does not require much labor force, as the units are managed from control rooms. Following the expansion in Pirdop, no additional operators will be needed either. Currently the company employs around 100 people. However, with the expansion of the merchant market, more salespeople will be needed, so this staff will gradually increase.
Air Liquide's financial results largely depend on the price of electricity. It represents a major production cost and it is coupled to the sales price. Most of the revenue comes from large customers. In 2022 the company reported over 40% growth in revenue, which reached 103.2 million levs (51.6 million euro), while last year there was a slight decline to 96 million levs. "Usually, when we have a sales increase, it is coupled to energy. It is our main 'ingredient' that goes into our costs," Tremmer explained. Net profit in 2023 grew to 11 million levs from 7.6 million levs the previous year.
The company sees its future in Bulgaria in strengthening its position in the industrial merchant market, which will become a priority. "It is a market we want to grow further. The project is a milestone for us and we know we can build on it with other smaller investments," Tremmer noted.
The large investments companies make have a chain-reaction effect on their suppliers, which also often grow. Earlier this year Aurubis Bulgaria, part of German copper producer Aurubis, launched its largest program to date-totaling 400 million euro by the end of 2027-and Air Liquide, which produces industrial gases for the copper smelting plant of Aurubis in the town of Pirdop, has also recently announced a large-scale investment project.
Over the next three years, the French group will put a total of 100 million euro into Bulgaria and Germany, with the majority of the funds to be directed towards the site in Pirdop. This will increase the production capacity of Air Liquide Bulgaria by around 10%, allowing it to expand its market in the country and the region, where it also serves hundreds of other smaller customers.
