For a B2B company, a weak economy and reduced investments would typically have a negative impact. However, engineering firm Oscar-El, which operates in the field of electrical control and process automation, has no such problem. Besides having a well-diversified business - it operates globally and serves various sectors - the large new projects of its clients have made its production facilities insufficient. That is why Oscar-El, based in the town of Bozhurishte near Sofia, recently began the construction of a third production hall, which will increase its capacity by at least 40%. Plans for further expansion are already underway.
Continued expansion
The company was founded as a sole proprietorship in 1992 by Elena Mincheva and initially specialized in automating metal-cutting machines and technological processes in mechanical engineering. By 2000, when it was re-registered as a limited liability company, Oscar-El already employed 40 people.
In 2010 the company built its own manufacturing facilities in Bozhurishte, opening the door to much larger projects. "We realized that, in addition to engineering services, the facilities you own are crucial. Because of this major companies approached us and we started working for them," Mincheva says. These clients include Bulgaria's Kozloduy nuclear power plant, Schneider Electric's factory in Regensburg (Germany) and Honeywell, for which Oscar-El has carried out numerous projects over the years.
In 2017 the company expanded its building with a second production hall, practically doubling its space. "We moved into the new hall and began working for Westinghouse Bulgaria," Mincheva, who owns and manages the company, explains. A specialized FAT (Factory Acceptance Test) hall was also built to test projects.
Primarily export-oriented
The company offers services including the design and production of electrical panels, component integration and testing in a FAT hall that maintains a specific climate (temperature, humidity etc.) and has three types of power supply (UPS, diesel generator and main power) to ensure uninterrupted voltage. It also performs programming for technological processes and develops SCADA systems.
Its clients span industries such as oil extraction, nuclear energy, metallurgy, mechanical engineering, water treatment, green energy, food processing and more. Approximately 70% of its output is for export. "However, these are direct exports," co-manager Borislav Milev clarifies. "For instance, we work with Honeywell Bulgaria but the panels are ultimately destined for abroad. So 80 to 85% of our output is for international markets," he adds.
Further expansion
Last year it became evident that additional expansion was necessary. "I started calculating how many projects were awaiting us and it turned out they were much more than our current production facilities could handle," Mincheva explains.
This led to the decision for the expansion. The new hall will have a built-up area of approximately 1,500 sq. m. The company currently has 4,600 sq. m of production space and about 1,200 sq. m of office space. Construction is already underway and is expected to be completed by May next year. The investment, including machinery, will total around 4 million levs (2 million euro).
Solar panels will be installed on the new building such as those on the existing one. These panels currently cover between one-third and two-thirds of the company's annual energy consumption, depending on the use of the energy-intensive FAT hall. "We are also considering batteries to store the energy," Milev adds.
The company is already preparing for its next expansion. "In two years, if necessary, we'll build a fourth hall. We have the space - the plot is about 19,000 sq. m - and it's planned," Mincheva says. The reason is that Oscar-El expects to begin work for Kozloduy NPP, as it is one of the few companies that have signed a partnership memorandum with Westinghouse, the contractor for the new 7th and 8th reactors. The two companies have previously collaborated on modernizing control systems in nuclear power plants, not only in Bulgaria.
Thanks to its major clients and large-scale projects Oscar-El's sales grew by 20% last year to 20.6 million levs, boosting its profit to just over 1 million levs from 354,000 levs in 2022. Although inflation contributed slightly to the growth, the main driver was sales volume, according to Milev. Revenues are expected to increase again this year. The company employs about 110 people, 36% of whom are engineers.
For a B2B company, a weak economy and reduced investments would typically have a negative impact. However, engineering firm Oscar-El, which operates in the field of electrical control and process automation, has no such problem. Besides having a well-diversified business - it operates globally and serves various sectors - the large new projects of its clients have made its production facilities insufficient. That is why Oscar-El, based in the town of Bozhurishte near Sofia, recently began the construction of a third production hall, which will increase its capacity by at least 40%. Plans for further expansion are already underway.
