A favorable geographical location, European Union membership and, as of this year, inclusion in the Schengen area. When some economic factors are added into the mix, that makes Bulgaria an excellent opportunity for entering the Balkan and European markets. At least that is what the Asian corrugated packaging manufacturer Tri-Wall Group believes, as it recently announced a 70 million levs (35 million euro) investment to build a new factory near the city of Plovdiv. Construction is expected to begin this spring and be completed by mid-next year, creating between 250 and 300 new jobs in the region.
The project
The group is based in Hong Kong but its largest division operates in Japan. The management team in Bulgaria comes from Tri-Wall Turkey. The local subsidiary, Tri-Wall Bulgaria, was registered in mid-2023 and in September last year its capital was increased to 22.5 million levs. The company also acquired a 5.6 ha plot in the Trakia Economic Zone near Plovdiv.
The factory is currently in the design phase and is expected to cover approximately 3 ha, including production and warehouse facilities. About half of the total investment - 35 million levs - will go towards construction, which should be completed by June 2026. The remaining funds will be allocated for machinery and equipment, to be supplied by European and Asian companies. Full production capacity is projected to be reached by 2032.
The building will be energy-efficient, with plans to add a rooftop photovoltaic array in the future to partially meet the factory's power needs.
"Our calculations indicate that the plant will require about 2 MW of energy, but that's a project for a later stage," Cihangir Erol, one of the managers at Tri-Wall Bulgaria and plant manager at Tri-Wall Turkey, told the Capital Weekly.
The Tri-Wall Group manufactures triple-wall corrugated packaging designed to protect large, heavy and delicate products during transportation.
"People often think of us just as a box manufacturer, but that's not accurate. We are a packaging company, handling everything from design and processing to manufacturing and packaging. We also provide logistics services for our clients," Erol explained.
The Plovdiv plant will produce finished packaging for European clients, as well as corrugated board which will be shipped to Turkey to support Tri-Wall's operations there. Raw materials will primarily come from international companies, including U.S.-based International Paper and Sweden's Svenska Cellulosa Aktiebolaget. A change in plans
The new production facility was originally planned for Turkey, where the group has been operating since 2014, running four factories and hosting its largest production and distribution hub in the region. However, due to economic conditions in Turkey, the investment was redirected to Bulgaria.
"The market in Turkey changed significantly after COVID. The pandemic led to a boom in online shopping, increasing demand for packaging. This resulted in many new companies entering the market. However, as online shopping levels normalized, the need for packaging declined. We were left with a shrinking market, high inflation, and intense competition in Turkey," Erol said.
This prompted Erol and his team to explore alternative locations for expansion, ultimately choosing Plovdiv as the best entry point for the Balkan market, which is the main goal of the investment. "This way, from the very start we secure a customer - our Turkish factories, reducing reliance on external suppliers and strengthening our position in the highly competitive Turkish market. However, our business relationship will be structured as a client-supplier dynamic, meaning the Turkish plants will be treated as independent customers, despite being part of the same international structure," Erol emphasized.
He also expects interest from other regional and European clients, further expanding the factory's potential customer base.
A favorable geographical location, European Union membership and, as of this year, inclusion in the Schengen area. When some economic factors are added into the mix, that makes Bulgaria an excellent opportunity for entering the Balkan and European markets. At least that is what the Asian corrugated packaging manufacturer Tri-Wall Group believes, as it recently announced a 70 million levs (35 million euro) investment to build a new factory near the city of Plovdiv. Construction is expected to begin this spring and be completed by mid-next year, creating between 250 and 300 new jobs in the region.
