Septonа Bulgaria expands amid growing demand
Greek hygiene product manufacturer Septona Bulgaria is pouring 20 million euro into expanding its Ruse plant, aiming to complete the first phase by summer 2025. The investment springs from a boost in demand for hygiene products in the wake of the COVID-19 pandemic.
The project includes a new 5,000-square-meter production building, a 1,000-square-meter warehouse, and increased automation. Septonа's expansion is expected to add 50 employees in the first phase, with up to 100 more in the next two years. As 75% of Septonа's exports are already directed to Europe, this expansion supports the company's strategic growth across international markets.
Bird flu outbreak to cause significant losses for Gradus
Bulgarian poultry producer Gradus reported a bird flu outbreak at its Bolyarsko facility, which will substantially impact the company's finances, with estimated losses of at least 25 million levs.
Operated by its subsidiary Millennium 2000, this facility houses over 350,000 breeding birds, raising significant concerns for future revenue and operational stability. In efforts to contain the outbreak, the Bulgarian Food Safety Agency has ordered humane culling measures and established a 3-kilometer quarantine zone around the site to contain the outbreak.
Despite previous incidences of avian flu in meat production birds, this outbreak involves breeding birds, leading to unpredictable impacts on future earnings. While Gradus will receive partial state compensation, lost profit remains uncovered, and financial challenges are expected despite recent substantial investment initiatives in energy efficiency and farm upgrades. Shares of Gradus fell 20% following the announcement.
Majority stake acquired in Yettel Bulgaria
Abu Dhabi-based telecom company e& has become the majority shareholder in Bulgaria's Yettel mobile operator and network company CETIN.
This follows the sale by previous sole owner, Czech group PPF, which transferred 50% plus one share of its telecom businesses in Bulgaria, Hungary, Serbia, and Slovakia. The transaction, valued at 2.15 billion euro with a potential additional payment of up to 350 million euro, was completed after approvals from EU and national regulators, marking the first acquisition under the EU's new Foreign Subsidies Regulation (FSR).
This regulation aims to monitor foreign state-supported investments in the EU market. The deal has positioned the Bulgarian entities at an estimated value exceeding 1.5 billion euro, making it the country's largest transaction of the year.
Septonа Bulgaria expands amid growing demand
Greek hygiene product manufacturer Septona Bulgaria is pouring 20 million euro into expanding its Ruse plant, aiming to complete the first phase by summer 2025. The investment springs from a boost in demand for hygiene products in the wake of the COVID-19 pandemic.
