Food, Chemical Industries - Most Popular Among Investors in Haskovo Region

By Maria Andonova

Most of the industrial enterprises in the Haskovo region are located in the municipalities of Haskovo and Dimitrovgrad. The population of the other eleven municipalities except for Svilengrad is occupied particularly in agriculture. The region's GDP per capita totalled 2,396 Bulgarian levs in 2000, which is close to the average level for the country. Pan European transport corridors number 4, 8, 9, 10 pass through the region' territory. Haskovo region attracted $41.64 mln in foreign investment in the period between 1992 and 2001, which places the region in 14th place in terms of foreign investment among the other regions of the country. Belgian brewery Interbrew and American tobacco purchasing company Daimon Bulgaria (as given by the source) are the biggest foreign investors in the region. The unemployment rate in the Haskovo region stood at 15.71 pct in end-2001, which is below the average 17.32 pct for the country. The unemployment rate in Simeonovgrad municipality is the highest in the region and stands at 24.34 pct. Madjarovo municipality registered 10.13 pct unemployment rate in 2001. Agriculture is the main sector of the Haskovo economy. The local climate is favourable for the growing of various types of crops like wheat, tobacco, cotton, maize and sesame. The local climate and the proximity to the border determine the foremost importance for the region of the food and clothes making industries. The municipalities in the border region boast a lot of joint ventures in the clothes making and textile sector or companies operating with predominantly foreign capital. Interbrew, Daimon Bulgaria and Deroni are the main companies operating in the region's food industry. Interbrew moved the production of Burgasko Pivo beer in Haskovo after the Belgian brewery bought Haskovo-based Astika brewery. The U.S. Daimon Bulgaria buys and processes tobacco from the whole region and plans to construct a tobacco-processing factory in Haskovo. Along with the state-owned machine building plants Mlada Gvardiya and Rodina, a lot of private producers of equipment for the food industry like PIM and Donido operate in the region, Haskovo mayor, Georgi Ivanov, said. Erato Holding produces heating boilers and furniture. Textile producer Mir, which was privatised by a management employee buyout, exports production to Germany and France. Silk fabrics manufacturer Svila, which was also privatised by a management employee buyout, has ceased functioning. The former winery Vinprom Haskovo has been renamed to Chateau Aida and is renowned for its fine Merlot Sakar and Merlot Stambolovo wines. Canning factory Deroni, which exports production to Russia, is among the major processing companies in Haskovo. The personnel of most of the private companies in Haskovo do not exceed 50 people. A total of 52 pct of the small companies operate in the trade sector and another 16 pct function in the industrial sector. Industrial and trade companies accounted for 58.44 pct and 32.4 pct of the region's sales, respectively. Chemicals maker Neochim is the biggest industrial enterprise in the Dimitrovgrad municipality. Neochim was privatised in 2000 by a consortium between the Bulgarian Evrofert and Lebanese Karimex Chemicals International SAL. Neochim exports its production to Macedonia, Poland, Romania, Greece, Turkey, Yugoslavia, Italy, France, Spain, Jordan and Syria. Cement maker Vulkan in Dimitrovgrad was sold to Italian cement group Italcementi which bought French Ciments Francais in 1992. Italcementi also owns the cement plant in Devnya. The producer of heating, ventilation and air-conditioning equipment Klimateks, was sold off in the mass privatisation wave. Klimatex was sold to Stroiinvest Holding and provides employment to 85 people. Svilengrad economy is very much dependant on the proximity of the municipality to the Bulgarian-Turkish border. Svilengrad municipal authorities plan to shift the accent, now on trade, at the local duty free zone, over to production activities. The mining industry used to be the main sector for the Madjarovo municipality. Haskovo-based textile company Mir has opened a production unit in Madjarovo. The population of the Harmanli, Lyubimets, Ivailovgrad, Mineralni Bani, Simeonovgrad and Stambolovo is occupied mostly with agriculture. Ivailovgrad and Mineralni Bani have potential for the development of the tourist sector.

($=2.006 Bulgarian levs)