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Chemistry

Basic facts

 

History

Bulgaria was a top-ranking country in the manufacture of chemicals and chemical products in the Eastern Block.

1901 – One of the first foreign investments in the country – a shoe polish factory in Ruse – now Orgachim
1954 – The soda ash factory in Devnya was built, now the biggest facility of Solvay Group in Europe

1963 – The petrochemical complex was opened in Burgas – now Lukoil – Neftochim - Burgas

1966 – The pulp and rayon combine Svilosa was opened in Svishtov, built with the latest state-of-the-art technologies.

 

In the early 1990ies the country exported over 180 chemical products to more than 80 countries and is among the market leaders for soda ash and nitrogen and phosphorus fertilizers, among others.

 

1966-1970 – "Five Years of Chemistry and Organic Synthesis" : oil refinery capacities more than doubled and production increased over four times.

After 1989, the Bulgarian economy welcomed many foreign investors which led to the modernization of technical and production facilities.

1997 – Solvay, Belgium bought  60% of the soda factory in Devnya. Today, this is Europe’s biggest soda ash factory in Europe.

 

1999 – Lukoil acquired 58% in Neftochim – Burgas which remains the biggest oil refinery on the Balkans.



1997, 1998, 2004 – Holcim, Titan, Italcementi Group modernized cement factories

 

1998, 1999, 2001 – Henkel, Knauf, Saint Gobain entered the production of construction materials with large capacities.



1999 – The US Acid & Fertilizers bought the majority share in Agropolychim. Today, the company exports phosphorus and nitrogen fertilizers to five continents.

2005 – The Turkish Şişecam Group built a new glass factory near Targovishte. By 2010, Şişecam increased its factories to four, manufacturing products that are unique to the region

2014 - "Devnya Cement" JSC (part of Italcementi Group) completed its project "Reconstruction and modernization of the plant for production of clinker and cement" in it's factory. The construction started on 10.04.2012 and on 10.12.2014 was given the start of the manufacturing process of the new facilities

Basic facts

  • The sector of manufacture of chemicals and chemical products covers about 4.5% of industrial production in the country and create more than 4.7% of value added in industry
  • The index of industrial production and turnover of this sector in 2013 was decreased by 5.4 and the turnover of this sector increased by 9.3%. Production of enterprises in the sector totaled 2.15 billion. Leva
  • In 2013 the turnover of foreign markets to the production of chemical products amounted to 1.09 billion. Leva. In the domestic market the sector realized production of 1.42 billion. Leva. In 2013, in the sector the producer prices rose by 1.2%.

 

Exports

Exports of chemical products, (mln. Euros)

 

Source: NSI

 

Bulgaria’s favorable geographic location and competitive production are essential for the exports of chemical and related industries products to all leading global markets.

 

Companies

 

In Bulgaria, there are not only big multinational companies, but also local.


Major companies in selected subsectors


Capital,

(€ mln)

Employees

Location

Chemicals and chemical products

Sopharma JSC

67.4

1987

Sofia

Agropolychim JSC

51.1

617

Devnia

Polimeri Invest JSC

27.5

n/a

Devnia

Tchaika Pharm - High-Quality Drugs JSC

22.2

117

Sofia

Air Liquide Bulgaria SPLTD

20.6

74

Pirdop

Rubber and plastic products

Guala Closures Bulgaria JSC

5.3

n/a

Kazanluk

GRIPPA JSC

4.6

62

Botevgrad

Austroterm Bulgaria SPLTD

4.3

39

Sofia

Asenova Krepost JSC

3.9

721

Asenovgrad

Fibran Bulgaria JSC

3.5

61

Sofia

Non-metallic mineral products

Trakya Glass Bulgaria SPJSC

76.6

1759

Targovishte

Knauf Bulgaria SPLTD

48.9

191

Sofia

Drujba Glassworks JSC

27.3

702

Sofia

Rubin Invest SPJSC

21.5

n/a

Sofia

Zlatna Panega Cement JSC

16.4

280

Zlatna Panega

Source: www.beis.bia-bg.com


Turnover

 

Emplooyees

  • Industry as a whole resisters turnover at  €2.81 billion and employment at 85 000
  • Non-mineral products account for the highest share, with turnover at €1.13 billion
  • Total turnover of Manufacture of Paper and Paper Products stands at €0.32 billion and employment in the subsector stands at 10 200
  • Turnover in Manufacture of Rubber and Plastic Products stands at €0.79 billion

 

Distribution of turnover, (€ mln)

Source: Amadeus

 

Raw material

 

Bulgaria offers quality fields of many raw materials.

Mirovo Salt Body near Provadia and the limestone quarry supply the well-developed soda ash production which is both a national and a regional leader.

 

Bulgaria is rich in water resources. As rivers are spread uniformly across the country and the coastline along the Black Sea is long and easily accessible, the country boasts high levels of renewable water resources.

 

 

Renewable water resources, (Cubic meters per inhabitant)

Quality clay is among the major mineral resources of the country, for which testify the Bulgarian traditions in brick-making. The country features a couple of mega fields like those near town of Lukovit, the village of Propast and the town of Kardzhali.

 

Raw material near production complexes:

  • There are well established chains and networks between companies for supply of materials and services
  • The infrastructure is also well developed - gas transmission networks connect suppliers, an ethylene pipeline is constructed

Provadia – Salt; Burgas - Oil, gas; Sofia - Industrial gases; Glass – ŞişecamTargovishte Devnya - Soda ash; Kaolinovo – Feldspar, Quartz sand, Dolomite, Limestone; Aksakovo; Asenovgrad - Big bags; Pirdop - Sulfuric acid; Agropolychim Devnya – Fertilizers; Phosphates - Morocco, Tunisia, Egypt, Syria

 

Costs

 

Electricity and gas prices in Bulgaria are among Europe’s lowest, contributing significantly to lower production costs.

  • Bulgaria offers EU – lowest corporate tax
  • Zero tax rate for companies in regions of high unemployment

 

Natural gas (€/GJ), 2013

 

Source: Eurostat

 

Price for electricity (€/kWh), 2013

 

Source: Eurostat

 

Competitive prices and availability of real estates and industrial terrains.

 

Rental price of industrial terrains, Q2 2011, (€/m2/month)