Machine buildings Electrical engineering and electronics Food industry and agriculture Light and heavy chemistry and related industries

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1 Machine buildings Electrical engineering and electronics Food industry and agriculture Light and heavy chemistry and related industries Anelia Baklova, Victoria Director Angelova, Marketing, IBA IBA

2 Organic Chemicals Page 2

3 Chemistry, petrochemistry, pharmaceuticals Construction materials Ceramics, sanitary ware Plastic, rubber and glass ware F o o d Page 3

4 Sofia University St. Kliment Ohridski University of Chemical Technology and Metallurgy Sofia Different courses of chemistry offers Technical University of Varna, Prof. Assen Zlatarov University in Burgas, Plovdiv University Paisii Hilendarski, as well as several vocational secondary school.

5 Page 5 13% 3.12 bn FDI growth 134 % 65 mln people 1500 companies 35% 1% 2% 3% 4% 5% 5% 5% 6% 11% 10% Engines and Parts for engines Refrigerators, freezers Armature items Parts for lifting machines and loaders Ball, roller and needle bearings Liquid pumps Air-conditioning and purifying machines Agriculture machines Automatic machines Calculating devices Printing machines Others

6 , 730 factories, employed, 30% 11% 1987, forklifts, units, 20% of the world production 10% Nowadays - cars, vehicles and auto-components; home appliances and 5% machines for the food industry; Hydraulics; Foundry production; Weapons; etc. Research Institute of Mechanical Engineering /1970/

7 Page 7 Bulgaria is positioned in the center of the emerging automotive cluster of CEE. In 1970 s in Bulgaria were produced brands Moskvich, FIAT 850, FIAT 124 and Renault 8 and % Currently the country accommodate the only European factory for Chinese automobiles opened in 2012 There are five technical universities in the cities of Sofia, Plovdiv, Gabrovo, Rousse and Varna 5% The Transport and logistics cluster in Bulgaria combines all modes of transport: Land (Road and Rail), Air and Water (Sea and River) In the last 10 years several auto components producers like EPIQ, Yazaki, Montupet, Johnson Controls, IMI, SE Bordnetze, Grammer, William Hughes, Arkomat Turkey, Magna Powertrain and others started production in Bulgaria More than nationals are employed in Bulgarian automotive sector. 13%

8 Automotive part manufacturers can reach most of the European car makers within 96 hours drive Page 8

9 Ruse Pleven Varna Sofia Burgas Plovdiv

10 Main supplier of the engine heads for Audi Q series The biggest producer of wire harnesses in the world has 3 production plants in Bulgaria, employing more than 3000 people Among the few Tier 1 suppliers that deliver directly to the BMW headquarter in Dingolfing, Germany One of the biggest producers of hydraulic and vacuum pumps in the world, whose second largest factory is located in Bulgaria. It was recently acquired by Magna Powertrain Bulgaria is Europe's number one producer of windscreens for cars thanks to the factory of Trakya Glass, part of the Sisecam Group The only European factory for Chinese automobiles opened in Bulgaria in 2012.The plant is awarded for 2 consecutive years as the best foreign entity of Great Wall

11 Harmonization with EU law Full range of safeguards and security standards of manufactured products 11% Licensing procedures were introduced with respect to the following activities: - licensing of persons to carry out technical supervision of high-risk equipment - issuance of permits for conformity assessment of products with the essential 10% requirements - authorization for carrying out of conformity assessment of construction products and issuance of European technical approvals Supervisory 5% authority for the issuing and monitoring of licenses and permits is the State Agency for Metrological and Technical Surveillance Registration of farming and forestry equipment and excavation machines competent authority Supervisory and Technical Inspectorate with the Ministry of Agriculture and Food

12 6% 1.5 bn 3.5 times 75% export University students people companies

13 11% of the university students are enrolled in related specialties Flexible universities and schools open for joint programs with the business More than students in relevant university specialties More than students in relevant professional school specialties 6% Students enrolled in relevant specialties in: Professional Schools Technical University

14 Fully liberalized legal framework in order to ensure free 5% 11% movement of goods and services Bulgarian legislation is aligned with EU technical legislation 10% Procedure for evaluation of conformity of radio facilities and terminal electronic communication devices Issuing a license for production of optic discs or moulds for their production 1 month

15 Page 15 Export of food and agricultural products Sunflower seeds 14.7% Wheat and meslin 12.7% 6.6% 5.7% 4.6% 4.1% 4.0% 3.9% 3.3% 2.8% 2.0% 1.9% 1.6% Rape or colza seeds Maize Cigars and cigarettes Unprocessed tobacco Meat and offal Bread and bakery products Sunflower oil Sugar Barley Cheese and curd Fruit incl. preserved

16 Fertile soil and very good climatic conditions Long traditions in grain production, fruit-growing, vegetable production and animal breeding High-quality food with excellent taste with a good image in the EU, Russia and the Arab world Excellent opportunities for development of organic production, due to the lack of pollution a developed Natura 2000 national ecological network Qualified agricultural specialists Subsidies from the European agricultural funds

17 Agricultural land Forests The fish resources and aquaculture Over 600 Mineral Water springs

18 consolidation of farms and of cultivated lands modernization of farms and meeting EU standards for food and feed safety protecting the environment components phytosanitary requirements animal welfare and others renovation of machinery introduction of new technologies attracting investment in the sector of agriculture and in the processing industry

19 " Rose and lavander oil Lactobacillus Bulgaricus Fruits and vegetables Grain/wheat Honey Fish resources Organic agriculture Meat and dairy products Herbs and medicinal plants

20 11% Trade in food products the procedure takes about 2 months, competent authority Bulgarian Food 10% Safety Agency Registration of farmers competent authority is The Regional Directorate "Agriculture and Forests State aids in the agriculture and forestry sectors 5% competent authority is The State Fund Agriculture Since 2014 EU citizens have the right to acquire agricultural land and forest land Granting concession of state-owned property Purchase or long-term lease of consolidated lands of private agricultural lands

21 A key principle is equal treatment and equal access The procedure for company registration takes 1 DAY. The capital of a limited liability company is 2 BGN. A commercial legal entity, who has the right to perform commercial activity under their national law, may register a branch. Companies for joint activities on the production and processing of agricultural production Equity participation in new agricultural projects Purchase of whole enterprises and companies from the agricultural sector and the processing industry

22 InvestBulgaria Agency Sofia 1000, 31 Aksakov Str. Phone: (+359 2) Fax: (+359 2) Web: