UP TO 4-5 YEARS, “LITEX MOTORS” WILL REACH FULL CAPACITY

GREAT WALL VEHICLES PRODUCED IN BULGARIA WILL BE AVAILABLE IN ITALY, CZECH REPUBLIC, AUSTRIA AND POLAND. The partner of Great Wall “Litex Motors” will produce 2,000 vehicles this year in the factory in the village Bahovitsa, Lovech. Next year, the production will be increased up to 5,000 vehicles and 15 thousand in 2015. Untill 2017 full capacity shall be reached – 50 000 cars on two shifts, was anounced during the second day of the International automotive conference. “The reason for the gradual increase and still working below the full capacity is the brand developing and the production in parallel. Great Wall is still entering in the new markets and the next year will cover the countries of our region, such as Romania, Greece and Serbia. We are already operating in Montenegro and Macedonia. Up to 4 years we will have a sales network in Italy, Czech Republic, Austria, Hungary, Poland, Slovenia and the region around Bulgaria.” said Anton Donchev, international director of “Litex Motors”. The plant in Bahovitsa works with Bulgarian suppliers and local staff. “Since the beginning we had the idea to use local suppliers and employees. All rechargeable batteries are Bulgarian; lubricating fluids are “Prista Oil” (also Bulgarian supplier). But after all that is final assembly, which limits us in choosing only local contractors.”,said Donchev. “Litex Motors” has held talks with 10 of more than 100 Chinese companies before launching negotiations with “Great Wall”. “We decided that “Great Wall” has the highest growth potential in Europe. Currently, this is the largest Chinese manufacturer of SUV cars and pickups. The production began in January 2012. This is the first factory which produces Chinese cars in the EU.Capacity is 50,000 cars a year in two shifts , but with the addition of a third shift it can reach 100 thousand units. At the moment the entering on the markets in Western Europe is not on the agenda and we have permission from the headquater to grow up to the Czech Republic.”, said Donchev. “Litex Motors” are very satisfied by the quality of production, which is controlled at the end of each zone. “Because of this we were awarded as the best Great Wall plant outside of China two following years and even some recognize us as better than the parent factories in China.” said Donchev. Within a few months the plant is going to start the production of Steed 5 pickup trucks and the SUV Hover 6. The company does not seek to offer the lowest price in the market but the best value for money, attractive products, between 3 to 5 years warranty and best after-sale service. For 2012, Great Wall occupies the 6th place in sales with 3 models and 6.42% market share. The company is the leader in light freight vehicles market. Speed-Press Agency

THE PROGRAM FOR THE SECOND DAY OF THE INTERNATIONAL AUTOMOTIVE CONFERENCE IN SOFIA

TODAY SPEAKERS WILL BE REPRESENTATIVES OF AUTOMOTIVE MANUFACTURERS SUCH AS PORSCHE, BMW AND GREAT WALL. The second day of the International Automtive Conference emphasized the analysis of the advantages and disadvantages of investing in the automotive sector in Bulgaria. The first presentation was held by Mr. Anton Donchev, Litex Motors/Great Wall, which revealed the ambitious program of the company, having the first and the only for the moment modern factory in Bulgaria for production of vehicles. Mr. Thorsten Jordan, Managing Director of Würth Elektronik IBE Group, and Mr. Zlatan Kitanov, General Manager in the Bulgarian subsidiary revealed the difficulties the company is facing at the opening of its production facilities in Bulgaria and panel presenters led by Svetoslav Mladenov, Investment Agency, discussed the advantages for the foreign investors. By the end of the day upcoming presentations are: Mrs. Savina Konstantinova from “Industrial Commerce” will speak for the success of Hyundai in Bulgaria, Mr. Plamen Mitev Willi Betz Group and Mr. Thibaut de Vaureix from Integrated Micro-Electronics Inc. The second part of the day is taken up by participants from the automotive industry like Dr. Andrea Castronovo, president of BMW Group Central and Southeastern Europe, which will make a presenation on the innovative brand BMW “i”. Ph.D. engineer Vladimir Popov from Porsche AG presents the vision of electromobility in the sports segment as Head of Engineering Energy Management Panamera at Porsche. The ecology topic and electro mobility continues in the panel discussion “Industrial Cluster “Electric vehicles“, Bulgarian Sience Academy, Technical University-Sofia, and “Leschke Design“. Speed-Press Agency

THE ADVANTAGES IN INVESTMENT IN BULGARIA WERE PRESENTED

STABLE CURRENCY, LOW TAXES AND GEOGRAPHIC LOCATION ARE THE MAIN QUALITIES THAT FOREIGN COMPANIES ARE SEEKING. Advantages and disadvantages of investing in Bulgaria were presented in the International Automotive Conference in a panel moderated by Svetoslav Mladenov, Executive Director of the Investment Agency. “Bulgaria has many advantages as a strategic location, very low wages; flat income tax 10% and 0% for regions with low unemployment. Investors receive shorten administrative procedure by one-third, also financial assistance for training employees to acquire vocational training and infrastructure development. By the end of the year we will have 50 working factories in the automotive industry.”, said Mladenov. His statement was confirmed by Mr. Alexander Uzunov, Head Key Projects at Behr-Hella Thermocontrol. The company invests in construction of a new plant for auto parts in Bozhurishte, close to Sofia for 42.5 million lev. “We have looked at more than 50 locations in Europe and we took into account several factors such as quantity, quality, logistics, payroll, stability, legislation. We have received support by the Bulgarian government. We were thinking also of Macedonia, but chose not to take it because of our specific needs. For example proximity to international airport, as it is in Sofia.”, said Uzunov. According to the professional, Bulgaria must do more to improve the image of the country for foreigners on their first arrival. Dr. Mitko Vassilev, CEO of the German-Bulgarian Chamber of Commerce, presented analysis, according to which 75% of the 78 German companies in the country would invest again and are satisfied with its operations in the country. “The result is good and positive, but still low when compared to other countries. SMEs have a huge potential for development. In Germany there are more than 400 supporting programs; in Bulgaria we still don’t have such amount. Yes, there is corruption, as well as in Germany, but last year there was no change in the right direction.” said Vassilev. Mr. Marcel Schwab from Ernst & Young promised assistance to all companies that are preparing to invest in Bulgaria. “We can help the companies with information about the legislation system. Bulgaria is much better country as what pictures are showing abroad. Companies feel these advantages and we support them. Here are coming investors who need low-cost productivity and highly qualified staff. I am telling them to invest the difference of lower taxes, compared with other places, in training. This will have a very quick return on investment. People are very well educated in the schools, but not in the technical sense. I think many still do not prefer Bulgaria as a destination because of ignorance.” During the discussion was presented the investment of Kemmler Electronics. The company has a plant in the Czech Republic for 17 years, but in long term position, the operations will become too expensive. “Therefore, we decided to find another place to invest. Looked at opportunities in Serbia, Slovenia, Ukraine, and finally decided to come to Bulgaria. According to us here the situation is stable as for the political environment and currency, which is one of the most important factors. The Czech Crown changed with 30-40% in the recent years and this has had a huge impact for us as a producer. Bulgaria is also in the heart of Europe, and there is a sea connection with Turkey. In contrast to our center in the Czech Republic, here the people can do much more things besides production.” said Stefan Reiber of Kemmler Electronics. Speed-Press Agency

IN EACH CAR THERE IS SOMETHING BULGARIAN

THE PLANT WÜRTH ELEKTRONIK IBE IN BELOZEM HAS PRODUCED 202 MILLION PARTS THAT REACH ALL CAR MANUFACTURERS The supplier of electronic components Würth Elektronik IBe is working in Bulgaria since 2002 when purchasing a neglected barn in Belozem and hires its first employees. In ten years the business has grown over 200 times and last year they produced 203 million parts that are built into larger components of the next in the chain and can practically reach every car on the planet. So it appears that on average at least two gadgets in every car are made in Bulgaria, said at the International Automotive conference Mr. Thorsten Jordan , Managing Director of Wurth Elektronik IBe. The company itself is a model of rapid development. Founded in 1982 in a small garage in Germany, takes advantage of the fast growing market of electronic components in cars and currently has plants in the Czech Republic, Mexico, and China. The Bulgarian factory has 243 employees and is second after the Czech one, but it is larger than in Mexico, China and Germany. “We have not had any problems; we are trying to think locally and give the responsibility of the local team. This formula works well.” said Jordan. Future plans envisage the transfer of new, more intelectual activities in Bulgaria to exploit the potential to create more attractive jobs for young and higheducated people. Our story here is successful and this allows us to give advice to other investors. “Do not copy- paste a model from one to another country. This culture is different from the one in Germany, but that does not mean you can not develop a successful business.” added the manager of the Bulgarian branch Zlatan Kitanov. Speed-Press Agency

ALUMINUM IN THE LAMBORGHINI’S CHASSIS IS MADE IN BULGARIA

REDUCING THE WEIGHT OF VEHICLES IS ONE OF THE MAIN SOLUTIONS FOR REDUCING EMISSIONS. ETEM factory in Sofia produces aluminum profiles for many models of BMW, Audi and Lamborghini. The plant provides aluminum for cars since 2011; it became clear during the International Automotive Conference in Sofia. “The main driving factor in the production of cars is no longer only luxury, but it is also care for the environment. One of the main methods of reducing CO2 emissions is to reduce the weight of vehicles and application of aluminum. For instance, in 1978 in each car average amount of aluminum used to be 32 kg, while in 2010 this is 160kg. All models that we supply with aluminum profiles are coming from our factory in Bulgaria. Not only for Lamborghini, but also for the Audi A8, TT, BMW 1 Series and 3 Series, Range Rover and Range Rover Sport, Jaguar XJ and XF”, said Mr. Ralf Barten, Director of Sales at ETEM. Speed-Press Agency

CHEMISTRY IS THE KEY TO THE FUTURE

STATED DR. HERBERT FISCH, VICE PRESIDENT OF BASF HUNGARIA KFT & SOUTHEAST EUROPE, DURING THE INTERNATIONAL AUTOMOTIVE CONFERENCE. In 2020 is expected to be produced 122 million cars (77 million in 2011) worldwide. They have to be strong, lightweight and economic. Chemistry is the key that could help the automotive industry to make them such, since it can provide new materials and technology, proudly said Dr. Herbert Fisch, Vice President of BASF Hungaria kft & Southeast Europe at the International Automotive Conference, Sofia. BASF supplies parts and material to the automotive industry for over 9.5 billion per year and in the future the forecast shows increase and closer cooperation. He illustrates this idea with the prototype Smart Forvision – jointly developed by Daimler and BASF, presented at the Frankfurt Motor Show in 2011. For this advent-garde electric car the chemical company has provided cutting-edge solutions that make it possible to achieve 20% increased run. For example, wheels are made of thermoplastic polymers that make them 3kg lighter than aluminum and in addition they have the same strength. The seats are made of new materials which make them not only 3kgs lighter than the usual ones, but also provide an optimal climate comfort. Climate control in the car is maintained without energy consumption thanks to infrared reflective coating on the windows and the roof that is made of transparent organic solar cells which power up the car. This is only a prototype, but it shows that having a good cooperation, the chemical industry could bring the future today in the form of electric vehicles. Speed-Press Agency

BOSCH ARE INTERESTED IN THE SUCCESS OF THE OTHER SUPPLIERS IN BULGARIA

BY 2020, ONLY 10% OF THE CARS WILL BE ELECTRICALLY OPERATED. № 1 automotive supplier in the world, Robert Bosch is not panning to open a plant in Bulgaria, but is monitoring the development of the industry. “To be honest with you, for the moment we at Bosch are not discussing the launch of production in Bulgaria. We have an office in which 50 people are responsible for the sales. However I am pleased to be here at the conference and will be back in Austria with a comment what is happening here .I have learned a lot from my colleagues from Grammer and Festo, which are clearly very happy with my investment here and have long-term plans. We have opened several factories in Eastern Europe, the last one last year, so it will be a while before we discuss a new investment.”, said Hanno Miorini , Vice President of OEM parts in Austria and Eastern Europe at Robert Bosch. Miorini presented the main areas of activites in the automotive sector for Bosch and determine the market entering of electric technology as a challenge to the industry. “Speaking of the next 10 years, I think the internal combustion engine will remain dominant. Hybrid operation will be much preferred for heavier vehicles and premium models. Our forecast for 2020 is to have 10 % of the industry that are driven by the electric elements. Half of them are hybrids, the rest plugin hybrids and electric cars.” said Miorini. Speed-Press Agency

BULGARIA PROVIDES RELATIVELY FEW PARTS FOR VW GROUP

THIS IS UNUSED POTENTIAL OF OPORTUNITIES FOR OUR COUNTRY, SAYS PAVEL VESELY FROM VW. Bulgaria provides relatively few parts for VW Group and this is unused potential for your country, ended his presentation the representative of the VW Group on the International Automotive Conference Bulgaria Pavel Vesely. In crisis the supplies from Eastern European countries actually had been increased, he said. Vesely manages offices for supplies in Budapest and Istanbul with 45 people who work with suppliers from Eastern Europe and Turkey. In 2008, VW has received parts from Eastern Europe for EUR 115 million, and this year they are for about 200 million. The largest share logically is in the countries where the biggest factories for final assembly of cars are – the Czech Republic, Slovakia and Hungary. Bulgaria was invisible on his map. Pavel Vesely has presented the mechanism for selection of suppliers for the most ambitious car manufacturer currently. The process is long and goes through several phases. The experts are seeking for appropriate manufacturers, evaluate their potential and enter into negotiations with them and when have them approved they support them. Any error at the beginning of the procedure may have serious consequences in the future. Therefore, prevention of errors is the principle of each stage of the work. Speed-Press Agency

PRISTA OIL IS BUILDING A PLANT IN UKRAINE FOR RECYCLING OF WASTE OILS.

THE CONSTRUCTION BEGINS WITHIN A COUPLE OF DAYS. THE COMPANY PROVIDES PRODUCTS FOR GREAT WALL AND ITS PARTNERS IN TURKEY, INCLUDING TOYOTA. The Bulgarian company “Prista Oil” is turning the first sod in a couple of days for a recycling plant for waste oils in Ukraine, said the CEO Ivo Todorov at the International Automotive Conference Bulgaria. “Prista Oil” already has a terminal in Ukraine, and a recently opened plant in Azerbaijan. “The crisis gave us the opportunity for growth and diversification. It has changed customer attitudes and now the price of product is the leading factor in the purchase. Geographically, North Africa and the Middle East provide us the closest possibilities for development and markets in Central Asia are becoming increasingly important. The dynamic changes in the market make us more adaptable and more active.” said Todorov. Speed-Press Agency

DR. TILL TRUCKENMÜLLER: “IT IS POSSIBLE GOOD THINGS TO BE DONE IN BULGARIA“

ACCORDING TO THE MANAGER, AMONG THE REASONS IMACOS HAS CHOSEN BULGARIA FOR HIS BUSINESS, IS THE AVAILABILITY OF WELL TRAINED AND KNOWLEDGE PERSONNEL. The Honorary Consul of Bulgaria in Stuttgart is satisfied with the cooperation with S Media Team. Even the start of the IACB today in Sofia shows that it is possible to do good things in Bulgaria, said in his presentation, Dr. Till Truckenmüller, as President of the consulting company IMACOS Truckenmüller & Company. This was refering specifically the cooperation with the publisher S Media Team (BBC TopGear, Auto Bild, Speed-Press Agency and other) in the organization of the conference. The company IMACOS Truckenmüller & Company is working on the project “Autopark Bulgaria”. “This project is very important for the country, there is a progress, there is an interest from investors, but now I can not mention names because it is not professional to do it before the signatures.” he said. “Truckenmüller and Company Bulgaria” (IMACOS) is a German consulting company based in Stuttgart (1998), oriented in restructuring of enterprises, mainly in the automotive industry. The company has more than 20 years experience in the construction of production units in Eastern Europe. At the end of 2010 the Bulgarian office has been opened. Its main activity is related to consulting companies by optimizing the administrative and production processes, increasing the efficiency of enterprises. He is working hard to attract investors in Bulgaria, as well as expanding the markets for Bulgarian producers on the western markets. Among the reasons IMACOS has chosen Bulgaria for its business Dr. Truckenmüller indicates the presence of well trained and knowledgeable personnel. Speed-Press Agency