China’s CITIC Group mulls investing $100mn in car parts plant in Bulgaria

By bne IntelliNews July 24, 2016

Senior officials from China’s state-owned CITIC Group have presented to Bulgarian Prime Minister Boyko Borissov a $100mn project for an automotive aluminium wheels factory in the Danube city of Ruse, according to a July 22 notice on the website of the Bulgarian government. The facility will create 300 new jobs and the production will comply with all EU environmental norms, the potential investor said.

French aluminium foundry Montupet already has a plant in Ruse. Montupet specialises in the design and production of complex cast aluminium parts for the car industry. The corporation invested over €100mn in Bulgaria between 2006 and 2015, making it one of the largest investors in the country’s automotive sector.

On July 22, Borissov emphasized Bulgaria’s advantages in terms of a strategic geographical location and a favourable tax regime.

The manufacturing of car parts has become an important sector of Bulgaria’s economy with some of the foreign producers present including Yazaki Corporation (Japan), Behr-Hella Thermocontrol (Germany), Magna (Canada), Automotive Leather Company (ALC, South Africa), Nexans (France) and Melexis (Belgium).

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