Gross Output - BGN 620 mln.
Net Sales Revenues - BGN 644 mln.
Profit - BGN 58 mln.
The companies of the Construction Industry generated NSR of BGN 644 mln., compared to BGN 479 mln. for the previous year, i.e. 34% growth. In 2007, the 10 top ranked companies had NSR amounting to BGN 296 mln., each of them reporting NSR of over BGN 8 mln. The leading two companies: TGO – Bulgaria and PSI AD have NSR over BGN 80 mln. each.
The construction companies in the district report BGN 58 mln. profit, of which BGN 27 mln. are earned by the 10 top ranked companies. The total number of companies engaged in construction works and registered within the Stara Zagora region is approximately 750.
The construction industry was one of the most dynamically developing sectors of economy in the Stara Zagora region for the past few years and this tendency continues in 2008 and 2009. The growth is due mainly to the implementation of Maritsa East investment projects and of projects related to the national road network, funded by the state budget and by EU programs. Construction companies are also involved in the implementation of municipal investment projects aimed at improvement of the infrastructure; construction of trade centres and hotels, construction of new production facilities and refurbishment of existing ones. In 2008, investors’ interest in the construction of residential houses in the region continued. The public company DP Stroitelstvo & Vazstanovyavane (Construction and Refurbishment) is building a new residential complex comprising 6 housing blocks of flats with a total built-up area of approximately 50,000 sq.m. Two more residential complexes are under construction, funded by SI Commercial and SimDar (Aturen complex), respectively.
The largest construction project in the region in 2009 is still the TPP AES Maritsa East 1 (670 MW). The investor is the United States company AES and the construction works are implemented by TGO – Bulgaria.
Leaders in the sector are companies of Trace Group Hold AD, engaged in design, construction, refurbishment, repair and maintenance of roads, motor highways, airports, gas and water supply systems, etc. The Holding comprises 13 technologically related companies, the leader being PSI AD. Companies belonging to Trace Group Hold AD (PSI AD and Trace-Sofia EAD) will perform the construction works related to the extension of the Sofia underground railway (metro) network, i.e. the section between Mladost 1 and blvd. Tsarigradsko Shose. The project is worth BGN 222 mln. and will be completed in 2011.
The total value of the contracts concluded by Trace Group Hold AD in 2008 exceeds BGN 500 mln., as compared to BGN 93 mln. for 2007.
For the first 9 months of 2008, the NSR of Trace Group Hold AD reached BGN 19.3 mln., which is 29% growth as compared to the same period of the previous year. However, the company’s net profit for the same period decreased by 19% and amounts to BGN 2.7 mln.
In 2008, companies of Trace Group Hold AD took part in the implementation of 8 new projects within the Stara Zagora district worth of a total of BGN 45.2 mln. The projects were related to refurbishment of the water supply network of Stara Zagora, and renovation of the road surface and repair works of class ІІ and ІІІ roads in the region. Most of the projects were implemented by the subsidiary company PSI AD.
Besides the large-scale construction works directly related to the construction of new TPPs within the Maritsa East Complex, the construction of two new factories for the production of plasterboard, gypsum and other dry building materials will be completed in 2009. Balkanstroy Group AD (contributing BGN 77.5 mln.), through its subsidiary Technogips EAD, and Knauf Bulgaria EOOD, which is a branch of Knauf Gips KG – Germany (contributing approximately BGN 140 mln.), are the investors in this project.
Currently, there are construction works in progress in the region funded through the ISPA Programme of the EU Pre-accession funds. The construction of a purifying facility for Stara Zagora effluent waters (worth EUR 12.5 mln.) will be completed in 2009.
The French hypermarket network Carrefour and another leading European network Kaufland have expressed their interest in investing in Stara Zagora.
A new multifunctional complex named City Centre Stara Zagora is currently under construction and is expected to be completed in 2010. The second Billa supermarket in the town, covering an area of 1,368 sq.m, will be situated on the ground floor. With a total built-up area of 26,612 sq.m., the centre will comprise a 3-level underground car park, shopping areas, various service shops, offices and apartments. Investors in the project are Ritam-4 TB EOOD, GU Faraday EOOD and Vito – Toni Rusev ET. The contractor for the construction works is Vito – 95 OOD.
Over BGN 144 mln. will be invested in the construction of a trade and entertainment centre with offices (Mall Stara Zagora). Its construction began in 2008 and the mall is situated next to the Stara Zagora central bus station. Real Estate Services Bulgaria (an investment company of Cinema City International and the Israeli Ocif Group) and the chicken and poultry meat manufacturer Gradus – 1 OOD are the investors in this project. The centre will have 21,000 sq.m. retail space, 6,000 sq.m. offices and 115 stores. There will be an underground parking lot with 600 parking spaces. Mall Stara Zagora will be constructed within a RESB project and is similar to Mall of Sofia, Mall Plovdiv and Mall Rousse. In 2008, Cinema City and Ocif Group sold their shares in the former two malls to the Irish Investment Fund Quinlan Private and to GE Real Estate (sub-division of General Electric) and initiated negotiations for Mall Rousse as well.
The construction of Mall Galleria in Stara Zagora, which is situated within the area of the former factory Naslada, is planned to be completed in the autumn of 2009. Investors are the Polish construction-investment company Globe Trade Centre (GTC) and the brothers Evgeni and Spiridon Spirovi. GTC is building malls named Galleria also in Varna, Burgas and Rousse. The construction works will be performed by Stroyinject AD with the Stara Zagora company Stroitel VD OOD as the main subcontractor.
The mall has a three-level underground parking lot with 800 spaces and three ground levels with cinema, casino, supermarkets and other stores, coffee shops, restaurants, etc. The total built-up area of the centre is 70,000 sq.m., 30,000 of which are retail areas.
Mall Galleria is constructed through a EUR 43 mln. credit provided by the European Bank for Reconstruction and Development, and Bank Austria. The credit repay term is 12 years.
Globe Trade Centre, the investor in Mall Galleria Stara Zagora, is engaged in construction works not only in Bulgaria, but also in Croatia, Poland, the Czech Republic, Serbia, Hungary and Romania. GTC reported a 30% decrease in profit for the second quarter of 2008, as compared to the same period of 2007.
Leading companies in the sector
| Company | Economical activity by NACE Rev.2 | Position in NSR in sector | Position in Profit in sector |
| TGO - SPTPP - Balgaria OOD | 41.20 | 1 | 2 |
| PSI AD | 42.11 | 2 | 58 |
| Patno stroitelna kompania SBS AD | 42.11 | 3 | 1 |
| Tonzos Interstroy AD | 41.20 | 4 | 37 |
| Stroitelna kompania Trace AD | 41.20 | 5 | * |
| Peshtostroy EOOD | 41.20 | 6 | 3 |
| Montazh Engineering AD | 43.21 | 7 | 24 |
| Vito - 95 OOD | 41.20 | 8 | 40 |
| USM AD | 43.99 | 9 | 70 |
| Inter Inshaat ve Prefabrik anonim Shirketi - Turkey | 41.20 | 10 | * |
| Kalvacha Investment AD | 41.20 | 11 | 6 |
| Stroitel VD OOD | 41.20 | 12 | 14 |
| Stroitelna mehanizatsia - 2000 AD | 43.99 | 13 | 33 |
| Stroitelstvo i montazh OOD | 41.20 | 14 | 7 |
| El Control EOOD | 41.20 | 15 | 8 |
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