Economic Yearbook of the Stara Zagora Region, 2010

Net Sales Revenues – BGN 935 mln.
Profit – BGN 100 mln.

The Construction Industry, along with the manufacturing industries with mostly export orientation, are the sectors most affected by the world financial and economic crisis in 2009 on a national basis. In 2008, the construction companies in Stara Zagora District reported a significant growth as compared to the previous years, namely 45% in NSR (with a total amount of BGN 935 mln.) and 72% in profit (BGN 100 mln.). Construction also remained the major economic activity for the region in 2009. This is due mainly to the large-scale projects for the construction of a fourth thermal power plant within the Maritsa East complex, owned by the United States company AES, as well as to the investments in repair, construction and installation works in the other thermal power plants. Construction of AES Galabovo TPP is a year behind the initial schedule and will continue in 2010 as well. The construction works are implemented by the main subcontractor TGO – Construction, Realisation, Transport, Trade, Production (TGO –CRTTP) OOD – Bulgaria. The company, owned by a Turkish construction consortium with the same name, generated the highest NSR in the sector (BGN 95 mln.), but ended 2008 with a loss, instead of profit.
In 2009, the construction companies in the region were also engaged in the realisation of municipality investment programmes, aimed at improving the infrastructure, roads maintenance and construction of new trade centers and production facilities. Implementation of some of the large-scale projects is delayed, but construction works have not stopped.
Construction of the two new factories for production of plasterboard, situated near Maritsa East 2 and Enel Maritsa East 3, will be completed in 2010. Investors in this project are Balkanstroy AD and Knauf Bulgaria EOOD (a branch of Knauf Gips KG – Germany). The construction of Stara Zagora waste water treatment plant is also about to be completed. The project is worth EUR 12.5 mln. and is implemented by the German – Turkish consortium Heitkamp Mass. Construction of the mall of the French hypermarket network Carrefour will also be completed soon. The trade center is situated in the Eastern part of Stara Zagora town and the project is realised by Alfa Grup 2003 OOD, a construction company from Sofia.
Opening of Mall Galleria in Stara Zagora is planned for August 2010. The trade center will have a 30,000 sq.m. shopping area. The project belongs to the Bulgarian division of the Polish construction and investment company Globe Trade Centre (GTC). This will be the first Galleria Mall in Bulgaria, with three more to be opened in Varna, Bourgas and Rousse worth EUR 300 mln. in total. The main contractor for the construction of the mall in Stara Zagora is Stroitel VD OOD. The trade center has a three-level underground parking lot with 800 parking spaces and three ground levels with a cinema, casino, supermarkets and other stores, coffee shops, restaurants, etc. The total build-up area of the mall is 70,000 sq.m.
Close to Galleria Mall a hypermarket of the German discount supermarket chain Lidl is currently under construction, which is scheduled to open its doors at the same time as the mall.
All above construction projects were active in 2009 and attracted significant investments, technologies and labour force.
The repair works of the Opera house in Stara Zagora and the reconstruction of the city’s main streets were completed in 2009. New trade centres were built and opened their doors for customers, including two stores of the leading European hypermarket chain Kaufland – in Stara Zagora and Kazanlak, respectively, three new stores of the Austrian supermarket chain Billa, a hypermarket of the German retail chain Plus in Radnevo, a hypermarket of the Slovenian Mercator foods and household trade network. The Mercator store in Stara Zagora is the first one in Bulgaria. The company, with 1,400 stores throughout the Balkan peninsula and over 22,000 employees, will open 6 more stores in 2010 in Sofia, Rousse, Bourgas, Varna and one more in Stara Zagora, investing a total of EUR 40 mln.
The new meat processing factory of KEN AD was built 18 months ago Construction works were completed in the summer of 2009. The facility has a total built up area of 9,420 sq.m and is one of the few new production facilities built in Bulgaria recently. The factory was designed by Design Art – K&K OOD and the construction works were implemented by Stroitel VD OOD.
Tens of other trade facilities and residential buildings were completed in 2009 in Stara Zagora, with a certain delay being registered in the construction of residential buildings.
Despite the economic crisis, 2009 was a successful year for the leading construction companies in Stara Zagora District, some of which reported record NSR. One of these companies is Vito – 95, which completed 2009 with NSR totaling BGN 21.1 mln., the company’s best achievement in its 19 years of existence. Vito – 95 is engaged in industrial construction projects, most of which related to the energy companies in the region. During the past 2 years, the company invested also in the construction of City Center Mall in Stara Zagora, which is scheduled to open its doors at the end of 2010. The complex comprises stores, offices and apartments, and spreads on a total built up area of 29,000 sq.m, with 300 underground parking spaces.
The registered growth in the sector is due greatly to the contribution of companies engaged in road infrastructure construction and maintenance. The leader in the sector remains PSI AD, a subsidiary of Trace Group Hold AD. At the end of December 2009, PSI, in partnership with two more companies, was awarded a contract for winter maintenance of 505 km of the national road network within Gurkovo and Kazanlak municipalities, and in Kardzhali District.
The reconstruction of the road through the mountain pass named Pass of the Republic, providing a faster and more secure connection between South and North Bulgaria, was also completed in 2009.
More than 1,000 companies are engaged in the Construction Sector in the Stara Zagora District, including companies building water (gas) supply and distribution networks, installations, etc. Over 200 of them are involved in construction of residential and industrial buildings. Upon completion of their current projects, these companies may experience a certain decrease in activity next year.
Despite all difficulties, the Construction Industry will remain one of the most dynamically developing economic sectors in the Stara Zagora District in 2010. This expectation is related to the forthcoming construction of three new sections of Trakia highway with a total length of 115 km. A total of BGN 350 mln. are earmarked for the construction works. By 2013, when its construction should be completed, the highway will connect Sofia and Bourgas, and the construction works within Stara Zagora region are scheduled for years 2010 and 2011.
The implementation of other projects related to the national road network is also guaranteed by State Budget and EU funding (within the Operational Programme ‘Transport’, which will grant EUR 990 mln. to Bulgaria until 2013).