Foreign Investment: German Plant to Create New Jobs in Pleven

Germany remains Bulgaria’s leading foreign investor, with German companies providing more than €372 million in capital in the country during the first six months of the year. Further evidence of this is the opening of a new plant producing engineering plastic components in Pleven, where the number of unemployed people is close to 8,000.

The Damyanovski family from Pleven travel in different directions every day to earn a living. Tsvetomir works as a machine operator in Sevlievo, while his wife works in the state administration in Lovech, because they cannot find suitable jobs in their home town.

Tsvetomir Damyanovski: There is no investment. This city has 80,000 people – how many factories does it have?

– Mainly garment companies and small workshops.

Martin Filipov: They offer €700, or even less – perhaps half the salaries in Sofia – while, in practice, life here is actually more expensive, I would say.

While local residents look for career opportunities outside Pleven, a world-renowned German company has chosen the city’s industrial zone for its new plant, which will provide at least 130 jobs.

Silas Waap, Head of Global Industrial Engineering: “We chose Bulgaria over Albania and Turkey because of its good infrastructure. Logistics was also a key factor, as our ambition is not only to serve Europe but also to reach the Middle East through the ports of Varna and Burgas. But first, the war needs to end and trade routes need to return to normal. Of course, labour is cheaper here than in Germany. We are looking for people with technical qualifications and experience in logistics. Salaries will be reasonable.”

The new plant represents an investment of €10 million and occupies the industrial site of another company which, two years ago, moved its production to North Africa because of rising wages and social security contributions in Bulgaria.

Svetoslav Bogalinski, Business Development Director: “There were 2,200 jobs here, and those people ended up registering as unemployed, so there is available labour. One swallow does not make a summer, but this investment will make a difference to Pleven. Hopefully, every town like this will have five or six such companies. That creates competition and raises living standards.”

The German investor plans to expand its production in Pleven over the next 10 years.