{"id":19363,"date":"2024-10-14T07:00:00","date_gmt":"2024-10-14T07:00:00","guid":{"rendered":"https:\/\/reinvantage-dev.eonserver.com\/?p=19363"},"modified":"2024-10-14T07:00:00","modified_gmt":"2024-10-14T07:00:00","slug":"how-stara-zagora-can-become-a-leader-in-bulgarias-automotive-revolution","status":"publish","type":"post","link":"https:\/\/reinvantage-dev.eonserver.com\/?p=19363","title":{"rendered":"How Stara Zagora can become a leader in Bulgaria\u2019s automotive revolution"},"content":{"rendered":"\n<p><strong>Through strategic investments, robust infrastructure, and forward-thinking governance, Stara Zagora is fast becoming the epicentre of Bulgaria\u2019s automotive sector, drawing both domestic and international companies to its industrial zones.<\/strong><\/p>\n\n\n\n<p>Stara Zagora\u2019s emergence as a leader in the automotive industry is no accident. Its geographic location in the heart of Bulgaria provides unmatched connectivity to major economic centers across the country and beyond. The region\u2019s access to four major European transport corridors ensures seamless logistics, which is a key competitive advantage in an industry where speed and efficiency of supply chains are critical.<\/p>\n\n\n\n<p>\u201cYes, Stara Zagora\u2019s location is a significant factor in our success,\u201d says Rositsa Raykova, head of the investment department at the municipality of Stara Zagora. \u201cBeing centrally located, with proximity to major airports and seaports, allows us to serve both European and global markets effectively, making it an attractive hub for automotive companies looking to expand their footprint.\u201d<\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-background has-cyan-bluish-gray-background-color has-cyan-bluish-gray-color is-style-wide\"\/>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/emerging-europe.com\/analysis\/investment-stara-zagora\/\">Fostering innovation, attracting investment: Stara Zagora\u2019s effective development strategy<\/a><\/li><li><a href=\"https:\/\/emerging-europe.com\/analysis\/cees-eu-members-need-innovation-for-a-new-growth-model\/\">CEE\u2019s EU members need innovation for a new growth model<\/a><\/li><li><a href=\"https:\/\/emerging-europe.com\/analysis\/cee-can-put-itself-at-the-heart-of-the-global-supply-chain\/\">CEE can put itself at the heart of the global supply chain<\/a><\/li><\/ul>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-background has-cyan-bluish-gray-background-color has-cyan-bluish-gray-color is-style-wide\"\/>\n\n\n\n<p>A forthcoming report from PwC looking at trade and investment in Stara Zagora supports the claims. \u201c[The increased interest of investors in this value chain in CEE indicates that Stara Zagora\u2019s location] makes it an attractive destination with potential primarily for tier one, two, three suppliers due to the proximity to Original Equipment Manufacturers (OEMs) and tier one suppliers in Central and Western Europe, as well as streamlined supply of raw materials. Our analysis indicates high potential in attracting these suppliers and medium potential for OEMs, specifically in the EV value chain.\u201d<\/p>\n\n\n\n<p>Jennifer Coulter-Lissman is the CEO of NTG Supply Chain Solutions, a global provider of logistics solutions for international organisations.<\/p>\n\n\n\n<p>She says that the trend toward localised, flexible supply chains is reshaping the automotive industry, offering benefits like reduced transportation costs, improved agility, and lower emissions.<\/p>\n\n\n\n<p>\u201cHowever, implementation takes time and significant investment,\u201d she adds. \u201cRegions offering skilled workers, infrastructure, and a network of suppliers will be well-positioned to lead in the future automotive industry. Adapting to rapidly changing market conditions, from EV adoption rates to consumer affordability concerns, will be crucial for success.\u201d<\/p>\n\n\n\n<p>In recent years, global firms such as Akwel of France and Nedschroef of the Netherlands have opened manufacturing centres in Stara Zagora. Both companies chose Stara Zagora due to its strategic location, well-developed infrastructure, commitment to innovation, and skilled labour force.<\/p>\n\n\n\n<p>\u201cStara Zagora and the region offer well-prepared workers for the needs of businesses,\u201d says Nedschroef\u2019s Gergana Mandevska.<\/p>\n\n\n\n<p>Now the region wants to attract more investors. It appears well equipped to do so.<\/p>\n\n\n\n<p>\u201cStara Zagora shows a growing capacity to attract manufacturing investments that build on the region\u2019s industrial traditions, qualified and experienced workforce, strategic location and strong committed support by public authorities,\u201d adds the PwC report.<\/p>\n\n\n\n<p>Costs in the Stara Zagora district are also competitive. Velizar Dimitrov is CTO of eDynamix, a firm which helps automotive retailers and OEMs digitise customer journeys, says that the cost running an office in a town like Stara Zagora is a lot more favourable compared to Sofia, Plovdiv, or other bigger towns.<\/p>\n\n\n\n<p>\u201cEven though it wouldn\u2019t be a problem for the company now, back in 2011 when we were just getting started, it was part of the decision [to invest here],\u201d he says.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Infrastructure for a growing industry<\/h5>\n\n\n\n<p>Beyond its strategic location, Stara Zagora\u2019s commitment to developing world-class infrastructure has been a major draw for automotive companies.<\/p>\n\n\n\n<p>The district boasts several industrial zones, including Zagore and Elenino, where firms benefit from a stable electricity grid, comprehensive gas distribution, and advanced digital infrastructure.<\/p>\n\n\n\n<p>\u201cWith the rise of electric vehicles, our infrastructure development is focused on supporting the transition to green technologies,\u201d explains Raykova. \u201cWe are expanding our network of EV charging stations and integrating smart grid technologies to meet the growing demand for electric mobility. This is crucial not only for our production but for attracting new players to the region.\u201d<\/p>\n\n\n\n<p>Regions that want to position themselves as a leader in the automotive industry, especially in terms of Product Carbon Footprint (PCF) compliance, must implement strong regulatory frameworks and build an ecosystem that promotes sustainable practices, argues TJ Yoon, managing director, EU and global product carbon footprint lead at Glassdome, an industrial software company dedicated to making operations and sustainability clear and simple for manufacturers.<\/p>\n\n\n\n<p>\u201cThis entails creating a skilled talent pool, providing financial incentives, and establishing data-sharing platforms to facilitate transparent reporting,\u201d he says.<\/p>\n\n\n\n<p>\u201cThe main challenge for such regions is to balance compliance and innovation while supporting local suppliers that may struggle to meet new standards. Additionally, regions must ensure that investments in sustainability don\u2019t become a burden for smaller suppliers, creating an uneven playing field within the supply chain.\u201d<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Proactive governance<\/h5>\n\n\n\n<p>Local governance plays an instrumental role in Stara Zagora\u2019s success. The district offers a wide array of incentives to attract investment, including some of the lowest land lease rates in Bulgaria, reduced local taxes, and financial support for vocational training and social security costs.<\/p>\n\n\n\n<p>\u201cOur corporate tax rate is a flat 10 per cent, one of the lowest in Europe, and our local taxes and fees the lowest in Bulgaria and in Europe too,\u201d says Raykova. \u201cThis not only makes Stara Zagora an affordable place to do business but one that offers exceptional value for money, especially for companies in the automotive sector looking to maximise their investments.\u201d<\/p>\n\n\n\n<p>According to recent statistics, the automotive industry accounts for a substantial portion of Stara Zagora\u2019s industrial output, with investment levels reaching new highs in 2023, further solidifying the region\u2019s position.<\/p>\n\n\n\n<p>&#8220;The local government is committed to simplifying administrative procedures, making it easier for businesses to set up and operate in the region,\u201d says PwC trade and investment report. \u201cIn addition, there is availability of subsidies and other incentives, relative to the size of the investment.\u201d<\/p>\n\n\n\n<p>Velizar Dimitrov of eDynamix meanwhile points out that the authorities are always willing to listen to the needs and concerns of businesses.<\/p>\n\n\n\n<p>\u201cBusinesses are always involved in discussions and decision making, ensuring the relevance of the outcome,\u201d he says, adding, \u201cthe municipality is supportive of potential investors and is eager to ensure the town progresses in the right direction.\u201d<\/p>\n\n\n\n<p>Nedschroef\u2019s Gergana Mandevska highlights the \u201csupportive and helpful\u201d investment department run by Raykova.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">A skilled workforce for the future of automotive<\/h5>\n\n\n\n<p>Stara Zagora\u2019s success isn\u2019t just built on infrastructure and incentives\u2014its workforce is one of the key pillars driving growth. The region has recognised that maintaining its leadership in the automotive industry requires a skilled workforce that can adapt to the sector\u2019s evolving needs, particularly as it transitions towards electric vehicles and sustainable technologies.<\/p>\n\n\n\n<p>In collaboration with local educational institutions, currently there are specialised engineering and technical education programmes to meet the demands of the automotive sector.<\/p>\n\n\n\n<p>\u201cWe have placed a strong emphasis on training in EV technology, ensuring that our workforce is prepared for the future,\u201d says Rositsa Raykova. \u201cWe are also actively supporting workers transitioning from traditional energy sectors into roles within the EV and green technology industries.\u201d<\/p>\n\n\n\n<p>\u201cA few years back the municipality made IT a priority in schools, as well as the local Trakia University. It was a massive step forward,\u201d says Dimitrov.<\/p>\n\n\n\n<p>Foreign languages are also crucial. \u201cA lot of the population speaks foreign languages which is a serious advantage for foreign firms,\u201d adds Mandevska.<\/p>\n\n\n\n<p>\u201cDeveloping a full-fledged value chain, based on the district\u2019s competitive advantages, will strengthen the district\u2019s automotive sector, improve Stara Zagora\u2019s recognition and attractiveness to key global players, and position the region as a key investment destination for automotive and mobility investors,\u201d says the PwC report.<\/p>\n\n\n\n<p>This focus on workforce development is pivotal as the global automotive industry shifts gears. Stara Zagora is not only ensuring that its current workforce is ready for the future but is also creating opportunities for future generations to thrive in this rapidly changing sector.<\/p>\n\n\n\n<p>\u201cContinuous efforts in workforce development and training programmes ensure that the labour force remains competitive and well-equipped to handle the technological demands of modern automotive market developments, such as EV production,\u201d the report reads.<\/p>\n\n\n\n<p>PwC has identified Germany, Italy, Turkey, the US, and Romania as nations showing a keen interest in investing in the CEE automotive sector, and potential future investors in Stara Zagora.<\/p>\n\n\n\n<p>\u201cBy continuing to develop a stable automotive and mobility value chain, specifically in EV components production, and by further enhancing public support systems and lowering the administrative burden, Stara Zagora can significantly increase its attractiveness to key strategic investors and global players,\u201d PwC\u2019s report concludes.<a id=\"_msocom_1\"><\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-background has-cyan-bluish-gray-background-color has-cyan-bluish-gray-color is-style-wide\"\/>\n\n\n\n<p><span><em style=\"font-style: italic;\"><\/em><em>This content was produced in collaboration with the municipality of Stara Zagora and the European Commission\u2019s Directorate General for Structural Reform Support.<\/em><\/span><\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-background has-cyan-bluish-gray-background-color has-cyan-bluish-gray-color is-style-wide\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Through strategic investments, robust infrastructure, and forward-thinking governance, Stara Zagora is fast becoming the epicentre of Bulgaria\u2019s automotive sector, drawing both domestic and international companies to<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":19364,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[7139,6579,7891,6320,7894,7017,7947,7012,7945,7946,7892,61],"class_list":["post-19363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-automotive","tag-bulgaria","tag-bulgarian-automotive-industry","tag-featured","tag-investment-in-stara-zagora","tag-manufacturing","tag-municipality-of-stara-zagora","tag-pwc","tag-pwc-bulgaria","tag-rositsa-raykova","tag-stara-zagora","tag-technology-innovation"],"_links":{"self":[{"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=\/wp\/v2\/posts\/19363","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19363"}],"version-history":[{"count":0,"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=\/wp\/v2\/posts\/19363\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=\/wp\/v2\/media\/19364"}],"wp:attachment":[{"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/reinvantage-dev.eonserver.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}