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Japanese cable factory moves production out of Bulgaria, citing high costs

The company moves production to its facilities in Moldova and Romania

published on 9/15/24 5:00 PM

The Sumitomo Electric Bordnetze factoriy in Mezdra, Bulgaria.

Photo: BTA

Japan's Sumitomo Electric Bordnetze plans to cease operations at one of its factories in Bulgaria, located in Mezdra, by 2025. Its second factory in Karnobat will continue to operate at reduced capacity, BTA reported. The decision comes as the company moves production to its facilities in Moldova and Romania.

The company said that its decision was due to strong competition in the cable assembly industry and high production costs in Bulgaria, especially rising labour costs, which have negatively affected the company's ability to allocate new serial production projects to its Bulgarian sites.

The Mezdra plant, which opened in 2008 and employs around 950 people, is scheduled to close at the end of March 2025. At the Karnobat plant, around 100 jobs will be optimised from February 2025. The plant currently employs 1,000 people.

Sumitomo Electric Bordnetze is a supplier of electronic wiring harnesses and components for the international automotive industry.

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Radio Bulgaria Economy closure japan mezdra production sumimoto electric bordnetze

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Japanese cable factory moves production out of Bulgaria, citing high costs

The company moves production to its facilities in Moldova and Romania

More from category

Financial Supervision Commission: The assets of private pension funds have reached EUR 13 billion

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More than EUR 1 billion to be allocated for agriculture and the development of local economies

Financial Supervision Commission: The assets of private pension funds have reached EUR 13 billion