Text size

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.

Последвайте ни и в Google News Showcase, за да научите най-важното от деня!

Radio Bulgaria Economy closure japan mezdra production sumimoto electric bordnetze

More from category

The state will continue to provide compensation to businesses over the price of electricity

Until the end of 2024, businesses will continue to receive compensations for high electricity prices. They will be 100% after a price of over 90 euros per megawatt hour on the stock exchange. The previous threshold was 100 euros. The..

published on 7/26/24 3:13 PM

Bulgarians keep more than 75 billion euros in banks, money sent by emigrants is also growing

Deposits in banks for the first quarter of 2024 have reached a record level of 75.4 billion euros. From January to March, deposits grew by EUR 1.35 billion or by 1.8%. The rise is mainly due to increased household deposits, the..

published on 7/25/24 9:45 AM

E-commerce to boost Bulgarian-Chinese trade turnover

Although bilateral trade reached nearly $4 billion last year, there are still untapped opportunities to further increase Bulgarian exports to China. This was made clear at a meeting between the Minister of Economy and Industry, Mr. Petko Nikolov, and..

published on 7/24/24 11:54 AM