€ 30 Million Investment in the Automotive Industry in Bulgaria has Received Regulatory Approval

Business | May 3, 2019, Friday // 12:46
Bulgaria: € 30 Million Investment in the Automotive Industry in Bulgaria has Received Regulatory Approval

Etem Bulgaria and Gestamp North Europe Services received approval from regulators in Brussels and Turkey for the creation of two new joint ventures in Bulgaria, the companies said.

As announced earlier this year, Etem Bulgaria will outsource production of extruded aluminum profiles and their further processing in two separate subsidiaries.

The two new ventures will be joined by Gestamp, a leading global group specializing in the design, development and production of metal components and systems for the automotive industry.

The investment program over the next three years envisages the realization of approximately € 30 million for the installation of a new extrusion press and equipment for additional processing of aluminum profiles in Bulgaria.

"The agreement will strengthen the position of Etem Bulgaria in the automotive sector and will prove that the company can successfully respond to the increased demand for aluminum products following the development and new developments of the automotive industry," the company said.

In 2017, Etem Bulgaria has a sales revenue of BGN 177 million, a growth of 22% over the previous year. It is owned by Viohalco, a Belgian holding company of a number of leading metalworking companies in Europe. It is registered with Euronext Brussels (VIO) and the Athens Stock Exchange (BIO). Viohalco's companies specialize in the production of aluminum, copper, steel, steel and steel pipes and are committed to the sustainable development of quality, innovative and value-added products and solutions.

With production capacities in Greece, Bulgaria, Romania, Russia, Australia, the Former Yugoslav Republic of Macedonia, Turkey, the United Kingdom and the Netherlands, Viohalco's companies together generate an annual revenue of € 3.7 billion.

Viohalco's portfolio includes a dedicated segment for technology and R & D as well as recycling and waste management services. In addition, Viohalco and its companies have real estate investments, mainly in Greece, which generate additional revenue through their commercial development.

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