Highway Holdings Ltd. (Nasdaq:HIHO) has established a manufacturing facility in Bulgaria for the production of cameras to be sold in Europe. `Our strategy is to take advantage of other areas of the world that offer low labour and operating costs similar to those currently available to us in China`, said Roland Kohl, Chairman and CEO. `The facility in Bulgaria is attractive because it meets both of these criteria and provides good transportation arrangements. Equally important, the facility is in close proximity to our customers in Europe`. He noted the company commenced production on a limited basis and will gradually expand its manufacturing operation once management is satisfied with the capabilities at the new facility. Kohl emphasized the new facility should be a strategic advantage over the company`s competitors in the Far East.