The French company Armaris, from which Bulgaria is going to purchase two Gowind 200 corvettes for about EUR 400 M, is bidding for the privatization of the TEREM Flotski Arsenal ("Marine Arsenal") factory.

TEREM Flotski Arsenal is located in the city of Varna. It is one of Bulgaria's eight military-repair factories from the TEREM group, which were recently listed for privatization.

The Varna factory falls in the group of four factories considered strategic for the state so only 66% of it will be sold.

According to the honorary consul of France and Germany to Bulgaria Nedyalko Nedelchev, the French company was planning to invest about EUR 500 M in the Bulgarian military shipyard as part of the future privatization deal.

The intention of Armaris is construct a center for the repair of ships at TEREM Flotski Arsenal.

The French Ambassador to Sofia Etienne de Poncins announced Monday that the French company intended to produce the first of the two corvettes in France, whereas the second is to be made at the Varna Shipyard as part of an offset arrangement.