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

Businesses are cautious in their expectations for 2025

41% of the member companies of the Bulgarian Industrial Association expect an economic decline in 2025. 21% believe there will be no change compared to 2024. 65% of the respondents anticipate a deterioration in their own business due to the..

published on 12/17/24 11:32 AM

The price of electricity is expected to increase by 9% on January 1, 2025

The price of electricity for households could increase by nearly 9% starting next year, according to estimates by the Energy and Water Regulatory Commission. This means that with an average consumption of nearly 400 kilowatt-hours, the monthly bills..

published on 12/15/24 10:01 AM

CITUB calls for the introduction of a national subsistence wage

The leadership of the Confederation of Independent Trade Unions in Bulgaria (CITUB) insists that a national subsistence wage be introduced in Bulgaria, with the minimum wage in the country reaching at least 80% of the subsistence wage by 2027. According..

published on 12/13/24 10:35 AM