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 largest flow of investments to Bulgaria is from the Netherlands, outflow is to Russia

The largest net positive flows of direct investments in the country for January - July 2024 are from the Netherlands (269.5 million euros), Austria (225 million euros) and Greece (160.5 million euros), BNB data show. According to them, the..

published on 9/20/24 6:03 PM

Bulgaria to ask EU to suspend egg imports from Ukraine

Bulgaria will request the suspension of egg imports from Ukraine at the upcoming Agriculture and Fisheries Council meeting in Brussels on September 23, caretaker Minister of Agriculture and Food Minister Georgi Tahov said at a meeting with farmers..

published on 9/20/24 10:31 AM

Business consumers to be compensated for high energy costs

All non-household consumers will be compensated for the high cost of electricity by the end of the year, the government has decided. The European Commission has given the green light for the subsidy, the energy minister said. According to..

published on 9/18/24 3:06 PM

WEATHER

Pick city: Sofía

Mostly Cloudy
Min: 5 | Max: 16

BULGARIA IN PICTURES

Which world-famous Bulgarian artist designed QSL cards for Radio Bulgaria?

A Taiwanese technology giant wants to build a factory near Plovdiv

A Taiwanese technology giant is negotiating to build a large production facility on the territory of the Trakia Economic Zone near Plovdiv, announced..

published on 10/16/24 6:14 PM

Bulgaria and North Macedonia reaffirm their commitment to continue the construction of Railway Corridor No. 8

In Brussels, Bulgaria and North Macedonia reaffirmed their commitment to continue the construction of Railway Corridor No. 8 under the TEN-T Regulation,..

published on 10/17/24 8:40 AM

Share