불가리아 주요 경제뉴스 (3 - 10 February 2012)

BULGARIAN ECONOMIC TOP NEWS DIGEST

WEEKLY REPORT (3 - 10 February 2012)

 

Sections/headline briefs:

 

MACROECONOMY:

v  Retail sales in Bulgaria drop 2.4% y/y in December 2011 – Eurostat

v  Bulgaria Jan-Nov 2011 Trade with EU up 33.3%

v  Bulgaria’s industrial production turns to 2% y/y decline in December 2011

v  Bulgaria’s construction output drops 11.9% y/y in December 2011

v  Bulgaria Non-EU Exports Up by 25% in 2011

 

INVESTMENTS:

v  Bulgarian economy minister says US company interested in Belene nuclear project

 

COMPANIES AND INDUSTRIES:

v  Pharmaceuticals market in Bulgaria rises 11.8% in 2011

v  Japanese, Bulgarian companies join forces in 20.04 MW solar plant project

v  Ming Yang to install 125 MW of wind power in Bulgaria

v  Bulgaria’s sea resort Kiten starts EUR 21.7mn waste water purification project

v  Bulgaria's coal-fired power plant Maritsa East II to build two new units

v  Bulgaria’s sea resort Kiten starts EUR 21.7mn waste water purification project

v  Sofia city calls new tender for 2nd stage of waste plant construction

 

 

 

 

 

 

 

Articles:

 

MACROECONOMY:

 

Retail sales in Bulgaria drop 2.4% y/y in December 2011 – Eurostat

The volume of retail sales declined for a seventh month in a row by 2.4% y/y in December but the contraction decelerated from above 5% y/y both in October and November, Eurostat data showed. The indicator has been falling in annual terms in each month since February 2009 until March 2011 when it turned to growth. The positive trend sustained for three consecutive months. However, in monthly seasonally-adjusted terms, the index went up by 0.3% in December after increase of 0.7% m/m in November. In all the 27 EU member states, retail sales turned to growth of 0.1% y/y on non-food products after declining in the previous months. The national statistical institute will publish detailed data tomorrow (February 7). 

 

 

Bulgaria Jan-Nov 2011 Trade with EU up 33.3%

 In the period January - November 2011 the Bulgarian exports to the EU increased by 33.3 per cent compared to the corresponding period of the previous year and amounted to 22,600 million leva, the National Statistical Institute said Wednesday in a report based on preliminary data. The main trade partners of Bulgaria were Germany, Romania, Italy, Greece and Belgium, that formed 66.8 per cent of the total exports to the EU Member states. The most significant growths were observed in the exports to Malta, Denmark and Portugal. Falls were registered in the exports to Slovenia and Luxembourg. In November 2011 the exports to the EU increased by 29.1 per cent compared to the corresponding month of the previous year and exceeded 2,200 million leva. Bulgarian imports from the EU in the period January - November 2011 increased by 20.7 per cent compared to the corresponding period of the previous year and amounted to 24,100 million leva at CIF prices. The most significant growths were reported in the imports from Cyprus and Spain. Decreases were observed in the imports from Malta, Finland, Portugal and Denmark. In November 2011 the Bulgarian imports from the EU Member States increased by 13.9 per cent compared to the corresponding month of the previous year and exceeded 2,6 million leva at CIF prices. The foreign trade balance of Bulgaria (export FOB - import CIF) with EU in the period January - November 2011 was negative and amounted to 1,440.1 million leva. At FOB/FOB prices (after elimination of transport and insurance costs on imports) the trade balance was also negative and reached 329.2 million leva.

 

Bulgaria’s industrial production turns to 2% y/y decline in December 2011

Bulgaria’s industrial production index declined by real 2% y/y in December after rising by revised 1.2% in November and 2.5% y/y in October, preliminary data of the statics office shows. The contraction of the manufacturing sharpened to 4.7% y/y from 0.6% y/y a month earlier on large declines of paper production (down by 47.1% y/y), printing activities, metal products, computer technique and optics, machines, car parts and vehicle production (drop of 20.3% y/y and 39.8% y/y, respectively). The expansion decelerated significantly in the metallurgy (growth of 1.5% y/y in December, down from 22.3% y/y in November) and electrical appliances. The food industry remained in negative territory, falling by 9.3% y/y in December, broadly unchanged from November. The utilities also declined by 0.2% y/y in December as compared to 10.5% y/y a month earlier. The mining sector’s output increased by 19.7% in December after falling by 6.9% y/y in November. The number of industry branches, which posted annual growth in December, was 11 out of a total of 27, as compared to 13 in the previous month. In seasonally-adjusted terms, the industrial production fell by 1.3% speeding from 0.5% m/m in November. The working-day-adjusted data showed an annual decrease of 0.6% in December for the first time since April 2010. The industrial turnover index increased by nominal 0.8% y/y as domestic turnover went up by 3.3% y/y while exports declined 4.2% y/y. 

 

Bulgaria’s construction output drops 11.9% y/y in December 2011

Bulgaria’s construction output declined by 11.9% y/y in December, preliminary data of the statistics office shows. The annual contraction accelerated further from 10.7% in November. The volume of buildings construction dropped by 8.8% y/y in December as compared to a decline of 4.6% y/y in November. Civil engineering works went down by 16.2% slowing from 18.5% y/y in November. In seasonally adjusted terms, total construction output went down by 1.1% m/m on better results of the civil engineering works, while according to working-days-adjusted data, the contraction was reported at 11.1% y/y in December. 

 

Bulgaria Non-EU Exports Up by 25% in 2011

Bulgaria's exports to non-EU member countries has risen with almost one quarter for 2011 in comparison with 2010, according to official data by Bulgaria's National Statistical Institute. The total amount of exports for last year is over BGN 14.8 B, which is 24.4% more than the amount for 2010. Bulgaria's main export trade partners have been Turkey, Russia, Serbia, Macedonia, China, Ukraine and USA, which comprised some 53% of exports. Among the countries with the largest growth in exports are South Africa, Canada, Egypt and China. At the same time, exports for Singapore, Syria, Peru and Vietnam have dropped. The largest share of exports consist of chemicals, including mineral fuels and oils, as well as machinery and equipment. Imports from non-EU countries have also grown in 2011, with 19.2% in comparison to 2010, amounting to some BGN 18.6 B. Import from Kazkhstan, Israel, Singapore and South Africa has grown, while that from Peru, Iran and Vietnam has dropped. The EU included, Bulgaria's exports for 2011 have grown by 29.2%.

 

 

INVESTMENTS:

Bulgarian economy minister says US company interested in Belene nuclear project

Economy and energy minister Tarycho Traykov said that an US company has expresses interest to take part in the construction of the nuclear plant in the Danube town of Belene, Dnevnik Daily reads. The name of the company, which is to deliver a letter of intent, has not been unveiled. In February 2008, Russia's Atomstroyexport, part of the state Rosatom, signed a EUR 4bn preliminary contract to build the 2,000 MW nuclear power plant. In December 2010, the maximum price for the construction was set at EUR 6.298bn and Rosatom, Finnish utility Fortum Corp and French technology consultancy Altran Technologies were listed as investors in the project. State-run National Electricity Company (NEC) is to control 51% of the project company, which is yet to be established. In early October 2011, NEC and AtomStroyExport signed 14th annex to the preliminary contract for the construction of the nuclear plant in Belene delaying the final decision on the project by six more months until Mar 31, 2012. 

 

 

 

COMPANIES AND INDUSTRIES:

 

Pharmaceuticals market in Bulgaria rises 11.8% in 2011

The pharmaceuticals market in the country increased by 11.8% to above BGN 2bn (EUR 1.02bn) last year speeding from 9% in 2010, according to information of IMS Health quoted by Capital Daily. The consumption of food additives and children's and dietary foods has gone up by 20% to some BGN 160mn. The pharmaceuticals sales in hospitals were only BGN 273mn vis-а-vis BGN 1.8bn in drugstores whereas the ratio in the other EU countries drug sales in hospital were 40-50% of the total. Actavis remained market leader in 2011, followed by Novartis (occupying third place in 2010), GlaxoSmithKline (sixth largest in 2010), Roche (second largest in 2010), while Sopharma retained fifth position. 

 

Japanese, Bulgarian companies join forces in 20.04 MW solar plant project

Sofia-based company Spasovo Solar has asked the state energy commission for preliminary issue of a 30-year license for electricity production from a 20.04 MW photovoltaic park, according to information posted on the website of the energy regulator. The solar park will be built on 351-decares land plot near the village of Spasovo in the northeast region of Dobrich. The solar plant is a mutual project of Japan's Mitsubishi Corporation, and the local Industrial Holding Bulgaria and the engineering company Inos 1, full-stake owner of Spasovo Solar. Mitsubishi Corporation wants to acquire majority stake in Spasovo Solar, while Industrial Holding Bulgaria and Inos 1 will be minority shareholders. The investment value has not been unveiled so far. 

 

 

Ming Yang to install 125 MW of wind power in Bulgaria

Wind turbine maker China Ming Yang Wind Power Group (NYSE:MY) today unveiled that it had agreed to build two wind farms with a total capacity of 125 MW in northwestern Bulgaria. The company's unit Ming Yang Wind Power (International) Co Ltd had signed the engineering, procurement and construction (EPC) contracts for the projects with Bulgarian firms W.Power EOOD and A1 Development EOOD in December 2011. The projects include a 4.5-MW wind farm in Somovit, to be up and running in July 2012, and a 120-MW wind farm in Milkovitsa, planned to come on stream in the second half of 2012. Ming Yang said it had shipped yesterday the first batch of wind turbines for the Somovit project, including three units of its MY 1.5-MW turbine. W.Power is a wind power developer with focus on Bulgaria, Romania and other Eastern European countries, China Ming Yang said.

 

Bulgaria’s sea resort Kiten starts EUR 21.7mn waste water purification project

Local authorities announced plans to launch a project for the modernisation of the waste water purification in the Black Sea resort of Kiten, Dnevnik Daily reads. The project is valued at BGN 42.4mn (EUR 21.7mn) and will be financed with EU funds under the country’s environment operational programme. The capacity of the facility will increase four times to serve 120,000 inhabitants during the summer season. The project should be completed in 39 months. 

 

Bulgaria's coal-fired power plant Maritsa East II to build two new units

Coal-fired power plant Maritsa East II, part of state-owned Bulgarian Energy Holding (BEH), plans to start building two new units by the end of this year or early next year, Capital Daily informs. The environment impact assessment has been prepared and the necessary infrastructure has been built. The project proposal has been sent to the council of ministers and the economy minister for discussions. The investment will amount to some BGN 500mn (EUR 255.6mn). Own funds and bank credit will cover the financial needs but the company considers also attracting a strategic investor to buy a stake in the plant. Construction works will continue 5-6 years. The project is expected to open some 3,000 temporary jobs and about 600 permanent jobs. The plant was commissioned in the period 1963-1969 and is located at the Maritsa East lignite coal mining complex in southern Bulgaria. It is the largest thermo-power plant on the Balkans operating eight generators with total power production capacity of 1,576 MW. 

 

Bulgaria’s sea resort Kiten starts EUR 21.7mn waste water purification project

Local authorities announced plans to launch a project for the modernisation of the waste water purification in the Black Sea resort of Kiten, Dnevnik Daily reads. The project is valued at BGN 42.4mn (EUR 21.7mn) and will be financed with EU funds under the country’s environment operational programme. The capacity of the facility will increase four times to serve 120,000 inhabitants during the summer season. The project should be completed in 39 months. 

 

Sofia city calls new tender for 2nd stage of waste plant construction

The municipality in the capital city of Sofia called a new tender for the construction of the mechanical-biological waste treatment installation, linked to the second stage of the construction of the waste-processing plant in the city, Capital Daily informs. The new tender became necessary after the amendment of the technical offer, according to which the processed by the plant burning blocks will go to the heating utility in Sofia. In addition, the quantity has been reduced to 113,000 tons of landfill waste per year from 150,000 tons initially. The indicative value of the project is set at BGN 208.3mn (EUR 106.5mn), VAT included. The facility should be projected and built in 19 months and afterwards tested for defects in the following one year. All candidates should submit documents by March 29, 2012. In June 2010, the Hut-Stanilov consortium, comprising local company Stanilov and German firm Heilit, which is part of Strabag group, won the tender for building the waste processing plant. The consortium offered a price of BGN 208.8mn (EUR 106.8mn) for the construction works. 

 

 

 

Reported by:

Georgi Iliev

KOTRA Sofia

Korea Trade-Investment Promotion Agency

Commercial Section of the Embassy of the Republic of Korea