Sensata Technologies officially opened a $3 million testing laboratory, its largest worldwide in Bulgaria’s capital Sofia. The company is a global industrial technology leader in the development, manufacture and sale of sensors and controls for mission-critical applications that improve safety, efficiency and comfort in a wide array of automotive, appliance, aircraft, industrial, military, heavy vehicle, heating, air-conditioning, data, telecommunications and marine applications.
The testing lab in Sofia is already operating on a total area of 6 000 sq. m. with over 100 newly hired highly-qualified engineers and experts in safety testing and development of equipment for Sensata’s components focused on automotive applications.
Sensata Technology testing facility recreates some of the harshest conditions for an automotive component, including extreme temperatures and severe environmental influence. The company already employs 3 000 people in Bulgaria and operates two sensor production plants – in Plovdiv and Botevgrad. The facilities in Plovdiv produce pressure sensors. The plant in Botevgrad produces temperature sensors for Volkswagen, Daimler, Volvo, Fiat and General Motors. “Now we are able to close the cycle of our processes only in one country and this is unique for Sensata”, said Paul Chawla, senior vice president of Sensata’s European unit during the opening ceremony.
“Congratulation for Sensata Technologies for allocating its investment in a high-tech laboratory in Sofia city where to grow its business and work on reducing emissions. These match along with our main mission – to create a green and innovative environment in our city” Mayor Yordanka Fandakova said.
In recent years, educated workforce and constantly improving public infrastructure have encouraged foreign investors to set up their business in Sofia, said Mrs Fandakova. According to her, the stable results achieved in the last few years pushed Sofia to the leading position in Bulgaria.
Sofia keeps the lowest unemployment rate in the country and in the EU (only 2.3 %, January 2017). According to data provided by the Institute for Market Economics, the capital attracts over 54% of the Bulgaria’s FDI as well as foreign companies from 77 countries around the world.
Sofia is Bulgaria’s largest city; it is the educational centre of the country and a regional talent hub. These are the main reasons the city attracts the biggest share of investments in Bulgaria, said Vladimir Danailov, CEO of Sofia Investment Agency in an interview with Bloomberg TV Bulgaria.
The low labour cost and low corporate taxes also had a very positive effect on attracting foreign investments, but at the same time, these incentives have no long-term potential.
Now we need to focus on attracting industries that produce innovations. Such industries drive tangible economic development. When we manage to attract innovative industries in the city, we will tackle another big challenge – attracting and retaining high quality, well educated, skilled and talented people, he added.
The full interview is available in Bulgarian on Bloomberg TV Bulgaria.
Investment projects related to several mineral water springs and a project in Chepinci, 8 km from the city centre were presented by the Sofia Investment and Privatization Agency at its first annual meeting with economic counselors, foreign trade attaches and bilateral chambers of commerce in Sofia on March 10.
The amount of FDI to Bulagria for the period 2000-2015 is 23.196 billion euro. Over 50 % of that amount, or 12.112 billion euro, were invested in Sofia. The investment came from 77 countries.
The CEO of Invest Sofia, Vladimir Danailov, presented Sofia’s priority industries such as high-value added manufacturing, smart city, urban environment, health tech and tourism.
The investment projects presented at the meeting included a renovation project for West and North Parks in Sofia and the future Slivnitsa Plaza, a fifty thousand square meter development in the city centre.
Sofia Privatization and Investment Agency also called for increased collaboration between the Agency and the representatives of foreign countries in organizing bilateral meetings and business delegations. Invest Sofia is looking for partner cities and countries for the B2B meetings of local business owners with partners from abroad. Our goal is to give local SME’s access to international markets, said Danailov.
He also presented the new Director of Privatization Dr. Verginia Stoyanova and the annual privatization plan which includes over 200 plots, forty of which are eligible for Investor Class C Investment Certificate, awarded to investment projects of regional significance.
The deputy mayors Doncho Barbalov and Evgeni Krusev participated in the meeting. Mr Barbalov highlighted Sofia’s competitive advantages: stable local taxes, developed infrastructure and young and educated work force. Sofia Municipality is ready to work with investors to assure faster completion of the administrative requirements for the business, said Barbalov.
On March 10th, 2017, Sofia Investment Agency organizes a meeting with commercial attaches, bilateral chambers and economic affairs counselors.
The meeting will start at 10:00 a.m., at “Sense” Hotel, 16 “Tsar Osvoboditel” blvd., Sofia.
Vladimir Danailov, the Executive Director of Sofia Investment Agency, will provide information on Investment Promotion Certificate Class C and will present the list of municipal properties scheduled for privatization as part of the Annual Municipal Privatization Plan for 2017.
Main municipal business policies, new investment projects, and platforms for new bilateral business opportunities will also be outlined.
Economic counselors will discuss the business challenges faced in Sofia and Bulgaria and will share ideas for common business development solutions.
Sofia Privatization and Investment Agency received a crystal plaque in the category Municipality at the annual Investor of the Year 2016 awards organized by the Bulgarian Investment Agency.
The executive director of Sofia Privatization and Investment Agency, Mr. Vladimir Danailov received the award at a gala held on February 23 at the National Palace of Culture in Sofia.
The other two awards in the Municipality category went to the municipalities of Maritsa (Plovdiv) and Dimitrovgrad.
After receiving the award, Mr. Danailov promised to continue the work for attracting new investors and finding new markets for the business in Sofia and Bulgaria. He expressed a special gratitude to Sofia Investment and Privatization Agency’s team for their hard work.
The Investor of the Year 2016 award went to Sensata Technologies for its investment of 90 million leva and 2800 new jobs. The company, which already operates in Sofia and Botevgrad, is a world leader in the production of mission-critical sensors for the automotive industry. Among its clients are global automotive giants like Volkswagen, Volvo, Fiat, General Motors and others. Sensata is planning to build its biggest production facility in Europe and the second biggest in the world in Bulgaria.
The other two Investor of the Year nominated projects were of Hamberger Bulgaria and Yazaki Bulgaria. Hamberger operates on the Bulgarian market since 2003 and produces sanitary products. Yazaki has been in the country since 2006 and produces sensors for the automotive industry.
In the category Green Investment the award went to Osram, Plovdiv District for the planned investment of 45 million leva and 900 new jobs. The German company first entered the country in 1998 with its first factory in Eastern Europa.
The award for Innovative Business went to Teklas Bulgaria, Kardjali. The company operates in Bulgaria since 2006 and recently opened its third production facility. The investment amount is 20 million leva. The company also announced its plans to open 2 more factories in the country in Kurdjali and Krumovgrad in the near future.
The award for Business Expansion went to Lufthansa Technik Sofia and Bulgaria Air Maintenance. The joint-company will expand its existing facility for aircraft maintenance, repair and overhaul (MRO) with a total investment of 70 million leva and 165 new jobs.
Integrated Microelectronics Bulgaria, Botevgrad received an award for investment in human capital. In 2017 the company invested 7.6 million leva and created 400 new jobs.
The Bulgarian
This spring Sofia will launch a public bike rental scheme.
Four hundred bicycles at 33 different locations in the city will be available for residents and visitors of the Bulgarian capital, announced Deputy Mayor of Transport Evgeni Krusev. The rental options will include a 30-minute free rental, and hourly rental of up to 1.60 lv. per hour (to equal the public transport ticket price).
Full day cards for 6 rides, weekly bicycle rental, and monthly membership cards will be also available.
The bike docking stations will be concentrated in the central areas of Sofia; will be available 24/7 with a pre-paid card, or through the “Nextbike” mobile application after scanning the QR code on the wheel to unlock the bicycle.
The app will also provide information on the nearest docking stations.
The bike stations can be relocated in case of city events, traffic congestion or reconstruction works.
In addition, each station will be a Wi-Fi network hub. If all bunks are the user will be able to leave the bike near the station and the app will automatically end the rental period.
The public rent-a-bike system is part of Sofia Municipality’s efforts to introduce clean and energy-efficient sustainable mobility options in the city.
Over 20 countries in Europe use bicycle-sharing. Worldwide public bike sharing systems are available in 50+ countries on five continents, including 712 cities, operating approximately 806 200 bicycles at 37 500 stations.
The pioneering city for bike-sharing was, not surprisingly, Amsterdam. In 1967 the group Provo painted 50 bicycles in white and left them in downtown Amsterdam to be used for free.
Among the best European cities for cyclists today are Copenhagen (about half of Copenhagen’s residents use bikes on daily basis), Eindhoven, Strasbourg, London, Nantes, Antwerp, Barcelona, Berlin.
Caretaker Economy Minister Teodor Sedlarski has ordered the launch of the procedure on the implementation of the Technostart 3 – Encouragement of innovation activities of young people in Bulgaria project.
The project aims to encourage young people with innovative and vital ideas (students, Ph.D., and graduates) and help them found a successful company based on their innovative ideas and to promote their success.
Young entrepreneurs will be supported in the early stage of starting their own businesses by providing state grants at the startup point of the establishment of technology companies. The amount of the grant is 90% of the total amount needed or up to 19,800 lv. after submission and approval of a business plan.
In order to obtain the funding for the project, each applicant must register a company and provide his own contribution of 10% of the grant or up to 2, 200 lv.
The total amount of the grant for Technostart 3 project is 300 000 lv. from the Ministry of the Economy budget in 2017.
Technostart 3 will grant startup projects and ideas in two categories – Industry, and Research and Development.
Eligible project costs include: acquisition of tangible fixed assets (TFA); acquisition costs of intangible fixed assets (IFA); utility costs such as electricity, water, heating and rent of premises; office supplies; third-party services such as bank account, bank fees associated expenses and other activities necessary for the implementation of the business plan.
The application procedure is expected to start in March 2017 after the adoption and the establishment of a new Operations Management team of the “Technostart 3” project.
Sofia is no longer just an outsourcing partner but a business destination that creates new products and solutions, said Vladimir Danailov, CEO of Sofia Investment Agency at the opening conference of “Sofia Meets Oslo. Oslo Meets Sofia”, on January, 24 in Sofia.
The conference set the beginning of series of initiatives aiming to strengthen trade relationships between Bulgaria and Norway and to facilitate business contacts among companies and institutions which want to share experience, exchange ideas and best practices.
Sofia Investment Agency partners in this project with the Sofia office of the Norwegian state agency “Innovation Norway” which offers financial support for companies focused on the integration of innovative business practices.
The conference started with welcome speeches by the Mayor of Sofia Yordanka Fandakova and Hon. Tove Bruvik Uestberg, Ambassador of Norway to Bulgaria. “Sofia Municipality is ready to support any business practices that share the vision for the development of our capital as an innovative and green city.”, Fandakova said.
Over 30 representatives from leading Bulgarian and Norwegian companies and organizations discussed business development opportunities in the fields of green technology, smart cities, and entrepreneurship.
The conference outlined the advantages and the perspective areas for future cooperation between Bulgarian and Norwegian companies.
Ventseslava Yanchovska, Manager of “Innovation Norway” for Bulgaria, presented funding opportunities for Bulgarian companies planning to integrate innovative and high technology projects. “To help, to apply transparent models and stimulate competitiveness is the main focus of “Innovation Norway” – said Mrs. Yanchovska. “The financial and methodological support we provide to Bulgarian companies helps them grow and step out on international markets.”
The first stage of the project “Sofia Meets Oslo. Oslo Meets Sofia” will continue with several meetings between Norwegian institutions and business representatives with local Bulgarian companies and technology organizations. During the second stage of the initiative, Bulgarian representatives will travel to Norway to meet their potential partners.
To apply for the “Oslo meets Sofia” phase of the project, please visit:
Several Hungarian entrepreneurs showed interest in exploring business opportunities in Sofia, said Vladimir Danailov, CEO of Sofia Investment Agency.
Mr. Danailov participated in a Business Forum held in Budapest where he presented the investment opportunities offered by the Bulgarian capital to Hungarian business representatives.
Mr. Danailov presented Sofia Investment Agency’s plan for attracting and supporting entrepreneurs and the advantages of doing business in Sofia.
The Forum was accompanied by a series of business meetings.
As a result of the Forum, the representatives of both cities agreed to work to enhance business partnerships between Sofia and Budapest.
Representatives from some of the leading companies in Perugia, Italy are looking for Bulgarian partners in opening various production facilities in Sofia and are ready to invest in new ventures. Opportunities for collaboration were discussed during a meeting between a business delegation from Perugia and the Invest Sofia Agency on October, 25 in Sofia. The meeting was attended by representatives of the municipalities of Perugia and Sofia.
“Sofia is working hard to promote entrepreneurial initiatives”, said Mr. Nikolay Stoynev, Vice Chairman of the Sofia City Council and Chairman of the Supervisory Board of Sofia Privatization and Investment Agency, who led the discussion.
The Italian entrepreneurs came from the biofuels, construction and automotive industries.
Fbm, a company that produces supplies for the construction industry is researching the opportunities for opening a production plant in Bulgaria, said the company’s Vice President Mr. Meneghini during the meeting. The company operates on the Italian and the European markets, as well as in Russia and the Middle East.
Most of the Italian business representatives plan to use their potential production fascicles in Sofia and Bulgaria as a launch pad for entering the markets of Russia, Ukraine and the Middle East. 
Some of the companies present already sell their production in Bulgaria through third countries, but would now like to have a direct representative.
Among the business representatives were companies that are already present on the Bulgarian market. A company that produces traffic signaling equipment already employs 130 people in its two production facilities; in Novi Iskar, near Sofia, and in Plovdiv. Another company, Economy 2006 built an apartment building in Sofia, near Maria Louisa Boulevard and is looking for a partner in the development of a second project in the same area.
“I am absolutely charmed by what I saw in Sofia”, said Mr. Antonio Cascianelli, a candidate for Honorary Council of Bulgaria for Umbria Region. Professor Michele Fioroni, City Council member from the Comune di Perugia shared Perugia’s experience in constructing one of the best digital infrastructures in Italy, as well as the city’s practices in cooperation between the business and the local universities.
Vladimir Danailov, the director of Sofia Investment and Privatization Agency described Sofia’s efforts to attract high value added industries and the Agency’s role in offering specific, case by case support to individual investors. Mr. Danailov also mentioned the key investment advantages of Sofia – competitive tax rate, fast growing IT
The nation’s history as the former Soviet Union’s IT hub has given it a head start
Darin Madzharov, studying for a PhD in computer science in Belgium, was growing impatient with his sister’s calls on Skype seeking help with her Sofia high school science course. So he responded with a stream of video tutorials, which her classmates and friends snapped up.
“They became so popular that I gave up my PhD, came back to Sofia and launched an educational website,” the 28-year-old says.
His site, Ucha (“learn” in Bulgarian) took off thanks to €30,000 in funding from Launchub, a local accelerator backed by the European Investment Fund (EIF) and the EU’s Jeremie tech start-up programme. Two Bulgarian angel investors came up with €200,000 in a further raising and this year Ucha.se is set to make a profit.
“For 20 lev (€10), the price of a meal, you can sign up for a year’s worth of lessons covering any national curriculum subject,” says Mr Madzharov.
Bulgaria is striving to catch up with central Europe, where economies based on low-cost manufacturing and exports are shifting to innovative and creative industries. A generation of westernised engineers and programmers with a global outlook now underpins the country’s emergence as the technology capital of the Balkans.
Computer science and engineering graduates are no longer migrating in droves to the US and Germany. Local companies employ about 40,000 software engineers while the IT sector contributes more than 3 per cent of the country’s output, compared with less than 1 per cent four years ago.
“Bulgaria is an interesting hub for IT development with higher-quality [people] and lower costs than elsewhere in Europe,” says Asparuh Koev, chief executive of Transmetrics, an award-winning start-up that uses big data and predictive analytics to improve efficiency in the transport industry.
Sofia and Plovdiv, Bulgaria’s second city, have become flourishing outsourcing centres, providing jobs for thousands of IT graduates. Some of these go on to develop products that attract the attention of technology watchers and foreign venture capitalists.
Innovation is what sets Bulgarian outsourcing companies apart, according to Dimitar Mantchev, managing director of Programista, a software developer based in Sofia and Plovdiv. “You make customised software and build a client base, then one of your teams develops a new product and you grow much faster.”
Bulgarian IT skills were born under communism. Its state-owned electronics companies specialised in computer hardware