ABOUT 10% OF THE ENGINEERING COMPANIES IN THE COUNTRY HAVE CEASED OPERATIONS

"About 10% of the companies in the mechanical engineering industry have ceased operations because of the crisis," announced Iliya Keleshev, Chairman of Bulgaria's Machine Building Branch Chamber. He took part in a presentation of the forthcoming industrial exhibition in Sofia, focusing on key sectors of the Bulgarian industry.


Some 2,000 companies in Bulgaria operate in the mechanical engineering branch, and 350-400 of them are are responsible for over 90% of the industry's products in the country.


"If the internal market continues shrinking and foreign markets face difficulties, it is quite possible, that even more companies would cease their activities in 2012," said Keleshev. A total of 110,000 people are employed in the mechanical engineering industry, which is about 28,000 less than those in 2008. In the period 2002-2005, investments in mechanical engineering were equal to the depreciations, according data of the Branch Chamber.


Officials from the Machine Building Branch Chamber hope that in 2012, the industry level achieved in 2011 will be maintained, and even growth would be recorded in the second half of 2012. Keleshev predicted a reduced level of exports in January and February. More than half of the industry production is exported, as 60% of exports are to EU countries.