Bulgarian tile maker KAI mulls Romanian investment _x000d_
07.06.2006
Source: Dnevnik
KAI Group (KAI), Bulgaria's biggest manufacture of ceramic tiles, said it was sounding out the Romanian market. Kai Group is owner of plants in Isperih (Khan Asparuh), Shumen (Khan Omurtag) and Elin Pelin (Izida). The annual output is expected to exceed 15 million sq. m of tiles, compared with 7 million sq. m in 2001. Half of the output is exported to Romania, Greece, Macedonia, Great Britain, France, Germany and Scandinavia. The company employs 1,400 people, the average monthly wage stands at BGN 400.
The company said it may build a new production facility in the neighbouring country.
KAI Group reported Tuesday on the implementation of the company's 5-year investment program.
The company has invested BGN 20m so far to modernise the production facilities at its factories in Shumen and Isperih.
The Isperih factory launched in May the production of unglazed porcelain tiles. The capacity of the plant is 2 mln sq m of tiles annually but could be increased to BGN 4m.
The Shumen factory has added a new size of tiles to its product range.
The new product launches would elevate KAI to the top 10 of ceramic and porcelain tile producers in Europe, said executive director Zahari Bochev.
KAI Group has forecast a 20% increase in turnover for 2006. The company reported a turnover of BGN 60m in 2005, giving it a market share of 50%.
Over the mid-term, KAI plans to invest BGN 6m in the modernisation of its unit Izida near Sofia.