South-East European Industrial Market 2/2022


south-east european INDUSTRIAL MARKET 2 South-East European Industrial Market is a bimonthly industrial products & services magazine for the South-East European countries - Bulgar ia, Croat ia, Greece, Northern Macedonia, Romania, Slovenia, Serbia, Montenegro, Turkey, Albania. It is distributed free of charge among the working specialists in the industrial sectors in the region, and the engineering, manufacturing and trade companies in South-Eastern Europe. Editorial Department Dilyana Yordanova - Lead Editor % (+359 2) 818 3823 Lyuben Georgiev % (+359 2) 818 3808 Hristina Vuteva % (+359 2) 818 3822 Marketing & Distribution Dept. Mirena Russeva - Head of Department % (+359 2) 818 3812 E-mail: Advertising & Communications Marieta Krasteva % (+359 2) 888 956 150 Petya Naydenova % (+359 2) 818 3810 Anna Nikolova % (+359 2) 818 3811 Gergana Nikolova % (+359 2) 888 595 928 Elena Dimitrova % (+359 2) 818 3815 ISSN 1312-0670 TLL Media Ltd. © All rights reserved.The artwork, layout design, the articles and all the graphical and text materials used - images, photos, texts, etc., are copyrighted and protected by the law. Unauthorized and unpermitted use is illegal and a copyright infringement. The Publisher shall not be held liable for the contents of the advertisements, advertising layouts and banners, video advertising publications, advertorials and company articles. Copyrights of all mentioned trademarks, registrated trademarkes, etc. belong to their owners.  IN THIS ISSUE: www . SEE - i ndus t r y . com Publishing House 104, Acad. Ivan Geshov Blvd., entr. A, office 9, 1612 Sofia, Bulgaria % (+359 2) 818 3838, Fax: (+359 2) 818 3800 E-mail: ® 4 Ruggedness and Reliability – A Journey Beyond the Datasheet 7 Slovenia’s electronic components market 10 Automotive and Mobility Forum: Southern and Eastern Europe 2022 provided a look into the future of the industry 12 Greece’s mining industry 16 Steel manufacturing in Turkey 20 9th edition of Supply Chain & Logistics Expo to be held in October 2023 20 Preparations underway for MAKTEK Eurasia 2022 22 WorldFood Istanbul to be held for the 30th time 22 Eco Wave 2022 to showcase latest technologies for the green economy 23 EBRD’s Green Cities Programme helps Sarajevo on its way to sustainability

south-east european INDUSTRIAL MARKET 3 PAID ARTICLE -IoT success strories in 2022 Zoltán Kiss, Export Director e-mail: Zoltan Kiss, Export Manager - Head of R&D - Endrich Bauelemente Vertriebs GmbH In this paper we are a little out of the habit and instead of presenting technical details, we want to talk a little bit about the success of Endrich’s development team in recent weeks and months at domestic and international exhibitions and forums. The 2020 debut of the E-IoT concept at the EmbeddedWord 2020 exhibition in Nuremberg has already predicted that the engineering community in the field of IoT will welcome the introduction of a complete test infrastructure to support their work in terms of components, turnkey solutions and software services. This has been deatiled in a number of white papers in SEEIM magazine as well. Based on this experience, the management of Endrich GmbH has opened the way for the establishment of the Budapest Competence Center and the further development of the concept, which will enable product development in the near future at a conventional distribution company operating originally on the field of electronics components. At the Hungexpo Industry Days exhibition, which was held in October 2020 being the first to allow physical appearance after the pandemic, Endrich “won” grand prizes in two categories. Of course, the developments then continued with steam power, and we also wanted to scale ourselves internationally. The first international competition we took part was the AMA Innovation Award competition related to the Sensor + Test 2022 exhibition. The E-IoT concept - although being not among the four winning entries - was mentioned in the top thirty innovations to be included in this year’s catalog. ( At the same time, we took part in several 2022 spring competitions, of which the Yettel IoT LiveShow and the Hungexpo Industry Days exhibition stood out in Hungary. In the first event, based on the audience votes, we were not far behind the winning entry, but the second event brought us a very valuable result. As the concept has already won the 2020 Exhibition Grand Prix, this year we competed with one of the special applications that builds on the E-IoT concept, but puts it in a real industrial environment, using it to support preventive maintenance. One of the next issues of the magazine, we will report in detail about the telemetry unit for intelligent UV-C air purification equipment developed with our sister company, euroLighting GmbH, This device and the surrounding hardware and software infrastructure were chosen by us as this year’s entry. To our great delight, the competition (“SMART-loT-Kit” unit and “Smart” air purifier, which complements traditional equipment with remote monitoring and telemetry functions) won the Grand Prix of 2022 and Industry Days, Mastech and Automotive Expo.Together with Mr. Wolfgang Endrich, our founding owner and CEO of euroLigting GmbH, we have been handed out the trophy by Dr. Laszlo Gyorgy, State Secretary for Economic Strategy and Regulation of the Ministry of Innovation and Technology, at the opening ceremony in May this year. And even then, this dream series did not end, as in the meantime the E-IoT concept received a valuable nomination in the annual German Innovation Award competition organized by the German Design Council. The nomination itself is a recognition we were proud of, as the jury is made up of professionals who come across more valuable developments every day at the head of the innovation centers of the leading companies in the field. This year’s awards were juried by Dr Elias Knubben, Vice President of Research and Innovation at Festo, Christina Wang, Managing Director of Lufthansa’s Innovation Hub, Michael Kruzaa, Development Manager at Deutsche Telekom and many other renowned German experts. To our great pleasure, the family of products and services born in Endrich’s Budapest office, dreamed up, designed and continuously developed by Hungarian engineers, won the German Innovation Award 2022 in the Excellence in Business to Business, at category Connectivity ( en/winners/preis/gewinner/endrich-iot-plattform-hardware-software-toolkit ). It was a pleasure for me to receive the prize - together with Dr Christiane Endrich, CEO of the Endrich Bauelemente Vertriebs GmbH - at the May 24 gala in Berlin at the Futurium Museum. Of course, the awards themselves - although we are extremely proud of them - are merely of sentimental and marketing value, but in the same time utilizing the concept can bring real success. We work hard to reach this every day in both area I manage, in international sales we look for channels where real (IoT related) product needs to be developed, and with the staff of the Budapest development center we try to figure out in advance the directions where we can expect further success. Another such area is the extension of the E-IoT concept with a local wireless MESH sensor network, where the E-IoT single-board computer serves as a Gateway to the IP World for lithium-battery-powered intelligent sensors operating in the 868 MHz ISM band. Of course, here too we use NarrowBand and LTE-M technologies to help bring data to the cloud. This new concept has been unveiled for the first time at the EmbeddedWorld 2022 exhibition in Nuremberg, where Endrich aims to promote the E-IoT concept almost entirely, focusing on our new slogen “Making your device SMART!”. This new product line is to be further extended and expected to be shown at the SIDO exhibitions in Lyon and Paris in the autumn, in Bulgaria at the International Fair in Plovdiv and at the Electronica 2022 exhibition in Munich. And last but not least, I would like to thank my colleagues Csaba Kocsis and Zsolt Veresegyhazy for backing me up on this joyful but bumpy road and achieving these successes together.

south-east european INDUSTRIAL MARKET 4 Xuning Zhang, Tomas Krecek and Nitesh Satheesh Microchip Technology Transportation touches lives every day, moving people and goods from points A to B. An interruption in such a system would have a cascading effect. Trains especially are subject to a variety of weather systems that may influence the electronics used within. It is therefore important for transportation system developers to consider parameters that are not typically presented in datasheets. This is even more important in the case of wide bandgap power electronics such as Silicon Carbide (SiC), which is a novel material in such an application. Microchip Technology’s SiC power devices are rugged, robust and apt for demanding applications within the transportation segment. A strong portfolio of standard, custom packaging options provide customers with flexibility in design. Digital programmable gate drivers, available as printed circuit board (PCB) plug-and-play or core drivers, provide engineers with tools to optimize system performance and tune the system to the application with minimal hardware modifications. The toughness of SiC MOSFETs across wide-ranging conditions is essential for auxiliary power units (APUs) that power both conventional and emergency loads. The following must be verified: 1) the stability and lifetime of the MOSFET’s gate oxide; 2) the stability of the MOSFET’s body diode; and 3) failure toughness measures such as avalanche ruggedness. Stability and Lifetime of MOSFET Gate Oxide To ensure the stable operation of the power converter, the power devices must have minimum threshold voltage shift and reliable device performance throughout the converter lifetime. Figure 1 shows how Vth data for production-grade SiC MOSFETs should exhibit no meaningful change after 1000 h of stress at 175°C. The gate oxide lifetime can be predicted by accelerating samples to failure using elevated temperature and electric field. A production-grade SiC Ruggedness and Reliability – A Journey Beyond the Datasheet MOSFET gate oxide can last well beyond 100 years at high stress, ensuring confidence in routine, reliable APU operation beyond the designed service lifetime. Figure 1. Threshold voltage of production-grade SiC MOSFETs before and after (up); negative and positive high-temperature gate bias stress (down).

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south-east european INDUSTRIAL MARKET 6 Body Diode Stability A SiC MOSFET can conduct reverse current using its intrinsic body diode. Compared to an Insulated Gate Bipolar Transistor (IGBT) solution, using a SiC MOSFET with stable body diode enhances reliability and cuts cost by eliminating the antiparallel diode. However, the body diode reliability varies greatly across different suppliers. In some devices, this diode degrades over time, leading to an increased RDSon and more heat than designed. Figure 2 (left) shows body diode I-V curves and MOSFET ON-state drain-source resistance (RDSon) after many hours of constant forward current stress. Microchip devices under test shows no perceptible shift. Avalanche Ruggedness Transportation APUs are susceptible to a variety of fault conditions, demanding SiC MOSFETs designed to safely and reliably perform through these events, and to maintain consistent performance before and after faults. Avalanche ruggedness is one of the key demands. The cause of avalanche of a power device can be very often unclamped induction switching. The load current is suddenly dumped into the MOSFET, forcing the drain-source voltage to rise to breakdown. Unlike short circuit, the MOS channels are not enhanced; avalanche current crowds the die edge, rapidly taking the device to its thermal limitations. Avalanche phenomenon is serious for power semiconductors due to possible lifetime degradation due to the electrical and overheat stressing. Repetitive unclamped inductive switching (R-UIS) is used to evaluate a device’s avalanche ruggedness. Figure 2 (right) shows time-dependent dielectric breakdown (TDDB) for commercial SiC MOSFETs before and after 100 000 cycles of R-UIS. Many suppliers maintain oxide strength but the ability of Microchip SiC MOSFETs with up to four times the toughness alongside stability in RDSon and drain-source leakage reinforces the SiC MOSFETs’ ability to safely ride through the most demanding electric overstress conditions. Smart/Intelligent Gate Drivers Demand As a gate driver represents an interface (very often galvanically isolated) between high and low voltage sides and, in addition, reliable gate control, monitoring and many other safety features, under any condition and/or circumstances it is one of the most important sub-systems from performance and reliability points of view. Under normal operational conditions the gate driver follows commands from the host controller to turn-on/off a power semiconductor. The converters require gate drivers with adjustable dead time, like that the gate driver provides enough time (dead time) to recover blocking capability of the device being turn-off. The voltage is applied to the gate to turnon the power semiconductor switch affects the RDSon and hence is another important parameter to minimize conduction losses. Finally, gate resistors define the switching transients speed and hence the time taken for the power semiconductor to turn-on or off. Designers often optimize these parameters according to various requirements. Reliability also means protecting the converter from faults, which can be, in the worst case, destructive. Simply, many parameters and features can be assigned to gate drives that suggest the question, can we have reliable drivers which can be configurable by software like on Figure 3 (right) instead of hardware? Microchip’s family of digital programmable gate drivers, like the one captured in Figure 3 (left), provide designers with full flexibility in adjusting the parameters per their application, load profile or other specific requirements. In addition, they offer fault feedback, which can be useful in fault diagnosis. On top of that, Microchip’s digital gate driver family provides basic DC link voltage and temperature measurement. Short circuit in power converters can become destructive if not properly managed. Protection through Microchip’s patented augmented switching limits fault current by detecting the fault sooner and limits overvoltage by managing the turnoff through a multi-step gate driving voltage. SiC provides innumerable benefits in rail traction. Microchip’s SiC goes well beyond the datasheet in fulfilling demanding application requirements for rail traction. Figure 2. Pre- and post-stress RDSon for Microchip SiC MOSFETs (left). Time-dependent dielectric breakdown (right), before and after repetitive avalanche failure for commercially available SiC MOSFETs from four suppliers. Figure 3. Gate driver core mounted on adapter board (up) and Microchip power module representing available eval kit. Screenshot (down) showing Intelligent Configuration Tool available for gate driver boards programming.

south-east european INDUSTRIAL MARKET 7 Slovenia has a geostrategic location, business-stimulating regulations and political stability. These factors make it an excellent ecosystem for business development and growth. This Alpine country also offers dynamic and interesting innovation perspectives as the number of researchers has more than doubled since the year 2000. Investors are aware of Slovenia’s advantages in R&D. Some of the world’s largest companies have formed key global competence centers for products and technologies in Slovenia. And according to a regular annual survey among German investors in central and Eastern Europe, Slovenia is the most attractive location for research and development investments in the region. Electronics – fastest growing industry in the country Two of the prime characteristics of Slovenian electronics industry are fast growth and high value-added. In fact, the industry is the fastest growing manufacturing branch in Slovenia. Between 2015 and 2019 the electrical and electronics industry increased its exports by a massive 43,7 percent. Founded on a strong tradition, this sector is turning into one of the key drivers towards a greener and digital future, providing essential components for e-mobility, smart grids, smart homes, and cities. According to data provided by Spirit Slovenia Business Development Agency the sector is one of the strongest in Slovenian manufacturing with close to EUR 5 billion of annual turnover and around 30 000 employees. This was made possible by a high standard of quality, strong R&D, and constant innovation integrated into its processes. The vast majority of the sales are generated by companies in the manufacturing of home appliances, electrical motors, transformers, and equipment for power grids, batteries, cables, pumps, heating and cooling equipment, and various mechatronic components. Slovenian electronics companies are mostly highly specialized SMEs with leading products in their respective niches in the production of circuit boards, electronic components, optronic and laser devices, telecommunication systems, and measurement equipment. Though the electronics manufacturers annually generate less than EUR 850 million, they create over EUR 300 million of value-added – that is around 37 percent – this being one of the highest percentages in Europe, on par with Swiss and German electronics industries. Slovenia’s electronic components market Advantages of Slovenian electronics production include educated and highly skilled workforce, high operating efficiency, continuing investment in research and development, ability to identify market niches, development and engineering electronics components, integration in local and global supply chains. Export markets of electronics components According to data by Statistical Office of the Republic of Slovenia (SORS), dated May 2022, the largest export market in electronics is Serbia (28%), followed by Belgium (14%), Croatia (10%), Philippines (9%) and Germany (7%). The true rise of the industry started after World War II, with the formation of two large companies, home appliances producer Gorenje and electronics component manufacturer Iskra. Gorenje is now a part of the Chinese Hisense group and remains one of the largest companies in Slovenia. It is not only the Chinese that rely on Slovenian tradition and know-how. Bosch Siemens has located one of its excellence centers for small home appliances in Slovenia. Many of the popular products of this large manufacturing group were designed in Slovenia. Home appliances remain one of the most successful sub branches of the industry with over EUR 2 billion of annual sales and a strong local network of suppliers. Some of these suppliers are global leaders in their niche, such as producers of electrical motors for vacuum cleaners for example. Apart from home appliances, the Slovenian electrical industry focuses on a few select areas. In some of these fields, Slovenian companies enjoy very competitive positions or are even niche leaders. A large share of Slovenian companies is focusing on the needs of the automotive industry. They supply their automotive partners with lighting systems, cables, coils, sensors, antennas for keyless start systems, electronic and mechatronic components, Li-ion batteries, and electrical motors. Strong niche development in electronics The electronics industry in Slovenia might be small and yet is a powerful player in clearly defined niches like optotronics, laser technology, medical instruments, and measurement devices. One of the key niches is also the design and manufacturing of printed circuits for highly specialized applications. Slovenian-designed boards are for example used in CERN’s Large Hadron Collider. In fact, there is hardly a major particle accelerator in the world that does not use Slovenian developed measurement devices. Small series and innovative electronic products from Slovenia include, among others, advanced medical and dentistry laser systems, sensors for industrial and medical applications, LED optotronic devices, and lab equipment. The industry enjoys strong support from local research and academic

south-east european INDUSTRIAL MARKET 8 institutions. And over 5 percent of its turnover is reinvested into its own R&D: a share well above the EU average. Mechatronic components, custom-made electrical motors, and a vast array of sensors are key elements in some of the megatrends like IoT, smart homes and cities, factories 4.0, and e-mobility. And in the development and production of these elements, Slovenian electrical and electronics companies excel. Many already provide both components for smart solutions or engineer entire systems like factory 4.0 production lines. Slovenian-made automatic guided vehicles used in smart logistics centers use locally developed electronic components and solutions. The developers of vehicle tracking systems are preparing solutions for autonomous driving. The locally developed machine vision solutions are indispensable in smart factories. Several companies are active in the field of smart buildings, where automation and control systems for heating and cooling are interwoven with data collection and analysis. In short, the Slovenian electrical and electronics industry has proactively responded to the challenges of the future; providing solutions that are integrated, digital, and – above all – friendlier to the planet. Printed circuits seem to be one of the key niches for Slovenia’s electronics industry. Among the most advanced developers or producers of PCBs are Ergoline, Intec TIV, Evoteh, Hyb and Proplace. Hyb also develops pressure sensors for industrial use (hybysens) and medical technology. Its hybymed program includes innovative, invasive blood measurement equipment and wireless, closed blood sampling systems. Together with partners Hyb also developed Freehand, an innovative medical device based on an electromotive arm intended for laparoscopic, minimal invasive surgery procedures. Another two companies, which also exhibited at the last edition of electronica, are Etra TT and Sumer. Etra TT manufactures transformers. Sumer is a family business supplying the electronics and home appliance industries with metal and plastic components. Intec TIV is another manufacturer that excels in state-of-the-art product development. In the year of 2000 the company Ergoline merged with the company Intec TIV Ltd. from Kranj. This move was very beneficial and successful for both companies since they managed to cooperate in

south-east european INDUSTRIAL MARKET 9 development ever since. Slovenian companies tend to keep close cooperation with institutes and universities in research and development of new technologies. The PCBs produced in Slovenia find application in medicine – high-energy photons for early cancer detection; energy – bipolar plate for electrical to chemical energy conversion – hydrogen in electrolytic cell and bipolar plate for reversible process converting chemical energy of hydrogen to electrical energy. Slovenian PCBs are also used in artificial intelligence for development of intelligent electronics for everyday home use in many devices that enable personal security, energy savings, simplicity and adjustability. Special services are provided for the elderly and people with disabilities as well. Their innovative products are also implemented in Linear accelerator in CERN, which uses electrical and magnetic field for the stimulation of electrically charged atomic and subatomic particles for high speed and collision with others. Innovation leading the way to success Undoubtedly, with 541 companies earning EUR 3,8 billion in sales in 2017, and with 28 000 employees, the electrotechnical and electronics industry is amongst Slovenia’s key sectors. Most of its revenue, over EUR 3 billion, is made outside the country. Above all, the companies in this industry belong to the most innovative and successful businesses in the country. For example Ergoline, a company from Cerknica and regular exhibitor at electronica, is an important European developer of flexible and fixed printed circuit boards. It specializes in the boutique production of small series and prototypes, and closely cooperates with Slovenia’s leading scientific institution, the Jozef Stefan Institute. Ergoline’s solutions are built into CERN’s legendary Large Haldron Collider. Slovenia’s biggest manufacturer of printed circuit boards (PCBs) is Intec TIV from Kranj. This company, with revenue of around EUR 10 million is owned by Ergoline. Another example of solution providers for the labs which break the frontiers of today’s physics also exhibited in Munich: Instrumentation Technology from Solkan near Nova Gorica develops beam stabilisation instruments for particle acceleration. Slovenia’s electronics industry has always been well presented at leading innovation shows and trade fairs. For example electronica in Munich, Germany, the world’s leading trade fair for electronic components, systems and applications was a host to a number of companies in the printed circuit board development segment as well as manufacturers and companies developing components for the world’s top particle accelerators. This year 14 Slovenian companies will present their latest solutions at the world’s leading trade fair and conference for electronics – electronica. Despite its size, Slovenia is the third EU country in the field of ecoinnovations, and has doubled its investment in sustainable development. Its socially responsible economy is among the best in the world in terms of environmental health and ecosystem vitality. Slovenia is a leading Central European country in patent registration and the 30th most innovative country globally. Slovenian companies’ R&D investment ranks high above EU-27 average, resulting in technologically advanced products and solutions best suited to the needs of the future. This is part of the Slovenian strategy to ensure that its solutions are globally competitive. Slovenia also exports sustainable and innovative solutions for the European automotive industry. And moreover, the country was placed 5th by OECD for smart products delivered daily by the Slovenian digital and robot-intensive economy. SEE NEWS Monbat and ABC target commercialization of bipolar lead batteries Advanced Battery Concepts (ABC) and Bulgaria’s Monbat agreed on a product development program for the design of a commercial bipolar battery, based on ABC’s patented GreenSeal technology, for mass scale production at a future Monbat manufacturing 1 GWh facility to be built in Bulgaria. Forecast for the investment is about EUR 16 million. In the first stage of the program, ABC will produce, in its expanded Clare, MI plant, the socalled Alpha Samples of Block B batteries. Block B is a 48-volt, 32 amp-hour industrial battery, aimed at telecom and battery energy storage systems (BESS) applications. The batteries will be delivered to existing Monbat clients and special projects requiring BESS, for on-site deployment, thus supplying the necessary data for the future mass-scale production. Monbat has intensively tested prototype Block B batteries since 2019, in the company’s certified testing laboratories. Bipolar batteries will offer significant advantages in the industrial battery sector, improving performance, durability, and cost of production/ acquisition and at the same time reducing lead and weight, while remaining fully recyclable. Mastel CNC to build EUR 5 mln factory in Bihac Mastel CNC, the Bosnian subsidiary of German metal processing company Mastel CNCTechnik, is investing EUR 5 million in the construction of a factory in Bihac, the city council announced. The factory will spread across 7000 sq m of closed space and additional 20 000 sq m of outdoor area, Bihac mayor Shuhret Fazlic said in a press release. The construction of the plant is expected to be completed by the beginning of summer 2023. The factory will open 50 new job positions, doubling Mastel CNC’s current headcount in the country, Sandi Terzic, director of the company, said in the press release. Mastel Aluminium was founded in 1985 in Talheim, located just outside Heilbronn. The founder is Dietmar Mastel, the owner and managing shareholder. Since then, Mastel fulfils an important service function concerning the aluminium supply of the metal processing industry. Mastel CNC operates in Bosnia since 2019.

south-east european INDUSTRIAL MARKET 10 The international conference Automotive & Mobility Forum: Southern and Eastern Europe 2022, organized by Automotive Cluster Bulgaria, was held between 1 and 3 June in Sofia. During the first day, participants, including a representative of the editorial team of South-East European Industrial Market, had the opportunity to visit some of the facilities of suppliers specializing in automotive electronics – Visteon Electronics Bulgaria, Sensata Technologies Bulgaria and Melexis Bulgaria. At its technology center, Visteon demonstrated automated testing of sensor displays with MATT – a robot designed to physically interact with devices through replicating human input, developed by Adapta Robotics. With a fastmoving effector, MATT interacts with the device through 3 capacitive fingers, made to accommodate any materials and capacitive requirements. Tapping, pinching, swiping, rotating, and pressing buttons located on the front or side of device, MATT executes any multi-touch gestures. Using computer vision to recognize icons and text fields MATT performs fully automated test cycles, relieving manual testers of repetitive tasks and increasing productivity. In Visteon’s laboratory, forum participants had a look at the new semianechoic chamber for measuring radiated emissions and immunity, as well as state-of-the-art equipment for ESD, mechanical and thermal testing of products. Sensata also impressed the visitors with its high-tech prototype testing equipment in its laboratory in Sofia, spread out on a total area of over 14 000 square meters. The main part of the conference, hosted by Inter Expo Center, started on 2 June with welcoming speeches from the President of the Republic of Bulgaria Rumen Radev, the Minister of Innovation and Growth Daniel Lorer and the CEO of Automotive Cluster Bulgaria arch. Lubomir Stanislavov. In his address to the participants, arch. Stanislavov stressed that despite the difficulties to prove the necessity for the automotive industry in Bulgaria, today it is clear that it definitely has ground in the country and has a platform for development. He pointed out that over the past 10 years the number of companies in the sector in Bulgaria has increased from 30 to over 350, and the turnover has risen from EUR 0,5 to 6,5 billion. “The automotive industry is among those that are the most innovative and bring the greatest added Automotive and Mobility Forum: Southern and Eastern Europe 2022 provided a look into the future of the industry value. Our country can become a center of innovation for the sector, especially for electric vehicles,” said Minister Lorer, adding that recently the government has been actively working on 7 new potential projects in the industry with an approximate value of over BGN 2 billion, which are expected to create over 4 thousand new jobs. “The quality of the production in Bulgaria is the reason why representatives of leading automotive companies from all over the world invest here. The automotive sector is the fastest growing industry in Bulgaria and accounts for 10 – 12% of the country’s GDP, with this share expected to reach about 20% in 5 years. The automotive sector creates 70 thousand jobs in the country, and 9 out of 10 cars manufactured in Europe have built-in components produced in Bulgaria. In addition, 80% of the automotive sensors for vehicles sold in Europe are manufactured in facilities based in Bulgaria,” President Rumen Radev stressed in his speech. The event continued with extremely interesting panels, which included representatives of the Volkswagen Group’s automotive software division – CARIAD, Automotive Cluster Bulgaria, Melexis, Visteon, Sensata, Veolia, Bosch Engineering Center Sofia, Next.e.Go, etc. The discussions focused on the transformation of the automotive industry in Southern and Eastern Europe, innovation trends and technologies for a new automotive era, automotive software solutions and the digitalization of manufacturing processes in the sector. There was also a special panel dedicated to start-ups as a driving force for innovation and growth, as well as a session focused on the possibilities for improving the level of sustainability in the automotive industry. The day ended with a series of short, organized B2B meetings, hosted by OEMs and suppliers. The final day of the conference, 3 June, began with a session focused on the supply chain and logistics trends in the SEE automotive sector. It was followed by a regulatory roundtable on the present and future of the Bulgarian car fleet. The discussion was organized in partnership with the Association of Car Manufacturers. After a presentation of the current state of the mobility and fleet process management, topics were centered on the creation of mobility policy for a sustainable car fleet. Among the discussed opportunities for achieving this were: the electrification and digitalization of fleet management; creating a car register containing information about each newly registered car for the period of its operation; digitization of the processes related to the use and servicing of vehicles in Bulgaria; state support for renewal and decarbonization of the fleet; creating an environmental fund to stimulate the renewal of the fleet; possible change in the annual car tax according to the environmental impact of vehicles; development and construction of the charging infrastructure for electric cars in big cities and on the national road network. The event ended with the official opening of Sofia Motor Show 2022.

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south-east european INDUSTRIAL MARKET 12 Greece possesses substantial mineral wealth, consisting of a variety of minerals and ores with a large industrial interest. The high quality and the many specialized uses of minerals available in Greece, provide significant comparative advantages to the country’s economy. The mining industry (with the exception of aggregates) has strong outward-looking features, since exports account for more than 65% of sales, and for some minerals Greece holds a leading position in the global market. The mining and extractive metallurgy sector has been traditionally one of the most important and dynamic segments of the Greek industry. Today, mining companies are well organized and hold significant market shares in products such as bauxite, alumina, aluminium, nickel, caustic calcined magnesia, dead burned magnesia, raw magnesite, pumice, silica and ornamental stones (primarily marble). Greece is a major global supplier of several key industrial minerals, notably bentonite, magnesite, and perlite. The country’s position as a leading producer of these minerals is well Greece’s mining industry established. Greece is the only country producing huntite, the leading global supplier of perlite, the second in the production of pumice and bentonite, and the first in the export of magnesium compounds within the EU. Greece was also the second largest producer in the EU, and the fifth largest worldwide, of lignite (brown coal). The mines in the West Macedonia Lignite Centre supplied twenty one power plants with an installed capacity of 5287 MW, which corresponded to 50% of the total installed capacity of the country. Lignite exploitation is still based on the continuous method of excavation – transportation – deposition. The mining procedure of a lignite deposit includes extraction, transportation and deposition of materials (lignite and co-excavated waste materials). The co-excavated waste materials are transported and put back mainly in the excavation voids in an effort to minimize the impact on the landscape. Moreover, Greece has significant deposits of clay, limestone, slate, gypsum, kaolin, mixed sulphide ores (lead, zinc), olivine, pozzolan, quartz etc. Finally, there are significant mineral deposits which have not yet been exploited, or where exploitation has temporarily ceased (such as manganese, chromite, uranium, gold, oil, emery, salt etc.), as well as major geothermal energy potential, suitable either for power generation or for various thermal applications. The annual land uptake by mines, quarries and waste dump sites is estimated at 1984 ha/y. The Greek mining/ metallurgical industry constitutes an important sector of the country’s economic activity (it constitutes 3 – 5% of the GDP, with the inclusion of interrelated enterprises such as quarrying, processing and production of intermediate and final products) and supplies essential raw materials for primary industries such as cement, production of energy, non-ferrous metals (aluminium, nickel, etc.), the industry of stainless steel etc. Estimated sales of the country’s mineral industry and basic metallurgies, totals almost EUR 2,5 billion. Moreover, the industry provides a major source of employment in the country: approximately 20 – 23 thousand employees are

south-east european INDUSTRIAL MARKET 13 employed in the sector and more than 90 thousand are employed in jobs dependent upon or associated with mining. Furthermore, since – as a rule – the processing of these raw materials takes place in the region in which they are excavated, the industry contributes considerably to coveted regional growth. Exports A characteristic of the domestic mining industry is its openness, which is not limited to the high share of exports in sales. The internationalisation of the mining industry is also revealed by the fact that some domestic enterprises are subsidiaries of multinational corporations, while others have joint ventures, mining activities and export trade networks in many foreign destinations. The sales in the global markets take up a significant share of the turnover of the companies in the mining industry. The value of exports reached EUR 1,1 billion in 2013, exceeding 50% of the total turnover in the sector. The export orientation is particularly strong in products, such as marbles, industrial minerals and metals, where the export value has exceeded 70% of the turnover. At the product level, each of the three products with the largest share of exports (cement, aluminium and nickel) take up about 1/5 of the total value of exports. Marbles and alumina come next with about 10% each while the magnesium products (refractories, dead-burned magnesia and caustic calcined magnesia) also have a significant share in exports. The export orientation of the domestic mining industry draws on its significant competitive advantages, particularly with relation to the easy access to ports and thus to water transport (due to the extensive coastline of Greece), but also from the pivotal geographical position of the country. However, there is still a significant lack of basic infrastructure (mainly in terms of rail transport). The upgrade of the rail links between the production facilities of the mining industry on one hand and the domestic ports, but also the industry centres in Central and Eastern Europe, on the other, is anticipated to contribute significantly to further internationalisation and stronger presence of the sector on the global trade map. Environmental impact Taking into account that most of the mining activities in Greece concern aggregates, industrial minerals, energy minerals and metallic minerals without sulphurous elements, the main environmental issue that the mining industry faces concerns the rehabilitation of the natural environment after the end of the deposit exploitation period. The list of current and past rehabilitation projects in Greece includes the creation of woodlands, ponds, wetlands, arable land, museums and places for cultural events and entertainment. About 65 620 acres have been restored since the entry in force of Law No. 998/1979, with the share of restored land over totally utilised plots varying in the range of 35 – 40%. The mining and processing of mixed sulphide ores and the burning of lignite for electricity generation create additional environmental challenges. In this regard, the environmental impact study for the exploitation of the mixed sulphide metallic minerals in northeast Chalkidiki envisages the application of best available techniques for the management of acid mine drainage and the establishment of a programme that would monitor the characteristics of the groundwater in the broader area of the installations. Regarding the use of lignite in electricity generation, a programme for replacement, upgrade and modernisation of the fleet of lignite power plants is under implementation. As part of the plan, six old lignite plans have already been withdrawn, while other two plants have stopped operating since 2014 due to malfunctioning after a fire and are expected to be scrapped. As the development of mining activities brings about significant changes in the local ecosystems, a significant number of domestic mining enterprises apply integrated environmental management systems and make extensive efforts to improve their environmental performance, both as an obligation to comply with the legislation and as part of their corporate social responsibility programmes. Nevertheless, despite the actions of many mining enterprises, the degree of distrust in the compliance with the environmental regulations and generally in the proper functioning of the institutions remains high in Greece. The ineffective state control mechanisms further erode the level of social trust. Coal mining The first mining of lignite in Greece began in Aliveri (Euboea) in 1873, but its intensive exploitation, in order to cover energy needs, took place only after 1950. All kinds of coal (turf – lignite – sub-bitumenous coal) that can be found in Greece are of Cenozoic age and have been deposited in inland or coastal basins. 84% of the lignite-bearing basins are of Neogenic age, 9% of Quaternary age and 7% of Eocene/Oligocene age. The most important basins are the ones of the area of Ptolemaida (Ptolemaida, Komnina, Aghios Christoforos, Perdika), which are of Pliocene age, of Megalopoli and Drama (Pleistocene age) and of Florina (Miocene age). Lignite can be distinguished in peaty lignite (25% of the deposits of Greece), lignite (64%) and sub-bitumenous lingite (11%). Sub-bitumenous coal, of Eocene/Oligocene age, can be found in Alexandroupolis, Kozani, Grevena; its quality is very good, but has a minor economic importance. The turf deposit in Philippi, with reserves of 4,3x109 tonnes, is of Pleistocene age. The total reserves of Greece in lignite are estimated to approximately 10x109 tonnes, of which the measured reserves are 6,8x109 tonnes, indicated reserves are 0,31x109 tonnes, inferred reserves are 1,95x109 tonnes, and hypothetical reserves are 0,86x109 tonnes. Of the 6,8x109 measured reserves, 3,26x109 tonnes can be found in Ptolemaida, 0,4x109 tons in Megalopoli, 1,55x109 tonnes in Drama, 1,15x109 tons in Elassona and 0,47x109 tons in Florina. The exploitation is opencast, and the main exploitation basins are the ones of Ptolemaida and Amyndaio (annual production of 43,6 million tonnes) and Megalopoli (8,9 million tonnes).

south-east european INDUSTRIAL MARKET 14 The lower calorific value (LCV) of lignites that can be found in Greece ranges from 840 kcal/kg (Ioannina) to 7000 kcal/kg (Kotyli, in the prefecture of Xanthi). In most cases the LCV ranges from 1800 to 2600 kcal/kg for the Miocene age lingites, 1000 – 1800 kcal/kg, for the Pliocene age ones and <1000 kcal/kg for the Pleistocene age lignites. Lignites with an LCV >2600 kcal/kg are quite few (<0,4% of the reserves). In the wider area of Ptolemaida the calorific value ranges from 1400 kcal/kg to 2300 kcal/kg, while in Megalopoli it amounts to 950 kcal/kg. The highest moisture content can be found in the lignites of Megalopoli (approximately 62%,), Ioannina (61%) and Ptolemaida (60%), while the lowest one can be found in the sub-bitumenous coal of Alexandroupolis (8,9%). In general, the more the age of lignite increases, the more its calorific value and its volatile compounds content increase, and, on the contrary, the more its moisture content decreases. The peat content of lignites varies, even in the same deposit, given the fact that it depends on the percentage of argillic-marly-psammitic sediments the examined sample contains. However, the value usually ranges between 15 – 20%. The use of lignite in the production of electricity resulted in the saving of high amounts of foreign exchange (approximately USD 1 billion per year). Lignite was a strategic fuel, since it has a very low mining cost, a stable and directly controllable price, and it can offer stability and safety in the fuel supply. At the same time, it created thousands of jobs in the Greek provinces, particularly in areas that have a high unemployment percentage. In April 2022 Greek Prime Minister Kyriakos Mitsotakis announced that the country will ramp up coal mining in the next two years as a “temporary” measure to help reduce a dependence on gas that has soared since last year and after Russia’s invasion of Ukraine. “Certainly for the next two years, it would make sense increasing coal-fired energy generation by ramping up its mining by 50% so that we cut reliance from gas in the short-term,” Mitsotakis said at the inauguration of a solar park in northern Greece. Once the country’s main indigenous energy source, coal now accounts for a small part of power generation under Greece’s plan to fully wean off the fuel by 2028. The country, which covers about 40% of its annual energy needs with Russian gas, has been looking into boosting spare coal-fired capacity at Public Power Corp (PPC), its biggest power utility, and adding a floating tank at its sole LNG terminal off Athens to secure energy supplies. According to a PPC official cited by Reuters the plan is to extract 10 million tonnes of lignite in 2022, and this will be increased to 15 million tonnes. PPC had planned to shut down all but one of its coal-fired plants by 2023 and switch a new, more efficient coal-fired unit due to open later this year to a cleaner fuel by 2025. Signalling a shift in this plan, Mitsotakis said the new plant in northern Greece will probably use coal for longer, until 2028, while the lifetime for other, older plants might also be extended, depending on gas prices and availability. Apart from lignite, Greece has a large deposit of turf in the region of Philippi (Eastern Macedonia). The exploitable reserves in this deposit are estimated to 4 billion cubic meters and are equivalent to approximately 125 million tonnes of oil. Marble The Greek marbles are among the most famous ones in the world. Apart from the existing SEE NEWS Bulgartransgaz signs grant agreement for co-financing of the UGS Chiren expansion project Bulgartransgaz and the European Climate, Infrastructure and Environment Executive Agency (CINEA) have signed Grant Agreement for cofinancing of the UGS Chiren Expansion Project. The signing of the agreement was marked at an official ceremony in Luxembourg on 27 June within the framework of the EU Council "Transport, Telecommunications and Energy". The Executive Director of Bulgartransgaz Vladimir Malinov received the agreement from the European Commissioner for Energy Ms Kadri Simson. In 2021, the European Commission included the Chiren UGS expansion in the 5th list of projects of common European interest, and on 27 January 2022 it announced that an agreement had been reached among Member States on funding the project under the Connecting Europe Facility (CEF). According to the grant agreement for the implementation of the project, co-financing of up to about EUR 78 million is granted under CEF. The project aims to increase the natural gas storage capacity to up to 1 bcm and the daily withdrawal and injection capacities to up to 8 – 10 mcm/d. Gerresheimer to invest EUR 126 mln in factory in North Macedonia German drug packaging and drug delivery systems manufacturer Gerresheimer will invest over EUR 126 million in the construction of a factory for medical glass products and syringes in North Macedonia’s capital Skopje, the government of North Macedonia announced. Construction of the facility is scheduled to start in the third quarter of 2022, with a view to launching operations in 2024. The new plant is expected to create more than 180 jobs. In April 2021, Gerresheimer opened a plant for plastic systems for the pharma industry in Skopje. The company has invested more than EUR 60 million in the factory so far, the government in Skopje informed. Gerresheimer is a leading global partner to the pharmaceutical and healthcare industries. The company has production facilities in 36 locations in Europe, North and South America and Asia, employing nearly 10 000 people and generating revenues of approximately EUR 1,4 billion. Photo: Bulgartransgaz

south-east european INDUSTRIAL MARKET 15 deposits and varieties, they have been fully associated with the masterpieces of sculpture and architecture of ancient Greece. Demand for Greek marble has always been important and the sector is strongly export-oriented, and thus Greece is ranked among the major producers and exporters of marble at a global level. In the last years the national annual production of marble products has exceeded 1 400 000 tonnes. The exports that take place mainly regard marble blocks with a total value that exceeds EUR 90 000 000. Today, 75 – 80% of the total production of marble products, with a value of EUR 226 million, is exported. Of the exported products, more than 30 – 35% is exported to China and the rest is exported to the Middle East, to the USA, and, to a lesser degree, to the European market. The reserves of marble deposits in Greece are huge, and there are many that consider them as practically inexhaustible. There is a great variety of marbles in various colorations and types, but there are mainly white marbles, some of which are among the best in the world. It is for this that Greece is considered as the country with the widest variety of white and light coloured marbles. The principal modern quarries in Greece, can be found in the rich in marble regions of Drama, Kavala-Thasos (Eastern Macedonia), which is the most important quarry centre of the country, of Kozani-Veria, Ioannina, Volos, Dionysos-Penteli, Livadia-Helicon, as well as in other regions (Argolida, Euboea, Skyros, Naxos, Paros, Tinos, etc.) The exploitation of marbles takes place, principally, in the form of opencast exploitation, in which marbles are cut off with the use of steel wire ropes or special equipment, with the eventual production of the rectangular marble blocks. Underground exploitations exist today in Greece only in the area of Dionysos in Attica. Bauxite The bauxite deposits in Greece are of karst type. The largest deposits of bauxite in Greece can be found in the area of Parnassus-Ghiona. The colour of bauxites depends on their composition and particularly on the presence of iron oxides or hydroxides. There are: red or brownred bauxites (with the presence of hematite); yellow bauxites (with the presence of goethite); grey bauxites with a small percentage of iron oxides; white bauxites (with the absence of iron oxides). Their Al2O3 content ranges between 49 – 65%, the Fe2O3 content between 18 – 24%, the CaO content between 0 – 5%, the SiO2 content between 2 – 10%, the TiO2 content between 0,5 – 3%, and their Cr and Íi content can amount up to 2000 ppm. Bauxite constitutes the only raw material for the production of alumina and aluminium and is particularly important for Greece. Bauxite can be also used in cement plants, in the production of cast iron as a flux and as a component of rockwool and of abrasive materials. Greece holds a very important place, not only in the EU, but also at a global level, as it is one of the major bauxite producing countries. 90% of the mining of bauxite in the country takes place in underground exploitations and 10% in opencast ones. The measured amounts of bauxite in Greece amount to approximately 130 million tonnes and the annual production is over 2 million tonnes. The corporations S&B Industrial Minerals S.A., Delphi-Distomon Mining S.A. and ELMIN S.A. are active in the field of bauxite exploitation.

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