THE INDUSTRIAL PRODUCTS & SERVICES MAGAZINE FOR THE SOUTH-EAST EUROPEAN COUNTRIES www.tllmedia.bg SEPTEMBER ISSN 1312-0670 Visit the SEEIM web site: www.SEE-industry.com issue2/2025 3 Electrical equipment manufacturing in Serbia
south-east european INDUSTRIAL MARKET 2 South-East European Industrial Market is a bimonthly industrial products & services magazine for the South-East European countries Bulgaria, Croatia, Greece, Northern Macedonia, Romania, Slovenia, Serbia, Montenegro, Turkiye, 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 [email protected] % (+359 2) 818 3823 Lyuben Georgiev [email protected] % (+359 2) 818 3808 Pepa Petrunova [email protected] % (+359 2) 818 3822 Advertising & Communications Petya Naydenova % (+359 2) 818 3810 Gergana Nikolova % (+359) 888 595 928 Elena Dimitrova % (+359 2) 818 3815 Mariya Koyadzhikova % (+359) 889 256 232 [email protected] Secretary Zariana Markova [email protected] % (+359 2) 818 3811 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.tllmedia.bg Publishing House 104, Acad. Ivan Geshov Blvd., entr. A, office 9, 1612 Sofia, Bulgaria % (+359 2) 818 3838 e-mail: [email protected] ® 4 K is a seismograph for the innovative strength of the plastics and rubber industry - interview with Thorsten Kuehmann, Managing Director of VDMA Plastics and Rubber Machinery 5 WIN Eurasia has become a mirror of industrial transformation in Turkiye and the region - interview with Sena Mengul, Head of WIN Eurasia at Hannover Fairs Turkey 6 PCB production industry in Turkiye 8 Automotive lighting production in SEE 14 Bulgaria’s metalworking tools market 16 Electrical equipment manufacturing in Serbia 20 HOW - Hub of Warehouse: a strategic platform for the future of intralogistics 22 Aurubis completes largest modernization in 30 years at Bulgarian copper plant 22 Diehl Aviation launches construction of new facility in Romania 23 CRH acquires aggregates business of Croatia’s Kufner Group 23 EBRD backs ENGIE Romania with EUR 90 million loan for renewable energy projects
south-east european INDUSTRIAL MARKET 3 COMPANY ARTICLE SCELL-Mono: Compact Switchgear with Heavy-Duty Capabilities for a Sustainable Grid www.power-line.bg The concept of Nature Positive is redefining sustainability worldwide. In line with EU Regulation 517/2014 to phase out the use of fluorinated gases in industrial applications by 2030, part of the EU Green Deal, TE Energy, adopting strategies and targets to protect and enhance biodiversity by 2030, addressing todays pressing environmental challenges and using the latest technologies, has created the modular switchgear SCELL-Mono. As electric power networks continue to evolve demanding more flexibility, automation, and sustainability from infrastructure switchgear technology must keep pace. In this context, TE Energys SCELL-Mono sets a new benchmark in medium-voltage distribution, combining rugged performance with compactness, intelligent design, and environmental compliance. Built for Ring Main Unit (RMU) applications as well as primary distribution networks, SCELL-Mono is more than just another switchgear system its a robust, modular platform that redefines what compact equipment can achieve at up to 24 kV. Compact and configurable: designed for space efficiency and performance SCELL-Mono is an air-insulated compact switchgear system developed to serve the dual role of RMU and primary distribution across medium-voltage networks. With rated parameters of 24 kV, up to 1250 A, and a short-circuit breaking capacity of 25 kA, its ideal for utilities, industrial operators, and infrastructure developers alike. Unlike many traditional RMUs that require compromise between size and functionality, SCELL-Mono offers: · Maximum space efficiency without sacrificing safety, flexibility, or performance; · Maintenance-free operation, thanks to its sealed components and mechanical reliability; · Modular design allowing scalable, custom configurations across compact substations or renewable energy hubs. SCELL-Monos internal arc classification (AFL 20kA 1s / AFL-R with duct) and loss of service continuity rating LSC2B ensure operational continuity and safety in high-demand scenarios. SF6-free and green-ready SCELL-Mono stands out by utilizing air as an insulating medium completely eliminating SF6 gas, a potent greenhouse gas commonly used in legacy switchgear systems. Compliant with EU Regulation 517/2014, it positions itself as a leading player in Europes shift toward F-gas-free electrical infrastructure, in alignment with the European Green Deal. Air insulation not only makes SCELL-Mono more environmentally friendly, but also reduces operating complexity and lifecycle costs by eliminating gas handling, monitoring, and end-of-life disposal procedures. Three-position switching with spiral spring precision At the core of SCELL-Monos operation is its flat spiral spring mechanism, a compact, efficient alternative to traditional energy storage drives. This mechanism is used across both vacuum circuit breakers (VCBs) and load-break switches (LBS). All switching devices are coupled with a 3-position changeover switch (COS), allowing clear, safe transitions between service, solated and earthed. This COS system includes fault-making capacity and supports interlocked access, contributing to both operator safety and installation integrity. For modern networks requiring remote operation, motorized drives can be integrated to support remote switching, automation, and advanced SCADA systems making SCELL-Mono fully smart grid-ready. Comprehensive compartmentalization SCELL-Monos internal architecture is engineered for durability, clarity, and safety, structured into four well-defined compartments: 1. Cable compartment · Interlocked access for operator safety; · Screened T-shaped separable connectors (C-type); · Compatible with a wide range of accessories voltage transformers, current/voltage sensors, surge arresters, short-circuit indicators. 2. Circuit breaker compartment · Supports VCB or LBS in combination with COS; · Shared flat spiral spring drive system; · Mechanism allows fast switching in compact footprint. 3. Busbar compartment · Constructed from insulated high-quality electrolytic copper; · Touch-safe, fully earthed insulation ensures safety during operation and maintenance. 4. Low voltage compartment · Ample space for sophisticated IEDs (Intelligent Electronic Devices) and RTUs; · Expandable wiring design for complex automation needs; · Internal layout supports clean cable routing and ease of integration. Exceptional flexibility in installation Recognizing that installation conditions vary widely across substations, SCELL-Mono incorporates multiple smart design features: · Front cable attachment supports up to four cables per phase; · Rear multipurpose attachment provides: reversible bushings for flexible cable orientation and gas exhaust system for enhanced arc safety; · Cable connections can be routed from: bottom-front (standard); rear-top or rear-downward (optional configurations). This level of design foresight allows SCELL-Mono to adapt seamlessly to new builds, retrofits, and even mobile substations, regardless of space constraints or mounting direction. Smart grid integration and monitoring SCELL-Mono is built not only to switch power, but to support smart network operations. It is automation-ready with features designed to accommodate: · Self-powered and time-limited protection relays; · Remote telemetry and control modules; · Advanced sensors and real-time monitoring devices. Its internal wiring and communication-ready compartments allow it to act as a fully digitized node within modern substations, enabling operators to take advantage of predictive maintenance, real-time fault location, and dynamic grid reconfiguration. A heavyweight in a compact frame In SCELL-Mono, TE Energy has developed a compact switchgear system that stands toe-to-toe with the most recognized RMUs in the industry delivering equivalent or superior performance, but with lower environmental impact and higher configurability. By combining: · Air-insulated, SF6-free technology · High mechanical endurance and safety ratings · Smart-ready functionality · Flexible attachments and expandable architecture SCELL-Mono is not just ready for todays grids it is primed for tomorrows. Whether youre planning the next generation of smart substations, upgrading aging assets, or building out renewable infrastructure, SCELL-Mono offers a platform built on reliability, adaptability, and sustainability.
south-east european INDUSTRIAL MARKET 4 According to VDMA Plastics and Rubber Machinery, Europe is the top producer and exporter of machinery and equipment for the plastic and rubber industry worldwide. In the current complex geopolitical and economic situation, what are the steps that should be taken in order to maintain Europe’s leadership position? European manufacturers of plastics and rubber machinery are resilient. These are well-positioned companies, financially and structurally and many of them family-owned. They pursue a longterm strategy that is measured in generations. This is why research and development are of great importance in securing the innovative edge. In addition, many of these companies have a large global footprint to support the average export share of 80 percent. Important supplier countries in addition to Europe are China and the USA. Here, it is important to expand the existing branches and focus more on diversifying production. This creates secure supply chains in the long term and brings additional price advantages. The combination of innovation, structurally resilient positioning and global footprint is the recipe for success. VDMA Plastics and Rubber Machinery strongly promotes and supports the transition to a circular economy in the plastic industry. What concrete initiatives are you undertaking to convince companies from the sector that this is really important and that investments in circular economy are really worth it? The transformation process currently taking place in the plastics industry towards a circular economy, zero carbon emissions and digitalization has a firm foundation in Europe. It follows a social change that is also anchored in companies. This is the reason why the upcoming K K is a seismograph for the innovative strength of the plastics and rubber industry 2025 has the motto: The Power of Plastics Green, Smart, Responsible on the initiative of the plastics industry. So, the companies in the plastics and rubber machinery industry do not have to be convinced to go down this path, they have already moved in this direction years ago. As associations of the plastics industry in Germany, GKV the German Association of Plastics Converters and its supporting associations, Plastics Europe Germany and VDMA Plastics and Rubber Machinery, as well as the waste management and recycling industry organizations BDE and bvse have positioned ourselves accordingly and launched a joint paper along the value chain for the 2nd time. The paper outlines the conditions that must be met in order to transform the plastics industry from a linear to circular economy. These include EU-wide recyclingfriendly product design; Improving separate collection and sorting; Further expansion of the domestic market for plastics recycling; EU-wide end to the disposal of used plastics; Taking measures to protect the environment from plastic waste, etc. Significantly accelerating the transformation to a circular economy requires also comprehensive modernization of planning laws and expansion of renewable energies, setting financial incentives and strengthening European market supervision for products from third countries. In the context of the current challenges that the sector is facing, what are your expectations for K 2025? How important are events like K for the further development of the sector? K 2025 means a great deal for the plastics industry. It is a seismograph for the innovative strength of this strong industry worldwide, as 70 percent of the exhibitors and visitors are international. The plastics industry needs this platform, especially in times of major upheaval, in order to repeatedly position itself as an enabler for the industry worldwide. Without plastics, there would be no mobility, no basic food supply, no electronics and no modern houses. At the same time, it enables sustainable development because it is recyclable. K has the power to show these important findings and to reflect the latest technical achievements. Thorsten Kuehmann, Managing Director of VDMA Plastics and Rubber Machinery, for South-East European Industrial Market Magazine
south-east european INDUSTRIAL MARKET 5 competing in 10 different categories from production to design, from services to social innovation stood out for their potential to shape the future. The top 3 finalist projects were also awarded. What are the specific features of the technological landscape in the Eurasia region? What is the trade fair’s contribution to the Turkish manufacturing sector and economy, and what are today’s priority sectors and technical fields for local companies? Like the rest of the world, the Eurasia region is undergoing a rapid technological transformation. Turkiye, in particular, stands out in this transformation with its production strength, engineering quality, and logistical advantages. During the transition to Industry 4.0, Turkish companies are making significant investments in areas such as automation, digital factory solutions, energy efficiency, and data-driven production. Turkiyes industry is also responding swiftly to the globally expanding sustainability solutions. As WIN Eurasia, we serve as a platform that keeps pace with this transformation. Our trade fair contributes to the integration of local companies into international supply chains while helping foreign investors better see the opportunities in Turkiye. Today, domestic companies are developing significant solutions especially in industrial automation, robotics, electrical and electronic systems, and sustainable production technologies. Additionally, internal logistics, supply chain management, and energy storage systems are gaining considerable momentum. After more than 30 successful editions, what is your assessment of the trade fair’s development? Looking ahead, how do you envision WIN Eurasia evolving to meet the future needs of the industry? Organized for over 30 years, WIN Eurasia has become more than just a trade fair it has become a mirror of industrial transformation in the What were the core themes, and the most futuristic innovations showcased at WIN Eurasia 2025, and how did they reflect current trends in the industry? What changes did the new motto bring to the platform this year? WIN Eurasia 2025 was launched this year with the motto Driven by Automation. This approach highlighted that digitalization and automation in the manufacturing industry are no longer just supportive elements but have become guiding forces. We demonstrated this transformation to our visitors not just in theory, but through practical examples. Among the standout futuristic innovations were AI-powered production solutions, factory systems integrated with 5G, sustainable robotic automation, and for the first time as a separate theme, hydrogen and fuel cell technologies. Additionally, with the Industry & Art theme, we drew attention to the creative side of industry. Visitors were intrigued not only by how automation is transforming industry but also by the relationship between production and aesthetics. Moreover, we organized the WINovation Competition in collaboration with ENOSAD, where innovative ideas were rewarded. Projects WIN Eurasia has become a mirror of industrial transformation in Turkiye and the region .. Sena Mengul, Head of WIN Eurasia at Hannover Fairs Turkey, for South-East European Industrial Market Magazine region. Initially focused more on traditional manufacturing machinery and components, today it has become a stage for digital transformation, artificial intelligence, sustainability, and next-generation production technologies. This year, WIN Eurasia connected over 700 leading brands from 14 countries, 40 243 visitors, and more than 200 buyers under one roof. With a business volume worth millions of dollars in areas such as electrical and energy automation, robotic technologies, digital factories, welding systems, and more, WIN Eurasia once again became a guiding platform for the industry. In the coming years, we foresee WIN Eurasia hosting even more technology, more international participation, and more interdisciplinary collaboration. Particularly, sustainable production, circular economy, AI-powered decision support systems, and green energy solutions will rank high on our agenda. In short, WIN Eurasia will continue to evolve each year to become more integrated, more digital, and more global, meeting the future needs of the sector.
south-east european INDUSTRIAL MARKET 6 Printed circuit board (PCB) manufacturing in Turkiye is a key sector, supported by growing demand in the automotive electronics, telecommunications, medical technology and defense industries. With its strategic location between Europe, the Middle East and Asia, Turkiye is positioned as an important PCB manufacturing and export hub, particularly for medium- and highend customized solutions and small series with high quality. The sector is dominated by small and medium-sized companies, offering a full range of services from PCB design and manufacturing to SMT assembly. It receives support from both government policies and key client industries such as defense and automotive electronics. Despite the presence of numerous domestic manufacturers, the country is still importing more PCBs than it exports, especially from China. In this article we provide an overview of the sector based on official data, reports and statistics concerning the diversity and development of the printed circuit board production and market in Turkiye. Trade, challenges and trends According to the Turkish Ministry of Trade, the countrys electronics industry is built on high added value, innovation and strong research. It is a reliable source not only for the local market but also for international customers. The PCB sector in Turkiye has witnessed steady export growth since 1990, which solidified the countrys steady position in the global electronics market. However, Turkiye is still mainly an importer, buying PCBs from China, Germany, Hungary, Thailand, and Vietnam a trend that is reflected also on a global level with China emerging as a leading PCB manufacturer. Current expansion of the market has occurred because of various factors, experts conclude. Foremost is the fact that demand is high from the automotive, consumer electronics and telecommunications industries, with growth being driven by electric vehicles, 5G deployment and government support for R&D across different sectors. It is also being driven by the adoption of new technologies with increasing R&D investments and the tendency for smaller and compact devices. To keep their competitive advantage, Turkish leading PCB manufacturers invested heavily in innovation, product development and strategic partnerships. With the government promoting local production and an available skilled labor force, the PCB industry is on a stable growth trajectory and offers business development opportunities over the next few years. The Observatory of Economic Complexity (OEC) data highlights in its reports Turkiyes position in the global PCB market. The main export destinations include Poland, France, Germany, Bulgaria and Romania. Even as domestic production gradually rises, Turkiye still imports more PCBs than it exports. According to analysts, that is a signal for growing domestic demand and potential opportunities to boost local production. In general, the market evolves in line with electronics trends worldwide. Turkiyes PCB sector is also influenced by the tendency for devices to become smaller and more compact, as with the general miniaturization trend. Sustainability is gaining importance as well as greener materials and cleaner production methods are being used in the sector. Turkiye is becoming popular as an outsourcing hub because of its skilled workforce and competitive labor cost. Flexible and high-frequency PCBs are gaining more attention, especially for automotive, aerospace, and healthcare domains. Local manufacturers are now focused on further developing innovative, efficient, and sustainable practices to keep up with the fast-changing electronics market. The Turkish PCB industry is still facing some considerable challenges despite the positive prospects for future development. Manufacturers in the country are in constant competition with foreign companies offering lower costs. They have to deal with unstable raw material prices and constantly adapt to new technologies, market analysts point out. Global geopolitical tensions and trade restrictions interfere with supply chains and require more capital expenditures. At the same time, local PCB manufacturers must adhere to stringent quality standards and are challenged to upgrade technology in order to stay in step with the demand for faster, smaller and more complex electronic devices and systems. To remain competitive, PCB production companies in Turkiye are investing in research and development, improving their production PCB production industry in Turkiye ..
south-east european INDUSTRIAL MARKET 7 processes, and focusing on strong relations with both suppliers and customers. Key products, manufacturers and technology capabilities According to the report Electronic Component & Board Manufacturing in Turkiye Market Size, Industry Analysis, Trends and Forecasts (2025 2030), based on a recent study, conducted by IBISWorld, the demand for PCBs in various applications such as automotive, telecommunications, consumer electronics, and industrial machinery is fueling the segment growth. The market size of the electronic component and PCB manufacturing industry in Turkiye is currently valued at EUR 4,9 billion. Main product groups are: printed circuit boards, electronic integrated circuits, passive electronic components and other semiconductors. According to the Turkish Statistical Institute, almost 3500 SMEs in the domestic manufacturing industry are categorized in the so-called high-technology class. The total list of companies in the PCB production sector comprises over 1100 enterprises of various sizes, including substantial share of the high-tech companies. The workforce in the sector exceeds 18 700. The PCB market in Turkiye covers a variety of product types single-sided, double-sided, multilayer, rigid and flexible boards. They are made of various materials such as FR-4, polyimide, PTFE, copper laminates and epoxy resin. The main applications are in consumer electronics, automotive, industrial, aviation and medical. End users are manufacturers of smartphones, electric vehicles, robots, satellites and wearable devices. Depending on the structure, single-layer, multilayer, high-density (HDI), high-speed and ultra-thin solutions are offered. All this creates a dynamic and competitive environment in the market, analysts report. Among the major PCB manufacturers currently operating in Turkiye are: Aktifses Electronics, Aselsan, Atel Teknoloji, Baski Devre, Beker PCB, Delron Electronic, Elkasan PCB, EKA PCB, Mega Radar, Net Elektronik Design, Odak PCB, OME Elektronik, PCB Turk, PCI Elektronik, PratikPCB, Printronics Pcb, etc. Based in Istanbul, Odak PCB offers various solutions including LED boards, single-sided, double-sided, multilayer and flexible boards. Its production lines allow rapid prototyping and high-level automation of series production. Net Elektronik, established in 1999, offers PCB design, manufacturing and assembly services adapted to different industries. Aktifses Electronics, specializing in high-precision SMT boards, provides a full cycle from design to series production and assembly. Baski Devre, also based in Istanbul, is a manufacturer of single-sided, double-sided and multilayer boards including LED and hybrid solutions. The companys annual capacity is about 180 000 sq m of single-sided and 80 000 sq m of doublesided boards. TESID, the Turkish Electronics Industrialists Association, brings together entrepreneurs and professionals from the electronics and IT sectors in Turkiye, serving as a hub for contacts and exchange of experience in the industry. Opportunities and outlook With the countrys rapidly developing electronics sector and the growing demand for advanced printed circuit board solutions in key industries such as consumer electronics, defense, automotive, telecommunications and healthcare, investment opportunities in the Turkish PCB sector look promising, experts note. Flexible and rigidflex PCBs are rapidly emerging as some of the most popular products as devices become smaller and smarter. Turkiye is becoming a desirable regional center for development and innovation because of its advantageous position as a bridge connecting Europe and Asia. Through targeted investment programs, tax breaks, and subsidies the government keeps encouraging local manufacturing. In this context, the future of the Turkish PCB industry looks bright. The market will continue to be driven by the rising demand for electronics as well as megatrends like automation, the Internet of Things, intelligent devices and systems.
south-east european INDUSTRIAL MARKET 8 Lighting is among the most dynamically evolving subsectors of the automotive industry not only in terms of technology, energy efficiency and functionality but also as a key element of the design and brand identity of the manufacturers. Lights are integral parts of contemporary vehicles, which play a vital role in driving safety. Therefore, producers develop a variety of options to increase the visibility of cars in the dark or in heavy rain, storms, fog or snowfall, as a large percentage of accidents usually happen in such conditions. In 2024 the European market for automotive lighting represents approximately 25% of the global market. This places Europe second among the key regions after Asia-Pacific and underlines its importance as an innovation hub and a driver of technological trends, especially with safety and sustainability regulations pushing the development of new technologies such as LED and adaptive lighting systems. A recent report by Mordor Intelligence shows that headlights represent the dominant segment in the European automotive LED headlight market, holding approximately 60% of the market share in 2024. This significant market position is driven by stringent European safety regulations requiring high-performance lighting systems and the increasing adoption of advanced LED headAutomotive lighting production in SEE light technologies in both premium and massmarket vehicles. According to Market Data Forecast, the European automotive lighting market is projected to exceed USD 26 billion by 2032. Europe today manufactures the whole spectrum of lighting components and solutions for the vehicle industry, mainly LED modules and chips, optical elements (lenses and reflectors), lamp housings and covers, wiring harnesses and connectors, thermal management parts, electronic control units and sensors for adaptive lighting. With the introduction of LED, matrix and intelligent systems, the Southeastern European (SEE) region has become a significant manufacturing and development center. Thanks to its strategic geographical location, relatively low production costs and the strong presence of international corporations Odelo, Marelli, Hella, Valeo, OPmobility, etc., countries such as Romania, Slovenia, Serbia and Bulgaria are playing an increasingly important role in the global supply chain. Regional insights Automotive lighting production in SEE is a mixture of high-tech manufacturing facilities for end products (headlamps, taillamps, etc.) and a broad network of suppliers of key components electronic elements, housings, molded/injected plastic parts, electrical harnesses and diagnostic tools. Southeastern Europe plays an important role in the export of lighting systems and components for the automotive industry, with Turkiye, Bulgaria and Serbia among the main exporters in the region. The production of lighting systems in SEE involves the integration of components
south-east european INDUSTRIAL MARKET 9 from different countries: LED modules and control electronics are usually manufactured by specialized suppliers and imported to Tier-1 plants for integration. Optics and lenses are produced in specialized plastic factories or through local foundries and injection molding plants. Cables and harnesses are typically made in lower-cost regions such as Albania and North Macedonia. All these components are assembled in Tier-1 plants in Slovenia, Turkiye and Serbia, reflecting the multinational structure of the supply chain in the region. In summary, SEE combines large production capacities of leading global Tier-1 players, R&D and manufacturing hubs and clusters and strong niche providers in Balkan countries. This structure makes Southeastern Europe a crucial link in global automotive lighting supply chains. With Western Europe leading in technology, it focuses mainly on cost-efficient large-scale production. Several countries in the region host full-scale automotive lighting plants. In Slovenia and Bulgaria major European suppliers have developed large production capabilities. Among them are Hella (Forvia), which maintains production and R&D in Slovenia, and Odelo, which has opened a large taillight plant in the Kuklen industrial zone in Bulgaria (near Plovdiv) and a development center in the capital Sofia. These facilities meet the requirements of automotive manufacturers for quality and industrialization of complex LED modules and optical systems. In Romania and Serbia there also is a significant presence of Tier-1 automotive lighting systems manufacturers directly or through local subsidiaries. Marelli and other global groups maintain factories and product lines for headand taillamps, while investments and expansions (partly financed by international institutions) indicate a growing interest in increasing capacity in the region. An example is Feka Automotives financing of a new, energy-efficient production line in Serbia. Turkiye offers the highest production volumes in the region, where large complexes in the Bursa region and nearby industrial centers combine both end-product manufacturing (Marelli/Mako, Valeo, etc.) and a strong concentration of OEM assembly plants. Turkiye remains a key automotive production center in the SEE region, with production volumes ranging from hundreds of thousands to
south-east european INDUSTRIAL MARKET 10 SEE NEWS Amphenol expands North Macedonia capacity Amphenol Technology Macedonia, a subsidiary of the U.S.-based Amphenol Corporation, announced the construction of a new facility in Kocani, which is projected to generate 200 new jobs. According to the company’s general manager, Sasko Nakov, who spoke at a governmentstreamed press conference, the facility is expected to be ready for equipment installation by the end of September, with operations starting shortly after. Nakov also revealed plans for a second facility to be built in 2026, which would add another 300 – 320 jobs. The company currently employs around 3200 people at its Kocani locations. The total investment value was not disclosed. Amphenol Technology Macedonia was founded in 2013 by Connecticut-based Amphenol Corporation, a global manufacturer of electronic and fiber optic connectors, cables, and interconnect systems. Elma Electronic breaks ground on EUR 15 million industrial hub in Timisoara Elma Electronic has officially launched construction of a new EUR 15 million industrial hub in Timisoara, Romania – its largest in Europe. The groundbreaking ceremony welcomed Timis County officials, local business leaders, academic partners, and community members. Elma board members Selina Casutt and Bruno Cathomen joined CEO Thomas Herrmann, CFO Frederic Mueller, and the Swiss management team for the event. The 12 000+ square meter facility will include a modern production hall, storage, and offices, and will manufacture electronic components and rotary switches. Serving sectors such as defense, aviation, rail, telecom, and medical, the hub supports Elma’s growth strategy amid rising demand for rugged, advanced embedded computing solutions in Europe. Photo: Government of the Republic of North Macedonia Photo: Elma Electronic over a million vehicles per year. This accordingly supports the local demand for lighting systems. Market development, trends and challenges Southeastern Europe is an important player in Europe and on a global scale not only in terms of final assembly manufacturing but also in the production of key components plastic housings and optical lenses (Croatia, Bosnia & Herzegovina), tooling and die making molds (Bosnia & Herzegovina), and wiring harnesses and electrical subsystems (Albania, North Macedonia). Sews-Cabind for example, part of Sumitomo Electric Group, is manufacturing harnesses in Albania, reflecting the trend towards exporting electrical components to nearby low-cost markets. The transition to LED and intelligent lighting systems (such as sensors, matrix control, adaptive lamps, etc.) requires a higher level of R&D and electronic integration, experts note. In this context a number of Tier-1 companies are combining production facilities with development centers in the SEE region. Examples are the Odelo R&D hub in Sofia, Hellass development activities in Slovenia, and many others. Such a vertical profile facilitates rapid change in product lines and the implementation of ADAS-compatible lighting solutions. Despite positive trends in terms of investment, the regional situation is vulnerable to changes in global supply chains (for example semiconductors and optical materials) as well as fluctuations in automotive demand (coming from OEM conjuncture or geopolitical factors). In addition, differences in production costs between countries (labor, energy, logistics, etc.) continue to shape the localization map some functions are exported to cheaper markets (like cable production to Albania), while critical R&D and final integration remain in more industrialized locations (Slovenia, Turkiye large Tier-1 centers). Today South-Eastern Europe supplies lighting systems and components to most major automotive concerns in Europe Volkswagen, BMW, Mercedes-Benz, Stellantis, Renault/Dacia, Fiat, Ford, Toyota, Hyundai-Kia, etc. The region is important not only because of its low production costs, but also because of its strategic proximity to the major automotive markets of the EU. Country capacities Îdelo invests heavily in Bulgaria as part of its SEE presence. The company manufactures rear and combination lamps for premium OEMs in its Kuklen plant, while its R&D center supports design and testing. Romania combines a global Tier-1 manufacturer (OPmobility) with a strong local supplier (Elba, Timisoara). OPmobility (ex-Varroc Lighting Systems Romania) produces mainly headlamps and taillamps while Elba is a legacy domestic lighting producer, supplying OEMs and the aftermarket segment. Marelli Automotive Lighting (in Kragujevac) is one of the major automotive lighting producers in Serbia, manufacturing headlamps and rear lamps. Another Serbian player Feka Automotive, specializes in lighting components, namely injection molded parts and plastic modules. The expansion of local capacities is actively supported by international finance institutions, such as the EBRD. Slovenia is another important automotive lighting hub in the SEE region. The Ljubljanabased Hella Saturnus Slovenija manufactures headlamps, meanwhile offering strong R&D capabilities. Odelo Slovenija, on the other hand, provides a significant proportion of rear and tail lamps for EU OEMs. The main manufacturer in the sector in Croatia is AD Plastik (Solin, Zagreb). The company supplies molded housings and plastic modules used in lighting systems, although it doesnt produce full lighting systems or assemblies.
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south-east european INDUSTRIAL MARKET 12 SEE NEWS Minth plans EUR 950 million expansion with two new plants in Serbia Chinese auto parts manufacturer Minth Holdings Limited will invest EUR 950 million over the next five years to build two new factories in Serbia, according to the Serbian economy ministry. The facilities will be located in Leskovac and Cuprija and are expected to generate 2800 new jobs. The announcement follows the signing of memorandums of understanding between Minth and Serbian authorities. Minth has operated in Serbia since 2018, with existing plants in Loznica and Sabac employing 3500 people. Additionally, in 2023, the Serbian government confirmed Minth’s EUR 870 million, 10-year plan for a major facility in Indija, projected to create 2200 jobs. Mayor Marko Gasic recently stated the plant should open within the next few years. Slovenia’s Store Steel to launch EUR 30 million metallurgy centre Slovenian steel manufacturer Store Steel plans to open a new secondary metallurgy centre valued at over EUR 30 million. The new facility will enhance Store Steel’s ability to produce high-strength steels with improved mechanical properties. This development is expected to support the company’s expansion beyond the automotive industry into more specialized sectors, while also increasing its production capacity by more than 10%. Store Steel’s managing director, Matevz Fazarinc, said the company aims to produce approximately 140 000 tonnes of steel products in 2025 – up from 118 000 tonnes in 2024. Store Steel is primarily active in the European automotive market, serving both commercial and passenger vehicle manufacturers. Its product portfolio includes spring steel, engineering (forging) steel, and Exem steel. Photo: Store Steel Bosnia & Herzegovina is also on the map of SEE automotive lighting. Local Emka Bekto specializes in the manufacturing of tooling and injection-molded parts for the auto lighting industry. Another corporation Prevent Group, produces a broad range of components for the automotive sector, including parts for the lighting supply chain. North Macedonia hosts Kostal in the city of Ohrid, where electro-mechatronic components (switches, modules) are manufactured. The plant of Kromberg & Schubert, located in Bitola, is a major producer of wiring harnesses. The company is considered an important upstream supplier for lighting electronics and wiring, although not active in lamp assembly. Considering that Turkiye is a regional manufacturing giant in the automotive industry, producing over a million of vehicles per year, Bursa is a major cluster in the field of automotive lighting. Marelli, Valeo and Hella are among the most important manufacturers in this segment in the country. Marelli Mako, positioned in Bursa, is specialized in large-scale headlamp/rear lamp production. Valeo (in Bursa and the Istanbul area) manufactures lighting, electronics and other automotive systems. Hella Turkiye is a key provider of aftermarket and distribution services through strong local partnerships. Greece is prominent in the segment of truck and trailer lighting, LED lamps and DRLs (Daytime Running Lights) with Dasteri Systems operating in Alexandroupolis. This makes the country an essential player in niche and commercial-vehicle lighting, with wide export capabilities and potential. Major clients In South-Eastern Europe automotive lighting systems and components are mainly produced for major European and global OEMs. Depending on the specific country and plant, the main customers include German, French, Italian, Japanese, Korean and American original equipment manufacturers. Suppliers such as Odelo (in Bulgaria and Slovenia) and Hella (Slovenia) make taillights and front lights for Audi, VW, Skoda. Among the main German clients are other representatives of the Volkswagen Group as well, such as Porsche, Seat and Cupra; BMW which sources lighting modules and components from Serbia and Turkiye, and Mercedes-Benz a key customer of Odelo in Bulgaria. The Kuklen plant produces taillights mainly for Mercedes. French OEMs, such as the Renault Group (Renault, Dacia), use lighting systems and components manufactured in Romania (Elba, OPmobility) and Turkiye (Valeo, Marelli). Peugeot, Citroen, Opel, Fiat and Jeep brands, belonging to the multinational automotive corporation Stellantis, rely on lighting components producers in Serbia (Marelli, Feka) and Turkiye (Marelli/Mako, Valeo). Among the most popular Italian corporations that use SEE as a components source hub are Ferrari and Maserati, buying high-tech LED and taillights from Odelo and Hella. Fiats regular supplier is Marelli Automotive Lightings plant in Kragujevac, Serbia. Japanese Toyota procures components and lighting systems from Turkiye (Valeo, Marelli), and Korean Hyundai/Kia also receives its supplies mainly from Turkiye. Ford, one of the first American manufacturers to set foot in Europe, today uses lighting components manufactured by Valeo and Marelli in its major Turkish production base Ford Otosan. Based on everything, highlighted in current studies and reports, it can be concluded that Southeastern Europe is establishing itself as a regional hub for automotive lighting with the potential to expand production and innovation in the future.
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south-east european INDUSTRIAL MARKET 14 The Bulgarian metalworking tools market plays a pivotal role in the countrys broader industrial and manufacturing landscape. As global supply chains shift and regional production hubs gain greater importance, Bulgaria has steadily carved out a competitive position within Europes machinery and metalworking ecosystem. The sector is not only a historical pillar of the national economy but also a forward-looking industry increasingly aligned with automation, precision engineering, and smart manufacturing. Bulgarias legacy in mechanical engineering dates back to the mid-20th century, when largescale industrialization efforts laid the foundation for the development of machine building, tool manufacturing, and heavy industry. In the decades since, this foundation has evolved into a diversified and specialized industrial base. Local companies today manufacture a range of tools and machinery used in metal shaping, cutting, and forming operations serving both domestic needs and international customers across Europe, the Middle East, and Central Asia. The countrys location in Southeastern Europe offers manufacturers and exporters easy access to both EU and non-EU markets. Its infrastructure includes modern transport networks that connect it to key commercial corridors. Meanwhile, a skilled labour force with strong technical training supports domestic production capacity. Many of Bulgarias engineering professionals come from long-established technical universities, vocational schools, and industrial centres that continue to supply talent to the metalworking sector. Over the past two decades, EU membership has also accelerated Bulgarias industrial modernization. Structural funds and investment incentives have helped companies upgrade their machinery, adopt new production technologies, and meet EU technical and environmental standards. This, in turn, has made Bulgaria an attractive destination for subcontracting and component manufacturing for Western European firms. Despite facing challenges such as market fluctuations and global competition, the Bulgarian metalworking tools sector remains resilient and Bulgaria’s metalworking tools market shows signs of consistent modernization and export diversification. This article explores the current state of Bulgarias metalworking tools market, including its economic size, trade flows, domestic trends, regional clusters, and future outlook. It draws on recent data and trusted sources to provide a clear and factual picture of an industry that continues to play a vital role in Bulgarias industrial identity and economic performance. Market size and economic significance The Bulgarian metalworking tools and machinery sector is a vital part of the industrial economy. By 2024, the manufacturing of metal forming machinery and machine tools generated revenues of approximately EUR 208,7 million. Around 1990 people were employed in about 83 companies operating in this field. Between 2019 and 2024, the sector recorded an average annual growth of 7,3 percent, indicating strong and consistent industrial demand. Focusing more specifically on the segment involving metalworking machine tool parts and accessories, the market reached a value of EUR 27,7 million in 2023. This area has seen steady progress, growing at a compound annual rate of 5,38 percent over the past five years. Between 2022 and 2023 alone, the market expanded by nearly 3,9 percent. This growth suggests a healthy and maturing segment that reflects ongoing maintenance and upgrading activity in local workshops and manufacturing facilities. Trade trends: export and import dynamics Bulgaria actively participates in international trade related to metalworking tools and machinery. In 2022, the export value of metalworking transfer machines reached USD 33,1 million, while imports totalled USD 24,4 million. Germany and Turkiye were the top destinations for Bulgarian exports in this category. On the import side, the largest sources were Germany, Belgium, Italy, Japan, and China. In the broader category of metalworking machines, Bulgaria exported around USD 3,3 millions worth in 2022, while imports totalled approximately USD 5,9 million. This resulted in a trade deficit for general machines. Major export destinations included Germany, Russia, Romania, the Netherlands, and the United Kingdom. Imports primarily came from countries with strong
south-east european INDUSTRIAL MARKET 15 manufacturing bases such as Germany, Turkiye, Italy, China, and the Netherlands. Exports of machine tools for working metal have fluctuated in recent years. In 2022, only 694 units were exported, a decrease from 903 units the year before. The export value dropped to USD 7,6 million in 2022 from a recent peak of USD 12 million in 2019. While Germany and Turkiye remained strong partners, other destinations such as Iran, Romania, and North Macedonia contributed to market diversity. Domestic market and distribution infrastructure Within the country, the domestic market for tools and machinery especially those used in construction, metalworking, and repair is steadily growing. In 2025, this segment is projected to reach a revenue of around USD 99,25 million. Expected growth rate of 4,34 percent annually between 2025 and 2029 reflects increasing demand for both industrial and DIY-grade equipment, supported by rising infrastructure investment and private construction. E-commerce has also begun to influence the Bulgarian market. In 2024, the online tools and construction supplies market was valued at approximately USD 50 million. Monthly online sales approached USD 5 million by mid-2025, and the sector is experiencing consistent year-over-year growth between 15 and 20 percent. This trend indicates that digital retail channels are playing an increasingly important role in how metalworking tools reach end users. Industrial clusters and production ecosystem Bulgarias industrial ecosystem is characterized by clusters of manufacturers and suppliers across the country. Areas like Gabrovo are historically known for engineering and metalworking expertise. These regions host small and medium-sized enterprises specializing in everything from cutting tools and dies to precision-machined components and CNC-based systems. Local manufacturers commonly rely on laser cutting, bending, and other automated technologies, which supports the need for durable, precisionoriented metalworking tools. The overall demand is driven by industries such as automotive components, sheet metal processing, equipment manufacturing, and even aerospace suppliers. The presence of reliable subcontracting capacity allows Bulgaria to serve as a supplier to major European production chains. Outlook and future considerations Looking ahead, several trends are expected to shape Bulgarias metalworking tools market. Modernization is a key driver, with more manufacturers adopting CNC machines and smart factory technologies to increase productivity. The steady demand for machine tool accessories and parts also indicates ongoing investment in upgrading and maintaining production lines. However, there are challenges. Export volumes for general machine tools have shown volatility, partly due to external economic shifts and changes in demand among Bulgarias traditional trading partners. Sustaining export growth may require targeting new markets or enhancing the specialization of domestically made products. Despite these challenges, the local market appears resilient. Steady growth in tool sales, the rise of online commerce, and the demand for higher-efficiency systems are all pointing toward a stable if not expanding market outlook. Bulgarias market for metalworking tools reflects a mature, strategically positioned industrial base with both domestic and international relevance. Supported by a skilled workforce, modern production practices, and access to regional and EU markets, the sector continues to grow steadily. While some export categories show short-term variability, the overall direction remains positive particularly in components and accessories. Digitalization, regional industrial strength, and continued investment will likely define the next phase of growth for this essential manufacturing segment.
south-east european INDUSTRIAL MARKET 16 Electrical equipment manufacturing has become a central pillar of Serbias modern industrial economy, undergoing rapid transformation from a legacy sector into a high-performing, export-oriented engine of growth. The shift has been driven by foreign investment, domestic modernization, regional integration, and a skilled labour force rooted in a century-old engineering tradition. Recent official data underscores this momentum. According to the Statistical Office of the Republic of Serbia, the industrial production index for the manufacture of electrical equipment reached 113,1 in March 2025 a year-on-year increase that reflects accelerating output in this sector. Broader industrial manufacturing grew by 10,4% in the same period, with electrical equipment manufacturing among the fastest-rising segments. Historic foundations and long-term industry development Serbias involvement in the manufacture of electrical components dates back nearly a cenElectrical equipment manufacturing in Serbia tury. Factories like Novkabel in Novi Sad, founded in 1921, and Elektroporcelan in Arandelovac, established in 1922, laid the groundwork for large-scale production of cables, insulators, and electrical parts. These companies leveraged domestic access to raw materials, including copper mined in eastern Serbia, particularly from the city of Bor, which continues to serve as a key upstream resource for the sector. The city of Jagodina has historically been one of Serbias electrical industry strongholds. The FKS Cable Factory, founded there in 1947, was once Yugoslavias leading cable producer and remains the largest in Serbia. At its peak, the factory employed more than 8000 people and accounted for half of the countrys cable production. Two-thirds of its output was exported, contributing more than 60% of Serbias cable exports. This industrial base gave Serbia a foundation of skilled labour and regional supply chains. Many of the legacy producers survived economic transitions and privatizations, while others were acquired or transformed by new investors, opening the door for more advanced and exportfocused manufacturing.
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