Veliko Tarnovo Furniture
Cluster Bulgaria
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Production Sites with Furniture Clusters
1 SZCZECINEK FURNITURE CLUSTER- TVILUM- STOL-TAP- GRZEŚKOWIAK- BHK- GREEN ANGEL- WOOD TECHNOLOGY INSTITUTE - POZNAŃ- ABO
2 SMORGON FURNITURE CLUSTER
3 LAPOVO FURNITURE CLUSTER
4 SZOMBATHELY FURNITURE CLUSTER
5 OXFORD FURNITURE CLUSTER
6 ELEKTROGORSK FURNITURE CLUSTER
7 VELIKO TARNOVO FURNITURE CLUSTER
8 SEBES FURNITURE CLUSTER
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USA
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Support for businesses• We would like to share our location and extend our premises in order to provide
our partners with a built area to install furniture production facilities.
• The required infrastructure is already in place: Our location is equipped with high voltage power supply, gas supply, adequate water supply and waste water treatment facilities. Separate meters will be provided for the furniture factory.
• Property tax and local fees are administrated by Kronospan.
• Close proximity between the two manufacturing sites results in near zero transportation costs.
• Just in time delivery of raw and melamine-faced particleboard will result in no stock – which eliminates the burden on cash flow.
• Kronospan will keep the agreed minimum stock levels.
• We would provide you with access to our extensive product portfolio.
• You could benefit from technical support in material processing on-site. Our engineers are experienced in both furniture production technology and equipment – whether that’s mechanical, electrical, automation software or robotics.
• Kronospan will support you with administrative issues, including registration of a legal entity, the local register and banks.
• We could also provide support with accounting, tax and payroll regulations as well as reconciliation of local accounting with internal reporting.
• We will assist you with your recruitment process with our HR specialists and database.
• You could receive support from the on-site Kronospan design and marketing department.
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USA CHINA
Kronospan Worldwide
Ports and Own Ships:
Production Sites: Furniture Clusters:
Ponterosso, Italy24
Sandebeck, Germany4
Spremberg, Germany25
Szczecinek, Poland5
Szombathely, Hungary26
Poznan, Poland6
Lapovo, Serbia27
Lampertswalde, Germany7
Strzelce Opolskie, Poland28
Sanem, Luxembourg8
Jihlava, Czech Republic9
Pustków, Poland10
Burgas, Bulgaria11
Mielec, Poland12
Danyang, China13
Bischweier, Germany14
Zvolen, Slovakia15
Egorievsk, Russia16
Sebes, Romania17
Bjelovar, Croatia18
Brasov, Romania29
Kastamonu, Turkey30
Smorgon, Belarus31
Burgos, Spain32
Salas de los Infantes, Spain33
Elektrogorsk, Russia34
Ufa, Russia35
Mogilev, Belarus36
Auxerre, France37
Le Creusot, France38
Ryomgaard, Denmark39
Clarion, USA40
Grodno, Belarus41
Jaslo, Poland42
Novovolynsk, Ukraine19
Oxford, USA21
Lungötz, Austria1
Riga, Latvia22
Salzburg, Austria2
Veliko Tarnovo, Bulgaria23
Chirk, United Kingdom3
Mohacs, Hungary20
Chemical Plants:Chirk, United Kingdom1 Sebes, Romania8
Burgos, Spain2 Mogilev, Belarus9
Aarhus, Denmark3 Egorievsk, Russia10
Lampertswalde, Germany4 Ufa, Russia11
Szczecinek, Poland5 Kastamonu, Turkey12
Ostrava, Czech Republic6 Oxford, USA13
Strazske, Slovakia7
Gandia, Spain1
Aarhus, Denmark2
Szczecin, Poland3
Distribution Centers:Mouscron, Belgium1
Penza, Russia8
Tárnok, Hungary2
Ulyanovsk, Russia9
Sofia, Bulgaria3
Moscow, Russia10
Samara, Russia4
Yekaterinburg, Russia11
Kiev, Ukraine6
Rostov-on-Don, Russia13
Goole, United Kingdom15
Dnepropetrovsk, Ukraine7
Krasnodar, Russia14
Chatham, United Kingdom16
Istanbul, Turkey17
Nicosia, Cyprus18
Kazan, Russia19
Tbilisi, Georgia20
Baku, Azerbaijan21
Shanghai, China22
Kaunas, Lithuania23
Torun, Poland24
Vtachikon, Slovakia25
Constanta, Romania4
Enns, Austria5
m/v Spanaco Loyalty
m/v Spanaco Reliability
m/v Spanaco Simplicity
m/v Spanaco Fidelity
m/v Spanaco Progress
5 Saint Petersburg, Russia
12 Novosibirsk, Russia
Szczecinek, Poland5
Sebes, Romania17
Veliko Tarnovo, Bulgaria23
Szombathely, Hungary26
Lapovo, Serbia27
Smorgon, Belarus31
Elektrogorsk, Russia34
Oxford, USA21
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Over 120 years of manufacturing experience Our core activity is the manufacture of wood-based panel products (particleboard, MDF and OSB) and related value added products. Vertical integration enables Kronospan to lead the way in both cost and innovation. We have invested in developing a vertically integrated supply chain that allows us to constantly improve upon and perfect every aspect of our products.
Focus on the European Market Kronospan has more than 40 production facilities and is the world leader in the manufacture of wood–based panels. For the last 20 years our major projects have been undertaken in Eastern Europe and Russia.
Wealth creation in the medium and long termBeing privately owned means that we take a long term view rather than focusing on short term achievements.
Decentralized organizationKronospan is made up of several manufacturing groups. This allows decision making by local management. As a result we can be close to our customers, our suppliers of goods and services and our people. This provides a strong platform for growth. The structure also allows us to ring fence political and economic risks where appropriate. With this we get more commitment, more ideas which allow individuals and the company to grow.
Customer serviceWe aim to be the most service-oriented supplier in our sector. Our extensive market coverage and wide product range give us a significant competitive advantage. At Kronospan, we are close to our customers and our locations are a maximum of 400 km or 8 hours by truck from our customers which is a key advantage resulting in reduced transport costs, hence Kronospan can offer the best package.
Advanced technologyWe have pioneered many of our industry’s key advances and will continue to lead product development and innovation in the future. Our production asset quality is also first class. We are here to lead, not to follow; using for example state-of-the-art filter technology.
Cost leadership Although our structure is decentralised we benchmark our production sites and with the support of our technical shared service centre ensure that they remain efficient low cost producers.
Local financingFinancing is obtained at a local level and we look for long term banking relationships. Our aim is to keep foreign exchange risks under control and therefore require finance as much as possible locally.
Central supportWe use shared services where it is important and only centralise when and where it makes sense.
Environmental responsibilityOur aim is to manufacture with the least environmental impact and the maximum raw material yield – no waste.
KronospanExcellence in Transforming Wood
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Inspiration and innovation
Kronospan is the global leader in the production of wood-based boards and panels. Our products are used everywhere: from floors and furniture to frame constructions. With over 100 years of market presence, we have accumulated a wealth of experience in many markets, continuously innovating and investing ever since the inception of our firm. All of this continues to translate into Kronospan's new products, systems and advanced technologies.
Kronospan's global product range, which is divided into Kronodesign, Kronobuild and Krono Original, offers unlimited design opportunities to make high-quality furniture, interiors or buildings.
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Key facts
Bulgaria is located in Southeastern Europe. It benefits from excellent water, road and rail transport connections to Western Europe and Turkey.
European routes E 70 and E 85 – which provide easy access throughout Western Europe, Turkey and the Near East – meet in central Bulgaria.
Official Name Republic of Bulgaria
Form of State Democratic Republic
Area 110 994 km²
Population 7.05 million
Official Language Bulgarian
Main Religion Orthodox Christianity
Capital City Sofia: 1.37 million people
Currency Bulgarian Lev (BGN)
GDP (2018) € 55.2 billion
GDP pc (2018) € 7 851
E 70
E 85
AccessibilityGeostrategic location
Igoumenitsa840 km
London1982 km
Dublin2703 km
Amsterdam1383 km
Hamburg2147 km
Copenhagen1680km
Oslo2885 km Stockholm
2953 km
Helsinki2924 km
Tallinn2837 km
Berlin1857 km
Warsaw1853 km
Minsk1565 km
Vilnius1646 km
Klaipėda1954 km
Moscow1954 km
Riga2530 km
Kiev1102 km
Chisinau641 km
Prague1508 km
Vienna1226 km
Graz1189km
Bratislava1184km
Brussels1672 km
Budapest991 km
Stuttgart1786 km
Zurich1906 km
Milan1645 km
Munich1551 km
Salzburg1431 km
Ljubljana1143 km
Zagreb1005 km
Sarajevo291 km
Tirana767 km
Skopje469 km Alexandroupoli
346 km
Sofia221 km
VELIKO TARNOVO
Bucharest183 km
Istanbul473 km
Athens1022 km
Belgrade110 km
Frankfurt1947 km
Paris1766 km
Madrid2586 km
Marseille2144 km
Lisbon3142 km
Rome1891 km
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Veliko Tarnovo FurnitureCluster
Varna, Ruse, BucharestNational road
Sofia
Railway
Economic zonein Veliko Tarnovo
Sofia
Varna
Plovdiv
VELIKO TARNOVO
Ruse
Ravno Pole
Burgas
Pleven
Bulgaria
Romania
Serbia
Macedonia
GreeceTurkey
Haskovo
Stara Zagora
We are located in the Veliko Tarnovo industrial zone - a convenient position in the centre of Bulgaria - providing great access to all key roads. It’s this strategic location, complemented by Kronospan’s innovative business proposition, that would give any furniture producer the competitive edge. Kronospan owns 297 215 m2 (30 ha) of land in Veliko Tarnovo with well-developped technical infrastructure. Additionally Kronospan plans to provide more than 86 420 m2 (8.6 ha) area to build warehouses and manufacturing facilities to meet the needs of the potential partners - furniture producers.
E 70
E 75 Utilities to sitegassupply
electricitysupply
watersupply
more than 86.000 m2
potential areawhere the production facility could be built according to the needs of the potential partner – furniture producer
The location is easily accessible because of internal railway connection to the train station in Veliko Tarnovo. Veliko Tarnovo is positioned on the major railway line Stara Zagora - Ruse and is 15 km away from the biggest railway station in northern Bulgaria (Gorna Oryahovitsa).
Railway connection
The Municipality of Veliko Tarnovo operating 22 kindergartens, 13 primary schools, 4 secondary schools, 4 vocational school, 6 public vocational schools in the field - tourism, economy, light industry, electronics, construction, 1 private professionals High School, 2 special (auxiliary ) schools, 3 University with more than 10.000 students in over 70 specialties. Additionally 30 km away from Veliko Tarnovo there is Technical university with 17 specialities.
Human resources
Easy access221 km 223 kmto Sofia to Varna
5 kmto the Highway
10 kmto Gorna Oryahovitsa
215 kmto Burgas
473 kmto Istanbul
183 km
400 km
to Bucharest
to Constanza
We offer at your disposal
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Political and business stability Bulgaria is strategically located and offers a combination of political and macroeconomic stability and incentives for doing business
● Stable parliamentary democracy; EU, NATO and WTO member
● Bulgaria’s currency is fixed to the Euro under a currency board arrangement, pegging the Bulgarian lev to the euro at the level of 1.96
● EU funding – more than €8 bn in EU funds over the next years
● Bulgaria has one of the lowest government debts in the European Union (23.1 % of GDP)
Development
Facts and figures In recent years, the Bulgarian economy experienced growth due to strong foreign investments and continuous improvement of its business environment. In fact, since 1996, Bulgaria has attracted more than €43 billion of inward foreign direct investment.
€ 79 billionInward FDI in Bulgaria 1996-2017
Bulgaria is one of the best EU countries to invest in. Stable macroeconomic indicators are showing that Bulgaria has consistent growth and improving credit rating of the country . One of the lowest corporate taxes (10%) in EU, financial stability with currency board, strategic location and direct access to key market regions, are some of the advantages, which investment in Bulgaria provides to investors.
Strategic locationLocated at the heart of the Balkans, Bulgaria is a strategic logistics hub. Ease of transportation of cargo is provided by:
● Five Pan-European corridors (IV, VII, VII, XI, X), which pass through the country
● Transport program TRACECA, which connects Europe with Caucasian and Central Asian region
● Four major airports: Sofia, Plovdiv, Bourgas and Varna
● Two main seaports: Varna and Bourgas
● Numerous ports at the Danube River
Potential marketDue to its location Bulgaria provides direct access to the following key markets:
● European Union - zero tariff market with population of 500 million
● CIS – still not well penetrated market with a high potential
● Turkey - zero tariff market of near 80 million population
● Middle East – a market with high purchasing power
● North African market
Human resourcesBulgaria has one of the most competitive costs of labor in Central and Eastern Europe and average monthly salary in Bulgaria is € 620 (2018).
Work force is well educated, highly skilled and multilingual
● 60 % of the total population is in working age (appr. 4.2 million)
● 60 000 students annually graduate from 51 universities
● 98% of the high school students study a foreign language (usually English) and 73% study a second language (mainly German, French, Spanish, Russian)
● 94% of the schools have Internet access
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Potential after investment of Kronospan in Bulgaria
450 employees
Veliko Tarnovo capacity:
700 000 m3 of PB
25 000 000 m2 of Melamine Faced Boards
360 000 m3 of MDF
Burgas capacity:
180 000 m3 of OSB
Kronospan in Bulgaria
Kronospan has been presented in the Bulgarian market for many years. This was originally through trading and distribution but during the last 22 years we have been manufacturing at our modern production facilities in Burgas and Veliko Tarnovo.Today Kronospan is the leading wood-based panel producer in Bulgaria. We offer an excellent product, decor range and the very highest levels of customer service. We are able to produce E-LE (CARB II) certificated products. We ensure that all employees and suppliers adhere to ethical business practices. We acquire goods, commodities and materials from domestic suppliers.
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Business environmentLow cost of doing business
● Favourable tax regime in Europe. Corporate income tax is 10% flat rate. Personal income tax is 10%, flat rate. Industries in high-unemployment areas are granted 0% tax rate.
● 2-year VAT exemption for imports of equipment for investment projects over €5 million, creating at least 50 jobs
● 0% withholding tax on dividends and liquidation quotas for EU tax residents (5% for non EU tax residents)
● Low cost of office rents and utilities. Bulgarian cost of electricity for industrial users is 70% of the European average
● Competitive labour cost (approx. 30% of EU average)
● Currency stability is supported by the currency board
● Technical university preparing qualified personnel for cluster on site
● Strategic location - located at the heart of the Balkans
● Direct access to key markets: EU, CIS, Turkey, Middle East, North Africa
State supportThe Bulgarian legislation introduces a system of promotion measures for initial investments in tangible and intangible fixed assets and creating new employment linked thereto, according to the legislation of EU.
(1) Data source: National Statistic Institute(2) Avarage for the region of Veliko Tarnovo
One of the most competitive costs in EuropeGas Water0.33 €/kWh 1.17 €/1m3
Electricity0.09 €/kWh
Cost of Labor(1)Salary (Min.) - 342 € Salary (Avg.)(2) - 700 €
Investments must be related to the following sectors:
● Manufacturing ● Research & Development ● Education ● Healthcare ● High-tech services ● Warehousing and logistics
The government incentives for:
● Class B Investment Projects
● Class A Investment Projects
● Priority Investment Projects
Financial support for investors
The Bulgarian government offers the following incentives for investors:
● Institutional support
● Financial grants of up to 50% for education and R&D projects and up to 10% for manufacturing projects
● Reimbursement of labor costs paid by the employer
Support is applicable for new projects and the ammount of the support depends on:
● the number of new staff employed by the project
● the size of the company / investor and value of the investment
INVE
STM
ENT
CRI
TERI
A IN
DU
STRY Priority Class A Class B
Manufacturing Industry €50 million
or 25 million
and 200 working places
Manufacturing Industry €5 million
or €2 million
and 150 working places
Manufacturing Industry €2.5 million
or €1 million
and 100 working places
GO
VERN
MEN
T IN
CEN
TIVE
S
Include all the incentives for Class A and B
Include all the Incentives for Class B Information services
Institutional Support
Consulting and individual administrative services. Investors will be able to authorize Agency officials to obtain any documents for implementation of the corresponding investment project.
Shortened administrative procedures: the central and local government authorities will provide administrative services shortened with one-third of the time period established by the law
Financial grants of up to 50% for education and R&D projects and up to 10% for manufacturing projects
Financial support for construction of technical infrastructure elements to the borders of the project site, needed for implementation of one or more investment projects.
Financial support of up to 25% for the vocational training for obtaining professional qualifications.
State tax exemption for changing the land status
Reimbursement of labor costs paid by the employer.
Acquisition of real estate private state or private municipal property without a tender and at a price lower than the market, but not lower than the tax assessment of the property
On the request of certified investor the corresponding authorities may transfer ownership rights or establish a limited ownership right over real estate (private state or private municipal property) without a tender.
Establishment of public-private partnerships with municipalities, universities, other organizations from the academic society and etc.
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Production and Cluster Area
MDF Production
MF Production
PB Production Cluster 8.6 ha
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The production hall for lease is adjacent to the newly develop production facility of Kronospan in Bulgaria
● The total built-up area is about 28 000 m2;
● The building is single-storey and two-storey made up of prefabricated reinforced concrete elements – columns, Virendeel frames, purlins, roof panels;
● Clear height in the hall is 6.55 m, and the columns are located in raster of 12.0 m and 18.0 m from each other;
● Natural daylight enters by skylight;
● Available water, gas and electricity supply;
● Railway connection;
Production hall for lease
kronospan-express.com
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