Announcements about large Chinese investments in Bulgaria are generally viewed skeptically. Such ideas progress slowly and are rarely implemented, especially in manufacturing. However, one such project is about to be realized near the city of Plovdiv. It belongs to Shanghai Unison Aluminium Products and involves the construction of a plant for aluminum automobile components, with an estimated investment of 11 million levs (5.6 million euro) at this stage. The company already has a Bulgarian subsidiary, has purchased a plot of land in the city's industrial zone, and the investment proposal has been submitted for approval by the regional environmental inspectorate. Construction is expected to begin by the end of April.
The project
The investment proposal was submitted by Sienit Holding, the company developing the Trakia Economic Zone, which will build the facility for the investor. It will be located near the village of Radinovo, Maritsa municipality, and will have nearly 13,000 square meters of built-up area, including production and warehouses. The factory will produce aluminum profiles and parts for the automotive industry, with the process involving extrusion of blanks and subsequent processing of the products.
According to information from the business development unit of Plovdiv municipality, the investment in the project will exceed 35 million euro. However, a lawyer for the company, Hristian Georgiev, told the Capital Weekly that the planned investment at this stage amounts to 11 million levs. The factory is expected to be operational within a year, creating 150 to 200 jobs. The company will also apply for a certificate under Bulgaria's Investment Promotion Act.
Progress in Bulgaria
The Chinese group already has a company in Bulgaria, although the connection is not direct. ZS Europe was registered in August 2023 in Sofia with a capital of 100 levs and production of aluminum and automotive parts as its scope of activity. Its sole owner is Singapore-registered Zesheng International PTE. Zesheng is owned by Chinese Hainan Zeaisi, which is owned by Shanghai Unison Aluminium Products. A majority share of 61.99% in the latter company is held by a Chinese citizen, Luo Shibing, with the remaining shares owned by several funds.
ZS Europe already owns the land near Radinovo on which the enterprise will be built. At the end of last year the company bought a 2.81-hectare plot from Sienit Holding for 2.6 million levs and earlier this year an additional plot of 0.65 hectares was acquired for 610,000 levs.
The investor
Shanghai Unison Aluminium Products was established in 1992 as a manufacturer of extruded aluminum products for the industry. In late 2008 it started working for the automotive sector, creating 9 production companies over the years - for extrusion and assembly of products - in various parts of China. Official turnover data for the group are unavailable.
In recent years the company's focus has been on components for electric vehicles, with Tesla, GAC Group, NIO, BAIC New Energy and Geely Group among its clients, according to information on its website. It also manufactures products for internal combustion models and works for Tier 1 suppliers such as Lingyun Industrial, Fawer Automotive and Huayu Automobile. According to media reports, end customers include companies such as Volvo, BMW and Fiat.
Expansion beyond China
It seems that the project near Plovdiv is part of the group's plans for expansion beyond China. The name of the Bulgarian company itself, ZS Europe, suggests that it will be the gateway to Europe.
Approximately at the same time when ZS Europe was registered, Shanghai Unison Aluminium Products established a company in Mexico - ZS Automotive Components Mexico, which will target the North American market. The project there is expected to be significantly larger - according to publications in foreign media, the investment will be worth 400 million dollars. The plant will cover an area of 93,000 square meters and employ 3,000 people. It will be located in the state of San Luis Potosí, in the northern part of the country, with construction practically having started earlier this year. Production will include various components for electric vehicles, which initially will be exported to the plants of Tesla, Volvo and BMW in the United States. In 3 to 5 years the plant is expected to supply 60% of its output to assembly plants based in Mexico.
Announcements about large Chinese investments in Bulgaria are generally viewed skeptically. Such ideas progress slowly and are rarely implemented, especially in manufacturing. However, one such project is about to be realized near the city of Plovdiv. It belongs to Shanghai Unison Aluminium Products and involves the construction of a plant for aluminum automobile components, with an estimated investment of 11 million levs (5.6 million euro) at this stage. The company already has a Bulgarian subsidiary, has purchased a plot of land in the city's industrial zone, and the investment proposal has been submitted for approval by the regional environmental inspectorate. Construction is expected to begin by the end of April.
