site.btaBulgarian Electronics Manufacturers Face Production Decline Due to Competition from China and Turkiye, Industry Reports

Nearly 60% of public procurement contracts in the electrical engineering and electronics sectors in Bulgaria over the past two years have been won by companies from China and Turkiye. This is according to observations by the Bulgarian Association of Electrical Engineering and Electronics (BASEL). Bulgarian manufacturers are facing a decline in production and risk of plant closures, the organization states in a press release.

“European legislation allows for the exclusion of participants from third countries in tenders if more than 50% of their products are manufactured in those countries. EU energy directives give preferences to companies whose products are made in Europe. We urge the Bulgarian government to comply with the rule that EU funding should go to companies within the European Union. Over the past two years, EU funds in our country have been used to finance companies from China and Türkiye,” said Dimitar Beleliev, Chairman of the Board of BASEL.

Between 2019 and 2023, the ratio of imports into Bulgaria from the EU versus third countries has shown a negative trend. Expectations for 2024 are that imports from third countries will nearly equal those from the EU. Bulgarian and European companies are losing ground in their own markets, BASEL believes. Among the advantages of China and Turkiye are lower production costs and the use of subsidized or cheaper State-provided energy sources. Bulgarian manufacturers comply with strict requirements for safety, quality, and sustainability, which increases their costs. In contrast, producers from China and Turkiye often do not adhere to similar standards, the statement says.

“From 2016 to 2024 (excluding 2022), the electrical industry has been the leading export sector within Bulgaria’s manufacturing industry. If public tenders in the country continue to be won by companies from China and Turkiye, Bulgarian businesses will be pushed out of the market, which will lead to job losses and a decline in the country’s economic growth,” Beleliev explains.

BASEL is calling for Bulgarian and European products to be given preference in tenders, especially when they meet higher quality and environmental standards—as is provided for in European legislation. The organization also advocates for the introduction of a mechanism to ensure that products from third countries comply with the same quality and sustainability standards imposed on European producers.