Bulgaria's Emko seeks regulatory nod to buy local ammunition maker Dunarit Bulgarian company Emko has asked for a regulatory approval to acquire local ammunition maker Duniarit. The regulator will examine Emko's request in a seven day period, it said in a statement. In 2015, Dunarit's licence was suspended for four months after its owner Tsvetan Vasilev was indicted on charges of embezzling large amounts from Bulgaria's Corpbank. Two years ago, Emko expressed interest in buying another local ammunition maker, VMZ Sopot, which was offered for privatisation, but failed to submit the required bank guarantee of EUR 3.0 million after presenting its binding offer, and the privatisation agency terminated the sell-off procedure.
Source: investor.bg (16.02.2016)

Council of Ministers adopted eight regulations that create an obligation to all economic operators (manufacturers, importers and distributors) to keep records on any person from whom they receive, and to any person to whom they supply a product. Adopted regulations relate to the requirements and conformity assessment of explosives for civilian use, of pressure vessels, elevators, electrical equipment designed for use with certain tension, as well as potentially explosive atmosphere and electromagnetic compatibility. According to importers, this will significantly improve traceability in the distribution chain, which is especially important for finding and removal from the market of non-compliant products. The regulations do not introduce new requirements to the products and keep the already achieved high level of protection of consumers and professional users of these products.
Source: Duma (10.03.2016)

VMZ Sopot paid debts worth BGN12.5 million VMZ Sopot paid old debts worth nearly BGN 12.5 million. This happened after the decision of the Board of Directors. Funds have been transferred for priority repayment to creditors of the company on March 28. The whole principal on the audit reports of the National Revenue Agency, accumulated over nearly 15 years, has been repaid. Debts of the armory for local taxes to the municipality of Sopot have been repaid in full. Payments on the agreements for repayment to the Electricity System Operator and the Regional Police Directorate in Plovdiv have also been made. "These payments stop generation of large penalties. The obligations of VMZ dramatically declined as we continue to work and keep our plan for repayment. In parallel, work of the management on the investment program continues - investment in machinery, equipment and technological innovation," said CEO of VMZ Eng. Ivan Getsov.
Source: Monitor (29.03.2016)

VMZ and Kintex to be privatized Companies from the military industrial complex VMZ-Sopot and Kintex will be privatized in 2018 and 2019. This is stated in the draft medium-term budget forecast for 2017-2019, released for public consultation by the Ministry of Finance. Revenues from privatization are expected to be: BGN 17.3 million for 2017, BGN 55.6 million for 2018 and BGN 19.1 million for 2019. In the period 2017-2019 are planned additional funds to replace the old MiG-29 with a new type of fighters.
Source: Standart (08.04.2016)

Bulgaria's ammunition maker VMZ Sopot not to be offered for privatisation till end-2017 Bulgaria's Privatization and Post-Privatization Control Agency said on Monday it is not planning to sell ammunition maker VMZ Sopot in the next two years due an ongoing restructuring process in the company. In 2013, the government approved a major two-year restructuring plan for troubled VMZ Sopot to stabilize the company. The economy ministry has decided to extend the restructuring plan by another two years, the privatisation body said in a press release. In 2015, economy minister Bozhidar Lukarski said VMZ Sopot had secured orders worth a combined 300 million levs ($167.8 million/153.4 million euro) by the end of 2016. In 2013, Bulgaria launched two procedures for the sale of the ammunition maker, however just one candidate - local firm Emko - showed interest, but failed to submit the required bank guarantee.
Source: investor.bg (12.04.2016)

Bulgaria’s VMZ-Sopot, Kintex military plants protected against privatisation Bulgaria’s VMZ-Sopot and Kintex military plants have been added the list of companies that cannot be privatised. Bulgarian Minister of Economy Bozhidar Lukarski announced. He added that there were no arguments on the issue and the standard procedure had been launched.
Source: investor.bg (14.04.2016)

Borisov banned privatization of VMZ and Kintex Bulgaria’s VMZ-Sopot and Kintex military plants have been added to the list of companies that cannot be privatised. Ìinisters of finance and economy, Vladislav Goranov and Bozhidar Lukarski, have proposed to return the two companies to a list of state assets banned for sale. The possibility of offering the two companies for sale emerged last week when the Finance Ministry unveiled its 2017-2019 budget forecast. The forecast provided for launching the privatisation procedure for VMZ-Sopot in 2018 and for Kintex in 2019. Privatisation Agency had acted in compliance with a standard procedure requiring it to include in the medium-term budget forecast all state assets not banned for sale as potential source of revenue for the state.
Source: Sega (14.04.2016)

Defence Suppliers VMZ and Kintex Proposed for Inclusion on "No Privatization" List The Council of Ministers decided to propose to the National Assembly to include ordnance manufacturer VMZ and defence product exporter Kintex on the "no privatization" list, the government press service reported on Wednesday. This is suggested to be done by amending and supplementing the Privatization and Post-Privatization Control Act. The two commercial corporations are fully owned by the state. They are of structural significance for the national defence industry and constitute an important element of Bulgaria's national security, economy and presence on strategic international markets. If the bill passes in Parliament, it will ensure that VMZ and Kintex will remain state-owned, which will contribute to the stability and development of the two companies and the defence industry as a whole, the press release said.
Source: investor.bg (05.05.2016)

Bulgarian ammo maker VMZ swings to 19 mln euro net profit in Q1 Bulgarian state-owned ammunition manufacturer VMZ Sopot turned to a net profit of BGN 37.4 million in the first quarter from a net loss of BGN 1.6 million in the same period last year. Total revenues more than quadrupled to BGN 93.6 million in January-March from 21.5 BGN million a year earlier. At the same time, total costs more than doubled to BGN 55.1 million from BGN 22.9 million. By the end of 2016, VMZ Sopot will execute orders for about BGN 250 million. On May 4, Bulgarian government said it plans to prohibit the privatisation of VMZ Sopot, saying the company is an important part of the country's national security and its economy.
Source: Capital (10.05.2016)

Bulgaria’s VMZ Sopot to open renewed, modernised production capacities Bulgaria’s VMZ Sopot military plant is to officially inaugurate renewed and modernised production capacities in the village of Iganovo. Two new ammunition production factories will be launched in operation in Iganovo, while the plant in the town of Sopot will have a new laboratory. The modernisation is important for the plant because it sets a new stage in the development of the production connected with the introduction of new higher standards for the quality and safety of the work. Two new jobs are opened, too.
Source: National radio (17.05.2016)

Bulgaria's VMZ Sopot completes EUR 3.6 mln upgrade of two industrial units Bulgarian state-owned ammunition manufacturer VMZ Sopot completed à BGN 7 million upgrade of two of its industrial units, the country's economy ministry said. "VMZ Sopot's financial position is stable and the plant has contracts until 2018, which provides certainty and confidence for its future," Bulgaria's economy minister Bozhidar Lukarski said in a press release on Tuesday. The company has repaid debts of over BGN 22 million to Sopot's municipality and to the National Revenue Agency. On May 5, VMZ Sopot said that by end-2016 it will execute orders for about BGN 250 million. A day earlier, Bulgaria's government said it would prohibit the privatisation of VMZ Sopot, as the company is an important part of the country's national security and its economy. In 2015, VMZ Sopot's net profit sharply increased to BGN 24.7 million from just BGN 265,000 a year ago. For the first quarter, the company's net profit reached BGN 37.4 million, reversing a net loss of BGN 1.6 million in the same period last year.
Source: Capital (18.05.2016)

Bulgarian Parliament Tentatively Bans Sale of Three Arms Firms Bulgaria’s Parliament on Thursday approved on first reading a ban on the sale of arms manufacturers VMZ and NITI, as well as arms trader Kintex. Sopot-based VMZ and Sofia-based Kintex are major elements of Bulgaria’s military-industrial complex and an important element of the country’s economy and national security, the government had said in its proposal to ban the sale of the two companies. A separate proposal to put Kazanlak-based NITI on the list of state firms banned for sale had been submitted by an MP from opposition Bulgarian Socialist Party. On Thursday, both proposals were approved by Parliament. The three companies are in good financial shape, their sales revenue is rising, they operate at full capacity and repay old debt accumulated over the years, according to the authors of the proposals. The possibility of offering VMZ and Kintex for saleemerged in April when the Finance Ministry unveiled its medium-term budget forecast. According to the forecast, privatisation procedures for VMZ and Kintex could be launched in 2018 and 2019, respectively. The draft changes to the Privatisation Act that ban the sale of the three companies need to be approved on second reading to enter into force.
Source: investor.bg (03.06.2016)

VMZ Sopot has secured contracts for the next two years and a half VMZ Sopot has secured contracts for the next two and a half years, which will enable the modernization of production and introduction of new products. The orders will ensure investments in technological modernization and training of staff. "The conversion and consolidation of VMZ Sopot as a competitive and innovative manufacturer of special producer of European rank is our top priority," said Minister of Economy. He stressed that a year ago the plant was in financial distress, in debt and frequently delayed payments to workers. "Today, the company opens a new page in its development", he added.
Source: investor.bg (10.06.2016)

Bulgaria exported arms for EUR 642.5 million in 2015 Bulgaria exported arms worth EUR 642.5 million in 2015, the annual report of the Interministerial Committee on Export Controls to the Minister of Economy shows. This represents an increase of about 59% compared to the previous year. The Interdepartmental Commission has issued 697 export and transfer licenses totaling EUR 1.402 billion. In 2014 the export of arms production from Bulgaria was worth EUR 403 million. The country exports through large state and private traders and producers such as Kintex, VMZ, Arsenal, Emco, Apollo Engineering and others. The capital rating of K100 showed that in 2015 some of them are among the most profitable big companies in Bulgaria. Increased arms exports last year are largely due to multiple military conflicts, counter-terrorism and rearmament. Traditionally, Bulgaria exports special products mainly to the most conflicting points in Africa and the Middle East. It is noteworthy that Ukraine is becoming a visible armaments market in 2014, after a year earlier the exports there was less than a million. The bulk of the export of arms production is again for the Middle East. There are export permits issued for EUR 610 million and exports for EUR 282 million. The main client of the Bulgarian arms companies, as well as a year earlier, continues to be Iraq where the orders are doubled. The state has made purchases worth EUR 159.6 million, against EUR 80.1 million in the previous year. The country has purchased weapons, munitions, jets, and land vehicles. The second largest buyer is again in the region - Saudi Arabia, which has bought weapons for EUR 92.4 million. Bulgarian weapons were bought in large deals by Israel, Qatar and the United Arab Emirates. Afghanistan is the fourth largest destination for export of Bulgarian military products with purchases of EUR 57.4 million. It has increased its orders, which in 2014 were EUR 42.7 million. Then Afghanistan was the second-largest destination, but was replaced by Saudi Arabia and India. India continues to be one of the largest markets for Bulgarian manufacturers with orders of EUR 58.5 million last year, Uganda with orders of EUR 30.7 million is also one of the major export destinations for arms in 2015. Nigeria bought for EUR 16.5 million, followed by Algeria, where arms and ammunition were purchased for EUR 15.6 million. In 2015, Angola made purchases of weapons and ammunition for EUR 9.8 million, South Africa for EUR 7.5 million and Congo for EUR 5.8 million. Chile has ordered bulletproof vests for EUR 10.1 million, and Uzbekistan has purchased weapons worth EUR 8.9 million. Bulgarian companies have made export orders for EUR 16.5 million for Russia with sales of about EUR 10 million euros the previous year, but it has never been implemented and there is no data in the export column for Russia. By contrast, arms exports to Ukraine amounted to EUR 16.6 million, and all requests for more than EUR 27 million were not met. In 2014, exports to Kiev were about half a million euros. Most wanted in Ukraine were bombs, torpedoes and jets, munitions and explosives, and electronic equipment. Of the European countries, Bulgaria exports most of the military production to Poland (EUR 5.8 million), followed by Italy, the Czech Republic and the United Kingdom. EUR 31.2 million is the value of arms and ammunition exports to the United States, Canadian orders for EUR 9.1 million in arms preforms and castings.
Source: Capital (07.07.2016)

VMZ Sopot prepaid credit of EUR 5 mln VMZ-Sopot EAD prepaid granted 10 years ago credit line of EUR 5 million. With the preliminary repayment of the credit line mortgages imposed on real property such as land and buildings owned by the company will be lifted. The pledge of machinery and equipment will also drop, and thus further will be released manufacturing facilities in the instrumental plant. That company’s production capacity is essential for the company at the moment, so it can execute on time the large volume of orders that VMZ-Sopot has.
Source: Trud (11.07.2016)

Parliament Puts Defence Suppliers on "No Privatization" List The National Assembly on Wednesday supplemented the Privatization and Post-Privatization Control Act to include defence suppliers Kintex, VMZ Sopot and NITI on the list of state-owned companies not subject to privatization. Economy Minister Bozhidar Loukarski welcomed the change as a "correct move which will ensure not only social peace in these companies but also economic prosperity at the local and regional level", his ministry said in a press release. The Economy Ministry had written in its reasoning for the bill that defence product exporter Kintex and ordnance manufacturer VMZ Sopot are of structural significance for the national defence industry and constitute an important element of the nation's security, economy and presence on strategic markets. The two companies are wholly state-owned and have performed remarkably well over the last two years, reinforcing their major social and economic role at the local and national level, the ministry said. In 2015, Kintex secured 60 million leva worth of manufacturing orders to Bulgarian defence plants, up by 14 per cent compared with 2014. In 2016, orders made through the Sofia-based exporter are expected to double. The trend is likely to persist in 2017 and 2018. Despite some unfortunate incidents at VMZ, in 2015 its plants in the central Bulgarian town of Sopot achieved results which had no precedent over the previous 20-25 years, the Economy Ministry further said in its press release. VMZ's profit in 2015 was nearly BGN 30 million, compared with just 265,000 leva in 2014. Its sales in 2015 amounted to BGN 130 million, increasing by over 60 per cent from 2014. The company paid off BGN 30 million of its debts incurred over the years. At present, VMZ Sopot is operating at full capacity and is still recruiting new workers. Over the last half-year alone, it hired more than 800 new workers and thus expanded its staff to 3,445. In the meantime, pay rates increased. Available contracts will keep VMZ busy until the middle of 2018.
Source: 24 chasa (21.07.2016)

The state arms companies reported impressive profits The holding of repair plants Terem reported impressive growth of 86% of production for the first half of the year. As at the end of June VMZ - Sopot increased its revenues 4.5 times to BGN 172 million as compared to the same period of last year. The company managed to shrink its obligations, increased its staff by 700 people since last June and continues to invest. VMZ is expected to invest in new plant and equipment BGN 15 million by the end of the year. Just two months ago two more facilities were opened in Ignatovo. In the first half of 2016 the company's turnover comes mainly from anti-tank missiles, aviation unguided missiles, artillery ammunition and fuses. Local production is now placed well in North Africa and the Middle East. VMZ - Sopot, works entirely for foreign markets and exports mainly through local contractors from where almost BGN 110 million of the total revenue of the company comes. By the end of the year the company is expected to sell production for another BGN 200 million. Terem also declares that relies heavily on orders from abroad. The group reports BGN 49.5 million revenue for the first six months of the year.
Source: Capital (04.08.2016)

Bulgaria's VMZ Sopot opens new galvanic production line - econ min Bulgarian state-owned ammunition manufacturer VMZ Sopot officially opened a new galvanic line which will increase up to fivefold the plant's capacity to manufacture mechanical parts, the country's ministry of economy said. The new galvanic line will raise the planned monthly output in the first month since its launch to half a million mechanical parts, as by the end of 2016 it will reach one million parts per month, the company's CEO Ivan Getsov said. Since September 2015, the company has repaid debts of over BGN 22 million. In May, VMZ Sopot said that by end-2016 it will complete orders worth some BGN 250 million. That same month Bulgaria's government said it would prohibit the privatisation of VMZ Sopot due to its strategic importance for the country's national security and economy. In the first six months of the year the company turned to a net profit of BGN 70.3 million from a net loss of BGN 1.2 million a year earlier. Revenues rose to over BGN 172 million in the period under review from BGN 38 million in the first half of 2015.
Source: Standart (19.08.2016)

VMZ has invested over BGN 18 million in new equipment during the year In 2016, VMZ-Sopot has invested over BGN 18 million in the purchase of new machinery and equipment, vehicles and modernization, Economy Minister Bozidar Lukarski said. Due to achieved good financial results VMZ ranks among the most profitable state-owned companies. Orders have already been made for 2017 and 2018. The factory ranks in leading positions in sales. This year sales incomes are more than BGN 303 million compared to 2015 when they were only BGN 25 million. VMZ has employed about 4 100 people since the beginning of 2016 and the number has increased with nearly 1 100 people.
Source: investor.bg (16.11.2016)