Teklas' Bulgarian investment “will not be the last overseas project”

Gebze, Turkey - Teklas will bring its Bulgarian plant on stream within two weeks, to make coolant hoses and assemblies for an OE car maker. Local press reports suggested that the company was Volkswagen, but Teklas declined to reveal the name.

Teklas intends to ramp up production at the plant over the coming months, said Raul Danon, board member at Teklas, but the plant will continue to make only coolant hose and hose assemblies. Danon said Teklas already has approvals from several car makers to manufacture hoses in the Bulgarian plant.

This is just the first phase of a significant international expansion by Teklas, said Danon . The Turkish company has bought 1000 ha of land in southern Bulgaria, about 4 hours' drive from its headquarters in Turkey. This first plant is 10 ha in area, but the company will make a final decision on a second factory for coolant hoses in the coming month, said Danon. Compound is currently shipped from Teklas' existing mixing facilities to the Bulgarian unit, he said.

Danon added that Teklas has reported turnover growth of at least 20 percent in each of the last four years, as it has won new customers and new business from existing customers. As a consequence of the company's ability to deliver good service, good quality and good products at competitive prices, said Danon, the car makers have applied pressure on Teklas to expand internationally.

The project, in a predominantly Turkish speaking part of Bulgaria, was established to allow Teklas managers to learn about managing satellite manufacturing facilities, as well as to take advantage of low labour costs and a well-educated population, said Danon.

The next international project, said Danon, would be to support one of the car makers, and it would be located close to one of the manufacturing plants of a key customer. He declined to discuss either the identity of the customer, or the possiule location.

David Shaw