OUTSOURCING is an optimum strategy to achieve cost-cutting and efficiency, and could make Bulgaria one of the most attractive investment destinations in Europe.
An excellent example of outsourcing in the manufacturing sphere in this country is Botevgrad-based firm EPIQ electronic assembly, a subsidiary of Belgium's EPIQ. The Bulgarian firm, which currently employs 1300 people, is a subcontractor supplying components and parts for the car industry.
For several years, the plant has been an export success story for Bulgaria. The auto electronics plant currently exports production worth about 50 million euro a year, and output is planned to reach 100 million euro in 2006.
EPIQ N.V.Group is a limited liability company incorporated under Belgian law, with a registered office in Tassenderlo, Belgium and plants in six countries. EPIQ decided to invest in Bulgaria in 1997 because the country had many years' tradition in microelectronics. Botevgrad was the site of a former company, Microelectronica, the biggest in Bulgaria and one of the biggest on the Balkan Peninsula.
Many of the present employees of EPIQ worked there and have a great deal of experience in the production of electronic components. EPIQ Electronic Assembly, Botevgrad, a new company was established in Bulgaria, and it took over the production of printed boards and electronic modules from Microelectronica. Soon it started signing contract with car manufacturers all over the world.
The plant supplies car parts for almost all car brands and also for the biggest auto component suppliers. The main clients are VW Group, General Motors, DaimlerChrysler, Valeo, TRW, Denso, Mack Truck and Caterpillar. Talks are under way on a contract for Nissan.
EPIQ is the first company in Bulgaria to have the certificates for quality - VALEO 1000, ISO 9002 and QS 9000. All of EPIQ's production is exported.
The quality system covers production of the company's products on a subcontractor basis, through from manufacturing a new product to the delivery and handling of customer's complaints.
EPIQ is not only making its products environmentally friendly but also building pollution-free working places as well as collecting and recycling end-of-life products. Their scientific Environmental Safety System, including ISO 14001 certification, has won national and worldwide recognition.
EPIQ's investment in this country is significant not only by itself but because it set an example that is now being followed by other foreign companies. The majority of these companies chose to make Greenfield investments rather than buy old assets or make joint ventures. France's Montupet chose Bulgaria because of the preferential treatment its investment will have here.
Projects by Germany's Kuhn Technology and the UK's William Hughes started recently. Several Turkish companies have already built or are building subsidiary workshops in Bulgaria. Two Bulgarian-Chinese investments are planned in the automotive sector.
British family-owned William Hughes has made its foreign debut in Bulgaria. At the end of 2004, the company settled in Bulgaria's first private industrial zone near the town of Rakovski and started producing car seat springs and also other types of springs.