German company Henkel planed to open an adhesives factory near Bulgaria's capital of Sofia in 2007, Dnevnik newspaper reported.

Henkel would initially invest five million euro in the construction adhesives plant, company representatives said.

The plant production would be sold on Bulgaria's domestic market.

Henkel would create about 40 work places during the first year of its operations in Bulgaria, Dnevnik said. In the second year the number of work places would double.

The company has more than a 30 per cent market share of the tile adhesive market in Bulgaria, Dnevnik said. Its annual revenue from product sales in Bulgaria was 40 million euro. The revenue from adhesives sold was one third of that sum, Dnevnik said.