The manager: Thomas Berchtold
The job: Managing director
The company: Roefix Bulgaria
Nationality: Austrian

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Thomas Berchtold is a man who probably has a clearer view on the development of Bulgaria and the region in the past 15 years than most Bulgarians.

Born in the Austrian Alps in 1966, Berchtold came to Bulgaria for the first time in 1992.

"In 1989, when the Iron Curtain was falling down, for me it was a sign of big changes and I still believe that Central and Eastern Europe is a place where you can do things that you cannot do in Western Europe," Berchtold says.

He has spent the past 15 years in Central and Eastern Europe undertaking projects for different companies in the region. This background and his know-how were the main reason the Austrian producer of construction materials Roefix accepted his application for the position of Roefix Bulgaria managing director. One thing just led to the other, as one might say. His university background also helped.

Berchtold has a degree in mechanical engineering, followed by a management programme in the UK, where he is currently working on his MBA through a distance learning course.

"The first time I was here in 1992, I did a small project in furniture. Then I was here in 1996 and 1997, only on a weekly basis. This, I believe, has given me some roots in Bulgarian ground."

After that Berchtold went back to Austria, which was followed by some other projects in Romania and Serbia.

"In 2002, I started working for Europapier Bulgaria, a subsidiary of the international paper merchant company. After two years, the company was established and I handed it over to one of my sales directors and I went back to the headquarters."

Then came Russia and Poland, where Berchtold continued his engagements with Europapier. Naturally follows the question - what was the reason for Berchtold to give up this successful and promising career with Europapier and join Roefix?

"What is different with Roefix is that this time I had to secure the build up of a production unit. I had to do it from scratch and this was another step for me and naturally another challenge," Berchtold says.

Indeed, the Bulgarian market proved to be a challenge to Berchtold and Roefix, but a good one.

"The Western market is already covered and it is quite difficult to enter it. In Central and Eastern Europe, you have young countries and there you can achieve things in a very, very short time, which you cannot do in Austria, Switzerland or Germany," Berchtold says. "Now, with Roefix, I have held the position for one-and-a-half years, and in this time I have manged to build up a company of 30 people. I had 800 per cent growth in 2006 compared with 2005 and I expect this to continue in 2007 with an additional 400 per cent. If I was in Austria and if I had the same money, I would not have been that far along for the same period. It is not that it is easier here in Bulgaria. It is just that the market is willing to accept more new things."

Every manager has his strengths in something, and Berchtold finds his in taking things from the beginning. "I see my strengths in doing things from scratch. With Roefix and the factory in Septemvri, it was an overall investment and it was not easy. However, I believe that if you dedicate yourself to a project, at the end you will have a wonderful story to tell."

A year and a half since he took the position with Roefix, Berchtold has got a factory up and running in the town of Septemvri, near the city of Plovdiv. The factory produces mostly sand materials and cement. There is an easy explanation as to why Roefix and Berchtold chose the quiet location of Septemvri as a place for their two million euro investment.

"Septemvri has the advantage that it is quite central. We are doing building materials and for us transport costs are essential and a major problem. We have 100km of highway to Sofia and we are close to the winter resort of Bansko, where construction is booming. Other ski areas such as Pamporovo and Borovets are also close to us. With Septemvri, today we can cover the Black Sea coast and the summer resorts."

In Bulgarian infrastructure, Septemvri is a major railway transport hub, which suited Roefix as well.

The material that Roefix produces in Septemvri is mainly sand and cement.

"Approximately 50 to 60 per cent of out products are sand products and if you forward them further than 200km, you will loose the profit margin. That is why we do not export out product abroad but prefer to have factories in each country, so that our products can keep their quality characteristics." Accordingly, Roefix has factories in Austria, Albania, Bosnia and Herzegovina, Croatia, Germany, Italy, Poland, Serbia, Slovenia and Switzerland. Bulgaria was just the next step for Roefix in Central and Eastern Europe.

"Our two million euro investment is not as big an investment as some others and we consider ourselves a small and medium-sized company," Berchtold says.

He is quick to add that this will soon change, saying that they have plans to build another two factories in Bulgaria. The second factory is to be built this year in the Black Sea region.

"We believe that there is strong demand in the sea coast region. I hope that we will start production within this year. This is (one of) our short-term goals." As for the long-term goals, Berchtold says that he is on a search for a plot of land for the third factory.

"The third one is in planning near Sofia, and in five years I expect to have the three factories running and Roefix covering just fine the Bulgarian market."

Indeed, the history of Roefix in Bulgaria has proved that the company has a reason to expect a bright future.

"We have been experiencing growth since we started in 2002," he says. "In the beginning, it was not so easy. The name had to be spread, something about which I am still not absolutely happy, but we will work more on the branding policy."

In terms of competition, Berchtold says that the market is very strong. "Bulgaria has everything. We have local and international competition both working on the market. Everybody is here, let's put it this way."

From the international sphere, the most famous is Baumit Bulgaria, which is number one on the market simply because it has been here 10 years, Berchtold explains. The other one is Henkel. "These are the other two major players in Bulgaria beside Roefix."

Terasit represents the local competition, he says. "It is a very strong market but due to the wonderful prognosis that we have, there is space for all of us."

Bulgaria is a young democracy where the business environment and legislation go hand-in-hand. As a manager of a foreign company with production in Bulgaria, Berchtold holds a certain view on these issues. "I think the regulations are very much the same as any other country in Eastern Europe. Here, as everywhere else, you have to follow certain restrictions."

The main difference, however, according to Berchtold, is that here it is a little bit time consuming. "The documents that you have to deliver every day are pretty much the same in any other place, but it just takes time. For example, to get building permission for an industrial building, it takes you about a year, which is quite long for a potential investor."

In this case, size does matter. "There is certain support from the Bulgarian Government if you are a big investor. What we have in Septemvri is a small and medium-sized company and for us it is time-consuming," Berchtold laughs.

Berchtold is not the first manager to bemoan finding a qualified labour force in Bulgaria. "I am based in Septemvri and in comparison with Sofia, it is rather difficult. We are always looking for people. I am looking for sales people, financial people. I just need staff, especially with the view of the future two factories that are to be built. ... I know that many Bulgarians are studying abroad, but Bulgaria should find a way to offer them good enough conditions to return to Bulgaria once they finish their education. This is a problem, but with the development of the country this will change."

Septemvri is 40km away from Plovdiv and 20km away from Pazardjik, which are the places from which most of his staff come.

Of the 26 people who work for Roefix in Septemvri, only two live in the town. What Berchtold did was to organise transportation for his employees, to and from Septemvri.

Berchtold has a view on how to come about qualified workers. "You have to train your staff. We are an Austrian company and German language skills are very important. I like to train my staff by myself and after that to send them to headquarters for further training. For these purposes, we have what we call the Roefix Academy, where we train our people in different directions depending on their position. If it is sales, they are doing sales, if it is accounting they are doing accounting." Everyone working for Berchtold has a personalised training plan.

"We meet annually to discuss the development of each staff member face-to-face, discussing what can be improved, etc," he says. "I think that my staff like to get professional education because it means a possibility for them to develop."

If they achieve certain targets, there are certain bonuses and increases in salaries. "My staff have the possibility to earn more money if they want to," Berchtold says, revealing his management tactics.

Another part of his recipe for success is the combination of quality and sustainability. "At the end of the day, you will succeed not only by being cheap, but also if you have quality and sustainability. We have invested 50 000 euro in a laboratory in Septemvri where we check the quality of what we buy and what we produce. We have Austrian quality produced in Bulgaria."

Berchtold is the only foreigner working in the company in Bulgaria. "By working in Septemvri and going to lunch there, it is almost impossible to find a waitress who speaks German or English," he laughs. "So I speak a little bit of Bulgaria and I am trying to write it. It is hard but I like it."

As a foreigner who has lived long enough in Bulgaria, Berchtold has a view on the expat community in the country. "I know many people of the expat community in Sofia. It is a rather small community compared with other big cities from other countries, but this makes it a nice and wonderful family where everybody knows each other and tries to support each other."

Because the community is small, people have easy access to each other. "My favourite place is Flanagan's, but it depends on what language you speak; besides English, there are other languages that form communities within the expat community."

Three months have passed since Bulgaria joined the European Union and moods among Bulgarians change every day. Austria is an EU member and Berchtold shares some of his experience as an EU national.

"In January and in February, I have noticed that people here were a little bit disappointed. They expected more from the EU. Now things are getting better. It just takes a little time to notice the change and I expect that within a few months, things in Bulgaria will go up like a rocket."

The proof for that is that a lot of Austrian companies are contacting Berchtold, asking for his advice about Bulgaria. "There is a lot of interest towards the country; A lot of inquires and questions. Another criteria for me is the order inflow that we have been receiving lately. We are exploding, which says a lot about how the country is developing. We are heavily over-planned."

As an EU member, Bulgaria will have its first local elections in the autumn. This means that European Union citizens living permanently in Bulgaria will have the right to vote. "I have my preferences, but I will not share them for the moment," Berchtold says.

Finding similarities between his home country and Bulgaria is easy for Berchtold. Austria has the same problem as Bulgaria when it to comes to elections for European Parliament, he says. "Austrians, the same as Bulgarians, are not very much interested in the people who they sent to EP. I consider myself a European citizen and for me Brussels represents a kind of interior ministry of all Europeans." Bulgarians should be careful of whom they are sending to EP because Bulgarian MEPs are the country's lobby in European Parliament, Berchtold says.

"I have noticed that Bulgarians are not interested in regional issues. For example, Bulgarians are more interested in the issue of Turkey entering the European Union, rather than developing road connections with Greece. We have only one connection with Romania, which I find strange as well. It is a problem for both countries. We are all in the EU and the sense of being together has to be developed."

Berchtold is convinced that Bulgaria will only benefit from its European Union membership. "I know that a lot of projects will come after the EU and the present situation will change. Money will come."

As for his personal future development, Berchtold is certain that he will spend another year full-time in Bulgaria. "Then I will start to do Greece or Turkey again with Roefix because I feel comfortable with the company."
From his history in Bulgaria so far, it seems that Berchtold will have more wonderful stories to tell.

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In brief: Thomas Berchtold is the man behind all the activities of Roefix in Bulgaria. He travels every day from Sofia to the town of Septemvri where Roefix has its production factory for cement and sand materials. Roefix is an international producer of construction materials. The company has factories in 11 countries in Central and Eastern Europe and is always expanding. Berchtold's favourite place is Sofia's Flanagan's, where he enjoys his beers with friends after work. He has a taste for Italian cuisine and is passionate about cycling, swimming and fitness. He has worked in most of the countries in Eastern Europe, covering the distance between Yekaterinburg and Sofia.