- The biggest employers in the country and in the region are located here
- Number of companies are exported oriented and well known on the international market
- The GDP per capita of the administrative region is among the highest in the country
The economy of the administrative district is the most dynamic and most developed in the country having diverse sectors, both in the manufacturing and in the service industries. Kazanlak has its significant contributions to these indicators.
In the town is located one of the leading Bulgarian ICT companies - David Holding The local economy of the Kazanlak Municipality is focused on the following 3 economic sectors: manufacturing of hydraulic elements, metal processing and roses, as well as the manufacturing rose oil which is among the most famous and the highest quality in the world.
The leading ICT Bulgarian company is based here - David Holding JSC, which works in well-established international partnerships.
The textilemanufacturing has been a lead sector in the near past and today this traditionis also strong.
There is also a pharmacy production facility in the town.
The chart shows that Kazanlak has a well-developed processing industry, which is also the largest sector in the administrative district. Manufacturing companies contributed 75% of the value added to the local economy and employed 66% of the workers in 2019.
The sector generated 55% of the net revenues and 79 % of the volume of the wages.
The biggest manufacturing subsectors by value added are the metal processing and metal parts (63% of the value added in manufacturing), the production of machinery and equipment (21% of the value added); the others are as follows:
The high productivity of the manufacturing com-panies is guaranteed by capital investments in tangible fixed assets possible also by the active absorption of EU funding amounting to € 17 800 000 (29% of the amount for the administrative district) for the period of 2014-2019.
The total number of companies in Kazanlak is 3 221 (22% of all in the administrative district). The largest share is for the micro & small compa¬nies - 98,7%, which generated 45% of the net rev¬enues and 35% of the employment. The second share is for the medium sized companies - 1,05% -16%-11%; the large companies share is 0,25% - 39%-53%.
BUSINESS SERVICES
Kazanlak has also well developed business ser¬vices sector, which contributes for about 1/5 of the value added and 1/4 of the jobs.
The construction sector as a segment of the busi-ness services in terms of employment, providing jobs for 15 % of the employees in business ser¬vices in 2018.
Thanks to its strategic geographical location and excellent transport links, the administrative dis¬trict is among the national leaders in transport and logistics, which contribute for 12% of the jobs.
CONSUMER SERVICES
The administrative district is one of the most populated in the country, which in combination with the high average incomes rank it among the districts with the highest purchasing power.
This creates the perfect conditions for the develop¬ment of consumer services.
Those services generate 6% of the value added, but account for 13% of the jobs in the administra¬tive district.
For Kazanlak the figures respective¬ly are 8% - 4% Consumer services include retail trade, tourism, hotels and restaurants, culture, sports, entertainment and other businesses.
SPECIAL FOCUS Hydraulic and R&D
Among the biggest employers in the administrative district and the town are the companies engaged in the production of machinery and equipment that provide jobs for 12% of the employees in the manufacturing industry and contribute to 15% of the value added in the same industry.
In Kazanlak the special focus are companies producing hydraulic equipment and components which are entirely export-oriented to the Single Market and third countries. This subsector provides jobs for more of 2 300employees, €100 000 000 of the turnover of the local economy and €90 000 000 of tangible assets.
The biggest company in the subsector: M+S Hydraulic JSC has completed its own-funded R&D laboratory in 2020. The laboratory will serve the company's internal processes and products as well as will support the Technician College and the Vocational High School in the town. Third parties will also be served as customers. The total amount of the investment is € 800 000.
In 2020, the company also completed another investment with its own funds amount of € 6 000 000 - a new production building with a total built-up area of 8 000 sq.m.
The company is among the leaders in the country in the dual education system applying.
METAL PROCESSING
This subsector also has significant contribution to the local economy development and sustainability. It provides jobs for more than 10 000 employees, € 80 000 000 turnover and € 445 000 000 tangible assets.
The good quality of vocational education renders the necessary conditions for professional development of well qualified and motivated human resources.
The higher percentage of workers employed in industries with higher productivity than the average is one of the factors explaining why the wages for technicians, skilled workers, machine operators in the administrative district are above the national average, and above the average compared to the other industries.
The biggest company is Arsenal JSC, which is also among the biggest produsers in the country of weapons and ammonituions.
The Research Institute of Technology - NITI SHC located here also contributes to the development of the sector in the municipality: it is a leading innovation and technology center in which military products are developed and produced Companies in the sector are among the leaders in dual education.
The companies from the two sub-sectors have negotiated with the Operational Program Innovation and Competitiveness for the period 2014 - 2020 over € 12,000,000 funding from the EU for technological development and innovation - this forms nearly 25% of all negotiated funds from business in the administrative district, and also they have provided over €4 500 000 co-financing for their projects.
The negotiated funding for the HR development is approx. € 500 000.
ROSES, ESSENTIAL OILS and R&D
A significant amount of the world-famous Bulgarian rose oil is produced in Kazanlak and the area. The product is an essential component for the most quality perfumes and cosmetic's products. Other essential oil crops as lavender are also a good growth in the Valley and together with the roses giving the iconic image of the Kazanlak industry in the near past and is well developed currently.
The administrative district is a leader in the production of roses and rose oil in the country. According to MAF data, the planted areas in the district for 2018 are 2,316 ha, % of which in the municipality of Kazanlak;
The yield of rose flowers in the administrative district, according to the produsers information, varies from 100 to 850 kg / ha; the rose oil produced is over 7,000 tons.
The industry generate 37 000 000 € for 2018. Tourism and manufacturing sectors are developing in symbiosis as part of the companies have demonstration halls, attractions and restaurants, especially popular during the Rose Festival - from the end of May to the end of June every year. One of the main centers for research, applied service and subsidiary activities in the field of Essential Medical plants in Bulgaria is located in Kazanlak. The Institute is a part of the Agricultural Academy Structure
The main activity of the Institute of Rose is in the field of research and includes an introduction, selection and reproduction of essential oil and medical plants; Creation and support of a gene fund of 216 sorts, presented by 547 samples, 161 essential oil and medical plants varieties.
AUTOMOTIVE
The sector is rather developed in the district, where has a well-fuctioning cluster of suppliers for the automotive industry. The companies include both Bulgarian and international companies producing automobile details for Audi, Volkswagen, Peugeot, Renault, Fiat and more: hydraulic components and systems, automotive cable systems, steering systems, lighting fixtures, metal holders, etc.
For the Industrial Zone, the focus is on the attracting investors in the main sector of the local economy, with more technologically advanced production potential to collaborate with the local and regional business.
