Bulgarian Plant Gets EUR 2 M Deal with Chinese Car Parts Maker

Chinese car parts manufacturer KSM Dongfang is going to purchase machines and equipment for EUR 1.8 M from the Ilinden factory located in Bulgaria’s Pleven.

The deal between the KSM Castings Dongfang located in Changchun in Northeastern China and the Bulgarian company from Pleven was signed in the presence of Bulgarian Economy Minister Traicho Traikov, who is on an official trip to China.

The KSM Castings Dongfang is part of the German-owned KSM Castings Group, and produces parts for Volkswagen, Audi, Peugeot Citroen. The Bulgarian factory Ilinden is owned by the US company Counter Pressure Casting INC through its subsidiary Contraco. Counter Pressure Casting INC also owns another Bulgarian plant in the town of Sevlievo.

The machinery delivery contract will be executed in two phases – by November 2010, the Pleven factory Ilinden will provide equipment worth EUR 602 000. In the second quarter of 2011, it will deliver the rest of the machines worth EUR 1.206 M.