Investment Gone Cold: The Unfulfilled Promise of a Thermopanel Factory

What began as a promising venture for Bulgaria’s manufacturing sector has ended in disappointment. Four years after Joris Ide,a European leader in thermopanels,metal profiles,and thermal insulation,announced plans to construct a factory near Plovdiv,the project has been abandoned. The investor has reportedly withdrawn from the country, leaving behind an empty plot and unfulfilled expectations.

A History of Expansion: Joris Ide’s Global Footprint

Founded in Belgium in 1985, Joris Ide rapidly expanded its presence in the building materials market, establishing operations in Romania, France, Hungary, the united Kingdom, Croatia, and Germany.As 2015, the company has been part of the KingSpan Group, further solidifying its position in the industry. The Bulgarian investment was intended to be an extension of joris Ide’s Romanian operations, leveraging existing infrastructure and expertise.

Rakovski Industrial Zone: A Site of Unmet Potential

In 2021, Joris Ide became part of the Thrace Economic Zone, acquiring 20 acres in the Rakovski Industrial zone. The initial timeline projected the plant’s commencement by the end of 2024.Though, rather of groundbreaking, the project stalled, leading to the involvement of a Bulgarian partner. At the beginning of last year, the entire capital of the company registered in Bulgaria was transferred to this partner, signaling a shift in strategy that ultimately proved unsuccessful.

Bureaucratic Roadblocks: The Reasons Behind the Abandonment

According to sources cited by the Maritza newspaper, the project is currently frozen due to several factors, including protracted delays in securing electricity access and exorbitant connection fees. EVN, the electricity provider, stated that network access is contingent on individual project assessments, with terms and pricing steadfast by technical conditions and pledged parameters. However, the perceived inefficiency and high costs appear to have deterred Joris Ide from proceeding.

accession to the network is made on an individual project and the terms and the price depends on the technical conditions and the pledged parameters.

EVN spokesperson

Future Uncertain: The Fate of the Rakovski Land

With the thermopanel plant project effectively defunct, the land in the Rakovski Industrial Zone is now potentially up for sale. This represents a missed opportunity for the region, which had hoped to benefit from the job creation and economic stimulus associated with a major manufacturing facility. The failure of the Joris Ide investment underscores the challenges that foreign companies can face when navigating Bulgaria’s regulatory landscape.

Comparative Analysis: Bulgaria’s Investment Climate

Bulgaria’s attractiveness as an investment destination has been a subject of ongoing debate. While the country offers relatively low labor costs and a strategic location within Europe, bureaucratic hurdles and infrastructure limitations can deter potential investors.According to the World Bank’s Doing Business report, Bulgaria’s ranking in terms of ease of doing business has fluctuated in recent years, highlighting the need for continued reforms to improve the investment climate. For example, in 2024, foreign direct investment (FDI) inflows to Bulgaria decreased by approximately 15% compared to the previous year, signaling a potential slowdown in investment activity.

Related Developments: Turkish Investment in Stara Zagora

Despite the setback with Joris Ide, Bulgaria continues to attract foreign investment in other sectors. As previously reported, UNLU AGRIGROUP, a turkish company with a strong presence in the agricultural machinery market, is establishing a factory in Stara Zagora with an investment exceeding BGN 20 million. This demonstrates that while some projects may falter,Bulgaria remains a viable destination for foreign capital.