Industry
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The domination of the manufacturing industry results from natural resources scarcity. The so-called basic sectors [petroleum processing, chemical and metallurgical industries] constitute 49% of the sold production – the participation of capital goods production is 37% and consumer goods production – 14%.
Chemical industry is one of the most developed industrial branches in Bulgaria. The domestic and export production includes half and ready products. The most important are petroleum derivatives [fuel and oils], organic and non-organic chemical substances, fertilizers, ammoniacal soda, plastic materials and products, paints, lacquers, and pharmaceutical products. The chemical industry is one of the industries most open to export; about 50% of its sold production is exported.
The metallurgical industry, both steel and non-ferrous metals, being the basis of the building and mechanical engineering industries, is also one of the most developed branches of the Bulgarian economy. It is almost entirely privatized. About 75% according to Bulgarian statistics of its sold production is exported.
Mechanical engineering – the construction of elevators and conveyors, machine tools, engine vehicles, ships, woodworking and food processing machines and devices – is another important branch of production. This sector is almost entirely privatized as well; it deals however with the problem of high decapitalization of the production assets and deteriorating competitiveness of the manufactured products.
The food processing industry, and especially the beverage and tobacco branches, is one of the priority branches of the Bulgarian economy. It owes its development to favorable climate and long tradition, which is particularly important in the case of wine, cheese and tobacco production. The meat processing industry, dairying, sugar industry, production of vegetable oils, wine, beer and tobacco industries, fish processing, and milling industries are of greatest importance in this branch. Despite its numerous assets, the production potential of the food processing industry has not yet been fully revealed and used. The plants have been almost entirely privatized because of active purchase strategies of large global corporations such as Nestle, Kraft Jacobs Suchard, Heineken and Danone.
The textile industry in Bulgaria has a very long tradition. Currently, it is one of the most expansive branches of industry. Knitting, textiles and clothes production are well developed. Yarn, silk, cotton, wool and hand made fabrics, knitwear, carpets and clothes are the basic products. The leather and shoe industries have a high export dynamics as well.