Palfinger, the Austrian manufacturer of lifting, loading and handling systems, said it will spend 4 mln euro to overhaul production operations at its plant in Cherven Bryag, Northern Bulgaria. The bulk of the resource is slated for the replacement of production equipment which is expected to boost output by 25%.
The Cherven Bryag plant will phase in the production of components for cranes for the construction, logging and food industries, said administrative director Valeri Nikolov. Some production operations will be relocated from the Palfinger plant in Cerven Bryag to units in Austria, Germany and France. The Bulgarian plant will gradually focus on the manufacture of components for lifting systems while the assembly of the end product will be done abroad, said Nikolov. The plant in Cherven Bryag has a staff of 475. Another 300 work in Palfinger's other Bulgarian plant, near Yambol, South-eastern Bulgaria, which makes hydrocylinders.