export strategy manufacture of pulp, paper,...

This project is co-financed by the European fund for Regional Development through Operational programme “Development of the competitiveness of the Bulgarian economy” 2007 - 2013

Export Strategy

for sector

“MANUFACTURE OF

PULP, PAPER, BOARD,

AND ARTICLES”

Bulgarian Small and Medium Enterprises

Promotion Agency

2012

Operational programme “Development of the

Competitiveness of the Bulgarian Economy” 2007-2013, Priority

axis 4.2. “Strengtening the International market positions of

Bulgarian economy” Project № BG161РО003 – 4.2.01-0001

“Promotion of the Internationalization of the Bulgarian

Enterprises”

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This document was developed under project № BG161РО003 – 4.2.01-0001

“PROMOTION OF THE INTERNATIONALIZATION OF THE BULGARIAN

ENTERPRISES”.

Beneficiary: Executive agency for promotion of small and medium

enterprises.

This document was developed with the financial support of Operational

programme “ Development of the competitiveness of the Bulgarian economy”

2007 - 2013 co-financed by the European fund for Regional Development. The

overall responsibility of the document’s content lies with the Executive agency

for promotion of small and medium enterprises and under no circumstances it

can be accepted that this document reflects the official statement of the European

Union and the Contracting authority.

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CONTENTS:

INTRODUCTION .......................................................................................................................9

APPROACH FOR COMPOSING THE EXPORT STRATEGY OF THE SMALL AND

MEDIUM ENTERPRISES IN THE SECTOR „MANUFACTURE OF PULP, PAPER,

BOARD, AND ARTICLES” ....................................................................................................11

MAIN CONCLUSIONS OF THE ANALYSIS OF THE CURRENT SITUATION ..........18

MACROECONOMIC CHARACTERISTICS OF THE PRIORITY BULGARIAN

EXPORT MARKETS. BILATERAL TRADE RELATIONS ..............................................68

SWOT AND PESTEL ANALYSES – SECTOR “MANUFACTURE OF PULP, PAPER,

BOARD AND ARTICLES ” ....................................................................................................89

STRATEGIC GOALS FOR STIMULATION OF THE EXPORT BY SMALL AND

MEDIUM ENTERPRISES FROM THE „MANUFACTURE OF PULP, PAPER,

BOARD, AND ARTICLES” SECTOR ...................................................................................96

STRATEGY FOR STIMULATION OF THE EXPORT OF SMEs FROM THE SECTOR

...................................................................................................................................................100

ACTION PLAN – SECTOR „MANUFACTURE OF PULP, PAPER, BOARD, AND

ARTICLES” ............................................................................................................................103

SYSTEM FOR MONITORING AND CONTROL ..............................................................115

SOURCES ................................................................................................................................129

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List of tables:

Table 1 SMEs in the economic activity during 2009 (based on CEA-2008) /according to

data of NSI/ .................................................................................................................................20


data of NSI / ................................................................................................................................20

Table 3 Regional distribution of the enterprises and employees in the “ Manufacture of

pulp, paper, board and articles” sector in 2009 ...........................................................................21

Table 4 Value of the Bulgarian export of “Paper, board and articles of paper and board”

under the nomenclature of CEA /2000 – 2011/ (according to data of NSI) ................................23

Table 5 Value of the export of SMEs from the sector /2007 – 2011/ (according to data of

NSI) .............................................................................................................................................25

Table 6Value of the sector export of Bulgaria, according to the Combined Nomenclature

/2007 – 2011/ (according to data of NSI) ....................................................................................25

Table 7 Comparative analysis of the Bulgarian export from the activity /2005 - 2009/ .......26

Table 8 Consumption of paper and board by countries and by years during the period 1990 -

2010 (kg/person) .........................................................................................................................29

Table 9 Leading partners in the export by commodity groups in the “ Manufacture of pulp,

paper, board and articles” sector for the period 2000-2010 (million EUR) ................................46

Table 10 Characterization and structure of the division........................................................49

Table 11 Analysis for 2005. ..................................................................................................61

Table 12 Analysis for 2006 ...................................................................................................61




Table 16 Leading partners in the export of Bulgaria in the “ Manufacture of pulp, paper,

board and articles” sector for the period 2000 - 2010 (million EUR) .........................................67

Table 17 Main economic indicators for Germany and bilateral trade relations with Bulgaria

.....................................................................................................................................................68

Table 18 Main economic indicators for France and bilateral trade relations with Bulgaria .70

Table 19 Main economic indicators for Italy and bilateral trade relations with Bulgaria ....71

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Table 20 Main economic indicators for Romania and bilateral trade relations with Bulgaria

.....................................................................................................................................................74

Table 21 Main economic indicators for Greece and bilateral trade relations with Bulgaria.76

Table 22 Main economic indicators for Turkey and bilateral trade relations with Bulgaria 79

Table 23 Main economic indicators for Serbia and bilateral trade relations with Bulgaria ..79

Table 24 Main economic indicators for Macedonia and bilateral trade relations with

Bulgaria .......................................................................................................................................81

Table 25 Main economic indicators for Russia and bilateral trade relations with Bulgaria .82

Table 26 SWOT and LOED analyses .................................................................................90

Table 27 PESTEL-analysis ...................................................................................................92

Table 28 Action Plan for Implementation of the Export Strategy of the Sector .................106

Table 29 Manufacture, import, export and consumption of paper, board and fibrous

materials of Bulgaria – 2001 /measure – ton/ ...........................................................................119
















materials of Bulgaria – 2009 /measure – ton / ..........................................................................127



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List of Graphs:

Graph 1 Export of “Paper, board and articles of paper and board”.......................................24

Graph 2 Summarized data about the export of the different products in the sector /in

thousand EUR/ ............................................................................................................................27

Graph 3 Average values of components in the formation of the final price in the sector

/2010, according to data of CEPI/ ...............................................................................................28

Graph 4 Value of Bulgarian export of paper and board (with pigmental coating) /in

thousand EUR/ ............................................................................................................................31

Graph 5 Value of Bulgarian export of writing (printing) paper / in thousand EUR/ ............32

Graph 6 Value of Bulgarian export of toilet paper, napkins, handkerchiefs /in thousand

EUR/ ............................................................................................................................................34

Graph 7 Value of Bulgarian export of cigarette paper /in thousand EUR/ ...........................36

Graph 8 Value of Bulgarian export of all types of paper labels /in thousand EUR/ .............37

Graph 9 Value of Bulgarian export of paper for household and sanitary needs /in thousand

EUR/ ............................................................................................................................................38

Graph 10 Value of Bulgarian export of packings of paper and board /in thousand EUR/ ....39

Graph 11 Value of Bulgarian export of newsprint /in thousand EUR/ .................................41

Graph 12 Value of Bulgarian export of cards and envelopes /in thousand EUR/ .................43

Graph 13 Value of Bulgarian export of micro-crepe, perforated paper, board, corrugated

cardboard /in thousand EUR/ ......................................................................................................44

Graph 14 Value of Bulgarian export in the three major areas – works of the printing

industry, pulp, paper and board /in million EUR/ .......................................................................45

Graph 15 Estimated data for export increase /2009-2013/ (in thousand EUR) .....................52

Graph 16 Main international partners of EU-27 regarding export /2007/ .............................55

Graph 17 Main international partners of EU-27 regarding import /2007/ ............................56

Graph 18 Top-5 markets for which Bulgaria exports – paper and boards /according to data

of NSI, as at 2010/ .......................................................................................................................57

Graph 19 Top-5 markets for which Bulgaria exports – pulp /according to data of NSI, as at

2010/ ............................................................................................................................................57

Graph 20 Top-5 markets for which Bulgaria exports – works of the printing industry

/according to data of NSI, as at 2010/ .........................................................................................58

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Graph 21 Export markets of the enterprises surveyed (in %) ...............................................59

Graph 22 Percentage distribution of the export by the number of the export markets .........59

Graph 23 Development of the export of Bulgaria and Romania /2005 - 2009/ (in thousand

EUR) ............................................................................................................................................63

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List of Abbreviations:

BSMEPA Bulgarian Small and Medium Enterprises Promotion Agency

MEET Ministry of Economy, Energy and Transport

SMEs Small and Medium Enterprises

CM Council of Ministers

ITC International Trade Center

NSI National Statistical Institute

GDP Gross Domestic Product

EC European Commission

EU European Union

EU-27 the 27 Member States of the European Union

CEA Classifier of Economic Activities

CN Combined Nomenclature

CEPI Confederation of European Pulp Industries

NACE Classification of economic activities in the European Community

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INTRODUCTION

The Export Strategy for the “Manufacture of pulp, paper, board and articles” sector was

developed under Project № BG161РО003 – 4.2.01-0001 № BG161РО003 – 4.2.01-0001

“Promotion of the internationalization of the Bulgarian enterprises”, under priority axis 4

„Strenghtening the international market positions of Bulgarian economy”, under Operational

Programme “Development of the Competitiveness of the Bulgarian Economy”, in pursuance of

Contract BG-161PO003-4.2.01-001-C00001 for direct provision of gratuitous financial help,

under which the Bulgarian Small and Medium Enterprises Promotion Agency (BSMEPA) is

an institutional beneficiary.

The purpose of the Export Strategy for the “Manufacture of pulp, paper, board and articles”

sector is to support the Bulgarian micro-, small and medium enterprises from the sector to

enhance their competitiveness, the degree of their internationalization and entering or

expanding the market positions of Bulgarian products and in particular those with higher added

value.

Bulgarian state, in the person of BSMEPA, MEET and other state institutions, has recognized

the sector of SMEs as particularly sensitive one and at the same time crucial for the economic

life, which should be given special attention. Diversity in the development of individual sectors

in the economy, in whose development SMEs have their place, and national priorities related to

the promotion of the export of the country, necessitate the development of export strategies for

different sectors, one of which is “Manufacture of pulp, paper, board and articles”. Focusing on

the support and giving precise references for state intervention through its institutions and

providing options for development for the other participants in the process will reinforce in a

positive aspect the planning principle in the activities of the State and will ultimately improve

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the work in the sector. As a result of the successful implementation of the Export Strategy is

expected an improvement when enetering international markets and actively expanding and

strengthening the market positions of Bulgarian small and medium enterprises realizing their

main economic activities in the “Manufacture of pulp, paper, board and articles” sector.

In the preparation of this strategy, in particular consideration was taken the document

“Methodology for strategic planning”, which has been prepared by the Council for

Administrative Reform to the Council of Ministers /CM/ of Republic of Bulgaria.

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APPROACH FOR COMPOSING THE EXPORT STRATEGY OF THE

SMALL AND MEDIUM ENTERPRISES IN THE SECTOR

„MANUFACTURE OF PULP, PAPER, BOARD, AND ARTICLES”

The Export Strategy is a strategic document that defines medium-term objectives and priorities

in export development of SMEs from the “Manufacture of pulp, paper, board and articles”

sector. It was developed on the grounds of the strategic planning approach, which has the

following advantages when skilfully used:

Creates an understanding among interested parties on trends and what the future may

bring;

Establishes a common vision and consensus among interested parties by coordinating

particular initiatives in selected targets;

Identifies undertaken or planned projects and activities;

Strengthens partnership between government, business and other parties for solving

complex problems.

When developing such strategic document it is crucial to give exact formulation of the ‘owner’

of the strategy, i.e. institution or institutions that shall be responsible for overall implementation

of the strategic document, as well as the ones for the particular steps of strategic planning.

In general steps for preparation strategic documents are as follows:

Assigning;

Preparing;

Development;

Coordination;

Adoption;

Implementation;

Valuation;

Update.

Each of these steps includes certain activities and some of them, such as assigning, preparing,

development, coordination, adoption and update later on shall be a part of the project executed

under the contract referred in the beginning. Therefore the main ‘owner’ of the Export Strategy

is the Bulgarian Small and Medium Enterprises Promotion Agency. For this reason, the goals,

measures and specific actions set in the strategic document should first assist BSMEPA to

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improve the planning and implementation of the activities related to the support of the export of

SMEs in the sector “Manufacture of pulp, paper, board and articles”. This formal logic does

not contradict to the fact that a significant number of institutions, businesses and even the

population of the country, which can be impacted through different mechanism, for example

government departments – through the forms of coordination of strategic documents of such

rank, branch organizations and business – through the provision of incentives to increase their

export potential, are recognizeded as interested parties. Crucial for SMEs from the the sector

“Manufacture of pulp, paper, board and articles” is the abilty to see a clear and predictable

policy by the state which supports export and which in a medium term will allow them to

decide whether they will take advantage of the opportunities given to them or not.

Strategic Planning Technology

The process of strategic planning includes the following steps:

Identification of interested parties;

Analysis of the environment;

SWOT analysis;

Vision;

Defining goals;

Choosing an alternative – development strategy;

Action plan;

Monitoring system.

Each of these steps is characterized by its particularities, namely:

Identification of interested parties. Interested party is any person or group that requires

attention, is able to affect a certain decision, can contribute with resources or to be affected by a

certain decision. Involving interested parties at an early stage from the preparing of the

strategic document may lead to a more expressed consensus on goals and bigger willingness for

endorsing taken decisions. Interested parties in the Export Strategy may include different

people and organizations: companies, state administration, associations of producers, individual

businesses, users of respective products, non-governmental organizations and experts.

A specificity in the preparation of strategies designed to support business is the rule that the

prepared documents should not support some businesses and discriminate against others

Therefore, as in attracting business organizations and individual branch associations has

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manifested desire for equality, in the analyses is sought an opportunity that a maximum number

of business benefit from them.

Analysis of the environment. The analysis of the environment (the SWOT analysis is

composed on the grounds of the conclusions of this analysis) enables laying down of objectives

and priorities that have to align efforts and not to be separated by time and environment.

The analyses focus on:

The current state of development of the sector in Bulgaria, trends, dynamics and

growth;

Characteristics of export-oriented SMEs, including regional distribution;

Status of the export of goods and services;

Analysis of goods and services, for which the sector has export advantages or

export potential;

Assessment of these industries that have the greatest potential for increasing the

added value in the export of goods and services in which Bulgaria has a global market

share;

Size of the international market;

Competitiveness of the export of goods and services for the existing and potential

foreign market;

Share of products originating in Bulgaria;

Share of the Bulgarian export for the product group in the total import volume on

the world market;

Leading importing countries in the relative sector;

Values and volumes of the import on specific foreign markets for a specific product

group;

Major suppliers on the relative market;

Identification of barriers to the internalization of the sector.

Based on the prepared analyses, the problems and achievements of the sector at present should

be clearly defined, but also some forecasts, opportunities and perspective for development

should be justified, such as:

Achieving significant growth of Bulgarian goods in total, as well as of those with

higher added value.

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Identification and prioritization of target markets by commodity groups.

Forecast for the development of the export and import of goods and of the trade

balance for the next five and more years.

The prepared analysis are based on existing analytical and program documents, available

statistics and information from sociological serveys conducted – interviews and focus groups.

The analysis of the environment describes existing condition of SMEs in the “Manufacture of

pulp, paper, board and articles” sector and the export process, determines reasons that cause

problems in development and outlines directions for future development.

SWOT analysis. The SWOT analysis enables identification of major internal factors

differentiated as ‘strengths and weaknesses’ and of external factors – ‘opportunities and

threats’, helps formulation of strategic goals, priorities and measures. Using SWOT keeps us

from setting unachievable tasks and priorities for export development of small and medium

enterprises in Sector “Manufacture of pulp, paper, board and articles” during the period of the

Strategy.

Using SWOT analysis to develop an Export Strategy has its own specificity, because the

‘owner’ of the strategy is BSMEPA, but the analysis is focused on the export process of SMEs

from this sector, and not on the institution itself.

PESTEL analysis. There are many factors and “variables” that affect directly or indirectly on

business environment in the country, and the overall state of the manufacturing industry. Tax

rates, changes in laws, trade barriers and administrative requirements, political and social

trends are of the type of macro factors that have noticeable effects on the operation of the

enterprises.

PESTEL analysis is focused on analyzing the factors and trends at the macro level, influencing

the development of the Bulgarian manufacturing industry, SMEs and in particular Sector

“Manufacture of pulp, paper, board and articles”.

Using this analysis will provide key conclusions for the positioning and planning the

development of SMEs in the sector.

Defining goals. Strategic planning is focused on issues of critical importance, opportunities and

problems faced by the export of small and medium enterprises in Sector ‘Manufacture of pulp,

paper, board and articles’. It helps to outline the solutions that are actually important from the

ones with temporary impact.

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Defining goals by building an hierarchical tree of goals is an operating tool that allows working

out the details from the most common general goals to the specific ones.

Defining the general strategic goal is particularly important for the future development of the

export of SMEs in Sector “Manufacture of pulp, paper, board and articles”, as it shows the

vision of institutions and business to the future. The general strategic goal seeks to answer one

fundamental question – “How do main institutions and interested parties in the process want

the export of SMEs in the sector to look in the long run?”.

Approaching the level of specific targets enables to reach the answers to the questions ‘who’,

‘what’ and ‘when’, in order to guarantee achievement of the goals identified higher in the

hierarchy.

Choosing an alternative – development strategy. Ways for goals achievement are searched for

after they are determined. Experience shows that this may be done by different ways that

represent particular alternatives for development and reaching identified goals. At this stage of

strategic planning particular alternatives shall be evaluated from different points of view and

criteria and as a result of this one alternative shall be selected and it shall become the

development strategy.

Action plan. Chosen strategy should be dressed in certain actions and measures that are

bounded by terms, persons in charge, executors and financials. The action plan and the

measures foreseen in it are turning this strategic instrument into everyday work and

implementation of policy for assisting the export of SMEs in Sector “Manufacture of pulp,

paper, board and articles”.

Monitoring system. The last phase of the strategic planning process is monitoring and

evaluation of the progress for implementation of general and specific goals set in the Export

Strategy and in the action plan. Monitoring is important, because it enables undertaking

correction actions, if the progress is unsatisfactory or if the conditions change. It is important to

make reports on the progress in achievement of general goals and before the public and

business so that they are able to evaluate the work of the respective institutions and interested

parties when realizing the strategy. We have to note that often influences may not be visible or

evident and this makes their measurability more difficult. Furthermore, impact often is an effect

with accumulation and this may complicate the analysis. This gives special weight of

monitoring that is tightly connected to all implementation steps of the Export Strategy –

preliminary (ex ante), current (parallel to the realization) and subsequent (ex post) evaluation.

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In order to exercise monitoring of the Export Strategy implementation and to evaluate

achieved results in accordance with the identified goals, it is necessary to use a few

indicators that have to be set in advance or at least early enough with respect to

implementation of the strategic document, in order data received from them to be used. In

most cases those shall be aimed values that in aggregated mode shall correspond to the goals

of the strategic document.

Monitoring provides feedback that helps to identify success or failure of planned document.

For the realization of the monitoring process, it is necessary to determine the following:

Monitoring indicators (what shall be monitored);

Frequency of monitoring and evaluation (when the respective reports shall be

prepared);

Responsibilities regarding implementation of monitoring and evaluation (who is

responsible and what for) and competencies for reaching decision for change (update

of the strategic document).

PROVISION OF INFORMATION

The following main information sources have been used when preparing the Export

Strategy:

National Statistical Institute;

Information submitted by BSMEPA;

Information from MEET;

Eurostat;

International Trade Centre;

Information published in relation with held international forums and meetings;

Official electronic information sources;

Information published by branch organizations in the sector;

Information from the Bulgarian Industrial Association and the Bulgarian

Chamber of Commerce and Industry, as well as from their regional sections;

Information from held sociological study carried out from October 31 to

November 28, 2011 within the senior management of 5 micro, 10 small and 7

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medium enterprises (total - 22 enterprises), working in the sector; and from

the focus group held.

When processing the information, it was manifested willingness for maximum objectivity of

the conclusions. In many cases the information is analyzed for the sector totally, i.e.

information that includes not only SMEs but also the large ones, based on the assumption

that where a Bulgarian enterprise has achieved success it could be expected that this will be

possible for another one as well which is from the groupof SMEs. This specificity is

expressly emphasized in the analyses.

Structure of the Export Strategy for the “Manufacture of pulp, paper, board and articles”

sector.

In determining the structure of the Export Strategy for Sector “ Manufacture of pulp, paper,

board and articles”, it was taken into account the use of the approach of strategic planning

that sets the general parameters of the strategic document. At the same time, the structure of

other institutional strategic documents was examined and the following criteria were used

for evaluation:

is there opportunity for relatively easy familiarization with the document

through understandable and logical structuring of the individual parts;

is the content presented in an attractive and easy to understand manner

accessible to non-specialists;

is thematic provision of the information possible, that is structuring the

material in a way that allows deep penetration in the problems and analyses only if desired

by the reader.

To the so chosen criteria corresponded several of the strategies examined, in

which there were two separate distinct parts, namely:

The main document where, according to the above described logic of the

technology of strategic planning, are also identified the different sections.

Appendices that contain the complete text of the prepared analyses, including

the conclusions transferred to the main material.

This approach was also chosen when structuring the Export Strategy for Sector

“Manufacture of pulp, paper, board and articles”.

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MAIN CONCLUSIONS OF THE ANALYSIS OF THE CURRENT

SITUATION

This section presents the conclusions from various analyses included in “Analysis of the

environment” which is a major step in the technology of strategic planning. An appendix to

this strategic document presents the complete text of the facts and analyses based on which

the conclusions are formulated. The conclusions and the analyses themselves are structured

in 5 parts, as follows:

STATE AND DEVELOPMENT OF THE SECTOR IN BULGARIA

EXPORT ORIENTATION OF THE SECTOR

GOOS WITH EXPORT ADVANTAGES AND POTENTIAL

COMPETITIVENESS OF THE EXPORT OF GOODS ON

INTERNATIONAL MARKETS

BARIERS TO THE INTERNATIONALIZATION OF SMALL AND

MEDIUM ENTERPRISES, AS WELL AS MEASURES AND

PERSPECTIVES FOR STIMULATION AND DEVELOPMENT OF

EXPORT

STATE AND DEVELOPMENT OF THE SECTOR IN BULGARIA

At this stage (2011) of the economic activity – manufacture of pulp, paper, board and

articles – at EU level exist 200,000 companies which hire approximately 1,9 million people

and the summary activity turnover is around 75 billion EUR. From the viewpoint of this

consolidated statistics on the present condition of the sector at EU-27 level, it is necessary to

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outline the place and profile of Bulgarian small and medium enterprises and their abilities to

compete on the large European market. An important aspect in the manufacture of pulp,

paper, board and articles is environment. Its conservation and preservation is the most basic

and fundamental task of any strategic plan. The environmental protection is a reinvestment.

It should primarily be pursued efficiency and effectiveness in the application of new

technologies in the sector.

The structure of operational costs in EU-27 related to the manufacture of pulp, paper, board

and articles, is to a large extent similar to that of the industrial sector.

The investments in this production have an average value of 1.4% of the industrial sector for

EU-27 and these values are highest in Finland (6.3%), Estonia (4.2%) and Latvia (4.2%).

Labor productivity in the sector, related to the production of timber and paper material is

estimated to 39.4 thousand EUR per person in 2007. This value makes it by about 10%

lower than the average for the economic sector.

The manufacture of pulp, paper, board and articles and the SMEs involved in them have a

great importance to the economy of the country, as these products are related to the way of

living and their availability, demand and the ensuring of their specificity of their purpose.

The country has a rich resource base for the manufacture of pulp, paper, board and articles.

The “Manufacture of paper, board and articles of paper and board” sector covers around

1.4% of the industrial production in the country and also creates 1.4% of the added value in

industry. The revival of the production in the sector reflected on the dynamics of the export,

which in 2010 was 1% of the total export and 2.6% of the total import of the country.

The “Manufacture of pulp, paper, board and articles” sector includes the manufacture of

paper, paper mass and recycled paper products. The grouping of these products is

characterized and grounded by the similar and common vertical production processes at the

stage of formation and generation.

For SMEs in the economic activity “Manufacture of pulp, paper, board and articles”, the

structure is significantly more simple, which allows an easier analysis. Based on

Classification of Economic Activities /CEA/ of 2008, NSI managed to collect data for 2009

and 2010 under the new methodology, which are presented in the next two tables.

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data of NSI/

Enterprises Turnover Added value at

factor prices

Employees

Code: Number in thousand BGN Number

17. 553 406 424 102 205 7465

17.1. 18 ** ** 443

17.2. 535 ** ** 7022 Legend:

Division-17 – Manufacture of paper, board and articles of paper and board

17.1. - Manufacture of fibrous semi-manufactured goods, paper and board

17.2. - Manufacture of articles of paper and board

** - confidential data


data of NSI /

Enterprises Turnover Added value at

factor prices

Employees

Code: Number in thousand BGN Number

17. 517 372 203 102 205 6 385

17.1. 15 4 122 -1 438 187

17.2. 502 368 081 77 009 6198 Legend:

Division-17 - Manufacture of paper, board and articles of paper and board

17.1. - Manufacture of fibrous semi-manufactured goods, paper and board

17.2. - Manufacture of articles of paper and board

As can be determined from the adduced tables prepared under the methodology of NSI,

some of the data for 2009 regarding the turnover and added value on factor prices are

confidential. From the disclosed data, however, it is seen that the turnover of all 553 SMEs

in this economic activity amounted to a little more than 400 million BGN and the total

number of people employed in these SMEs was 7,465. In 2010 the picture gets worse, as the

actual number of SMEs in the economic activity also decreases and the turnover of the

activity seriously decreases – to approximately 370 million BGN and the number of the

people employed also decreases – from 7,465 to 6,385.

The prospects on the data for 2011 and the next one to two years are also negative, which

means that the branch literally “collapses” and the business activity is reduced to some form

of survival. Due to the said reasons, several specific goals at different levels should be taken

into account.

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The purpose of the strategy is to create a connection, to build a bridge for the transmission of

the local company interests and their coordination with consumer countries. This is an

expression of the main and basic function of the system of the European Union, namely,

overcoming any territorial economic border and aggregation of a single market.

The positive aspect is that SMEs are more strongly represented in the manufacturing

industry than the large enterprises. The strengths of small and medium business regarding

the export of paper, board and other articles is the creation of added value. Among the

regional centers in Bulgaria with the richest timber resources are the cities: Blagoevgrad,

Burgas, Vidin, Vratsa, Gabrovo, Kyustendil, Lovech, Montana, Pazardzhik, Smolyan,

Shumen, and others. The geographical location of these cities suggests a possibility for

export both to the eastern market (Russia, China), and to the western market (Europe, USA,

Brasil).

Table 3 Regional distribution of the enterprises and employees in the “ Manufacture of

pulp, paper, board and articles” sector in 2009

Employed

in the

sector

(number)

% of those

employed in the

manufacturing

industry

% of those

employed

in the

sector

Companies

in the

sector

(number)

% of the

compa-

nies in

the sector

Northwest region 550 0,9% 5,4% 40 7,3%

North Central region 1920 2,3% 19,0% 80 14,7%

Northeast region 787 1,4% 7,8% 48 8,8%

Southeast region 466 0,6% 4,6% 44 8,1%

South Central region 3484 2,6% 34,4% 151 27,7%

Southwest region 2909 1,8% 28,8% 182 33,4%

Source: Evrostat

The level of salaries in the sector is one of the lowest. The average monthly salary is estimated

at about 460 BGN and provides employment of 9.6 thousand people (1.9% of those employed

in the manufacturing industry).

The production consists of articles of paper and board, wallpapers, stationery, etc. It is realized

by about 350 companies, more than half of which are located within the territory of the South

Central and Southwest planning regions. Among the companies engaged in the manufacture of

paper, board and articles can be distinguished: "MondiPeking Stamboliyski" EAD, "Svilosel"

EAD, "Kostenets HII" AD, "Koch and Nur Nemusmark" AD, "Vivatel" AD and others.

Unlike the production of timber, its processing into interstitial and end product is related to a

certain level of machinery and equipment. The equipment necessary for the processing of

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the raw material is not available for a big part of the small and medium enterprises and this

puts them into the position of non-competitiveness..

Main conclusions from the analysis of the situation and development of the sector:

The number of SMEs in the “Manufacture of pulp, paper, board and articles” sector

marked a decrease in 2010 by 6,51% compared to the previous 2009. In 2010 the number of

the employees in the sector also declined by 14,5% compared to 2009. A decrease was also

observed with respect to the turnover realized by SMEs from the sector as it decresed from

406 424 thousand BGN in 2009 to 372 203 thousand BGN in 2010.

From the economic activity – the manufacture of pulp, paper, board and articles, at

the EU-27 level, are formed around 75 billion EUR, while in Bulgaria, for the last fiscal year

(2010), only around 135 million EUR. The scale of market forces of Bulgarian SMEs

compared to EU-27 is only 0,19% of all competing market participants and it shows the

extremely insignificant market force of the Bulgarian small and medium enterprises in the

context of EU-27.

The regional distribution of the companies from the sector shows a significant

concentration of companies in the Southwest region and in particular in the region of Sofia.

The product assortment with which the majority of the surveyed enterprises have

proved themselves successful on the market is not very wide. Only 1/3 of the companies

have staked on the production of a richer range of goods.

A little more than half of the companies from the branch invest in development

activity (innovations) – 59,1%.

The main part of the investments is in expansion of the activity of the existing

enterprise (76,9%), followed by diversification of the production of the existing enterprise

by adding new additional products (53,8).

50,0% of the enterprises from the sector have their own trademark. Exactly the same

is the percentage of holders of international certificates.

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EXPORT ORIENTATION OF THE SECTOR

The value of Bulgarian export in the economic activity “Manufacture of pulp, paper, board

and articles” according to the latest data of the National Statistical Institute from January

2012.

Table 4 Value of the Bulgarian export of “Paper, board and articles of paper and board”

under the nomenclature of CEA /2000 – 2011/ (according to data of NSI)

Value of the exort (in BGN) Share (in %)

Year Total for products

under the Classifier

of Economic

Activities /CEA/

Value of the exort

of "Paper, board

and articles of

paper and board"

Share of "Paper, board

and articles of paper

and board" of the total

export of all products

under CEA

2000 10 274 106 727 371 715 523 3,62%

2001 11 176 068 993 456 217 411 4,08%

2002 11 857 905 747 571 303 578 4,82%

2003 13 041 906 435 670 772 499 5,14%

2004 15 617 051 924 774 824 853 4,96%

2005 18 514 553 261 805 345 179 4,35%

2006 23 493 153 075 943 278 207 4,02%

2007 26 426 895 408 1 047 300 000 3,96%

2008 29 736 375 433 267 994 380 0,90%

2009 22 881 652 090 140 826 313 0,62%

2010 30 435 009 876 314 612 346 1,03%

2011 33 952 544 356 348 948 883 1,03%

It is obvious from the table that the share of the export of paper, board and articles of paper

and board, under the nomenclature of the Classifier of Economic Activities /CEA/, adopted in

the country between 2000 and 2007, fluctuates in the range 3,5% to 5% for the different years

and the highest peak in this time series of data was 2003. The highest peak of this share for the

whole series of data from 2000 to 2011 inclusive, also turns out to be 2003. Since then until

now (2011) the share of the value of the export of paper, board and articles of paper and board

has been continuously decreasing, which is also obvious from fig. 1.

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Graph 1 Export of “Paper, board and articles of paper and board”

After the accession of the country to the EU, this share varies about 1% of the total export by

all export positions under CEA. As an absolute value, however, these are different amounts

between 270 million BGN (2008) and nearly 350 million BGN (2011).

The data show that in absolute values, the peak year for the market participants engaged in the

activity “Manufacture of pulp, paper, board and articles” was 2007, when the export amounted

to over 1 billion BGN. Subsequently, the lowest level recorded was in 2009 – around 140

million BGN, and then the growth in the following 2010 and 2011 doubled. Therefore, in the

interpretation of the export data, it is very important that both the absolute indicators and the

relative indicators of the value of the export in this direction should be studied.

In addition, it can also be enclosed updated information about what the value of the export of

SMEs form the sector is compared to all the enterprises within the sector.

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Table 5 Value of the export of SMEs from the sector /2007 – 2011/ (according to data of

NSI)

Value of the export of "Paper, board and articles of paper

and board" (in BGN)

Share (in %)

Year All Bulgarian

enterprises in the

sector

SMEs in the

sector

Share of the export of

SMEs from all

Bulgariand enterprises

in the sector

2007 1 047 300 000 not available n/a

2008 267 994 380 n/a n/a

2009 140 826 313 61 824 000 43,90%

2010 314 612 346 39 800 000 12,65%

2011 348 948 883 n/a n/a

The share of the export of SMEs from all Bulgarian enterprises in the sector amounted to

around 44% in 2009 and almost 13% in 2010.

The export of various articles: paper, board, fibrous cellulose materials and the like, is

constantly increasing and for the period 2000-2011 this export has increased almost 3 times for

the paper and board and a little over two times for the wood mass or the mass of other fibrous

cellulose materials.

Table 6Value of the sector export of Bulgaria, according to the Combined Nomenclature

/2007 – 2011/ (according to data of NSI)

Export from Bulgaria under the Combied Nomenclature (in BGN)

Year Wood mass or mass of other fibrous

cellulose materials; paper or board

for recycling (waste and left-overs)

Paper and board; articles of pulp,

paper or board

2000 44 776 517 75 176 639

2001 35 627 856 83 609 489

2002 42 165 671 83 741 257

2003 37 079 969 130 552 885

2004 41 126 224 152 601 886

2005 33 432 076 163 695 336

2006 40 846 062 145 307 997

2007 41 372 242 191 951 493

2008 64 996 003 198 623 073

2009 11 339 917 121 542 822

2010 113 302 945 192 033 659

2011 103 752 172 239 994 284

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Table 7 Comparative analysis of the Bulgarian export from the activity /2005 - 2009/

Export product Weighted value of the export

for the period 2005 -2009

(thousand EUR)

Relative change in export

(Growth/Decline)

Packagings of paper and board 17 980 +40%

Toilet paper, napkins,

handkerchiefs

7 952 +94%

Paper for household and

sanitary needs

7 435 +20% (Note: basis - 2006)

All types of paper labels 5 203 +58%

Paper and board with pigmental

coating

4 600.6 -99%

Micro crepe, perforated paper,

board, corrugated cardboard

3 887.8 +34%

Writing and printing paper 2 266.8 -78%

Newsprint 1 487.8 +646%

Cards and envelopes 592.2 +531%

Cigarette paper 286 +111

Products located at the bottom of the table, arranged by absolute weighted value of the export

for the period 2005-2009, mark the highest levels of growth for the same period.

Overall, the data for the last few years, for which there is an authentic information, are good

and predict a relatively good development of the sector.

As a positive aspect should be noted also the comparative increase in Bulgarian export of pulp,

paper, board and articles. To this increase testifies the analysis of the relative change in the

value of the export by product groups for 2005-2009.

It is noticed that products with relatively lower levels of absolute export value mark

significantly higher levels of growth compared to those with higher levels of value.

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Graph 2 Summarized data about the export of the different products in the sector /in

thousand EUR/

Source: NSI

Here it should also be taken into account the chain for formation of value addition in the sector.

The formation of the final value as at 2010, according to data of CEPI is as follows– Graph 3.

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Graph 3 Average values of components in the formation of the final price in the sector

/2010, according to data of CEPI/

Source: CEPI

The graph shows that fibrous semi-manufactured goods constitute almost one quarter of

the invested resources and 50% of the final proce depends on the fibrous semi-

manufactured goods, wood and the chemicals used in the production. Only 10,4% of the

investment are due to labor. Thus, this economic activity is more resource-intensive and

requires serious funds in order to realize such type of production. Moreover, along the

supply chain is formed another 30-40% growth in the final price to the customer, as much

of the production is transported by specialized heavy-freight transport.

The consumption of paper and board according to national statistics from the beginning

of the economic changes in the country can be reflected in the following tables, from

which it is apparent that in Bulgaria is constantly increasing the consumption of paper

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and board, the lowest levels being in 2000 and 2001 and the highest level of consumption

for Bulgaria being in 2007.

Table 8 Consumption of paper and board by countries and by years during the period

1990 - 2010 (kg/person)

Country 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Bulgaria 28 28 17 17 27 39 41 43 45 59 52 45 49

Germany 225 194 233 225 228 225 236 233 253 256 247 221 243

Greece 61 82 114 83 111 115 104 105 109 108 112 99 93

China 13 22 28 29 33 36 42 45 50 55 59 64 69

Poland 22 40 60 64 67 73 88 89 98 109 109 108 118

Romania 22 15 19 21 23 27 27 29 32 35 31 29 31

Russia 34 13 22 38 26 31 34 36 42 47 46 42 47

USA 311 332 332 324 314 301 312 301 301 288 266 231 240

Hungary 55 50 80 70 77 88 82 88 95 97 97 85 88

Finland 279 304 211 194 333 308 285 324 330 369 342 282 281

Czech

Republic

78 67 90 96 103 114 130 133 141 159 155 133 143

Japan 228 239 250 242 241 242 247 247 247 246 242 215 220

As can be seen from the enclosed tables, ones of the world consumers of paper are Finland,

the USA, Germany and Japan with an annual consumption in 2010 of over 200 kg/perosn.

After them come the Czech Republic and Poland, closely followed by Greece and Hungary.

Bulgaria is on one of the last places according to the latest statistical data.

Anex 1 presents data on production, import, export, consumption, covering a 10-year period

of tracking the data under the nomenclature, followed by the National Statistical Institute.

From the data presented it is obvious that the sector is highly dynamic, which is also due to

the strong competition and the commitment of the sector to key participants on the

international markets. The lasting economic crisis in the country has also reflected on the

continuing stagnation in the sector, which, like almost all other sectors in the economy of the

country, was at that time forced to reduce jobs and make forced dismissals. In practice, the

unfavorable business climate in the country exacerbated seriously the inter-company

competition in the sector, as the latter is very sensitive to reduced circulations and orders.

This sector also suffers from a particular threat of the high-tech electronic media, which

create more and more users offering alternative resources of information through the

electronic media and carriers. This creates an additional reflux of customers from the sector,

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which often manifests itself as unfair competition at the national level. Moreover, due to the

specificity of the activity in this sector, companies work with relatively larger orders and the

scales of leverage between the companies are constantly growing, which creates significant

obstacles to the normal communication between the companies, institutions and end

customers.

Some of the areas performing well in the sector are the producers of packing paper,

including bag paper and machine-smooth packing papers, which are most frequently used in

stores.

Another area is the production of bleached sulphate pulp (kraft) and, to a certain extent, the

production of sanitary paper.

The long series of data for the development of the sector show that until the accession of the

country to the EU and one to two years after that the sector has developed very rapidly, but

in the last two to three years many small and medium enterprises from the sector, in practice,

are facing technical bankruptcy or irreversibility to regain the market positions of before the

crises.

The sector analysis clearly shows that the economic diagnosis of the sector indicates very

unpleasant conclusions for small and medium eneterprises, as the market here is very

parcelled out and even destroyed in certain industries, as are the cases of the production of

multilayer boards or other type of boards.

GOODS AND SERVICES WITH EXPORT POTENTIAL AND ADVANTAGES

Products with the highest potential for export in the sector:

paper for household and sanitary needs;

packings of paper and board;

newsprint;

toilet paper, napkins and handkerchiefs;

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all types of paper labels.

These goods are determined based on an analysis of two indicators – export volume and

export dynamics.

In the manufacture of paper and board coated with kaolin or other inorganic

compounds is observed a sudden decline in the export after 2005, the lowest values being in

2007. It is difficult to answer the question what are the exact reasons for the sudden decline

in the export of paper and board coated with kaolin or other inorganic compounds. They

may be related to loss of market or partners, to shrinkage of the production or ejection by the

competition.

Graph 4 Value of Bulgarian export of paper and board (with pigmental coating) /in

thousand EUR/

Source: ITC

Weighted value of the export for the period 2005-2009: 4600.6

Relative change for the period (Growth/Decline) : - 99%

Given the lowest value of 112 thousand EUR in 2007, we can assume that the export of the

product is also influenced by the global financial crisis and the values after that year mark

sustainable development. The export data for one year in themselves should not be taken as an

indicator of deterioration in the manufacture and export of a given commodity, but as a matter

of marketeering characteristics related to both internal and external environment.

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Despite the drastic decline over the period analyzed, an increase of fifteen times was observed

between 2007 and 2009, which is a clear sign that the export mechanism has started working

again.

Strategic objectives associated with this type of production, seeking to promote and stimulate

export, should focus on achieving rhythmicity and stability on the market. SMEs must have a

very good and accurate system for planning their production, as well as a detailed vision and

information about the outlet realization. The aim is winning positions and establishment of a

developed export market with a specific demand, given the characteristics of the product.

In the export of writing and printing paper was observed a stable growth in the

period 2005-2008 and the values increase each year reaching their peak in 2008 of 5 184

thousand EUR. In 2009 the values droped sharply to the low level of 188 thousand EUR.

However, the values in 2008, reaching their maximum for the analyzed period, were nearly

six times those of 2005.

Graph 5 Value of Bulgarian export of writing (printing) paper / in thousand EUR/

Source: ITC

Weighted value of the export for the period 2005-2009: 2 266.8

Relative change for the period (Growth/Decline) : - 78%

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The highest annual increase was observed between 2006 and 2007, when the export increased

almost four times. This significant growth is due to the skillful combination of numerous

factors, guaranteeing development of market positions on the international market. The quality

characterization and the level of necessity of the product make it a commodity with a low

demand flexibility, as tangible alternatives almost do not exist.

The sharp decline in 2009 can be attributed to both financial and economic instability of the

international trade markets, and the ecological trends of reducing levels of use of office paper.

In front of SMEs stands a large market with continuous and relatively constant demand. The

strategic objectives of promoting the export of this product should be based on the optimization

of the quality of both the goods itself and the service.

There is need of establishing export channels for quick access and processing the practices, as

well as a network reflecting the necessary cash. The aim is optimization and achievement of

minimum levels of information noise regarding logistics and implementation deadlines. Pricing

and value formation includes not only the product itself and its cost price, but also the ability of

the exporting company to supply as needed. To achieve this goal is necessary elasticity and

flexibility. SMEs should focus their efforts on achieving a good balance between the price level

and the superiority of the quality, since due to its specificity, the product requires a huge market

and high levels of competition. This is struggle which is won by the one who supplies

regularly, on time, the necessary quantity and offers the best conditions.

Writing and printing paper is among the most important resources for the operation of a

business and it is the necessary basis for the preparation of projects, contracts and any type of

office documentation. The Bulgarian SMEs are facing the task to develop the necessary

competitive advantages by which they could build up the necessary added value of the product

so that it can be preferred to the local alternatives. Given the similar qualitative characterization

of the product concerned, innovations regarding the structure, vision, or composition are less

likely or they hide a risk of incompatibility with the market principles. That is why SMEs

should focus on the quality of export implementation and act as local suppliers, even better.

There is need of opening and development of an optimal transport network, with the possibility

of flexibility of supplies and minimum delays. Building up this basis and the extent of its

effective realization would allow the exporting company to use the instruments of pricing as

competitive advantages.

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But to reach this stage, it is necessary to achieve scale effect or lower relative production costs

per unit of article. This model, however, is at variance with the structure of SMEs and poses

one of the major problems for the export as a whole, namely the gap between the capabilities of

the small and medium business and the strategic objectives for export development. This

strategy is yet to consider exactly the alternatives and possible solutions to this problem.

The export of toilet paper, napkins, handkerchiefs, diapers, etc. marked stable

development rates for the period 2005-2009, the highest value being again in 2008. Of course,

the characteristic of the products also generates their constant demand, which can explain the

relatively high export levels for the period.

Graph 6 Value of Bulgarian export of toilet paper, napkins, handkerchiefs /in thousand

EUR/

Source: ITC

Weighted value of the export for the period 2005-2009: 7 952

Relative change for the period (Growth/Decline) : + 94%

Like writing and printing paper, the toilet paper, napkins, handkerchiefs and diapers are

goods with low flexibility of demand compared to the price changes. This means that the

price is not the main and principal reason for the purchase, but the fact that these goods are

of first necessity. It is not accidental that their export also marks a steady growth. However,

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the goal here should be to preserve and maintain the market positions with a vision for

growth.

It is important to take into account that the market is an extremely dynamic and unstable

mechanism and good data should not be accepted as a certainty or guarantor for future

development. Efforts are needed, aimed at the continuous development of the product, the

conditions of its sale through export and development of the competitive advantages of the

company as a whole.

Toilet paper, napkins, handkerchiefs, diapers and similar products are among the most

widely known and used in everyday life products. This fact also determines high levels of

supply. The data in Graph 6 show some stable and relatively constant levels of growth in the

export of these goods, which means that the companies which produce them are well placed

and established on the foreign markets. In ordet that this realization is present, it is necessary

that be taken into consideration that the material expression of export is in money, but its

more important dimension is the client’s assessment or that moral value, which puts it as a

leader among the other alternatives offered by the local market.

The more specific a product is, the easier it can be disposed, of course, provided that the

market appropriate for it has been found. While the goods for mass consumption are an

objective-oriented marketing target for a wide range of companies, and this is a fact

increasingly heightens the competitive battle between them. Bearing that in mind, we can

conclude that the Bulgarian companies realizing export of toilet paper, napkins,

handkerchiefs, diapers and the like, are worthy of being an example for the rest of the

business and a model in which SMEs can develop their export policy.

The export of cigarette paper marked a steady growth for the period, despite its

relatively low absolute values. The specificity of this export, like the previous two, is

connected with almost zero elasticity of demand. Cigarettes and cigarette products are very

specific goods the demand of which is highly irrelevant to the level of prices. This makes

these goods and their components products with guaranteed demand and provides the small

and medium business with a good niche for development of its production potential. It

should be borne in mind that establishing onself on the market is particularly difficult and

the marketing barriers for entering are extremely high. This is related to the popularity of the

end product and its ability to generate constant demand at rising price level. In Bulgarian

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export of cigarette paper was noted a stable and gradual growth and the relative export

values decreased only in 2008, this being a single phenomenon and not a tendency.

Graph 7 Value of Bulgarian export of cigarette paper /in thousand EUR/

Source: ITC

Weighted quantity of the export for the period 2005-2009: 286


It is also important to note that for the considered period between 2005 and 2009, the total

volume of the export increased by double, like the export of toilet paper, handkerchiefs,

napkins and diapers. This relative index ranks the export of cigarette paper among the

leaders in the export of Bulgaria. Despite the low absolute value of the export, the growth

trend is clearly noticeable. This means that companies representing the production of

cigarette paper know how to organize their export and how to manage it. This is an

important and priceless know-how for the achievement of the strategic objectives on the

development of the export policy for the small and medium business.

The export of all types of paper and board labels marked a steady growth, despite the

relatively poor indices for 2006. They can be attributed to multiple factors, but it is more

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important not to focus on the low effectiveness in 2006, but to consider the marketeering

framework of the export for the given period more globally and generally. In the analyzed

period there was an increase of more than 50% and despite the low level in 2006, in 2007

the export increased by 10 times.

Graph 8 Value of Bulgarian export of all types of paper labels /in thousand EUR/

Source: ITC


Relative change for the period (Growth/Decline) :+ 58%

These indices guarantee for a good and balanced export policy by the exporting companies

and testify to their good practices in the field of corporate planning, forecasting and goal

setting.

The export of all types of paper labels is another good example of not only how to lead an

useful and effective export policy, but also how business can cope with situations of decline

and low reporting indicators. All companies in the most general sense have, if not equal,

then at least similar tools for interaction and impact on the internal and external

environment. However, far from all have the potential to use it to make rational and

effective management decisions concerning the planning and organization of future events

and periods.

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The export of paper for household and sanitary needs marked relatively high levels

of export and only the data 2005 are almost zero compared with the other analyzed periods

from the interval 2005-2009. However, this export group marked high average levels of

value. The export of paper for household and sanitary needs marked its higher value in 2008,

following a growth of nearly 40% compared to the previous year. This tendency did not

established itself and in 2009 there was a decline also by about 40%.

Graph 9 Value of Bulgarian export of paper for household and sanitary needs /in

thousand EUR/

Source: ITC


Relative change for the period (Note: Due to the extremely low value for 2005,

for a basis have been taken the data from 2006) (Growth/Decline): + 20%

Nevertheless, the absolute dimention of the export is significant and is among the exports

with highest value among the considered export product categories. This is explained both

by the practical and and everyday application of the goods, and by the effective export

policy of the companies. Among them those producing toilet paper, handkerchiefs, napkins

and diapers are most frequently specialized in the production of paper for household and

sanitary needs, too. A proof of this are the good indicators of growth and absolute value of

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the export. They are the basis for the further development and utilization of this export

channel.

Even if they do not have the necessary equipment for the production and processing of raw

materials for this type of production, the small and medium can act as jobbers, suppliers or

dealers. In this way they deprive themselves of the risk related to the manufacture of the

production, to the high costs of obtaining and processing the materials and thanks to their

not numerous staff they can also be competitive to the bigger enterprises which have

significantly higher cost burden. The formation of sush international mediations is among

the main export strategies available for the development of the export by SMEs.

The export of packings of paper and board is among the leaders in the export of

products of pulp, paper, board and articles, with an absolute measurement of the export

much higher than the other prouct groups.

Graph 10 Value of Bulgarian export of packings of paper and board /in thousand EUR/

Source: ITC

Weighted value of the export for the period 2005-2009:: 17 980

Relative change for the period (Growth/Decline): +40%

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Here are observed annual values, each of which exceeds significantly the limit of 10 million

EUR. It makes impression that the value of the export for each year individually exceeds

almost all of the highest levels of export of the rest of the products analyzed. With a

weighted value of the export of approximately 18 million EUR, the export of packings of

paper and board exceeds more than two times the export ranked second. These high values

can be explained by the necessity of packing of most of the products.

In today’s realities and with a pursuit of achieving a more ecological environment, nylon is

being displaced by paper globally. This global trend, no doubt, gives its impact on the

Bulgarian export, too. In large numbers nylon bags and packagings are being replaced and

displaced by ones made of paper or board, due to their properties of degradation. The idea of

environmental protection and achievement of sustainable development is among the current

issues of today and is a starting point for this strategy. This is an example of the influence of

a trend on the market development or how non-economic factors can acquire economic

impact.

Exactly because of that reason, it is necessary to build a more massive and global vision

regarding the promotion of the export of SMEs. Not the detail is important, but the final

result; the vision is important which is necessary to be built in order to create the link

between SMEs and international market.

The production of paper and board packings is yet to develop both in innovative and in

environmental aspect. SMEs and the specialists representing them should focus their

attention on the ways of achieving symbiosis between three main production factors:

effectiveness, efficiency and environmental friendliness.

This means to find a way to use a minimum amount of resource, which should be

processesed with a relatively minimum share of the costs in order to create a product leaving

a minimum mark on the environment.

The optimization of these factors is the way to achieve a better product and since the idea

should precede technology, SMEs need to develop their conceptions for the production of

ecological packings, as well as to create a system for their reproduction and recycling. In

other words, the specificity of this product requires unlimited responsibility of the producer.

This concept is the basis for building a new and better export line, in the center of which

stands the product and not the export itself. Reconsideration of this formulation will enable

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the Bulgarian small and medium business to fit in the global trading environment with

regard to the production of pulp, paper, board and articles.

When determining the amount and quantity of the export, it should also be considered the

unit value of the articles, since the price forms the value and does not give a real idea of the

scale of the export. In the export of newsprint, a standstill was observed from 2005 to 2007,

then the values increased approximately five times and continued their growth. The absolute

growth between 2005 and 2009 was almost ten times, which is a sign of conducting an

active export policy. It in itself is a mechanism which does not have sudden impact on the

marker processes. If we assume that in 2005 the companies adopted a number of measures to

increase and stimulate the export, the data for 2006 cannot give a clear idea of the degree of

fulfillment of the set criteria, as market and foreign trade processes include numerous

factors.

Graph 11 Value of Bulgarian export of newsprint /in thousand EUR/

Source: ITC

Weighted value of the export for the period 2005-2009: 1 487.8

Relative change for the period (Growth/Decline) : + 646 %

In 2007 were observed values exceeding by about 50% those of 2005 and more than twice

those of the previous 2006. This testifies to expansion of the export and we can assume that

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it the result of the anti-crisis measures of the companies. Between 2007 and 2008 the export

marked an increase by nearly five times.

The export of newsprint is largely related to finding the appropriate export partner. It is

important to take into consideration that, like for the writing and printing paper, of great

importance here is regularity of supply, as well as compliance with the agreed quantity and

quality.

The production of newspapers, like the composition of written documents, is a process of

creating additional value, in the form of information. The framework and scaffolding for this

information is the paper, which makes it an extremely important and valuable material.

To stimulate the Bulgarian export of newsprint, it is necessary to analyze the actions of the

companies in the branch in 2005, 2006 and 2007, as they give effect to the increase of the

export value in the following periods.

The export of cards and envelopes for letters marked an increase in a period 2005-

2007, when it reached its maximum of 988 thousand EUR and gradually declined in the

period 2007-2009. The export of cards and envelopes for letters is definitely not among the

supporting pillars of the export of pulp, paper, board and articles, but its importance

determines the width of the range of products which our country is able to offer on the

international market. This production, despite its relatively low values of export, can serve

as a counterweight to ensure profitability in case of realization of a poor annual export of

another product, as often happens according to the graphs analyzed so far.

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Graph 12 Value of Bulgarian export of cards and envelopes /in thousand EUR/

Source: ITC


Relative change for the period (Growth/Decline) : + 531 %

The export of cards and envelopes for letters is a prerequisite for staying on the market in

such years and its development is of great importance for SMEs which do not aim

specialization in only one product but wish to expand their product range in order to

establish more permanent and serious positions on the international market.

Of all products considered so fat, the micro-crepe, perforated paper, board and

corrugated cardboard are the export group with the most stable and resistant values for the

examined time period. This is largely determined by the relatively constant levels of their

demand, but also by the efforts of the companies that export them to be competitive and

adequate to the domestic supply. This is a sign of well-established market positions and a

good export policy by the companies that produce them. The achievement of a sustainable

growth of the export with no periods of significant decline or increase attests the presence of

a precise and well-organized export management and is based on the fundamentals of

effective planning, which resulted in a steady growth for the period considered. It is this type

of development that is aimed for the achievement of a good vision before the foreign

partners.

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Graph 13 Value of Bulgarian export of micro-crepe, perforated paper, board, corrugated

cardboard /in thousand EUR/

Source: ITC



Achieving sustainable development is among the main and most important priorities in

business. Export policy as its instrument is not an exception. Any fluctuation or change in

the value of the export means inability to communicate with the market and to adapt to the

changing environment. This problem should be overcome through efforts towards the

establishment of new partnerships and winning loyal clients, instead of concentrating on

constant search for new ones. Loyalty is among business values, which remain in the

background in the modern commercial reality, however, it is the key to achieving

sustainable development and positive indices of long-term growth.

The following graph presents in a summarized and accumulated form all the information

analyzed so far. This plan clearly outlines the differences both in the absolute values and in

the changes for the time period. It is thus clearly and graphically seen that the multitude of

the export for the products concerned is situated in the column up to 10 million EUR and

higher values were realized by only four out of the ten analyzed products. According to data

of NSI in the most summarized form, the highest are the values of the export of the paper

and packings component – with almost 92 million EUR for 2010, followed by the pulp

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component – about 58 million EUR for 2010 and on the third place – works of the printing

industry – with around 11 million EUR for 2010.

Graph 14 Value of Bulgarian export in the three major areas – works of the printing

industry, pulp, paper and board /in million EUR/

Source: NSI

The following table presents the dynamics of the export of the leading export goods for

the sector by perspective partners for the period 2000-2010.

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Table 9 Leading partners in the export by commodity groups in the “ Manufacture of pulp, paper, board and articles” sector for the period 2000-2010

(million EUR)

2000 miln. EUR 2001 miln. EUR 2002 miln. EUR 2003 miln. EUR 2004 miln. EUR 2005 miln. EUR

Paper and board

16,3 16,8 52.1 49,3 58,5 61,9

1 Turkey 5,7 Turkey 5,2 Turkey 12.2 Turkey 13,0 Turkey 10,1 Turkey 10,7

2 Yugoslavia 4,0 Yugoslavia 3,7 Yugoslavia 7.8 Yugoslavia 5,2 Yugoslavia 4,4 Italy 7,4

3 Macedonia 2,2 Macedonia 2,4 Macedonia 6.6 Macedonia 4,1 Macedonia 3,9 Macedonia 4,1

4 Greece 1,7 Algeria 1,3 Albania 3.0 Algeria 3,7 Germany 3,4 Ukraine 4,0

5 Bosnia and Herzegovina 0,8 Egypt 0,9 Egypt 2.9 Egypt 2,7 Greece 3,3 Yugoslavia 3,4

Corrugated cardboard and

packings of paper and board

4,0 10,6 10.4 7,3 9,6 11,4

1 Moldova 0,6 Lebanon 2,8 Greece 3.1 Greece 1,9 Greece 3,0 Greece 3,2

2 Greece 0,6 Georgia 2,1 Italy 2.0 Italy 1,7 Italy 2,0 Italy 2,2

3 Russian Federation 0,5 Greece 1,0 Moldova 1.0 Moldova 0,7 Albania 1,0 Albania 0,9

4 Georgia 0,4 Romania 1,0 Georgia 0.7 Albania 0,5 Yugoslavia 0,8 Moldova 0,9

5 Yugoslavia 0,4 Russian

Federation

0,7 Armenia 0.7 Macedonia 0,4 Macedonia 0,7 Macedonia 0,8

Household, sanitary and

toilet articles of paper and

board

7,6 7,8 12.5 6,4 7,5 9,2

1 Yugoslavia 1,8 Yugoslavia 1,7 Greece 3.5 Greece 1,8 Greece 2,7 Greece 3,8

2 Turkey 1,1 Turkey 1,5 Turkey 1.5 Germany 0,9 Italy 0,6 Italy 0,9

3 Greece 0,8 Macedonia 0,8 Yugoslavia 1.0 Romania 0,5 Romania 0,6 Bulgaria 0,8

4 Macedonia 0,7 Greece 0,8 Macedonia 0.9 France 0,4 France 0,5 Macedonia 0,7

5 Russian Federation 0,6 Georgia 0,4 Italy 0.7 Macedonia 0,3 Armenia 0,4 Romania 0,6

Stationery of paper and

board

1,4 2,4 5.1 3,3 3,8 4,7

1 Greece 0,2 Greece 0,6 Greece 1.2 Greece 1,0 Greece 1,1 Greece 0,7

2 Russian Federation 0,2 Ukrain 0,2 Bulgaria 0.5 Yugoslavia 0,3 Great Britain 0,4 Great Britain 0,7

3 Romania 0,1 Netherlands 0,2 Hungary 0.4 Hungary 0,2 Yugoslavia 0,2 France 0,5

4 Switzerland 0,1 USA 0,2 Great Britain 0.3 Germany 0,2 Germany 0,2 Romania 0,3

5 Germany 0,1 Bulgaria 0,2 USA 0.2 Great Britain 0,2 Romania 0,2 Switzerland 0,3

Other articles of paper and 3,5 3,4 6.1 3,4 4,5 4,7

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board

1 Russian Federation 1,1 Moldova 1,4 Moldova 2.3 Moldova 1,4 Moldova 1,8 Moldova 1,7

2 Moldova 0,7 Georgia 0,4 Hungary 0.8 Hungary 0,6 Hungary 1,0 Romania 0,6

3 Greece 0,4 Hungary 0,3 Georgia 0.7 Romania 0,2 Romania 0,3 United Arab

Emirates

0,4

4 Georgia 0,3 Russian

Federation

0,3 Romania 0.3 Greece 0,2 Georgia 0,2 USA 0,3

5 Hungary 0,3 Eire (Ireland) 0,3 Lithuania 0.2 Georgia 0,2 United Arab

Emirates

0,2 Georgia 0,3

2006 miln. EUR 2007 miln. EUR 2008 miln. EUR 2009 miln. EUR 2010 miln. EUR

Paper and board 48,3 68,3 68,7 31,1 56,3

1 Italy 9,0 Turkey 17,4 Turkey 21,7 Turkey 11,6 Turkey 14,0

2 Turkey 7,4 Italy 9,7 Greece 8,7 Greece 4,0 Greece 6,4

3 Macedonia 4,4 Romania 6,4 Italy 5,7 Romania 3,3 Romania 5,0

4 India 2,6 Greece 6,1 Macedonia 4,8 Serbia 2,5 Serbia 4,2

5 Greece 2,2 Macedonia 5,2 Ukraine 3,7 Macedonia 2,1 Jordan 4,0

Corrugated cardboard and

packings of paper and board

15,4 18,5 18,3 16,4 19,6

1 Greece 4,2 Greece 5,3 Greece 4,9 Italy 4,1 Greece 4,8

2 Italy 2,7 Italy 2,7 Italy 2,0 Greece 3,6 Macedonia 3,1

3 Turkey 1,2 Turkey 1,4 Macedonia 2,0 Romania 2,8 Italy 2,7

4 Albania 1,1 Albania 1,4 Albania 1,4 Macedonia 2,4 Armenia 1,3

5 Moldova 1,0 Macedonia 1,2 Armenia 1,1 Albania 0,7 Germany 0,8

Household, sanitary and

toilet articles of paper and

board

10,4 14,8 17,5 18,6 26,3

1 Greece 3,8 Greece 3,5 Greece 4,0 Greece 5,7 Greece 5,0

2 Italy 0,8 France 2,6 Romania 3,4 Romania 2,3 Romania 4,3

3 Macedonia 0,8 Romania 1,6 France 2,4 italy 1,3 Germany 2,7

4 Romania 0,8 Italy 1,1 Italy 1,0 France 1,3 Ukraine 1,8

5 Germany 0,8 Macedonia 0,7 Serbia 0,9 Germany 1,0 France 1,8

Stationery of paper and

board

4,7 5,7 6,3 4,7 5,6

1 Greece 1,2 Greece 1,4 Romania 2,1 Greece 2,0 Greece 1,3

2 Romania 0,6 Romania 1,2 Greece 1,2 France 0,4 Romania 0,6

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3 France 0,5 France 0,4 Russian

Federation

0,4 Romania 0,4 Netherlands 0,6

4 Germany 0,4 Russian

Federation

0,4 Netherlands 0,3 Russian

Federation

0,4 France 0,6

5 Russian Federation 0,3 Austria 0,3 France 0,3 Serbia 0,2 Serbia 0,4

Other articles of paper and

board

4,2 3,8 5,6 6,0 7,6

1 Romania 0,9 Romania 0,7 Romania 1,5 Albania 0,1 Greece 1,6

2 USA 0,6 Germany 0,5 Greece 1,1 Bangladesh 0,1 Romania 1,3

3 Moldova 0,4 Moldova 0,4 Italy 0,7 Bosnia and

Herzegovina

0,1 Turkey 0,8

4 Cameroon 0,4 Italy 0,4 Moldova 0,6 Belgium 0,1 Lithuania 0,7

5 Macedonia 0,3 Greece 0,4 Macedonia 0,3 Austria 0,0 Moldova 0,6

Source: ITC

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Another hallmark with regard to the small and medium enterprises engaged in the production

of pulp, paper, board and articles in 2010 in EU-27 is that in this activity were engaged

around 216 000 eneterprises. In this activity participated nearly 2 million people or 1.5%

relative share of the amount of the economic business workforce of EU-27. These enterprises

generate added value amounting to 78 billion EUR, contributing 1.4% to the amount of the

economic sector.

Analyzing the development of this activity in geographical terms, it makes impression that the

countries located in North and Central Europe have better established positions in the

production. This was judged by the relatively higher share of employees in the production of

pulp, paper, board and articles.

Table 10 Characterization and structure of the division

Enterprises Turnover Added value Staff

thousands % million

EUR

% million

EUR

% thousand %

Timber and

products

196.8 91 133 766 44.6 37 155 47.5 1 268.7 64

Pulp, paper and

products

19.4 9 166 000 55.4 41 100 52.5 715.0 36

Total 216.2 100 299 766 100 78 255 100 1 983.7 100

Source: NSI

The table presented makes impression with the relatively small and limited number of

enterprises engaged in the production of paper, paper pulp and products. Nevertheless, with its

only 9% of the relative share of all manufacturing agents in this market, the manufacturers of

paper, paper pulp and products generate over half of the total turnover and more than half of the

added value. This high efficiency and undisputed effectiveness of this production is also

confirmed in the analysis of the employment. A little more than one third of all people engaged

in the sphere of production of timber and products, paper, paper pulp and products generate

more than half of the income. This is a clear sign of the expedience of building a strategy for

production and export.

The more widely included number of worforce in the field of timber is explained by the

need for presence of more real human resource for extraction, which does not allow

complete mechanization and automation of processes.

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Situation analysis

Analysis of the Bulgarian export of products of pulp, paper, board and articles reporting the

highest values for the period under review.

Among all reviewed products there are such which are absolute leaders by indicators both of

absolute values, and of increase for the period. Among them are products with relatively

constant levels of demand, as well as such a with more specific demand.

To assess the possibilities of this strategy develop them even more, by undertaking identical

indicators for monitoring and evaluation of the planned measures, as different development

scenarios are possible and currently the market situation is unfavorable. From the time horizon,

presented in the graph, it is seen what the main task and purpose of this strategy is – to

introduce harmonized strategic planning in the sector. This is primarily related to the

overcoming of the declines in the export and the achievement of a sustainable growth, since

any sudden drop in the export value may be fatal for a small or medium Bulgarian enterprise.

An assessment of the effectiveness of this strategy can be given by a more comprehensive and

profound analysis of the received results for the export values. Without taking into account the

absolute values, it is important to detect the development of the trend and to analyze the

development direction of the export. The implementation of the strategy must encourage the

export, but also to bring it to a sustainable growth, subordinate to stable development rates.

What is noticed in the export of packings of paper and board and that of toilet paper, napkins

and handkerchiefs is that the introduction of strategic planning will lead to smoothing of the

values and achievement of a stable growth without allowing big amplitudes in the values of the

export. The other key tool is establishing systematic monitoring and carrying out analysis on

various product segments.

Analysis of the Bulgarian export of products of pulp, paper, board and articles reporting the

lowest values for the period under review.

Although a significant growth is noted, which is much higher than that of the rest, these two

products – cards and envelopes also have levels many times lower as value.

If for products with well-established export positions that realize high values of export it is

aimed the achievement of a sustainable development, for products with relatively low values of

export priority should be the pushing out towards higher export levels. This can be achieved

through an aggressive policy by the exporting country regarding the level of prices or

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preferential conditions. The value of export determines to a large extent whether a commercial

policy is effective or not. In this case, the aim is establishing or selling on the foreign market

through all the tools available from marketing. This includes discounts for bigger orders,

preferential prices for regular and loyal customers and other bonuses.

Export of cards and letter envelopes is extremely delicate and pricing is of great importance, as

demand is highly flexible due to the nature of the goods. Another rapidly developing segment

from the economic activity is the production of cigarette paper. This is because the cigarette

industry enjoys a vast and extensive demand almost worldwide. The provision of resources for

this industry is extremely significant for its normal functioning.

The export of cigarette paper is with the lowest degree of value for the country in the field of

the production of pulp, paper, board and articles. This niche should be further studied, analyzed

and realized by SMEs engaged in the sector, which enterprises, of course, would like to

establish their positions on the foreign market. The achievement of this purpose is connected

with the discovery of ways of production of cigarette paper and export channels. One of the

opportunities for the small and medium business is renting or leasing of equipment and creating

a cluster specialized in the production of cigarette paper. The outlined strategic goals, measures

and the following of a particular action plan for the promotion of the export of production of

the economic activity production of pulp, paper, board and articles, can be performed mainly if

regular market surveys are made, as well as publication in specialized bulletins, both

information from NSI for the development of the sector, and alternative market surveys

conducted by economic and non-profit organizations. Otherwise, the determined indicators will

not have representative role and could easily be refuted by various interested market

participants.

The presented graph shows the estimated values for the development of various segments of the

market for the period 2009 – 2013.

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Graph 15 Estimated data for export increase /2009-2013/ (in thousand EUR)

As can be seen from the enclosed graph, the articles “paper for household and sanitary needs”

pass through the most dynamic development and have the widest potential for exportation; on

the second place are the “packings of paper and board”; on the third place is the “newsprint”;

on the fourth place is “toilet paper, napkins and handkerchiefs”; on the fifth place – but far

from the opportunities for a strong export development come “all types of paper labels”.

In other words, the companies from the sector should have a clear and accurate vision in terms

of to what extent they can implement the strategic goals of this document and with what levels

of spending they can realize export. Therefore, it should be added that here could be applied

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multiple methods for the optimization of the financial structure of a given company for the

purpose of reducing the coasts and increasing the relative share of revenue.

In the case of the enterprises form this economic activity - production of fibrous semi-

manufactured goods, paper, board and articles, it is necessary to operate in both direction, or

rather to reduce the costs for one activity and to redirect them to investment in development of

the export activity. This restructuring is associated with costs for making predictions, strategic

plans, projects and especially a vision for the selling of the goods on the foreign market.

The consideration of goods with export potential from the sector leads to the following main

inferences and conclusions:

As of today, SMEs from the economic activity production of pulp, paper, board and articles are

very limited and embarrassed with the planning of the export organization. Among the

considered and studied companies is established a majority of respondents, which are

experiencing serious financial difficulties and which suffer from impaired liquidity.

The main factors that represent obstacles to the export by the SMEs from the sector are:

Deteriorated policy of lending credits;

Insufficient financial resources;

Highly limited and insufficient choice of funding source;

Cartel export organizations of large companies dominate the export policy of the

country;

Risk of falling into insolvency due to the specifics of the structure of SMEs;

Inability to adapt to the sphere of high-tech export.

Products with highest potential for export:

- paper for household and sanitary needs;

- packings of paper and board;

- newsprint;

- toilet paper, napkins and handkerchiefs;

- all types of paper labels.

The products with highest values of of export are – packings of paper and board, toilet

paper, napkins and handkerchiefs;

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In the export of packings of paper and board and that of toilet paper, napkins and

handkerchiefs, the introduction of strategic planning will lead to smoothing of the values and

achievement of a stable growth without allowing big amplitudes in the values of the export;

Articles from the sector that report the lowest values of export for the period under

review – cards and letter envelopes as well as cigarette paper;

The articles “paper for household and sanitary needs” pass through the most dynamic

development and have the widest potential for exportation; on the second place are the

“packings of paper and board”; on the third place is the “newsprint”; on the fourth place is

“toilet paper, napkins and handkerchiefs”; on the fifth place – but far from the opportunities for

a strong export development come “all types of paper labels”.

COMPETITIVENESS OF THE EXPORT OF GOODS AND ON INTERNATIONAL

MARKETS

The export of pulp, paper, board and articles represents a significant part of the overall

export of not many Member States. Among them are Finland and Latvia where this export

formed one fifth of the total export of the countries in 2007, while in Estonia and Sweden

this proportion barely reached 10 %. The analysis of these data indicates that the

development of the market of pulp, paper, board and articles is yet to come. This is a

product that not only will always keep its value, but will even increase it over time.

According to the statistical data in 2007 the total amount of the EU-27 export of timber and

wood products amounted to 9 965 million EUR and the import for the same period was 12

083 million EUR. This resulted in a negative trade balance amounting to - 2 117 million

BGN. In other words, this is the unrealized export. For the same period the total value of the

export of paper, paper mass and products amounts to 20 438 million EUR, with total amount

of the export – 12 114 million EUR. The result of this simple calculation is a 8 324 million

EUR positive trade balance.

The following graph shows the main trading partners of EU-27 with respect to both export and

import.

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Graph 16 Main international partners of EU-27 regarding export /2007/

Source: Eurostat

It makes impression that despite the geographical advantage of China, the European export

to the USA is almost twice as large as that to China. Nevertheless, the country has vast

production capabilities and, as the import graph clearly shows, is among the countries with

the strongest positions in the import in the EU. China is an international trading partner of

Europe and it is important that we point out that the relative share of its import is almost

three times bigger than that of the export.

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Graph 17 Main international partners of EU-27 regarding import /2007/

Source: Eurostat

Analyzing the graphs it can be observed that regarding import, Brazil imports almost one

tenth of the total import in EU-27, without even being among the main export partners of the

Pact.

Unlike the production of timber and products, the production of paper, fibrous semi-

manufactured goods and products is concentrated in the hands of a small group of large

enterprises, which, as number and proportion, constitute less than 10% of those engaged in

timber. Nevertheless, they generate approximately 20% higher levels of turnover. The

production of paper, pulp and products is with level of labor productivity almost twice

higher than the production of timber and derivative products. This is achieved at relatively

higher personnel costs.

With regard to the market displays, the most important for the Bulgarian SMEs from the sector

are the following most dynamically developing Top-5 markets:

Export market of paper and board – the total market share of the five markets amounts to 54,7

million EUR or about 55,6% of the overall realized export of the country in this field: Greece,

Turkey, Romania, Macedonia, Italy.

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Graph 18 Top-5 markets for which Bulgaria exports – paper and boards /according to data of

NSI, as at 2010/

Source: NSI

Export market of wood-pulp – the total market share of the five markets amounts to 44,7

million EUR or about 77% of the overall realized export of the country in this field: Turkey,

Greece, Italy, Romania, Saudi Arabia.

Graph 19 Top-5 markets for which Bulgaria exports – pulp /according to data of NSI, as at

2010/

Source: NSI

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Export market of works of the printing industry – the total market share of the five

markets amounts to 8,7 million EUR or about 76,9% of the overall realized export of the

country in this field: France, Greece, Romania, Russia, Serbia.

Graph 20 Top-5 markets for which Bulgaria exports – works of the printing industry

/according to data of NSI, as at 2010/

Source: NSI

From the adduced statistical data of NSI, current as at 2010, it is ascertained that the three

most important fields of the Bulgarian manufacture of pulp, paper, board and articles, which

have the strongest potential for export are:

1) Manufacture of paper and board;

2) Manufacture of pulp;

3) Manufacture of works of the printing industry;

The most important markets with the largest increase in the export displays of the Bulgarian

SMEs from the sector turn out to be the following markets:

Increase in five EU markets: Greece, Italy, France, Romania, Germany.

Increase in five non-EU markets: Russia, Serbia, Turkey, Macedonia, Saudi Arabia.

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The results of the conducted questionnaire survey indicate the following main export

markets of SMEs that participated in it.

Graph 21 Export markets of the enterprises surveyed (in %)

Source: Sociological survey

What makes impression from the presented graph and the answers given is the shrinkage of

markets of the sector and their relegation to Europe only.

Graph 22 Percentage distribution of the export by the number of the export markets

Source: Sociological survey

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Most numerous are the markets on which the export is up to 30%. The only export destination

for which the export is 100,0% is the EU, without specifying the countries.

The main competitors on the world markets for the surveyed enterprises are both the countries

from the EU and those outside it.

Of the states of the EU, the respondents have indicated 12 countries that compete with each

other. EU competitors are mostly Greece, Romania, Italy, Germany and less Poland and

France.

Among the five countries outside the EU the main competitor is Turkey. Smaller is the share

of China. Far weaker is the competition of Serbia, Russia and Israel.

The main advantages of the competitors are related to the lower prices of goods. To a large

extent they are related to the other advantage of the competitors – the higher technological level

providing higher productivity, lower cost price and hence competitive prices. It is also

mentioned their greater experience in the field of foreign trade, more qualified staff, the

production quality, better market knowledge and the state support.

We can conclude that the prospects of the European markets is mostly related to the fact that

this is a very serious large market with high demand. For experts the European markets are also

attractive with the better market conditions they offer, the security, honesty and accuracy of the

partners. For the markets on the Balkans the main factor is their proximity, which reduces the

transport expenses.

Among the competitive advantages of SMEs in the country are also the access to production

resources, the favorable geographical location of Bulgaria, making it a crossroad of multiple

international trade routes, as well as the established network of partner countries.

Bulgaria’s full membership in the community of European states is the international passport of

the country, guaranteeing quality, honest deals and partnerships.

Against the background of the fact that from the economic activity – production of pulp, paper,

board and articles, at the EU-27 level, are formed around 75 billion EUR, while in Bulgaria,

for the last fiscal year (2010), only around 135 million EUR, it can be seen that the scale of our

market forces is only 0,19% of all competing market participant at the EU level.

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This tabular analysis aims to present the leader in the export ranking (Germany) and the

proportion of the country compared to its indicators (total value of the export and number of

partner countries), as well as to a rival Member State (Romania).

Table 11 Analysis for 2005.

Country Total value of export in thousand EUR Partner countries

Germany 19 501 875 203

Bulgaria 103 785 96

Romania 126 995 85

Source: ITC

In 2005 the total value of export of wood-pulp, paper, board and articles of Germany, which

is the leader in this ranking, is approximately 20 times higher than that of Bulgaria and

Romania, but only 2 times more trading partners

In comparison with the Romanian, the Bulgarian export is lower by nearly one fifth, but at

the expense of more export partners of the country. Comparison with Romania is

appropriate given the equal positions of the countries from the perspective of their

membership in EU-27 and their simultaneous accession to the pact in 2007.

Table 12 Analysis for 2006


Germany 21 295 049 197

Bulgaria 93 339 95

Romania 139 295 87

Source: ITC

In 2006 the total value of export of pulp, paper, board and articles of Germany and Romania

increased by approximately 10%, while that of Bulgaria decreased by the same proportion. It

is apparent that Romania won new export partners while Germany and Bulgaria lost some.



Germany 24 021 882 197

Bulgaria 134 720 90

Romania 195 764 75

Source: ITC

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In 2007 the total value of export of pulp, paper, board and articles of Germany continued to

grow with a stable rate. Growth is also noticed for Bulgaria, which almost reached the

values of Romania from 2005 and achieved export growth of nearly 50%. Bulgaria

overcame the decrease from 2006 and reached values of about one third higher than those

before 2005. With regard to trading partners, Romania stands out with a loss of twelve, at

the expense of 40% growth in the value of the total export.



Germany 25 495 211 198

Bulgaria 147 726 92

Romania 181 656 73

Source: ITC

2008 was good for Bulgaria regarding the development of its export and its growth was 10%.

The country continued the rhythmic positive development of this indicator, while Romania lost

by almost the same proportion from its export during the last reporting period.



Germany 21 460 737 211

Bulgaria 85 484 85

Romania 173 366 79

Source: ITC

In 2009 a decline of the export of all examined countries is observed. Germany lost around 15

% of its export and reached the levels of 2006. Most significant is the reduction of the total

value of the Bulgarian export. For one year it has melt almost in half and its value was

approximately equal to half that of Romania.

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Graph 23 Development of the export of Bulgaria and Romania /2005 - 2009/ (in

thousand EUR)

Source: ITC

When the two countries – Bulgaria and Romania are compared, it must be taken into account

that the territorial advantage of Romania is significant, the latter’s territory being twice bigger

than that of Bulgaria and 29 % of it is forested.

Based on the available data, it is found out that in 2005 the Romanian export value in this

direction was about 22% more than the Bulgarian one.

In 2006 and 2007 Romania managed to double its export compared to Bulgaria and exported by

respectively 49% and 45% more for the respective years. This mainly related to the abilities of

the Romanian economy to react quickly to the demand of such type of production, while the

processes in Bulgaria developed by slower rates; especially in 2006 the Bulgarian sector

reduced its export to the international markets. In 2008 the situation turned round – Romania

again exported significantly more production than Bulgaria, but the rate was decreasing, while

for Bulgaria it increased sharply.

Nevertheless, in 2008 the value of the export of Romania in this sector was about 23% more

than that of Bulgaria. The trends for entering of the crisis in the sector started emerging

more and more clearly, the decline in Romania being by about 8 million EUR, and in

Bulgaria there was a collapse of the export values – by about 63 million EUR for 2009

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compared to 2008. This difference allowed Romania again to qualify before Bulgaria and

the difference here already exceeds twice the value of export of Bulgaria – 105 %.

Main conclusions from the analysis of the competitiveness of the sector:

The export of pulp, paper, board and articles represents a significant part of the overall

export of not many Member States. Among them are Finland and Latvia where this export

forms one fifth of the total export of the countries in 2007, while in Estonia and Sweden this

proportion barely reached 10 %

According to the statistical data in 2007 the total amount of the EU-27 export of timber

and wood products amounted to 9 965 million EUR and the import for the same period was 12

083 million EUR. This resulted in a negative trade balance amounting to - 2 117 million BGN.

For the same period the total value of the export of paper, paper mass and products

amounts to 20 438 million EUR, with total amount of the export - 12 114 million EUR. The

result of this simple calculation is a 8 324 million EUR positive trade balance.

Despite the geographical advantage of China, the European export to the USA is almost

twice as large as that to China.

Regarding import, Brazil imports almost one tenth of the total import in EU-27, without

even being among the main export partners of the Pact.

Bulgarian top-5 export markets of paper and boar – Greece, Turkey, Romania,

Macedonia, Italy – the total market share of the five markets amounts to 54,7 million EUR or

about 55,6% of the overall realized export of the country in this field.

Bulgarian top-5 export markets of wood-pulp – the total market share of the five

markets amounts to 44,7 million. EUR or about 77% of the overall realized export of the

country in this field: Turkey, Greece, Italy, Romania, Saudi Arabia.

Bulgarian top-5 export markets of works of the printing industry – the total market

share of the five markets amounts to 8,7 million EUR or about 76,9% of the overall realized

export of the country in this field: France, Greece, Romania, Russia, Serbia.

The three most important fields of the Bulgarian manufacture of pulp, paper, board and

articles, which have the strongest potential for export are:

Manufacture of paper and board;

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Manufacture of pulp;

Manufacture of works of the printing industry;

The most important markets with the largest increase in the export displays of the

Bulgarian SMEs from the sector turn out to be the following markets:

EU markets - Greece, Italy, France, Romania, Germany.

Non-EU markets - Russia, Serbia, Turkey, Macedonia, Saudi Arabia.

Against the background of the fact that from the economic activity – Manufacture of

pulp, paper, board and articles, at the EU-27 level, are formed around 75 billion EUR, while in

Bulgaria, for the last fiscal year (2010), only around 135 million EUR, it can be seen that the

scale of our market forces is only 0,19% of all competing market participant at the EU level.

According to data of NSI in the most summarized form, the highest are the values of the

export of the paper and packings component,– with almost 92 million. EUR for 2010, followed

by the pulp component – about 58 million EUR for 2010 and on the third place – works of the

printing industry – with around 11 million EUR for 2010.

Ones of the world consumers of paper are Finland, the USA, Germany and Japan with

an annual consumption in 2010 of over 200 kg/perosn. After them come the Czech Republic

and Poland, closely followed by Greece and Hungary. Bulgaria is on one of the last places

according to the latest statistical data.

The results of the conducted sociological survey indicate that the export markets of the

sector are axtremely shrank and are relegated to Europe only.

Most numerous are the markets on which the export is up to 30%. The only export

destination for which the export is 100,0% is the EU, without specifying the countries.

Of the states of the EU, the respondents have indicated 12 countries that compete with

each other. EU competitors are mostly Greece, Romania, Italy, Germany and less Poland and

France.

Among the five countries outside the EU the main competitor is Turkey. Smaller is the

share of China. Far weaker is the competition of Serbia, Russia and Israel.

The main advantages of the competitors are related to the lower prices of goods. To a

large extent they are related to the other advantage of the competitors – the higher

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technological level providing higher productivity, lower cost price and hence competitive

prices. It is also mentioned their greater experience in the field of foreign trade, more qualified

staff, the production quality, better market knowledge and the state support.

The following table presents the top 10 trading partners of Bulgaria in the “Manufacture of

pulp, paper, board and articles” sector,according to NSI data, for a 10-year period.

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Table 16 Leading partners in the export of Bulgaria in the “ Manufacture of pulp, paper, board and articles” sector for the period 2000 - 2010 (million

EUR)

2000 2001 2002 2003 2004 2005

TOTAL FOR THE

SECTOR

incl. 58.2 61.6 69.9 89.3 104.9 108.9

1 Italy 10.6 Turkey 8.1 Turkey 11.7 Turkey 20.3 Turkey 18.4 Turkey 17.5

2 Turkey 9.9 Italy 7.8 Greece 10.8 Greece 10.5 Greece 13.9 Greece 15.0

3 Yugoslavia 6.3 Yugoslavia 6.2 Yugoslavia 4.8 Yugoslavia 6.0 Germany 7.1 Italy 10.7

4 Greece 5.4 Greece 4.4 Italy 4.3 Macedonia 5.0 Italy 7.0 Germany 6.1

5 Hungary 3.7 Macedonia 3.9 Macedonia 4.3 Romania 5.0 Macedonia 5.7 Macedonia 5.9

6 Macedonia 3.5 Germany 3.3 Romania 4.2 Germany 4.1 Yugoslavia 5.3 Romania 5.7

7 Russian Federation 2.6 Georgia 2.9 France 3.9 Algeria 3.7 Romania 4.3 Yugoslavia 4.6

8 Slovenia 2.3 Lebanon 2.8 Germany 3.8 Moldova 3.5 Moldova 3.4 Ukraine 4.0

9 Netherlands 1.9 Romania 2.4 Moldova 3.0 Italy 3.0 Poland 3.1 Moldova 3.5

10 Moldova 1.6 Moldova 2.2 Albania 1.9 Egypt 2.7 Albania 2.8 Poland 2.6

2006 2007 2008 2009 2010

TOTAL FOR THE

SECTOR

103.6 131.0 146.7 80.1 169.0

incl.

1 Turkey 16.9 Turkey 26.7 Turkey 29.2 Greece 20.1 Turkey 30.1

2 Greece 15.7 Greece 22.7 Greece 28.8 Turkey 12.1 Greece 29.3

3 Italy 13.6 Italy 14.8 Italy 18.7 Romania 9.7 Romania 16.7

4 Macedonia 6.5 Romania 12.9 Romania 14.0 Macedonia 5.7 Italy 15.6

5 Romania 5.2 Macedonia 8.6 Macedonia 8.0 Italy 4.9 Serbia 7.9

6 Germany 4.7 Serbia 5.3 Serbia 5.1 Serbia 4.4 Macedonia 7.3

7 Albania 2.8 France 3.8 Ukraine 4.3 Germany 3.1 Germany 7.1

8 India 2.6 Germany 3.7 Albania 3.9 France 2.4 Saudi Arabia 4.2

9 Bosnia and

Herzegovina

2.0 Albania 3.5 France 3.8 Albania 1.5 Jordan 4.0

10 France 1.9 India 2.9 Lebanon 2.8 Hungary 1.3 France 3.4

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MACROECONOMIC CHARACTERISTICS OF THE PRIORITY

BULGARIAN EXPORT MARKETS. BILATERAL TRADE RELATIONS

In order to get clearer vision of the overall condition and peculiarities of the defined as

main Bulgarian export markets for the production of the analyzed by us sector, we are offering

a general view of the leading five countries of this ranking that are part of the European Union,

as well as of the leading five outside its borders.

For sector “Manufacture of pulp, paper, board and articles” the most important markets,

with the largest increase in the export positions of the Bulgarian SMEs are:

EU markets: Greece, Italy, France, Romania, Germany.

Non-EU markets: Russia, Serbia, Turkey, Macedonia, Saudi Arabia.

Actual data and characteristics for big part of the developed markets could be found

also on the National export web portal, supported by BSMEPA.

Germany is a leading foreign trade partner of Bulgaria, a major supplier of investment

goods, high-tech equipment and vehicles.

On November 5, 1992 the Treaty on friendly cooperation and partnership in Europe between

Bulgaria and Germany enters into force as the legal basis of the relations between the two

countries. Until January 1, 2007 an EU member Germany applied in its economic relations

with Bulgaria the Association Agreement of Bulgaria to the EU, effective as of February 1,

1993. Trade and a significant proportion of the other forms of economic relations are governed

by the Convention on trade, commercial and economic cooperation between Bulgari and the

European Community, signed on May 8, 1990.

Table 17 Main economic indicators for Germany and bilateral trade relations with Bulgaria

GDP (per capita, 2010) $ 35 700

Growth of GDP (%, 2010) 3,5%

Inflation (%, 2010) 1.1%

Export volume (2010) $ 1,337 trillion

Position as world exporter (2010) 3

Main trading partners in export

(2009)

France 10,1%, USA 6,7%, Great Britain 6,6%, the

Netherlands - 6,6%, Italy 6.3%, Austria 5.7%,

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Belgium 5.2%, China 4,7%, Switzerland 4,5%

Main export positions (2009) machinery, vehicles, chemicals, metal and metal

products, food products, textile

Main trading partners in import

(2009)

the Netherlands 13%, France 8,2%, Belgium7.2%,

China 6,8%, Italy 5.6%, Great Britain 4,7%,

Austria 4.4%, USA 4,2%, Switzerland 4.1%

(2009)

Main import positions (2009) machinery, vehicles, chemicals, food products,

textile, metals

Export volume of Bulgaria

(million EUR, 2010)

1 658

Share of the export (%) in the total export of

Bulgaria, calculated in EUR (2010)

10.64%

Main positions of the export of Bulgaria

in 2010

Textile products and clothing, machinery,

electronics, base metals and products thereof, etc.

Import volume of Bulgaria,

(million EUR, 2010)

2 235

Share of the import (%) in the total import of

Bulgaria, calculated in EUR (2010)

11.67%

Main positions of the import of Bulgaria

in 2010

Machinery and apparatuses, textile products and

clothing, electronics, transportation vehicles and

equipment, chemical and pharmaceutical products,

etc.

Data: ITC and MEET

Germany also remains a leading foreign investor in Bulgaria. According to data of IBA for the

period 1996 - 2010 the German investments amount to 2548.0 million EUR, with which

Germany occupies 5th

place in the rank-list og the leading foreign investors. In 2010 alone,

German investments in the Bulgaria manufacturing industry amounted to 68,9 million EUR.

Considering that most interest and prospects for futire investments is shown by German

companies to the filed of transport infrastructure, energy.

France is important for foreign economic relations of Bulgaria. Our cooperation has

become even more important after Bulgaria’s accession to NATO in 2004 and to the

European Union on January 1, 2007. The relations between the two countries within the

European Union have developed with the implementation of reforms of the European

institutions and the common European policies such as the energy policy, the foreign

policy and the security and defense policy. Our countries work together for an effective

Union in economic, social and political aspect able to meet the expectations and concerns

of its citizens.

In order to extend the French investment presence in Bulgaria, was established the

Bulgarian-French Chamber of Commerce (successor of the France-Bulgaria Business

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Club), which facilitates direct business contacts between Bulgarian and French

companies.

Table 18 Main economic indicators for France and bilateral trade relations with Bulgaria

GDP (per capita, 2010) $ 33.1 thousand

Growth of GDP (%, 2010) 1.1 %

Inflation (%, 2010) 1,5%

Export volume (2010) $ 508,7 billion



(2009)

Germany 15,9%, Italy 8.2%, Spain 7.8%,

Belgium 7.4%, Great Britain 7%, USA 5.7%

(2009)

Main export positions (2009) Machinery and transport equipment, aircraft,

plastics, chemicals, pharmaceuticals, iron and

steel, beverages


(2009)

Germany 19,4%, Belgium 11,6%, Italy - 8%,

the Netherlands - 7,1%, Spain 6,7%, Great

Britain 4,9%, USA 4,7%, China 4.4% (2009)

Main import positions (2009) machinery and equipment, vehicles, crude oil,

aircraft, plastics, chemicals


(million EUR, 2010)

628,4

Share of the export (%) in the total export

of Bulgaria, calculated in EUR (2010)

4,03 %


in 2010

Suits, ensambles; Fresh chilled or frozen meat;

Wires, cables and other electrical

conductors; Plates, flushing cisterns, kitchen

sinks; Other engines, apparatuses for

switching; Spare reinforcing articles


(million EUR, 2010)

629,4

Share of the import (%) in the total import


3,28 %


in 2010

Passanger cars and other vehicles; Complete

industrial plants; Motor vehicles for

transportation of goods; Medications;

Apparatuses for switching, turning on of

electrical chains;

Electrical apparatuses for line telephony /incl.

videophones/.

Data source: ITC and MEET

There is potential for investments in Bulgaria by French companies in areas such as: energy,

water and waste management, construction of infrastructure, industrial subcontracts in

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mechanical engineering, food industry, wine industry, pharmaceutics, informatics. The

largest share of French investments is in industry – 58%.

The French Agency for International Development of Enterprises /Ubifrance/ represented in

Sofia aims to support the French companies to find Bulgarian partners in areas of mutual

interest.

Italy. Trade and economic relations between the Republic of Bulgaria and the Republic

of Italy are based on formal treaties and agreements of more than five decades, the more

recent ones including Cooperation Agreement between BIA and the Italian Confederation of

Industrialists (CONFINDUSTRIA) of 1998; Cooperation Agreements between BCCI and

the Italian Institute for Foreign Trade (IСЕ) Rome, and the chambers of commerce in

Vicenza, Trieste, Udine, Gorizia and the Association of Young Entrepreneurs (АССО-44);

Memorandum of Cooperation between BSMEPA and the Italian Institute for Foreign Trade

of 2007 and a similar document between the Bulgarian Investment Agency and the Italian

Institute for Foreign Trade.

Italy remains one of the leading foreign trade partners of Bulgaria, a main destination of the

Bulgarian consumer goods on the EU market. In 2010 after Russia and Germany, Italy ranked

third among the foreign trade partners of Bulgaria and the data show: an increase of 38,2% in

the export to Italy compared 2009, an increase of 8,9% in the import and an increase of 18,4%

in the trade.

Table 19 Main economic indicators for Italy and bilateral trade relations with

Bulgaria

GDP (per capita, 2009) $ 30,500

Growth of GDP (%, 2010) 1,3 %

Inflation (%, 2009) 1,4%




(2009)

Germany 12,6%, France 11,6%, USA 5,9%,

Spain with 5.7%, Great Britain 5,1%,

Switzerland 4,7% (2009)

Main export positions (2009) Engineering products, textile and clothing,

production of machinery, of motor vehicles,

transport equipment, chemicals, food

products, beverages and tobacco products;

minerals and non-ferrous metals


(2009)

Germany 16,7%, France 8,9%, China 6,5%,

the Netherlands 5.7%, Spain with 4.4%,

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Russia - 4,1%, Belgium 4% (2009)

Main import positions (2009) engineering products, chemicals, transport

equipment, energy products, minerals and

non-ferrous metals, textile and clothing, food

products, beverages and tobacco products


(million EUR, 2010)

1.509,9



9,69 %

Main positions of the export of Bulgaria in

2010

textile and clothing, leather and fur and

footwear, chemical, engineering and

metallurgical industries


(bln. EUR, 2010)

1.417,6



7,4 %


in 2010

Finished products – power, technological and

electrical machinery and apparatuses, textile

production, footwear, leather and fur products,

chemical products, vehicles, also furniture and

lighting


Italy is among the seven most industrialized countries in the world and the fourth most powerful

economy in Europe. Much of the raw materials and 75% of the energy sources are imported.

Italy faces the serious challenges of the global financial and economic crisis. Due to the high

degree of commitment of the Italian economy to the leading industrial countries and the very

high dependence on the import of basic prime and raw materials, in short and medium term is

felt the negative impact of these factors on its growth. And yet, in the conditions of global crisis

the government managed to maintain overall stability of the financial system in the country and

did not allow bankruptcies of large companies. The current expert government develops a plan

for saving and recovery of public finance, which will strengthen the positions of Italian

economy.

In the period 1996-2010 Italian investments in Bulgaria amounted to 1198,6 million EUR, Italy

being on the 10th

place in the ranking of the leading investors in the country. Sectors in which

Italian investors are most interested are energy, tourism, banking and insurance, transport,

agriculture. Light industry in which even small businesses are interested to invest is often in

low-tech sectors.

But Italy is one of the most important trading partners among EU countries, where a large share

of consumer goods is realized and Bulgarian companies supply a wide range of high-tech goods

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and vehicles. The Bulgarian export to Italy also includes a number of products with a higher

degree of processing, and there are opportunities for increasing Bulgarian export of goods in

this direction, including electrical equipment and spare parts.

Romania. The contractual legal basis between the two countries in the field of the trade and

economic relations has been established and continues to develop. Among the signed

agreements and contracts are the following:

Protocols for liberalisation of trade for industrial and agricultural products in the frame of

the Accession Agreement of Bulgaria to the CEFTA, effective since 1999; Agreement on

cooperation and mutual assistance in customs matters since 1999; Convention on bilateral

recognition of diplomas and academic degrees; programmes for cooperation in the field of

science and education; multiple agreement on border cooperation.

A new stage in the development of the bilateral economic relations begins after signing the

protocols for liberalisation of trade for industrial and agricultural products in the frame of the

Accession Agreement of Bulgaria to the CEFTA (in force as of 01.01.1999), being Romania

party to it. The removal of the barriers to bilateral trade is reflecting positively on the trade and

has positive effect on the trade and economic relations in bilateral and regional plan.

The accession of Bulgaria and Romania to the European Union in 2007 put the development of

the bilateral relations in the trade and economic field into new environment, transforming it into

intercommunity ones. Romania is an important economic partner of Bulgaria. The markets of

both countries have similar characteristics, keeping some peculiarities, relatively foreseeable

economic environment, decreased in the last year internal consumption due to the economic

crisis.

In the last 3 – 4 years the trade turnover between Bulgaria and Romania has been marked by

significant growth, where only in 2009 is marked a slight fall in the export of Bulgaria and

higher in the import. In 2010 the turnover between the two countries was growing and is about

2,5 bln. EUR. Both the import and the export have marked increase of one third in their volume

for 2010 relative to the previous year.

The joint European projects, both countries taking part in, the building of Danube bridge 2, the

cross-border projects, the European funds for infrastructure modernisation, the agriculture, AGRI

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and other give ground to consider that the trade and economic relationship will deepen and

develop even more in short and long term.

In the next years is expected the internal consumption to grow and both economies to be more

and more export orientated, that is possible to be ensured by means of mutual support and

bilateral flexible trade policy both of state institutions and the various subjects and companies in

both countries.

Independently of the economic crisis many Bulgarian companies have marked interest to be

present and develop activity on the Romanian market, not lacking respectively Romanian

companies, orientated towards the Bulgarian market.

Table 20 Main economic indicators for Romania and bilateral trade relations with

Bulgaria

GDP (per capita, 2010) $ 11,600

Growth of GDP (%, 2010) -1,3%

Inflation (%, 2010) 6%




(2009)

Germany 18,8%, Italy - 15,4%, France 8,2%,

Turkey 5%, Hungary 4,3% (2009)

Main export positions (2009) machinery and equipment, textile and

footwear, metal and metal products, minerals

and fuels, chemicals, agricultural products


(2009)

Germany 17,3%, Italy - 11,7%, Hungary

8,5%, France 6.1%, China 4,9%, Austria 4,8%

(2009)

Main import positions (2009) machinery and equipment, metal and metal

products, minerals and fuels, chemicals,

agricultural products


(million EUR, 2010)

1.441.244


of Bulgaria, in EUR (2010)

9,25 %


in 2010

Iron rods or non-alloy steel, petroleum oils

and oils obtained from bituminous minerals,

rape seed, sugar cane sugar, sunflower seeds,

wheat and rye, tractors, meat and offal;

pharmaceuticals; corn


(million EUR 2010)

1.336.488


of Bulgaria, in EUR (2010)

6,97 %

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in 2010

petroleum oils and oils obtained from

bituminous minerals, petroleum gas and other

gaseous hydrocarbons; copper waste and

debris; waste and debris of cast-iron, iron and

steel; meet and offal; pneumatic rubber tires,

new; oil-cakes; pharmaceuticals, passenger

cars and other motor vehicles; sugar cane

sugar.


For 2009 the amount of the Romanian investments in Bulgaria is 152.5 million EUR and it sets

them on 26th place among the countries investors here. Again for same year but according to

data of the Ministry of foreign affairs of Romania, a total of 36 companies and representatives

with Romanian participation have been registered in Bulgaria, out of which 9 are constituted

with 100% Romanian capital.

In Romania, according to data of the Romanian Ministry of trade, as small and medium-sized

enterprises and the business environment have been registered 1014 companies with Bulgarian

participation, with capital 18 529,7 million EUR, ranking Bulgaria at 41th place among the

investors in the country. The Bulgarian investment in Romania, according to BNB until the end

of 2009 are 41,2 million EUR, where the Bulgarian investment flow there for 2009 is 4,1

million EUR and for the first 6 months of 2010 is 1,6 million EUR with 40,2 million EUR total

flow, i.e. falling of Bulgarian investment abroad for the same period.

The trade and economic relations between Bulgaria and Greece are developed on the basis of

bilateral agreements and that with the EU, directly related to the Republic of Greece as EU

member state. Greece is traditionally entering in the first five of our trade partners from the EU

and takes the leading place among the SEE countries. BCCI is maintaining constant business

contacts with the commerce chambers of the Republic of Greece, the Greek unions and

associations. A number of agreements for cooperation have been signed between the BCCI and

the chambers of commerce of Athens, Seres, Drama, Thessalonica, Kavala, the Greek

Association for Promoting the Export, the Federation of the Greek Industrials, the Small-size

Business Trade Chamber. Regional chambers of the Republic of Bulgaria on their turn are

concluding cooperation agreements for the realization of joint projects, organization of business

visits and meetings.

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Legal framework:

Agreement for five-year programme for cooperation in the field of

development /2002-2006/, signed on 28th

August 2002. Treaty for cooperation

in the field of tourism /14th

May 1999/. Double Taxation Avoidance

Agreement with additional protocol /15th

February 1999, protocol on 18th

June

2000, in force since 1st January 2002/;

Agreement for cooperation and mutual assistance between the custom

administration /19th

January 1999, in force since 2nd

March 2000/;

Agreement for the construction of new road border bridge between both

countries in the region of the Kulata-Promahon border crossing point /2nd

July

1997, in force since 1st March 1998/;

Agreement for seasonal employment of workforce, with Annexes 1 and 2 /15th

December 1995, in force since 21st July 1997/;

Agreement for the inauguration of three new border crossing points and road

connections between both countries /22nd

December 1995, in force since 19th

November 1996/;

Agreement for the use of the waters of the Mesta river /22nd

December 1995, in

force since 19th

November 1996/;

Agreement for promotion and mutual protection of investments /12th

March

1993, in force since 29th

April 1995/;

Table 21 Main economic indicators for Greece and bilateral trade relations with

Bulgaria

GDP (per capita, USD, 2010) $ 29 600

Growth of GDP (%, 2010) -4,5%

Inflation (%, 2010) 4,5%

Export volume (billion USD, 2010) $ 21,14 billion



(2009)

Germany 11,1%, Italy - 11%, Cyprus 7,3%,

Bulgaria 6,7%, USA 4,9%, UK 4,4%, Turkey 4,2%

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(2009)

Main export positions (2009) food and beverages, manufactured products,

petroleum products, chemicals, textile


(2009)

Germany 13,7%, Italy - 12,7%, China 7,1%, France

6,1%, The Netherlands 6%, South Korea 5,7%,

Belgium 4,3%, Spain 4,1% (2009)

Main import positions (2009) machinery, transport equipment, fuels, chemicals

Export volume of Bulgaria to Greece

(million EUR, 2010)

1 236,711

Share of the export to Greece (%) in the

total export of Bulgaria, calculated in

EUR (2010)

7,9 %


to Greece in 2010

textile products and materials, base metals and

electricity

Import volume of Bulgaria to Greece

(million EUR, 2010)

1 141,925

Share of the import from Greece (%) in

the total import of Bulgaria, calculated in

USD (2010)

5,9%


from Greece in 2010

textile products and materials, mineral and chemical

products, machinery and equipment and base metal


For the period 1996-2010 investments from Greece amount to 3.53 bln. EUR, representing

around 9% of the total amount of the investments for the period (39,5 bln. EUR), and the

country ranks 3rd place of total of 182 countries. In 2010 have been attracted 112,5 million

EUR from Greece, amounting to approximately 1.3% of the total sum (3212 million EUR).

According to preliminary data of BNB for 2010 we are reporting PFI in the amount of 1.36 bln.

EUR (two-fold decrease relative to 2009). In 2008 the foreign investment are 3.28 bln. EUR.

In Bulgaria are registered 4139 companies with from 5 to 100% Greek participation until the

end of 2007. In term of this indicator Greece ranks third after Turkey with 6290 companies and

Russia with 4920 companies and before UK with 3902, Macedonia - 2724, Syria - 2606,

Germany - 2330, Italy - 2161 and China - 1842. Greece is the biggest foreign investor in

Albania and Macedonia and the third one in Romania.

Promoting the investment activity in the Balkan regions is a priority of the economic policy of

Greece.

Turkey is a natural regional trading partner; a country with large population and growing

economy, a trade factor in the region.

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In the compassable economic background in the contractual legal plan stand out the Agreement

for cooperation in trade and economy, industry and technologies, Agreement for mutual

protection and promotion of investments, Agreement for cooperation and mutual assistance in

customs activity, Agreements on cooperation in energy, infrastructure and tourism. The Treaty

of friendship, good neighbourliness, security and cooperation of 1992 is one of the most

important components of the contemporary contractual and legal basis of our bilateral relations.

The Declaration on the Black Sea economic cooperation of the same year and the Yalta

Declaration of 1998 outline the ambitions for the development of trade relations of the two

countries. In the last 2 years were signed memorandums and agreements on principle in the

field of energy.

Trade and economic relations between the Republic of Bulgaria and the Republic of Turkey

mark a steady upward trend of development in recent years despite the economic crisis and the

registered certain decrease. Turkey ranks sixth in trade of Bulgaria (after Germany, Russia,

Italy, Greece and Romania) and in 2010 our export to Turkey amounted to 1,32 billion EUR

and the import was equal to 1,03 billion EUR. The growth of our export to the Republic of

Turkey amounts to 53% on an annual basis, which is mainly due to the improving condition of

the Turkish economy.

The trade between the two countries is balanced, with a positive trade balance for Bulgaria,

with the exception of 2008 and 2009. The central place of the Bulgarian export is occupied by

products and raw materials of the ferrous and non-ferrous metallurgy, chemical products and

raw materials, products of the oil industry, grain, products of the woodworking industry, etc.

The Turkish import for Bulgaria is dominated by agricultural products, building materials and

cement, ferrous and non-ferrous metals, vehicles for transportation of passangers and goods,

white and brown goods, products of the textile industry, etc.

According to data of BNB, the accumulated total volume of Turkish investments in Bulgaria

for the period 1992 – 2008 amounted to 476,1 million USD, which puts Turkey in 18th

place

among foreign investors in the country. The biggest Turkish investment in Bulgaria is the

“Trakya Glass Bulgaria” glass factory in Targovishte of the “Sisecam” company”, and the first

Bulgarian investor that stepped on the Turkish market is the company “Prista Oil” – Ruse that

built a engine oil factory in the city of Izmir amounting to 6 million USD. Opportunities for

further bilateral cooperation are offered by the tourism sector, energy sector, the participation

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of Turkish companies in major infrastructure and construction projects and the prospect for

building joint ventures in various sectors.

Turkey is among the main foreign trade partners of our country occupying 5th

place among

export destinations and 6th

place among importers. Among Balkan region countries Turkey is

the second most important trading partner after Romania.

Table 22 Main economic indicators for Turkey and bilateral trade relations with

Bulgaria

GDP (per capita, 2010) $ 12,300

Growth of GDP (%, 2010) 8,2 %

Inflation (%, 2010) 8,7%

Import volume (2010) $ 185 billion

Export volume (2010) $ 114 billion

Main trading partners in export Germany, France, Italy, Great Britain, Iraq

Export from Bulgaria (2010) $ 1,75 billion


of Bulgaria

5,83%

Main export positions Copper and copper products, iron and steel, mineral

fuels and distillation products, tobacco products,

timber, electrical and electronic equipment

Import to Bulgaria (2010) $ 1,37 billion

Share of the import (%) in the total

import of Bulgaria

5,41%

Main positions of the import Ores and prime earthly materials, plastics and

plastic products, electrical nad electronic

equipment, aluminium products, machinery, food

Source: ITC and MEET

In the export of Bulgaria for 2010, Serbia holds 8th

place, with a share of 3.5%, regarding the

import it holds 21st place, with share of 1%. The data given determine the importance of the

Republic of Serbia as a foreign trade partner of the Republic of Bulgaria.

Table 23 Main economic indicators for Serbia and bilateral trade relations with Bulgaria

GDP (per capita, 2010) $ 10 661

Growth of GDP (%, 2010) 1 %

Inflation (%, 2010) 10,3%




(2009)

Bosnia and Herzegovina 12,2%, Germany -

10,4%, Montenegro 10%, Italy 9,8%

Main export positions (2009) metals, electric machinery and equipment,

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machinery and equipment, copper, plastics,

wheat crops


(2009)

Russia 12,3%, Germany 12,2%, Italy 9,7%,

China 7,1%, Hungary 4%

Main import positions (2009) mineral fuels, machinery and equipment,

electric machinery and equipment, plastics,

vehicles, paper


(thousand EUR, 2010)

583,195



3,8 %


in 2010

copper, pharmaceuticals, machinery and

equipment, glass, metals, steel, electric

machinery and equipment, essential oils

Volume of the import of Bulgaria


207,498


import of Bulgaria, calculated in EUR

(2010)

1,1 %


in 2010

Iron, steel, ores, plastic products, copper,

animal and vegetable oils, wheat crops, paper,

etc.


In the export list of the Bulgarian goods are prevailing mainly raw materials, materials and

goods with low level of processing. Leading positions are held by the electricity (with a share

of 37%), refined copper and non-processed copper alloys, articles and products of the chemical,

pharmaceutical and glass industry, video recorders and video reproducers, etc.

At the moment, trade relations between the Republic of Bulgaria and the Republic of Serbia are

regulated by the Temporary agreement for trade and trade-related issues between the EU and

the Republic of Serbia, signed on 29.04.2008 in Luxembourg. It is expected these to be ruled

by the Stabilization and Association Agreement, ratified on 19.01.2011 by the EU Member

States.

According to preliminary data of the Macedonian State Institutie for Statistics within the period

January – April 2011 Bulgaria occupies 5th

place as trading partner of Macedonia. The

common bilateral trade amounts to 231 million USD. The Macedonian export to Bulgaria is 98

million USD and the import from Bulgaria is 133 million USD. The trade balance is positive

for Bulgaria and amounts to 35 million USD.

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Table 24 Main economic indicators for Macedonia and bilateral trade relations with

Bulgaria

GDP (per capita, 2010) $ 9 728

Growth of GDP (%, 2010) 0.7%

Inflation (%, 2010) 1.6%



Main trading partners in export (2010) Germany - 20,2%, Italy - 7,1%, Bulgaria -

7,1%, Greece - 6.4%

Main export positions (2010) food, beverages, tobacco products, textile,

iron and steel

Main trade partners in import (2010)

(2010)

Germany - 11,5%, Russia - 11,1%, Greece -

8,3%, Bulgaria - 8,2%, Great Britain - 7%,

Turkey - 5.1%, Italy - 5.1%

Main import positions (2010) machinery and equipment, vehicles,

chemicals, fuels, food products

Volume of the export of Bulgaria


329,744



2.1 %

Main positions in the export of Bulgaria

in 2010

Electricity, petroleum oils and oils of

bituminous minerals, waste and debris of cast

iron, iron or steel, sunflower oil, rods of iron

or plain steel, passenger cars and other

vehicles, etc.

Volume of the import of Bulgaria

(thousand EUR 2010 )

252,890


import of Bulgaria, calculated in EUR

(2010)

1.3%

Main import position of Bulgaria in 2010 lead, copper and zinc ores, hot-rolled products

of iron or plain steel, raw or non-processed

tobaccos, copper waste, hot-rolled iron pipes,

etc.


Ones of the main products forming Bulgaria’s export to Macedonia are: electricity, petroleum

oils and oils of bituminous minerals, crude zink, wheat and mixed wheat and rye, mineral or

chemical nitrogen fertilizers, video recorders or videoreproducers, etc.

The foreign trade relations between two states are assisted by the basis, created upon the signed

on 15.12.2008 in Skopje new Agreement for economic cooperation between the governments

of Bulgaria and Macedonia, a mixed Bulgarian-Macedonian intergovernmental Committee for

economic cooperation. Other treaties, promoting the trade between the two states are:

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Agreement for cooperation between Bulgaria and Macedonia in the field of

standardization, metrology, accreditation and evaluation of compliance – signed in Skopje,

15.05.2000;

Agreement between the governments of the Republic of Bulgaria and the Republic of

Macedonia for cooperation and mutual assistance in customs matters – in force since July 15,

2000, etc.

Russia is a traditional and one of the most important foreign economic partners of Bulgaria.

After the accession of Bulgaria to the EU the relations between the two countries received new,

even higher dynamics. This is confirmed by the registered growth in 2007 compared to 2006 of

the Bulgarian export for Russia - 96%, of the Russian investments in Bulgaria – 73,8%, of the

tourist flow from Russia – 14%, as well as of the signed agreement on the three energy projects

for the “Belene” Nuclear Power Plant, the “Southern Stream” gas pipeline and the “Burgas-

Alexandroupolis” oil pipeline.

In 2009 the Russian Federation realized 8,7% of the foreign trade of Bulgaria, including 2,5%

of the export and 13,1% of the import. In average for 2000 – 2008 it is observed that from

Bulgaria to Russia are exporting a total of 640 companies, 41 of which constitute 75% of the

export and in Bulgaria from Russia are importing 844 companies, out of which 2 constitute

75% of the import (due to the energy resources). Bulgaria holds about 1% of the foreign trade

of Russia.

Table 25 Main economic indicators for Russia and bilateral trade relations with Bulgaria

GDP (per capita, USD, 2010) $ 15,900

Growth of GDP (%, 2010) 4 %

Inflation (%, 2010) 6,7%

Export volume (billion USD, 2010) $ 376,7 billion



(2009)

The Netherlands – 12,2% , Italy – 9%,

Germany – 6,9% ,Turkey – 5,9%,

Ukraine – 5%, China – 4,5%, Poland -

4,3%

Main export positions (2009) Petroleum and petroleum products,

natural gas, timber and wooden products,

metals, chemicals, machinery and spare

parts


(2009)

China – 12,9%, Germany - 12,6%, Japan

– 6,9%, Ukraine – 6%, USA – 5,1%,

Italy - 4,1%

Main import positions (2009) Vehicles, machinery and equipment,

plastics, cast iron, steel and metal semi-

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manufactured goods, consumer goods,

food

Export volume of Bulgaria to Russia (million

USD, 2009)

415,8

Share of the export to Russia (%) in the total

export of Bulgaria, calculated in USD (2009)

2,5 %

Main positions in the export of Bulgaria for

Russia in 2009

Medications, wine, aircraft, fittings,

spare parts, refrigerators, freezers,

cables, beverages, cosmetics

Import volume of Bulgaria to Russia (bln. USD,

2009)

3,03

Share of the import (%) from Russia in the total

import of Bulgaria, calculated in USD (2009)

13,2 %

Main positions in the import of Bulgaria from

Russia in 2009

Crude oil, natural gas, hard coal, refined

copper and alloys, paper, calcium

phosphates, motor carriages, machinery

and equipment, spare parts


Bulgarian export for Russia is diversified to a high extent, the share of medications, fitting

articles, car and truck parts, cooling equipment, batteries, aircraft, fittings, cosmetics constitutes

around half of the Bulgarian export. The increase in supply volumes of these and other

positions will allow reducing the large negative balance in the bilateral trade, caused by the

import of energy and fuels.

Trade and economic relations between Bulgaria and Saudi Arabia have traditionally good

character. Bulgaria attaches importance to the opportunities for their development, which at this

point are mainly in the field of trade.

Since 2007 it is observed an intensification of the bilateral relations in trade and economic

field, resulting in the realization of meetings and visits in the two countries and a relative

growth of trade.

For the period 1996-2009 the Saudi investments in Bulgaria totaled 20.7 million USD.

Opportunities for attracting direct investments in energy, tourism and agriculture are practically

limitless.

On April 14, 2007, in Riyadh was signed General Agreement on cooperation between the

government of the Republic of Bulgaria and the government of the Kingdom of Saudi Arabia,

approved by Resolution of the Council of Ministers № 516/31.07.2007, promulgated in issue

53/11.07.2009 of SG, effective as of June 11, 2009. On the Bulgarian part the document was

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signed by the Deputy Prime Minister and Minister of Foreign Affairs Ivaylo Kalfin, and on the

Saudi part – by the Minister of Foreign Affairs N. Kr. V. Saud al-Faisal.

BARRIERS TO THE INTERNATIONALIZATION OF SMALL AND MEDIUM

ENTERPRISES AS WELL AS MEASURES AND PERSPECTIVES FOR

STIMULATION AND DEVELOPMENT OF EXPORT

Among the main barriers to the internationalization of SMEs are:

1) Existence of preferential financial conditions for foreign participants;

2) Overdetailed and complicated customs service;

3) Lack of information network for export partners and destinations;

4) Lack of tax and credit concessions in connection with the volume of the exported

production;

5) Lack of export statistics for SMEs from the sector and development of the

international markets;

6) Low barriers for entry on the market of the foreign market participants;

7) Lack of administrative optimization and synchronization.

Barriers to the internationalization of SMEs from the sector indeed represent a difficulty,

because their overcoming requires fresh financial resources, which the companies do not have.

In practice, the companies, in order to operate on foreign markets, need funds for advertising,

establishment of trade relations, maintenance of close trade contacts and partnerships; more

distant destinations for delivery require bigger amounts for logistics and all these parameters

assembled within the financial capabilities of the company exceed many times the available

budgets for the implementation of the activities on the manufacture itself and the creation of the

production. Currently, SMEs from the sector are in a very serious financial difficulty, since the

deterriorating market picture deforms the market connections and relations and sets new

specific modes of operation in a situation of unpredictable environment. The main problem

comes from the fact that almost every month the gas prices in the country increase and this

raises the cost of the final production of the enterprises. Another burden for the companies from

the sector is the fact that when requests for gas supply are made and when this raw material is

not put to use due to some marketeering or seasonal lack of orders, the companies owe a

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penalty for the requested but unused gas. Therefore, very often in the sector “is exercised” re-

invoicing of various costs and the commitment of the country to the international market prices

makes SMEs highly dependent, and, in practice, puts them “on their knees” before the

international market instead of “launching” them to better market positions. In this sense, the

market situation in the sector is highly delicate because the sector itself may any time implode,

that is to “explode inwards”, or collapse due to the lack of funds, due to the existence of a grey

sector, due to the inability to respond to the monopoly set prices of the energy resources and

due to permanent bilateral pressure by external competitors, on one hand, and the low labor

productivity of the peopled employed in the sector, on the other hand. The market participants

cannot, due to the lack of fresh capital, even declare participation in traditional specialized

exhibitions for the sector such as “PRINTCOM”, organized by International Fair – Plovdiv and

other marketing events organized specially for the companies in the sector, despite the

introduced low prices of exhibition area in view of the financial and economic crisis.

The development of the necessary capacity of SMEs from the sector can be promoted by

creating a specialized communication channel which would be maintained by the interested

participants on the market.

Secondly, the development of “networking” /work in networks/ should also be highly

encouraged and various working formats in various regions of the country should be conducted

regularly and on different initiatives.

Thirdly, it is very important that Bulgaria join the CEPI confederation in order to have access

to the information arrays and the specialized reports, accounts and statistical data of the other

producers from the EU-27 Member States. Moreover, this network of market participants is

also involved in other formats such as “Council of Association of Forests and Paper” and

“Alliance of competitive industries in Europe”, etc.

It is also very important for market participants that they work in close cooperation with

suppliers and organize direct surveys (market research) to the end customers for the nature of

their consumer needs and the trends, which are formed in the sector. Moreover, the technical

cooperation between suppliers and producers could be very useful when new technologies for

handling and processing of the primary raw materials are implemented. Such cooperation could

be particularly useful when it comes to the introduction of new chemicals and chemical

products for the treatment of the different intermediate and end products.

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With a view to the set out possible directions of development and promotion of the export, it

should also be considered the environmentally consistent norms and standards which have been

introduced in this sector and which the Bulgarian SMEs must comply with.

In this respect, the international cooperation may play a key role in the introduction of new

high technologies in the production sphere and the reaching of higher standards and application

of leading practices which serve as a specific guarantee for the subsequent admission on the

demanding European markets.

The gravest barrirs identified as a result of a sociological survey conducted among

export-oriented SMEs from the sector are: 1) the high risk on the various foreign markets; 2)

lack of support by the Bulgarian state for the export; 3) the unfavorable business environment

in Bulgaria 4) the high production costs of goods and services.

The most significant obstacles to the internationalization of Bulgarian SMEs from the

sector are related to external factors and mostly to the unfavorable business environment in

Bulgaria and the lack of support by the State.

This is the reason why most measures for overcoming the barriers to the export are

expected to be taken by the State. In summary, the expectations of the branch are that the State,

represented by its institutions, should developed a purposeful and relevant policy to promote

and support the export of the companies from the sector.

The technological level, qualification of personnel and low labor costs in SMEs from

the sector are assessed as critical factors related to success in export, which is consistent with

the high priority of measures to support SMEs from the sector for technological modernization

of the production.

Assessments of the importance of almost all priority measures to support SMEs from

the sector identified in the survey of the companies increase their importance in the next

programming period 2014-2020. This means that it will be necessary to allocate more resources

to implement these measures for the development of the enterprises from the sector.

Companies rely most heavily on the Internet and on the realization of their own

surveys for the purpose of obtaining the information they need about the export, and on the

next place are the colleagues from the sector. To very small extent are used the services of the

institutions and branch organizations.

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ANTICORRUPTION COMPONENTS

The profile of the corruption risk in this environment is predetermined to a large extend by the

traditional development of exports, the lack of funds for investments in technologies and

development of new products, as well as the relatively small number of enterprises specialised

in this type of production.

The expert assessments outline the following profile of potential corruption risk:

Insufficient technical and resource provision, including absence of investments in

innovations.

Absence of mechanisms for control and penalising of unfair competition.

Incomplete or partial definition of the scope of competency of the different authorities

and institutions.

Limited access to market research.

Incommensurability between the standards supported by the EU member states and the

local rules and the existing economic situation in foreign markets.

Access to internal orders determines higher levels of corruption risk.

Absence of administrative capacity.

Absence of competent staff for conducting the operations.

High threshold of public tolerance to the existing corruption practices; general level of

passiveness and the awareness of the absence of guarantees for defending the interests of the

enterprise.

Three well recognised cross-national surveys of the international anticorruption organisation

Transparency International can be used as tools for estimation of the corruption risk and

planning of export strategies: Corruption Perception Index (CPI), Global Corruption Barometer

(GCB), Bribe Payers Index (BPI). They provide comparative information regarding the level of

spread of corruption on global scale and the extent to which key national institutions and

sectors have been affected.

А) Markets in EU Member States: Greece, Italy, Romania, France, Poland

In terms of the CPI, the above countries are ranked as follows: France (7), Italy (3.9), Poland

(5.5), Italy (3.9), Romania (3.6), Greece (3.4).

According to GCB the institutions and sectors most affected by corruption are: in Romania –

political parties and Parliament; Greece – political parties and media; Italy – judiciary, customs,

agricultural services and medical services.

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Institutions and sectors less affected by corruption are: in Greece – tax institutions, police and

judiciary.

The most significant pressure for payment of bribes (expressed in percentage of citizens who

has been wanted bribes in the last year) is in the following sectors: Greece – customs

(16.9%), agricultural services (4.9%) and registration authorities (4.4%); Romania - police

(16.2%), judiciary (13.0%) and registration authorities (10.8%); Poland – police (11.6%),

judiciary (8.8%), registration authorities (8.5%), agricultural agencies (6.7%); Italy –

judiciary (28.8%), customs (13.9%), agricultural services (12.9%) and medical services

(10%); France – agricultural services (8.1%), customs (5.4%) and medical services (5.1%).

B) Markets outside the EU Member States: Russia, Serbia, Macedonia, Turkey, Saudi Arabia

In terms of CPI, the above countries index values are: Russia (2.4), Serbia (3.3), Macedonia

(3.9), Saudi Arabia (4.4), Turkey (4.2).

According to GCB the institutions and sectors most affected by corruption are: Russia –

judiciary, public administration and Parliament (the risk of administrative corruption is leading

compared to the risk of political patronizing corruption); Macedonia – judiciary, political

system; Serbia – political parties, public administration, judiciary and police.

Institutions and sectors less affected by corruption are: Macedonia – tax administration,

media, Serbia – registration authorities.

The most significant pressure for payment of bribes (expressed in percentage of citizens who

has been wanted bribes in the last year) is in the following sectors: Macedonia – customs

(25%), judiciary (20.6%); Serbia – police (14.5%), judiciary (13.0%) and customs (10.9%);

Russia – police (27.7%), agricultural agencies (20.2%), judiciary (17.7%), customs (10.9%)

and registration authorities (8.6%); Turkey – customs (32.4%), agricultural agencies (32.2%),

tax services (34,5%), registration authorities (31.2%), police (28.9%), judiciary (26.2%).

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SWOT AND PESTEL ANALYSES – SECTOR “MANUFACTURE OF

PULP, PAPER, BOARD AND ARTICLES ”

The SWOT analysis is an instrument by which it is possible to identify the strengths,

weaknesses, opportunities and threats with regard to a certain policy or activity. This is an

acronym from the first letters of the respective words in English /Strengths, Weaknesses,

Opportunities, Threats/.

The LOED analysis is an instrument by which we can identify in what way the positive effect

of the analyzed policy can be increased and in what way the negative effects can be countered.

The word is an acronym from letters of the words in English – lever, overcome, exploit, defend.

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Table 26 SWOT and LOED analyses

S.W.O.T L.O.E.D

Strengths:

1. Benefits resulting from Bulgaria’s membership in the EU and

NATO

2. Access to funds enabling the development of investment and

entrepreneurial activity

3. Favorable atmosphere for the development of international

contacts.

4. In Bulgaria there is political stability that guarantees the

security of both foreign and local investments.

5. Rich tradition in scientific and technical research.

6. Legislation is amended and adapted to European standards in

this sphere

7. Relatively low levels of work remuneration, stimulating

entrepreneurship and export.

8. Favorable geographical location.

9. A long tradition in international trade.

10. Developed system of international transport.

11. Resource base of timber, situated all over the country.

12. Bulgaria’s membership in the World Trade Organization

(WTO).

Lever:

1. Popularization of the geographical location and image of the

country.

2. Implementation of structural projects and strategies.

3. Increasing the qualification for the priority industries.

4. Building up specialists.

5. Imprving the necessary equipment in schools and universities

related to the priority strategy.

6. Control of the production and reduction of emissions

polluting the environment.

7. Preparation of preferential entrepreneurial credit terms.

8. Policy of integration between domestic and foreign market.

9. Creating international partnerships.

10. Policy to promote the export-oriented companies.

Weaknesses:

1. Limited and scarce financial resources.

Overcome:

1. Implementation of plans and programs to improve and

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2. Insufficiently developed and adapted business services.

3. Lack of an unified export platform.

4. Obsolate industrial zones.

5. Excessive bureaucracy and inefficiency of the system.

regarding implementation of terms for certain requirements.

6. Low competitiveness and limited local markets.

7. Obsolete equipment and technologies.

8. Import-oriented economy.

9. Policy of consumption rather than production.

10. Cultural differences.

develop infrastructure.

2. Aspiration for establishing oneself on new markets.

3. Orientation towards production.

4. Reformation of the administrative system.

5. Stimulating competition and encouraging business.

6. Establishing connection between statistics and business.

7. Program for acquaintance with the foreign markets.

8. Training.

9. Cultural integration.

Opportunities:

1. Access to the markets of Western Europe - membership in

the EU and free access to a multi-million market.

2. Access to the markets of Russia and the Near East.

3. Initiation of meetings and cooperation with foreign partners.

4. Good practices of export.

5. Presence of export partners.

6. Chance to use the favorable geographical location of the

country for emerging to more markets.

Exploit:

1. Effective and rapid realization of the production through

built distribution channels.

2. Organization of trade fairs and events for acquaintance with

the products.

3. Development of the current production and promotion to a

new one.

4. Preparation of product range and export-specialized products.

5. Orientation towards new markets.

Threats:

1. Deficiency of funds.

2. Strong competition at the international level.

3. Financial and currency risk

4. Risk of low levels of quality.

Defend:

1. Building up projects in order to find optimal funding

opportunities.

2. Selection and orientation towards a group of partners and

efforts to achieve high quality levels.

3. Production for export, but also for the local market in order to

insure the liquidity and solvency of the company.

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In regards to clarifying the macroeconomic situation, it is worth mentioning that in strategic papers, usually, a comprehensive

analysis is employed. The PESTEL analysis is an acronym from the first letters of the words in Englis and combines several groups

of factors that are analyzed: political, economic, social, technological, environmental and legal factors.

Table 27 PESTEL-analysis

Political factors Economic Factors

Bulgaria is a parliamentary republic and a full-fledged

member of the EU.

The revenue policy is based on taxes, charges and others and

the main division is: state and municipal.

As a member of the EU, Bulgaria is part of the structure of

international trade and an active agent of the common

European market.

For the protection of consumers are in effect various laws

and are established various committees.

Political stability in the country is a main priority of the

ruling majority.

Safety and competition promotion are starting points in the

encouragement of the commercial activity.

Despite the global financial instability, Bulgaria manages to

maintain levels of sustainable development and a positive

economic growth.

The interest rate is determined by the Central bank (BNB)

and has a tendency to reduce; as of 01.11.2011 it was

0.22%.

The state promotes employment and, by attracting foreign

investments, it creates new jobs and unemployed cadres

requalification programs.

The income taxation is done with "flat" rate amounting to

10%.

The Bulgarian currency is in a state of currency board with

the euro in quotation of 1.95583 BGN per 1 euro.

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The financial policy implemented by the state manages to

keep the inflation in the range of its normal values.

The trust of the consumers is facing a serious test, as the

regulation and quality management system needs a higher

effectiveness.

Social factors Technological factors

The cultural and demographic detachment of Bulgaria

involves a variety of daily and cultural differences between

the broad representation of ethnicities. Nevertheless, the

integration of these ethnicities is successful.

Relatively aging of the population and a negative growth (-

0.6% for 2010). A positive growth was reported in the

period between 1960 and 1990 which then became negative

and reached its lowest levels in 1990 and 2001 almost

reaching -2.0%.

Statistics like this one clearly reproduce the influence of

the political factors on the social and demographic structure

of society.

At national level it is observed an expressed labor mobility

and a certain part of the specialists find professional

realization abroad and in particular – within the EU. This

Scientific research in Bulgaria has a rich tradition and

experience.

Industry operates and is organized by technological

activities, which determines the need for knowing and

examinating them.

Bulgaria is among the world leaders with regard to its

researchers, who have given the world numerous

discoveries, inventions and innovative technologies. Few of

them reach the community due to the fact that they cannot

find investors in the country.

The exchange of technology with the rest of the world has

marked its beginning since the early years of the last

century. With the construction of the modern state, these

technologies play a significant role in the construction of

each unit.

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shows how the mechanisms of the community work and

how the labor market creates demand and supply outside the

borders of a country.

The living standard in Bulgaria is a social category subject

to a thorough examination and multifactorial analysis. The

level of net income is relatively low, unlike that of

ownership of real estate.

Entrepreneurship in Bulgaria is the reason for the

implementation of many projects, including the absorption

of funds from European fund paths.

The issue of education in Bulgaria is a topic of utmost

priority. The state provides free elementary, primary and

secondary education; higher education also being financially

supported for the most part.

Healthcare in Bulgaria is in a phase of transformation and

readaptation to the new realities after 1989. Nevertheless,

the state is committed to the preservation of the major

medical centers and encourages their functioning in the

interest of public good.

The life cycle of the products, as well as their going out of

use, becomes shorter and shorter with the opening of

markets and the invasion of newer and more energy-

efficient products.

Both in political and in purely technical aspect, the global

energy saving policy is also applied in Bulgaria. It includes

the construction of alternative energy sources that should

reduce the levels of harmful emissions and generate lower

levels of cost for the end user.

With respect to the information technologies and the

Internet, the country is among the European leaders in the

field of their introduction, use and development.

Environmental factors Legal environment factors

Bulgaria is among the countries with the most widely

developed and included eco-tourism in Europe.

Bulgaria is a statutory Republic and the fundamental law is

the Constitution.

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It is being worked on strategies for wastewater treatment

and construction of incinerators for waste incineration.

Planned urbanization and cultivation of gardens, parks and

ponds.

Care for the environment and the wildlife is secured by

legal regulations.

More than 1/3 of the territory of Bulgaria is forested area.

The varied relief involves diversification of climatic

characteristics in the country.

Bulgaria’s judicial system is a direct expression of the

judiciary branch and it is devided into different levels and

instances for the purpose of being more accessible to

people.

Of all the rights, the one of priate property is the starting

point for most of the changes after the transition to a market

economy.

Bulgaria is a country with an established legal system that

allows its citizens position and protection and that guarantee

them the full functioning of democracy.

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STRATEGIC GOALS FOR STIMULATION OF THE EXPORT BY

SMALL AND MEDIUM ENTERPRISES FROM THE „MANUFACTURE

OF PULP, PAPER, BOARD, AND ARTICLES” SECTOR

GOALS

To achieve the so set objectives, it is necessary to identify measures to support the

export by SMEs from the “Manufacture of pulp, paper, board and articles” sector, which

should be focused on the problem areas identified by the analyses. The selected measures

should also be clearly linked with the possible mechanisms by which state institutions can

influence the processes. Under these constraints were identified areas in which state

institutions, through commitments, and other stakeholders, through promotion and

incentives, could implement actions to achieve the set objectives. For each of the selected

areas has been set a clear and measurable specific objective, namely:

Specific objective 1

To build and proceed to the successful functioning of information and normative base

for the promotion of the export of SMEs from the sector of production of fibrous semi-

manufactured goods, paper, board and articles. This specific objective is divided in the

following sub-objectives:

1.1. Preparation and update of the sector development strategy.

1.2. Updating the strategy for promotion of the export by SMEs from the sector.

1.3. Creating a profile of an export-oriented enterprise.

1.4. Creating an adequate database for SMEs that assists management decision

making for the sector.


To increase the qualification in SMEs from the sector of production of fibrous semi-

manufactured goods, paper, board and articles, focusing on trade cadres and units

engaged in foreign trade at the company level.

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Creation and implementation of programs for improvemnt of the qualification of

export specialists in SMEs.

Creation and implementation of a training program for participation in international

fairs.


To support the activities of the enterprises and their access to foreign markets and

partners.

Financial support for enterprise certification of quality management, environmental

management, and introduction of a modern system for safe and healthy working

conditions.

Increase of the influence of the assessment for the export orientation of the enterprises

in the overall assessment for receiving of financial support.

Support for the creation/further development of organizations/clusters for promotion

of the export from SMEs.

Exportation of the services for the organization of the Bulgarian participation in fairs,

exhibitions and other advertising events to the respective branch organizations, under

established clear rules for equality in the selection of the participants.

Creation of a mechanism for financial support for the participation of foreign partners

in local fairs and exhibitions.

Several specific goals at different levels should be taken into account:

Specific goals at macro level:

1. To popularize the programme OP “Competitiveness” for the small and

medium enterprises engaged in this economic activity.

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2. Bulgarian authorities should insist that in the next program cycle of the EU

2014-2020 be established mechanisms for a faster attainment of EU funds to

the Bulgarian SMEs from the sector.

3. To develop and organize a common format for the promotion of Bulgarian

production produced by these SMEs on foreign markets.

4. To focus on the role of the vocational training and specialization through the

form – on-the-job training under the line of MLSP МТСП.

5. Introduction of financial and economic incentives for the enterprises from the

sector when they are trying to apply the international export standards with

regard to packaging, labeling, faultlessness and opportuneness of deliveries,

etc.

6. Establishment of an institution or association to carry out annual reports,

forecasts and analyses for the enterprises from the sector.

Specific goals at meso level:

1. In 2012 to 2014 at the latest to be structured a working mechanism for

processing and analysis of feedback from companies operating in the sector

with a view to a better positioning of the participants on external markets.

2. Creation of a pool of enterprises which provide, on a voluntary basis,

information for the sector development in the country and abroad with a view

to build a synchronized development and favorable export lay-outs.

3. Transition to a regular information exchange format through conferences,

round tables, forums, etc.

4. Inclusion of political lobbying outside the country through the commercial

attaches and other authorities with a view to the implementation of the sector

strategy for the promotion of export.

5. Preparation of generalized and detailed reports by NSI for the development of

the economic activity.

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6. Transition to a system of national representative market condition research

every two or three years with a view to update the priorities in the sector and

of the state.

Specific goals at micro level:

1. Overcoming the problem of retrenchment of jobs and dismissal of workforce.

2. At the company level, to allocate funds for marketing research at least once a

year, which would be processed and stored as part of the common program

documents for the development of the company.

3. To make an attempt to retain the salary levels of employees and not to be

reduced, by preparing organizational changes in the employment method,

consistent with the production cycle of the company.

4. To promote the obtaining of a higher educational degree for the currenly

employed persons in the company.

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STRATEGY FOR STIMULATION OF THE EXPORT OF SMEs FROM

THE SECTOR

Different alternatives of development are possible for achieving the set goals; two main

scenarios were assessed in the case, namely:

Maintaining the current structure of state institutions providing business support,

including the existing relationship between them and with export-oriented SMEs from

Sector “Manufacture of pulp, paper, board and articles”.

Changing the structure and transferring the functions to support SMEs to units and forms

related to financing projects by EU funds and state budget on the model of Operational

Programmes or the Rural Development Programme.

The criteria under which these scenarios were assessed are:

1. Possibility that the scenario chosen be carried out within 5 years;

2. Way of resolving the issues of supporting export-oriented SMEs in other EU

countries;

3. Evaluating the effectiveness of activities related to business support and carried out

by structures created for that purpose or existing programmes supporting a project

basis.

The analysis made showed that:

transition from from a currently existing system to a new one, implemented

on a project basis, will require a period longer than 5 years. At the same

time, under the currently existing rules, in the period until 2013 this is

practically imposible, as the priorities and mainactivities in the operational

programmes are clearly defined. In the next programming period 2014-2020

such an approach, if possible, should underlie in the negotiations, but in

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practice it will again take several years for its actual launching, like the

launch of OP in all EU countries for the period 2007-2013.

the scheme selected in Bulgaria through BSMEPA is preferred by the

majority of the EU countries, their success rate being different in different

countries, but there is no trend for occurrence of changes in the near future.

√ the difficulties reported in the realization of business projects in operational

programmes, such as “Competitiveness”, show that the effectiveness of

support for the export-oriented SMEs, however criticized currently due to

lack of resources and better focus, is at a relatively much better level than the

achieved results by business through project-oriented measures.

In the so made conclusions was preferred the first alternative, namely the preparation of

the Export Strategy for SMEs in Sector “Manufacture of pulp, paper, board and articles” to

rest on the assumption that all measures taken will be within the currently existing structures

within their current capabilities.

In the strategic perspective the selected alternative will require both measures that are

common to the entire SMEs support system, such as increasing the capacity of institutions,

introducing clear and measurable indicators and criteria for the evaluation of the

effectiveness of their work and support given to business, etc., and specific changes relating

specifically to the “Manufacture of pulp, paper, board and articles” sector, such as sector-

oriented approach of work. Although this was not subject of analysis and study of this

strategic document, it will probably be part of the preparation of institutional strategy of the

relative state administrations.

In this Export Strategy for SMEs in Sector “Manufacture of pulp, paper, board and

articles” have been provided for the following basic steps to improve the support for the

export-oriented SMEs:

1. Creating the basis for an adequate and professional management of the processes,

which support export-oriented SMEs, by identifying their possible scope – number

and characteristics of the export-oriented SMEs, use of information of the profile,

and information of the business for the precise formulation of the business needs of

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support both by the institutions created for this purpose and through other forms, for

example, on a project basis, creating a model for successful communication with

businesses that can be supported.

2. Preparation of the necessary programs, policies and measures to assist SMEs to

export to foreign markets through measures aimed at markets where the existing

positions should be maintained or expanded, collaboration with units having direct

opportunities to support the export (for example, foreign trade representatives and

MEET), as well as measures having a routine nature (for example, participation in

fairs, missions, visits, etc.);

3. Measures targeting specific deficits in export-oriented SMEs, which constitute

barriers to their development in export terms, such as: promoting technological

modernization of SMEs in connection with the improvement of their export

positions, supporting the creating of export companies which shall support the export

by SMEs; creating state guarantees for export insurance of SMEs which shall

complement and develop the currently existing forms; advertertising campaigns to

improve the image of Bulgarian business, etc.

4. Measures aimed at enhancing the capacity of SMEs, mainly through various training

programs.

Given the deadlines of the Export Strategy for SMEs in Sector “Manufacture of pulp,

paper, board and articles”, the steps provided for are realistic and would lead to tangible

results in promoting the export.

Another important prerequisite for the implementation of the strategy is the political will

to provide the necessary means for its realization.

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ACTION PLAN – SECTOR „MANUFACTURE OF PULP, PAPER,

BOARD, AND ARTICLES”

Due to the medium-term 5-year horizon of the Strategy, measures have been

specifically formulated in the Action Plan.

The provided financial resources are consistent with the realistic opportunities to

increase the budget of BSMEPA. Estimates of the funds from the operational

programmes in the next period are too conditional, as yet there are no rules finally

accepted by the EU. At the same time, it is crucial that BSMEPA and MEET defend fair

request for funds precisely for this leading export sector for the country and for the

development of SMEs that are tha backbone of any economy.

For each of the provided measures have also been identified actions to be taken at

micro- (enterprises), meso- (branch organizations) and macro (state) level.

Based on the performed analyses of the export of commodity groups, have been

defined markets that are important and priority for the sector. For them have been

prepared indicative promotional measures, which, given the period of crisis, are aimed

not at conquering new markets, but at preserving the already existing market positions of

SMEs in the export.

Short-term objectives /2012 – 2013/

1. Updating the introduced technological norms, standards and requirements.

2. Creating a “Road map” for convergence of the interests of SMEs form the

sector.

3. Introducing organizational changes for taking hold of the processes of

retrenchment of jobs and dismissal of workforce.

4. Facilitating the functioning regimes of bank guarantees and bank lending to

the sector.

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5. Mastering the appreciation processes of the energy prices, including the price

of gas.

Medium-term objectives /2012 – 2014/

1. Building and updating a system for decision making for promoting Bulgarian

production abroad.

2. Creating an association for commercial foreign representation in potentially

the most attractive markets for enterprises of the segment.

3. Creating analytical examinations on a regular basis for the development of the

sector in the EU-27 as a whole and for other current and potential markets

outside the EU, such as the CIS countries, the Arab countries and others.

4. Creating economic clusters based on a certain market, commercial, production

or other sign.

5. Creating foreign language brochures for the development of the enterprises

from the cluster.

6. Reorganizing the individual data arrays and competing documentation for

applying for EU projects of the next budget cycle.

7. Increasing the level of computerization, automation and use of information

technologies.

Long-term objectives /2014 – 2020/

1. Promoting the improvement of the industrialization level in the sector by

promoting technological innovations in SMEs from the sector and a

communication policy.

2. Promoting investment in the human capital.

3. Introduction of alleviating financial conditions in the implementation of high-

tech solutions and trainings.

4. Creating an innovation fund for cluster participation of enterprises from the

sector.

5. Creating and branding of industrial cluster brands.

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The Action plan should be implemented consistently and in good faith, in

synchronization between state institutions, interested producers and parties from the

economic activity.

Controlling on the plan implementation may be coordinated at the branch level or at

the level of state authority in case of majority consent of the market participants.

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Table 28 Action Plan for Implementation of the Export Strategy of the Sector

Objectives and Measures

Implementa

-tion

deadline

Responsible

institutions

Necessary

financial

resources

Sources of

funding Expected results Performance indicators

Specific objective 1: Construction and successful functioning of the information and normative base for the promotion of the export of SMEs from the

sector.

1.1. Preparation and updating

of a sector development

national strategy

2014 MEET 40 000 Operational

Programme

“Competitive-

ness”

Developed and adopted at the

national level Strategy and

Action Plan, in accordance

with the determined schedule

Adopted by the CM

National Sector

Development Strategy and

Action Plan to it, which is

being implemented;

Provided funds for the

implementation of the plan

by years;

The set objectives are

achieved.

1.1.1. Provision of the necessary

information, including

participation in sociologival

research and focus groups

2013 Companies,

NSI, Branch

organizations

Created database, supporting

the development of the

strategy and the Action Plan

Developed analysis of the

sector and draft of the

Action Plan

1.1.2. Organization and

coordination of the development

and formalization process of the

strategy and the action plan, as

well as the process of their

implementation

2014 MEET Developed Strategy draftt

and Action Plan, in

accordance with the

determined schedule

Adopted by the CM

National Sector

Development Strategy and

Action Plan to it, which is

being implemented;

Provided funds for the

implementation of the plan

by years; The set objectives

are achieved.

1.2. Updating the strategy 2014 BSMEPA 20 000 Operational Updated strategy for Action Plan that is

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Implementa

-tion

deadline

Responsible

institutions

Necessary

financial

resources

Sources of


for promotion of the export

of SMEs from the sector

Programme

“Competitive-

ness”

promotion of the export of

SMEs from the sector and

updated Action Plan to it,

adopted at national level

implemented in accordance

with the schedule set in the

Strategy

Available funds for the

implementation

Achievement of the

strategy objectives

1.2.1. Provision of the necessary

information, including

participation in sociologival

research and focus groups

2014 Companies,

NSI, Branch

organizations

Updated database for SMEs Updated analysis of the

sector development


coordination of the updating

process of the strategy and the

action plan, as well as the

process of their implementation

2014 BSMEPA Action Plan that is

implemented in accordance

with the schedule set in the

Strategy. Achievement of

the strategy objectives.

1.3. Creating a profile of an

export-oriented enterprise

2013 BSMEPA,

MEET

10 000 Operational

Programme

“Competitive-

ness”

Drawn up criteria for export

orientation of SMEs.

Presence of the drawn up

criteria on the page of

BSMEPA

1.3.1. Participation in the

discussion of the proposed draft

of a profile of an export-oriented

enterprise

2013 Companies,

Branch

organizations

Discussed and supplemented

criteria for export orientation

of SMEs

Developed version of

criteria


coordination of the process of

creation of a profile of an export-

oriented enterprisethe

2013 BSMEPA,

MEET

Prepared final version of

criteria for export orientation

of SMEs

Developed and formalized

criteria

1.4. Creating an adequate

database for SMEs assisting

2014 MEET, NSI 10 000 the budget of

NSI

Available and appropriately

processed information for the

development of the sector

Easy and unconditional

access to the information

for the development of the

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Implementa

-tion

deadline

Responsible

institutions

Necessary

financial

resources

Sources of


management decision

making for the sector

and SMEs within it sector and SMEs within it

1.4.1. Creation of an information

database system for foreign

markets, potential foreign

partners, international fairs,

exhibitions and other advertising

events

2014 BSMEPA,

MEET

30 000 OPC Created and operating

information system

Number of enterprises

using the information

system

1.4.2. Provision of data for the

information system

2014 Companies Created database for the

information system

Database serving the export

activity of the companies

1.4.3. Provision of data and

analyses for the information

system

2014 Branch

organizations

Created database for the

information system

Database serving the export

activity of the companies

1.4.4. Coordination and

organization of the process of

creation of an information

database system for foreign

markets, potential foreign



events

2014 BSMEPA,

MEET

Created and operating

information system


using the information

system

1.4.5. Maintenance of the

information database system for

foreign markets, potential foreign



events

Permanent BSMEPA,

MEET,

Companies,

Branch

organizations

10 000 per

year

The budgets of

the

departments

Permanently operating and

updated information system


satisfied with the quality of

the information available

1.4.6. Coordination of the

process of maintenance of the

information database system for

foreign markets, potential foreign

Permanent BSMEPA/

MEET

Permanently operating and

updated information system


satisfied with the quality of

the information available

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Implementa

-tion

deadline

Responsible

institutions

Necessary

financial

resources

Sources of




events

1.4.7. Improving the awareness

of SMEs on the available funding

opportunities by national and

foreign financial sources

(excluding trade credits)

Permanent BSMEPA 5 000

per year

The budget of

the department

Increase of the number of

enterprises appying for

financial support


appying for financial

support

1.4.8. Participation in organized

events for the popularization and

dissemination of information

about the available funding

opportunities by national and

foreign financial sources

Permanent Companies

Number of developed and

applied projects for funding

of companies

Number of participants in

the events

1.4.9. Participation in and

dissemination of information

about organized events for the

popularization and dissemination

of information about the

available funding opportunities

by national and foreign financial

sources

Permanent Branch

organizations

Number of developed and

applied projects for funding

of companies

Number of participants in

the events



information of SMEs on the

available funding opportunities

by national and foreign financial

sources (excluding trade credits)

Permanent BSMEPA Increase of the number of

enterprises appying for

financial support


appying for financial

support

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Implementa

-tion

deadline

Responsible

institutions

Necessary

financial

resources

Sources of


1.4.11. Implementation of

information activities for the

popularization of opportunities of

direct participation of SMEs in

funding schemes by EU under

schemes other than Opperational

programmes

Permanent Branch

organizations,

MEET,

BSMEPA,

companies

from the

sector

Own funds,

state budget

1.4.12. Purchase and provision of

information for the identified

target markets by BSMEPA

Permanent BSMEPA Own funds,

Operational

programmes

Available and appropriately

processed information for the

identified target markets

Easy and unconditional

access to the information

for the identified target

markets

Specific objective 2: Increasing the qualification of the employees of SMEs within the sector, with focus on the trade cadres and the units engaged in foreign trade

at the company level

2.1. Creation and

implementation of programs

for improvemnt of the

qualification of export

specialists in SMEs

2014-2020 Institutions of

Higher

Education,

Branch

organizations,

BSMEPA

50 000

per year

Budget of

BSMEPA and

Operational

Programmes

Trained over 1000 export

specialists from SMEs for the

program period

Number of trained export

specialists.

2.1.1. Provision of information

on the needs for training and

participation in the trainings

2014-2020 Companies,

Branch

organizations

Number of companies that

have provided information

and participants for the

trainings


have sent their specialists

for training

2.1.2. Creation of training

programs and conduction of the

trainings

Branch

organizations,

Institutions of

Higher

Education

At least one created

detailed program for training

of foreign trade specialists

from companies

Number of trained experts

per anum

2.1.3. Organization and 2014-2020 Institutions of Trained over 1000 export Number of trained export

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Implementa

-tion

deadline

Responsible

institutions

Necessary

financial

resources

Sources of



creation and implementation of

programs for the increase of the

qualification of export specialists

in SMEs

Higher

Education,

MEYS,

BSMEPA

specialists from SMEs for the

program period.

specialists.

2.2. Creation and

implementation of a training

program for participation in

international fairs

2017 Institutions of

Higher

Education,

MEYS,

BSMEPA

20 000

per year

Budget of

BSMEPA

Trained experts from a

minimum of 400 SMEs.



for training.


on the needs for training and

participation in the trainings

2017 Companies Number of companies that

have provided information

and participants for the

trainings



for training

2.2.2 Participation in the

establishment of training

programs and assistance in the

conduction of the trainings

2017 Branch

organizations

At least one created detailed

program for training

Number of trained experts

per anum



creation and implementation of

programs

2017 Institutions of

Higher

Education,

MEYS,

BSMEPA

Trained over 400 export

specialists from SMEs .



for training

Specific objective -3: Support to the activities of the enterprises and their access to foreign markets and partners

3.1. Financial support for

enterprise certification of

quality management,

environmental management,

and introduction of a

permanenet MEET 500 000 OPC Increased number of the

enterprises that have received

certificates

Number of enterprises that

have received certificates

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Implementa

-tion

deadline

Responsible

institutions

Necessary

financial

resources

Sources of


modern system for safe and

healthy working conditions

3.1.1. Development of proposals

for funding activities on the

establishment of quality

management systems and putting

the systems into operation

permanenet Compa-

nies

Increased number of funding

proposals

Number of proposals

received

3.1.2. Assisting the assessment of

the proposals

According to

the schedule

of MEET

Intermediete

unit or other

structure in

the EU funds

management

system

Increased number of funding

proposals

Number of proposals

received

3.1.3. Management of the overall

process of financial support and

monitoring of the results

According to

the schedule

of MEET

MEET Increased number of the

enterprises that have received

certificates

Number of enterprises that

have received certificates

3.2. Increase of the influence

of the assessment for the

export orientation of the

enterprises in the overall

assessment for receiving of

financial support

2014 MEET, CM OP for business support are

oriented towards support to

SMEs, which have export

potential

In the criteria for

assessment of the project

proposals is expressly

specified the export

potential

3.2.1. Active participation in the

development of the proposals for

increasing the influence of the

assessment of the export

orientation of enterprises in the

overall assessment of receiving

financial support

2014 Companies,

Branch

organizations

Accepted proposals for

change/ newly developed

program documents and rules

for their implementation

Published draft documents

3.2.2. Development of the 2014 MEET OP for business support are In the criteria for

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Implementa

-tion

deadline

Responsible

institutions

Necessary

financial

resources

Sources of


proposals for increasing the

influence of the assessment for

export orientation of enterprises

in the overall assessment of

receiving financial support

oriented towards support to

SMEs, which have export

potential

assessment of the project

proposals is expressly

specified the export

potential

3.3. Support for the creation/

further development of

export consortia for

promotion of the export by

SMEs

2017 BSMEPA,

Branch

organizations

100 000

per year

Operational

Programmes

Established export consortia

to support the export of the

enterprises

At least 2 established

export consortia

3.3.1. Participation in export

consortia in the sector

Companies Extended opportunities for

export of the companies

Number of companies

participating in consortia

3.3.2. Participation in the

establishment and development

of export consortia.

Encouraging the participation of

SMEs in export consortia

Branch

organizations

Increased number of export

consortia that support the

activity of the sector

Increased number of the

enterprises participating in

export consortia

3.3.3. Assistance to the

establishment / further

development of export consortia

for support to the export by SME

BSMEPA,

Branch

organizations

Established export consortia

to support the export of the

enterprises

At least 2 established

export consortia

3.5. Creation of a mechanism

for co-funding trade

missions

2014-2020 BSMEPA,

Branch

organizations

30 000

per year

The budget of

BSMEPA;

Funds from

the branch

organizations

Concluded export contracts

thanks to the participation in

trade missions

Increase in each subsequent

year of the export contracts

concluded with invited

foreign trading partners


about potential partners and

concluded contracts

Companies Concluded export contracts


trade missions




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Implementa

-tion

deadline

Responsible

institutions

Necessary

financial

resources

Sources of


foreign trading partners 3.5.2. Development of a project

for mechanism and support for

its implementation

Branch

organizations

Concluded export contracts


trade missions




foreign trading partners 3.5.3. Coordination of the

process and support for its

implementation

BSMEPA Concluded export contracts


trade missions




foreign trading partners 3.5.4. Development of a program

for work with the Bulgarian trade

representatives abroad in favour

of SMEs from the sector

2014-2020 BSMEPA,

MEET,

CM

Decision adopted at the CM

level and created and

operating program for work

of the trade representatives

Increase of the concluded

contracts for export of

products from the sector,

produced by SMEs, as a

result of the program

implementation

3.5.5. Improving the mechanism

for ensuring a functioning

insurance of the export of SMEs

2014 BAEZ 30 000 The budget of

the

Department,

Operational

programmes in

the next

programming

period

Increase of the number of

SMEs and the export volume

of the sector thanks to the

improved mechanisms for

insuring the export

Number of insured export

transactions of SMEs

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SYSTEM FOR MONITORING AND CONTROL

For each strategic document it is of great importance: firstly, to be implemented in accordance

with predetermined goals, deadlines and resources, secondly, to be sustainable over time and to

develop the activities and effects determined in it. For this purpose, it is advisable to monitor

(fulfill monitoring) and evaluate the implementation of the document and to identify

appropriate actions - for correction and improvement of its inherent activities.

Monitoring can be defined as: (a) an integral part of the ongoing project management

(attributed to exports and implementation of strategy for the sector “Manufacture of pulp,

paper, board and articles”, aimed at achieving a change - in this case, improving the export

performance of SMEs in sector), (b) an instrument to control and manage the process of

decision-making, (c) a description of events and conditions within a specified period of time,

(d) systematic collection of reliable, timely and relevant information on progress change and

the consequences of actions taken during the implementation of the program. These essential

features of monitoring make it one of the most important components of the strategic

management of documents, programs, projects, etc.

The assessment is a systematic review of specific management activities aiming to provide

information about the full range of short and long-term effects on the consumers. Program

evaluation may include assessment of the workload, operating procedures, or personnel, but its

main purpose remains the effect and impact of program implementation (strategy document).

Monitoring should therefore be established to monitor the status and progress in implementing

the various components and sub-components and with only that - the Strategy as a whole.

Monitoring should also identify emerging issues, factors that determine them and suggest

possible measures and solutions to these problems. The information obtained is expected to be

promptly available to the responsible authority (primarily BSMEPA and MEET). The meaning

of this is to enable these authorities and other relevant government agencies, provided they

consider this a necessity, to take timely "corrective action" to support achieving the objectives

of the Strategy.

It should be noted that if monitoring focuses on the monitoring of: (a) actions taken and

resources expended, (b) the results achieved, (c) carrying out the process in time, (d) the effects

received, then the assessment is aimed at determination of the extent to which the general and

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specific objectives of the document are achieved and also includes a systematic review of

specific management operations to provide information about the full range of short and long-

term effects.

The main items that should be observed in relation with the implementation of this strategy

include:

- Compliance with the schedule of activities;

- Volume, speed and degree of resource use;

- Results achieved;

- Achievement of objectives and impact of the strategy document.

When to monitor? - The goal of ongoing monitoring is to record the effects and deviations from

plan early enough, to allow their correction before their consequences become so serious, that

they cannot be overcome. What should not be forgotten is the need for monitoring to be

performed frequently enough to allow adjustment of deviations from the plan followed.

Based on this methodology, monitoring and evaluating the implementation of this strategy

involves the following sequence of actions:

1. Selection of criteria and indicators for monitoring and evaluation;

2. Performance monitoring;

3. Comparison of achievements and targets;

4. Proposing and taking of corrective action.

Under the adopted objectives and measures of the Strategy, the following key indicators for

monitoring and evaluation are proposed:

Availability on the web-site of BSMEPA of the criteria and a list of companies which

are export-oriented.

The inclusion of a company in the list of “companies with export potential” becoming

an evaluation criteria for the company when granting financial support for export and

competitiveness.

Number of entries in the specialized sections of BSMEPA’s web-site and received

feedback.

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Number of organized participations in specialized exhibitions.

Number of distributed product samples in the exhibition/ distribution network.

Number of conferences.

Number of participations of SMEs from the sector in the organized exhibitions.

Percentage of companies which have expressed a positive attitude to organized events.

Number of export contracts concluded during the exhibitions.

Number of concluded export certificates, one of the reasons for which are invited

foreign trading partners.

Prepared program of work of the Bulgarian commercial representations in favor of

SMEs in the sector.

Export potential is explicitly specified in the evaluation criteria of the project

proposals.

Number of the established export consortia in the sector.

Amount of funds received from the export of products for which an advertising

campaign has been organized.

Number of SMEs which obtained international certificates.

Number of SMEs that have received support for technological modernization.

Export by companies that have obtained certificates.

Number of exporting enterprises that have benefited from guarantees of export

insurance.

Volume of exported goods, secured by state guarantees for export insurance.

Number of trained export specialists.

Number of companies sent their experts for training.

Surveillance and monitoring of progress will be carried out by BSMEPA, which "owns" the

strategy. For this purpose the Agency will nominate an official of its administration who will be

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officially responsible for collecting information for monitoring the implementation of the

measures. This official will prepare annual reports to the Executive Director of the Agency.

The annual reports will serve as interim evaluations of the implementation of the Strategy. At

the end of the period, a final report will be prepared for the entire period of the Strategy and the

latter will be prepared for the next five-year period.

The reports are public and the results will be disclosed to the public.

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Annex 1:

Table 29 Manufacture, import, export and consumption of paper, board and fibrous materials of

Bulgaria – 2001 /measure – ton/

PAPER AND BOARD Manuf. Exp. Imp. Cons.

1 Newsprint X 29 000 X 29 000

2 Writing and printing paper, including 1 000 10 000 X 11 000

3 *Uncoated not containing DM 1 000 5 000 X 6 000

4 * Coated not containing DM X 5 000 X 5 000

5 * Uncoated containing DM X X X X

6 *Coated containing DM X X X X

7 Corrugated cardboard materials,

including

65 000 7 600 7 615 64 985

8 *Liner of primary fibres X 600 X 600

9 * Liner of waste paper 39 000 2 000 4 615 36 385

10 *Fluting of primary fibres X X X X

11 *Fluting of waste paper 26 000 5 000 3 000 28 000

12 Other packing paper: paper for bags and

envelopes, machine-smooth packing

paper, etc.

27 000 5 200 3 000 29 200

13 Tissue and sanitary paper 34 000 3 000 31 000

14 Other paper X 2 000 X 2 000

15 Board, including 6 000 2 000 4 000 4 000

16 *Verbose board 6 000 2 000 4 000 4 000

17 *Other boards X X X X

18 TOTAL PAPER AND BOARD 133 000 55 800 17 615 171 185

PULP Manuf. Exp. Imp. Cons.

19 Total pulp of wood, including 77 000 7 000 53 000 31 000

20 *Bleached sulphate (kraft) 53 000 2 000 53 000 2 000

21 *Unbleached sulphate (kraft) 21 000 2 000 X 23 000

22 * Bleached sulphite X 1 000 X 1 000

23 * Unbleached sulphite X 2 000 X 2 000

24 *Semi-pulp 3 000 X X 3 000

25 *Wood-pulp X X X X

26 *Pulp for chemical processing X X X X

27 Total fibrous materials excluding those of wood X X X X

28 TOTAL PULP 77 000 7 000 53 000 31 000

29 Commodity pulp 53 000 7 000 53 000 7 000

Corrugated cardboard/micro corrug. cardboard 68 300 26 290 68 036

Packings of corrugated cardboard/

micro corrugugated cardboard

48200 4 245 2 324 50 121

WASTE PAPER Invested Exp. Imp. Cons.

30 Waste paper 115 000 5 000 5 000 115 000

WASTE PAPER Collected Exp. Imp. Cons.

Waste paper 110 000 5 000 5 000 110 000

Source: NSI

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1 Newsprint X 39 884 1 479 38 405

2 Writing and printing paper, including X 31 603 1 432 30 171

3 *Uncoated not containing DM X 23 171 1 432 21 739

4 * Coated not containing DM X 8 432 X 8 432

5 * Uncoated containing DM X X X X

6 *Coated containing DM X X X X

7 Corrugated cardboard materials, including 68 589 12 317 6 844 74 062

8 *Liner of primary fibres X 700 X 700





envelopes, machine-smooth packing paper, etc. 29 542 5 441 19 000 15 983

13 Tissue and sanitary paper 31 605 3 362 10 791 24 176


15 Board, including 7 043 24 459 X 31 502

16 *Verbose board 7 043 14 000 X 21 043

17 *Other boards X 10 459 X 10 459







23 * Unbleached sulphite X X X X

24 *Semi-pulp 2 800 X X 2 800




28 TOTAL PULP 86 300 13 120 57 000 42 420

29 Commodity pulp 57 000 13 120 57 000 13 120


Packings of corrugated cardboard/ micro

corrugugated cardboard 36 300 4 107 1 708 38 699


30 Waste paper 132 000 19 616 3 513 148 103


Waste paper 112 384 19 616 3 513 128 487

Source: NSI

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1 Newsprint X 40 105 1 034 39 071

2 Writing and printing paper, including X 49 578 1 428 48 150

3 *Uncoated not containing DM X 22 384 584 21 800

4 * Coated not containing DM X 18 485 844 17 641

5 * Uncoated containing DM X 3 090 X 3 090

6 *Coated containing DM X 5 619 X 5 619


8 *Liner of primary fibres X 10 163 1 208 8 955




12 Other packing paper: paper for bags and envelopes,

machine-smooth packing paper, etc. 70 100 1 074 51 454 19 720

13 Tissue and sanitary paper 30 617 3 773 10.222 24 168


15 Board, including 26 487 32 029 X 58 516

16 *Verbose board 26 487 19 093 X 45 580

17 *Other boards X 12 936 X 12 936







23 * Unbleached sulphite X X X X

24 *Semi-pulp 6 309 950 X 7 259




28 TOTAL PULP 126 742 17 130 50 750 93 122

29 Commodity pulp 57 750 17 130 50 750 24 130



corrugugated cardboard

59 506 5 628 1 604 63 530


30 Waste paper 149 474 33 451 X 182 925


Waste paper 116 023 33 451 X 149 474

Source: NSI

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1 Newsprint Х 39 631 1 024 38 607

2 Writing and printing paper, including Х 53 355 1 182 52 173

3 *Uncoated not containing DM Х 25 389 466 24 923

4 * Coated not containing DM Х 18 956 716 18 240

5 * Uncoated containing DM Х Х Х Х

6 *Coated containing DM Х 9 010 Х 9 010


8 *Liner of primary fibres Х 12 733 1 068 11 665


10 *Fluting of primary fibres Х Х Х Х



envelopes, machine-smooth packing paper, etc. 77 535 1 029 70 791 7 773


14 Other paper Х 8 900 Х 8 900

15 Board, including 44 875 34 046 Х 78 921

16 *Verbose board

17 *Other boards Х 13 693 Х 13 693





21 *Unbleached sulphate (kraft) 68 807 3 025 Х 71 832

22 * Bleached sulphite Х 12 530 Х 12 530

23 * Unbleached sulphite Х Х Х Х

24 *Semi-pulp 6 309 Х Х 6 309

25 *Wood-pulp Х Х Х Х

26 *Pulp for chemical processing Х Х Х Х

27 Total fibrous materials excluding those of wood Х Х Х Х

28 TOTAL PULP 132 701 17 255 50 000 99 956

29 Commodity pulp 57 585 17 255 50 000 24 840

Corrugated cardboard/micro corrug. cardboard 96 499 75 2 048 94 526



93 168 6 704 1 659 98 213


30 Waste paper 163 346 51 684 Х 215 030


Waste paper 111 662 51 684 Х 163 346

Source: NSI

of 130




1 Newsprint 0 38 622 864 37 758

2 Writing and printing paper, including 0 60 573 219 60 354

3 *Uncoated not containing DM 0 27 213 219 26 994

4 * Coated not containing DM 0 21 807 0 21 807

5 * Uncoated containing DM 0 0 0 0

6 *Coated containing DM 0 11 553 0 11 553


8 *Liner of primary fibres 0 11 257 0 11 257

9 * Liner of waste paper 34 700 21 659 0 56 359

10 *Fluting of primary fibres 0 0 0 0





14 Other paper 0 8 900 0 8 900

15 Board, including 64 320 37 843 53 474 48 689

16 *Verbose board 64 320 20 383 53 474 31 229

17 *Other boards 0 17 460 0 17 460





21 *Unbleached sulphate (kraft) 72 682 2 050 0 74 732

22 * Bleached sulphite 0 13 498 0 13 498

23 * Unbleached sulphite 0 0 0 0

24 *Semi-pulp 6 447 0 0 6 447

25 *Wood-pulp 0 0 0 0

26 *Pulp for chemical processing

27 Total fibrous materials excluding those of wood 0

28 TOTAL PULP 124 761 18 622 42 310 101 073

29 Commodity pulp 45 632 18 622 42 310 21 944

Corrugated cardboard/micro corrug. cardboard 112 689 52 н.д. 112 741



110 757 6 964 439 117 282


30 Waste paper 185 537 52 712 68 238 181


Source: NSI

of 130


materials of Bulgaria – 2006 /measure – ton/


1 Newsprint 0 38 019 451 37 568

2 Writing and printing paper, including 0 67 178 1 853 65 324


4 * Coated not containing DM 0 21 625 1 365 20 260

5 * Uncoated containing DM 0 0 0 0



8 *Liner of primary fibres 8 240 4 016 0 12 256


10 *Fluting of primary fibres 15 318 7 954 1 064 22 208





14 Other paper 0 2 692 163 2 529

15 Board, including 2 859 47 124 2 669 47 314

16 *Verbose board 2 859 26 195 2 395 26 660

17 *Other boards 0 20 928 274 20 654






22 * Bleached sulphite 10 983 0 10 983

23 * Unbleached sulphite 0 0 0

24 *Semi-pulp 7 005 0 0 7 005

25 *Wood-pulp 0 0 0 0

26 *Pulp for chemical processing 0 0 0 0

27 Total fibrous materials excluding those of wood 0 0 0 0

28 TOTAL PULP 128 131 14 851 46 630 96 352

29 Commodity pulp 51 532 14 851 46 630 19 753

30 Corrugated cardboard/micro corrug. cardboard 119 581 236 6 372 113 445

31 Packings of corrugated cardboard/ micro


104 311 7 734 1 887 110 158

32 Paper bags /*thousand pcs./ *41057 30 155

33 Articles of tissue (toilet paper) 9 510 1 984 379 11 116


Waste paper 116 965 6 829 2 916 120 878

Source: NSI

of 130




1 Newsprint 0 47 333 811 46 521




5 * Uncoated containing DM 0 51 414 3 800 47 614




8a - Liner of primary fibres and waste paper 9 666 3 970 0 13 636


10 *Fluting of primary fibres 0 10 007 6 120 3 888


12 Other packing paper: paper for bags and envelopes, machine-smooth 79 619 7 649 64 452 22 817


14 Other paper 0 29 621 13 511 16 109

15 Board, including 30 949 45 187 24 761 51 375

16 *Verbose board 10 117 29 470 4 370 35 217

17 *Other boards 20 832 15 717 20 391 16 158








24 *Semi-pulp 7 547 11 4 7 554

25 *Wood-pulp 0 0 0 0


27 Total fibrous materials excluding those of wood 0

28 TOTAL PULP 125 609 14 894 45 199 95 304

29 Commodity pulp 48 830 14 896 45 199 18 527

30 Corrugated cardboard/micro corrug. cardboard 139 298 1 087 6 030 134 354

31 Packings of corrugated cardboard/ micro corrugugated cardboard 118 511 7 702 1 679 124 534

32 Packings of verbose board 6 125 8 793 2 422 12 496

33 Paper bags /*thousand pcs./ 35028* 3 713 22587*

34 Articles of tissue (toilet paper) 11 307 2 717 462 13 562

Source: NSI

of 130




1 Newsprint 0 44 179 4 154 40 025


3 *Uncoated not containing DM 0 40 678 1 148 39 530


5 * Uncoated containing DM 0 8 421 307 8 114


7 Corrugated cardboard materials,

including

78 819 74 856 19 257 134 418



10 *Fluting of primary fibres 0 12 334 6 880 5 454


12 Other packing paper: paper for bags and envelopes, m-s packing machines.

64037 8674 52666 20045


14 Other paper 0 13 701 2 341 11 360

15 Board, including 11 366 51 972 10 570 52 768

16 *Verbose board 3 029 30 461 2 181 31 309

17 *Other boards 8 337 21 511 8 389 21 459


FIBROUS MATERIALS Manuf. Exp. Imp. Cons.

19 Total fibr. mater. of wood, including 132 904 11 180 65 920 78 164





24 *Semi-pulp 4 504 7 2 4 509

25 *Wood-pulp 0 0 0 0



28 TOTAL FIBROUS MATERIALS 132 904 11 180 65 920 78 164

29 Commodity pulp 72 957 11 180 65 920 18 217

30 Corrugated cardboard/micro corrug. cardboard 133 323 333 5 742 127 914

31 Packings of corrugated cardboard/ micro


123 359 8 900 1 937 130 322

32 Paper bags /*thousand pcs./ *25137 4 395 *14671

33 Articles of tissue (toilet paper) 11 798 2 986 3 210 11 574

34 WASTE PAPER Collected Exp. Imp. Cons.

Waste paper 137 025 30 316 29 352 137 989

Source: NSI

of 130


Bulgaria – 2009 /measure – ton /


1 Newsprint 0 45 550 4 834 40 716









10 *Fluting of primary fibres 0 3 718 3 712 6





14 Other paper 0 8 062 152 7 910

15 Board, including 32 47 880 994 46 918

16 *Verbose board 0 29 130 672 28 458

17 *Other boards 32 18 750 322 18 460


FIBROUS MATERIALS Manuf. Exp. Imp. Cons.






24 *Semi-pulp 464 0 0 464

25 *Wood-pulp 0 0 0 0




29 Commodity pulp 10 706 11 693 8 801 13 598


31 Packings of corrugated cardboard/ micro corrugugated

cardboard 101 105 7 650 1 671 107 084

32 Paper bags /*thousand pcs./ 4359* 3 403 135*


34 WASTE PAPER Collected Exp. Imp. Cons.

Waste paper 135 114 2 712 30 358 107 468

Source: NSI

of 130



PAPER AND BOARD Manuf. Imp. Exp. Cons.

1 Newsprint 0 47 248 7 901 39 348


3 *Uncoated not containing DM 0 39 387 2 377 37 011







10 *Fluting of primary fibres 0 1 315 1 072 243





14 Other paper 0 21 847 2 291 19 555

15 Board, including 30 60 181 1 215 58 996

16 *Verbose board 0 31 619 523 31 096

17 *Other boards 30 28 562 692 27 900


FIBROUS MATERIALS Manuf. Imp. Exp. Cons.






24 *Semi-pulp 0 0 0 0

25 *Wood-pulp 0 0 0 0




29 Commodity pulp 104866 8564 95843 17 587


31 Packings of corrugated cardboard/ micro corrugugated

cardboard 107 111 7 785 2 299 112 597

32 Paper bags /*thousand pcs./ 4850* 4 109 278


34 WASTE PAPER Collected Imp. Exp. Cons.

Waste paper 146 020 4 740 40 022 110 738

Source: NSI

of 130

SOURCES

1. Council for Administrative Reform to the CM of the Republic of Bulgaria, 2010,

Methodology for Strategic Planning

2. Report BSMEPA 2011 “Analysis of the state and factors for the development of SMEs –

Bulgarian SMEs in the times of crisis”, Bulgarian Small and Medium Enterprises

Promotion Agency, the information was extacted and processed by Google – Public

Data Explorer on 05-10.11.2011

3. On field survey of Bulgarian SMEs from the sector: 31.10 – 28.11.2011

4. Council Resolution of 15 December 1998 on a Forestry Strategy for the European

Union, the information was extacted and processed on 05-07.12.2011

5. Communication from the Commission to the Council and the European Parliament on a

Forestry Strategy for the European Union, the information was extacted and processed

on 05-07.12.2011

6. Communication from the Commission to the Council and the European Parliament

reporting on the implementation of the EU Forestry Strategy, the information was

extacted and processed on 05-07.12.2011

7. Commission Staff Working Document, Annex to the: Communication on the

implementation of the EU Forestry Strategy, the information was extacted and

processed on 05-07.12.2011

8. Brochure „Sustainable Forestry and the European Union: Initiatives of the European

Commission”, the information was extacted and processed on 05-07.12.2011

9. Classification of economic activities, 2008, the information was extacted and processed

on 08.11.2011

10. Report: The BREF in the Pulp and Paper Industry, Michael Suhr, 2000, the information

was extacted and processed on in November-December 2011

11. World Bank data – Indicators for the development of the world, current as at

02.11.2011; the information was extacted and processed by Google – Public Data

Explorer on 16.11.2011

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12. Eurostat data, Sectoral analyses, the information was extacted and processed in

November-December 2011

13. Data and reports of the National Statistical Institute, provided information for the

purposes of the document: November-December 2011

14. Classification of economic activities of the European Community /NACE/; the

information was extacted and processed on 11.11.2011

15. Eurostat report: Forestry in the EU and the World: A Statistical Portrait, 2011, the

information was extacted and processed in November-December 2011

16. Eurostat data: Statistics on Pulp and Paper 2005-2007, the information was extacted

and processed in November-December 2011

17. Key Statistics of Confederation of European Paper Industries (CEPI) – Key Statistics –

European Pulp and Paper Industry, 2009 the information was extacted and processed in

November-December 2011

18. Report of Confederation of European Paper Industries (CEPI) – Sustainability Report,

2011 the information was extacted and processed in November-December 2011

19. Report of the European Commission: Integrated Pollution Prevention and Control –

Reference Document on Best Available Techniques in the Pulp and Paper Industry,

Dec., 2001, the information was extacted and processed in November-December2011

20. Report of the European Commission: The Forest Fibre Industry – 2050 Roadmap to a

Low-Carbon Bio-Economy, 2011, the information was extacted and processed in

November-December 2011.

export strategy manufacture of pulp, paper,...

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