“MONEK-YUG JSC (now Monek Bulgaria JSC), Kardzhali, specializes in the production of mining and metallurgical equipment, mining and drilling tools, spare parts, rubber products, repairs and related engineering activities.
Main customers are mainly companies from Germany, Austria, Russia, Turkey and Kazakhstan.
One of the main productions of the plant is for mining and drilling tools, which occupies about 25% of the total production volume.
The quality of the mining and drilling tools produced by MONEK – YUG AD is proven both on the Bulgarian market and on the markets of Austria, Germany, Turkey, Italy, Macedonia and other countries.
About the success, future plans of the company, we talk with the CEO Eng. Lyubomir Gradev.
- Mr. Gradev, how does the company stand on the markets in conditions of unprecedented crisis?
-It is important to specify which crisis we are talking about, because in recent years we have witnessed several.
The consequences of the COWID pandemic and the disruption of the global supply chain have led to a slowdown and even regression of the globalisation process. Many businesses in Bulgaria and the European Union have started to look for solutions for materials and services locally to eliminate delays and disruption in production processes. Extremely high seaborne wages combined with the strong US dollar in turn made Bulgarian companies more competitive compared to those in Asian markets.
The Russian-Ukrainian conflict, as unpleasant as it may be and as soon as we hope it will be resolved, has disrupted the supply of raw materials for metals production, which in turn will be reflected as a record year for Bulgarian enterprises in the mining and mining processing industry.
If this is the crisis you are referring to, I would say that Monek is placed in some extremely favourable conditions for a positive development.
- What is the formula for success in such a situation?
-I have had the pleasure of working on 3 continents with quite a few international companies and it has impressed me that the formula for success is the same, namely hard work and commitment of the whole team to achieve the set goals. “MONEK-South AD also has the additional advantage of being one of the few fully Bulgarian companies in the region and part of the CSIF holding, it has no commitment to foreign investors and pays taxes in Bulgaria, which at this stage are favourable for business.
Unfortunately, this is not a common practice with foreign investments in Bulgaria, where the production is sold to the plant at lower prices, which accordingly invoices the end customer on its behalf or pays fabulous management fees, the result in both cases is a reduction of the profit tax entered into the Bulgarian treasury.
- How does Monek-South JSC outperform the competition?
– The main advantage of Monek-South JSC is that it has been on the market since 1954 and almost all operating mines and mining-processing plants, which are not few in Bulgaria, have been equipped over time with our technological solutions.
They have proven themselves over time to be reliable and always turn to the original manufacturer when a replacement is needed. Another advantage we have is the fact that we are the only manufacturer in Bulgaria of such equipment that is able to provide a complete solution from design to implementation and installation. We live in a market economy, customers are demanding more and more complex services. Interest in smaller manufacturers producing partial equipment and combining with downstream processes in different locations often proves extremely difficult, uncompetitive and creates quality risks. “Monek-South” enables its clients not to engage in activities that are not specific to them and we take over the entire implementation.
- The holding company of which Monek-South JSC (CSIF) is a part plans to invest nearly BGN 20 million in the next 5 years. Explain to us in detail about this investment plan.
– For our holding company, as a company with entirely Bulgarian capital, including its subsidiaries, as well as for the owner of the holding, Ms. Tsvetelina Borislavova, the preservation of national wealth and values has always been a priority. On the company’s website, it can be seen that much of the investment is in renewable energy, tourism, agriculture, and that our headquarters building in Sofia is a meticulously restored monument of culture. The fact that MONEK-South plc manufactures equipment for an industry that is not at the bottom of the carbon footprint charts cannot be an excuse not to do what is necessary to reduce the impact we have on the environment. Accordingly, a priority goal is for the company to operate entirely on renewable energy by 2024.
We do not intend to limit ourselves to that. Increasing energy efficiency will be the main driver of the forthcoming investments, and accordingly funds have been earmarked both for the renovation of the existing facility and for the renewal of the machine tools with new generation ones that are significantly more productive and autonomous.
We are in negotiations with new customers, which will require investments in new production facilities, about which it is unfortunately too early to share details.
- Will additional jobs be created?
- What are the biggest problems for industry in Kardzhali?
– I believe that unanimously every employer, both in Kardzhali and in the country, will agree that the main problem is the lack of staff. The competition for labour is great and for this reason we are discussing and preparing a very detailed strategy with our headquarters. To make it easier for our staff with young children, opening hours are now in place until 16:15. We are discussing options for working from home, as well as renting an existing building on the factory grounds for a private nursery, but unfortunately there is not much interest at the moment.
