Trade with the rights issued by Industrial Holding Bulgaria starts on BSE today. In case of a successful subscription the company will increase capital from the current 26.254 mln leva (13.423 mln euros) to 43.757 mln leva (22.372 mln euros).

Profit.bg talked to CEO Daneta Jeliazkova about the holding's investments and projects.

Q. Mrs. Jeleva, the projects of which subsidiaries will be financed with funds from the capital increase?

We are planning to provide part of the finances necessary for the construction of three ships for Industrial Holding Bulgaria by our subsidiary Bulyard Shipbuilding Industry. Two of the ships weigh 9,000-tonnes, and the third weighs 21,000 tonnes will be suitable for bulk cargoes.

We are also planning to invest in the expansion and modernization of the dock terminal in Port Burgas Shipbuilding Yard. The project requires 23,000,000 leva and is part of the National Program for Development of Bulgarian Ports. The management aims at establishing Port Burgas as one of the most active ports in the region in terms of dock processing of general and bulk cargoes.

Q. Which are the main projects of your companies in the maritime sector and how much do they cost? Are you planning to sign any new contracts soon and in what area?

Besides the ones I mentioned so far, I would like to point out that Bulyard has a very serious program for construction of new ships. The company is currently working on contracts for the construction of new ships worth 210 mln euros, and on contracts for construction of ship hulls worth 22 mln euros. This does not include the two ships requested by Bulgarian Maritime Fleet. The first ship – Pirin has date of completion 31 October 2007, and the second ship #515 will be completed by April 2008.

We are planning on signing new contracts for the construction of 57,000-tonnes ships of the type Superhendrimax Future 56, for which we obtained a license from IHI Marine United Inc (Mitsubishi Corporation). We are also expecting new projects from ship owners in Norway for construction of hulls for supply ships.

Q. How is the portfolio of Industrial Holding Bulgaria structured and what are the priority areas?

The export-oriented sectors have always been the priority of IH Bulgaria. This allows us access to markets much larger than the Bulgarian, and at the same time keeps our competitiveness level very high.

Our priority areas are obvious from the way our portfolio is structured – the maritime business takes up 65.57%, machine buildings takes 17.62%, river shipping 6.17%, furniture manufacturing 1.84%, and the remaining 8.8% are connected to our core activity.

Q. Could you name some of the leading projects on which your public subsidiaries are working at the moment, and could you tell us what are their investment strategies?

The public companies in our group are the Troyan-based Mashstroy and Elprom ZEM. The first company is one of the leading manufacturers of universal lathes with digital programming, and the second operates in the filed of electrical engineering. Both companies invest mainly in their core activities, in modernization of the machine park, and installation of new technologies. Elprom ZEM, for example, invested in a factory for laser cutting and in a VPI system for isolation, which boosted production. The new machines are also more energy efficient.

Q. Can we expect to hear about new acquisitions of equipment or portfolio restructuring?

The management of IH Bulgaria has always been open to new projects, that is if they fit into our strategy. As far as restructuring is concerned, this is something that never stops. When a business's volume grows too much, we need to restructure the portfolio, in order to be able to manage and develop it more easily.

Q. What is the future of ship design in Bulgaria?

The shipbuilding industry is flourishing worldwide, and has become more active in Bulgaria as well. This led to the development of related sectors. Industrial holding Bulgaria in cooperation with Norway-based VIK-Sandvik invested in the establishment of VIK-Sandvik-IHB Design. The core activity if the new enterprise is ship design. We will use the experience and contacts of the Norwegian team, which is well-known on the market, and combine it with the knowledge and skills of the Bulgarian team of more than 30 ship designers in order to create a successfully operating company. I would say that the development of ship design in Bulgaria is dependent upon support from international companies, because although we have good experts, we still lack the know-how, and we need help in marketing a product.

Q. Do you feel that there is a lack of professionals in maritime business in Bulgaria and if yes, what kind of professionals exactly?

There is a lack of qualified experts in the maritime business in Bulgaria as in any other area in the country. This may be more tangible in our sector. There are not enough workers in the shipbuilding part, welders for example, and we lack ship personnel as well. Bulgarian regulations are limiting us to a large extent in hiring qualified workers from foreign countries, especially non-EU countries. This is obstructing many projects. It would help a lot if the process for hiring personnel, at least from Bulgarian communities in Ukraine, Moldova, Serbia and Macedonia, is facilitated. On top of that, in spite of the high level of unemployment in Bulgaria, all TV channels including Bulgarian National TV, are constantly airing programs telling people how to emigrate and find a job abroad. I think we all have to work together and stay in Bulgaria. The business expects the Government's support on that issue.

Q. What are the advantages of the public statute?

The public statute makes the company more transparent and wins investors' confidence. The good image is very important for attracting financing at better conditions, and in the first place, it ensures finances from the stock market via shares and bonds trading. I would like to point out that Industrial Holding Bulgaria is well-known among investors for information accessibility and for its good corporate management.

The company's website topped the charts of PFS Program and the Institute For Economy Policy in terms of online connection with investors among 40 of the leading companies in Bulgaria on market capitalization. As a result, we are among the most liquid issues on BSE and our shares are traded on the highest bourse segment. We are part of the calculation of SOFIX, BG40, and BGTR30, and in some of the Dow Jones indicators – DJSTOXX EU Enlarged and Dow Jones Wilshire.