Until the end of 2008 Austrian machine-building company Palfinger was expected to complete its second large investment project in Bulgaria, managing director of Palfinger Bulgaria Goran Starchevich announced.

Construction of the new cylinder factory near the Yambol village of Tenevo was at an advanced stage, Dnevnik daily reported. Investments in the factory were estimated at 25-30 million euro.

The world leader in hydraulic lifting manufacturing has been operating in Bulgaria for 8 years. It started by producing part of the metal bodies of the machinery of the former Beta military factory in Cherven Bryag . Since then the company's production increased several times and the personnel grew from 150 to 500 employees, manager of Palfinger's Bulgarian division said.

Since 2002 Palfinger transferred in Bulgaria its cylinder production, the cylinders were made in the workshop of the former Sila (Power)  machine-building factory near Tenevo. Starchevich commented that the opening of the new factory in 2008 would double the company's cylinder production capacity.

The high quality of the Bulgarian products stimulated managers to continue investing. In 2006 a new welding workshop was opened in Cherven bryag, 5 million euro being invested in it. Palfinger's ambitious social programme includes building a modern residential complex for the employee's families.

For the last 2 years incomes of the two Palfinger factories in Bulgaria increased by 30 per cent. Sales in 2006 amounted to 55 million euro while in 2007 they were expected to reach 64-65 million euro, manager of Palfinger Bulgaria said. In 2006 Palfinger reached a 585 million euro income and expectations for 2007 were to reach 760 million euro. The target for 2013 was for sales in excess of 1 billion euro.

Palfinger specialises in hydraulic lifting, loading and handling systems manufacturing. Its machinery is widely used in the construction industry, the timber industry, in construction and installation of electrical equipment, etc. Demand of Palfinger's products in Western Europe is very high and is expected to continue to increase. 30 per cent of the production is sold in Spain. Other big markets are those of Germany, France, Canada, etc.