Auto mechatronic parts manufacturer Leopold Kostal GmbH. continues to grow its operations in Bulgaria with the official launch of another production unit at its industrial site near Plovdiv.
At the plant in the town of Pazardzhik, southern Bulgaria, the family owned German group has inaugurated a new 13,000m2 production hall, increasing Kostal’s capacity to turn out mechatronic modules for the European automotive market.
By the end of this year, the group’s local subsidiary Kostal Bulgaria Automotive expects to hire around 1,000 workers for the additional unit. The company aims to increase the overall workforce employed by all its production facilities in Pazardzhik to 4,000 by next year.
At a ceremony this month to mark the latest local expansion, Bulgarian Prime Minister Boyko Borisov praised Kostal’s local employees for their hard work and high productivity.
He pointed out that the company’s existing Pazardzhik plant manufactures about 250,000 steering column modules for Volkswagen vehicle models as well as around 100,000 modules for BMW annually.
Also present for the occasion were other government officials including Bulgaria’s deputy Prime Minister Tomislav Donchev and the Finance Minister Vladislav Goranov, along with Kostal group management.
The local production operation, opened by Lüdenscheid, North Rhine-Westphalia-based Kostal group in 2017, is part of its Automotive Electrical Systems division, the biggest of Kostal’s four businesses. It specialises in making automotive switches, switch panels and electronic control units as well as electromechanical modules.
The original Pazardzhik operation was launched in August 2017 with an initial workforce of 500. Kostal already ran two electronic parts plants further south in Smolyan, near the Greek border, launched in 2011 and 2015 and has a research and development centre in the Bulgarian capital Sofia.
Kostal also produces mechatronic modules in Bulgaria for other European vehicle manufacturers including Daimler, Porsche, Peugeot, Audi, Ford and Alfa Romeo.
The group was set up back in 1912 by its Czech founder Leopold Kostal in the German city where it is still headquartered.
Today, Kostal Automotive Electrical Systems has production plants in other European countries including North Macedonia, Czech Republic, Ukraine, Spain, the UK, Ireland and Germany. It runs more plants in Morocco, Mexico, Brazil, India and China.