A Bulgarian metal technology group has bought a majority shareholding in state-owned forklift maker Balkancar Sredets AD.

GTM Angel Balevski, a leading Bulgarian investment company in the metal processing field, signed a contract with the Bulgarian privatisation agency to acquire 69.99 per cent of Balkancar Sredets' shares, the Pari Daily reported. GTM submitted the highest bid of LEV91.11 million (USD59.41 million) for the stake in Balkancar Sredets.

GTM is an abbreviation for metal technology group in Bulgarian and Angel Balevski was a renowned Bulgarian scholar in the field of metal sciences and technology. The group website said its member companies used the "most up-to-date technologies", including a counter-pressure casting method developed by the Bulgarian Academy of Sciences' Institute for Metal Science & Technology.

According to the report, two Bulgarian investment companies, Zagora Car and Bulcari, bid LEV35.5 million (USD23.15 million) and LEV61.66 million (USD40 million) respectively for Balkancar Sredets. After GTM was successful, the two companies appealed to the Bulgarian Supreme Court.

GTM CEO Krassimir Dachev could not be reached for comment before Forkliftaction.com News went to press.

Anton Stoynev, sales manager of Balkancar Zarya, a former Balkancar Holding subsidiary, said the Bulgarian Supreme Court had upheld the decision of the Bulgarian privatisation agency.

Stoynev told Forkliftaction.com News most of Balkancar Holding's subsidiaries still operated today.

"State-owned Balkancar was established in April 1965. Headquartered in Sofia, it co-ordinated the activities of 14 subsidiaries, comprising three forklift companies and 11 forklift parts companies.

"Balkancar Sredets, of Sofia, and Balkancar Record, of Plovdiv, are the only Balkancar forklift producers today," he said.

Forkliftaction.com News has reported that the site of a former Balkancar forklift manufacturing company, that ceased operation after it was liquidated, had been sold as real estate to VP group subsidiary Lithuanian Vilnius Acropolis (Forkliftaction.com News #268).

Balkancar Sredets and Balkancar Record distribute forklifts through their own distribution channels in Romania, Russia and other CIS countries, Stoynev said.

The 11 forklift parts companies are in the Bulgarian towns of Pleven, Byala Slatina, Assenovgrad, Lukovit, Tran, Knezha and Mezdra.

Stoynev said some companies had been privatised and others were still state-owned. Forklift wheel manufacturer Balkancar Zarya, of Pavlikeni, in northern Bulgaria, was privatised in 2005.

The Balkancar organisation was converted into a joint stock company, Balkancar Holding EAD, in April 1989, Stoynev said. The Bulgarian Government was the sole shareholder. In 2002, two of Balkancar Holding's major creditors filed for bankruptcy. The proceeding started in September 22, 2002, and is still running (Forkliftaction.com News #125).

Other forklift manufacturers in Bulgaria include Apex Service, Apex 11, Dimex, Hercu and Vi&Rus.