Bulgarian steel wheels manufacturer Balkancar Zarya has bought a 51% stake in forklift parts manufacturer Balkancar Ruen for BGL3.4 million (USD2.4 million).

Bulgarian News Digest reported Zarya wanted to diversify its business.

"Balkancar Zarya enters a new segment in the industrial vehicles manufacturing industry, growing from a product supplier into a systematic supplier to manufacturers," Zarya said in a statement.

According to the report, Zarya expects its consolidated sales revenue to reach BGL8.5 million (USD6.0 million) because of the acquisition. Before, Zarya forecast a 24% year-on-year jump in sales to BGL6.0 million (USD4.3 million).

Balkancar Ruen, established in 1966, posted a first half net profit of BGL52,000 (USD36,897.80) on total sales revenue of BGL2.2 million (USD1.6 million). For 2006, its net profit was BGL65,000 (USD46,122.20) and sales were BGL4.3 million (USD3.1 million).

It exported about one-third of its products to foreign markets last year.

Forklift parts companies Balkancar Erma and Balkancar ZFI are up for sale after being bypassed by investors during a one-day sale by the Bulgarian Privatisation Agency.