The Swedish company Oceanic Creation wants to invest EUR 60mn in the local military plant Terem - Flotski Arsenal in the Black Sea city of Varna. Bulgarian defence minister Vesselin Bliznakov unveils for the press that the Swedish investor is expected to a sign a memorandum for the project shortly. Oceanic Creation will reportedly produce components for construction of floating facilities for tourism and amusement purposes such as hotels, casinos, and restaurants. The local plant is part of the military holding Terem, whose production units spread throughout the country are expected to be put for sale by the end of this year or early next year.

Defence Minister Veselin Bliznakov discussed the prospects before Terem EAD and Supply Services Inc. at a meeting June 6th, with representatives of the leadership of the Confederation of Independent Trade Unions in Bulgaria (CITUB), the Podkrepa Labour Confederation, the Federation of Independent Trade Union Organization in the Bulgarian Army and the Defence National Trade Union, the Defence Ministry said in a press release.

A business programme has already been developed covering the period until 2008 for the financial stabilization of the eight subsidiaries of Terem EAD. Thanks to the rehabilitation programme implemented in the enterprises of Supply Services Inc. wages are being paid regularly, the average monthly wage being BGN 286. Now the efforts are concentrated on improving the working environment. The Gorna Oryahovitsa enterprises of Supply Services EAD was re-opened in May 2006 and a procedure for the certification of its output under ISO is about to be launched.

Up to 75% of the stakes in the eight plants of Bulgaria's state-owned arms holding Terem will be sold. Experienced consulting companies will be hired to advise on the sale of the eight companies. There is investor interest in five or six of Terem's plants. Flotski Arsenal Varna, which is the company with the best financial results, draws the strongest interest.