Balkan (factory)
| Company type | Joint-stock company |
|---|---|
| Industry | Machine building, automotive, aerospace |
| Founded | 1938 |
| Headquarters | Lovech , Bulgaria |
| Products | Aircraft, automobiles, motorcycles, bicycles, e.GO Mobile vehicles |
Balkan AD (Bulgarian: „Балкан“ АД) is a privately held joint-stock machine-building enterprise situated in Lovech, Bulgaria, founded in 1938. Throughout its history, the company has manufactured aircraft, automobiles, motorcycles, and bicycles. In December 2021, a new production facility was established to commence manufacturing e.GO Mobile vehicles, with operations scheduled to begin at the start of 2023.
The factory has operated under several names over time: State Aircraft Factory (Държавна самолетна фабрика), Bicycle and Motorcycle Plant (Велосипеден и мотоциклетен завод), Light Vehicle Plant Balkan (Завод за леки автомобили „Балкан“), Balkan United Enterprise (Обединено стопанско предприятие „Балкан“), Balkan United Plants (Обединени заводи „Балкан“), Balkan Machine-Building Plant (Машиностроителен комбинат „Балкан“), Balkan EOOD (Балкан“ ЕООД), Balkan EAD („Балкан“ ЕАД), and currently Balkan AD („Балкан“ АД).
The factory has assembled a variety of vehicles including:
- Aircraft: Avia, Laz, DAR models (1943–1954);
- Automobiles: Balkan 1200, Moskvitch (1966–1990), Pirin-Fiat (1966–1971); GAZ vehicles, Balkan T800 trucks; minibuses such as Rila 700 and Balkan M-10; e.GO Mobile cars (2023–present);
- Motorcycles: Balkan 250;
- Mopeds: Balkan 50;
- Bicycles.
Since 1941: aircraft
Following the repeal of the 20-year limitation imposed by the Treaty of Neuilly in 1938, the Bulgarian military was authorized to possess fighter aircraft. Consequently, the Air Force Command resolved to establish a state-of-the-art aircraft manufacturing facility to centralize Bulgaria's aviation industry outside the capital city of Sofia. The goal was to develop and produce aircraft matching leading European standards in both quality and volume. A dedicated commission was formed to select an appropriate location for this factory.
Initial reactions in Lovech were largely unfavorable because agricultural land needed to be acquired for the plant's construction. However, through persistent efforts by the mayor to reassure citizens about employment opportunities and intellectual advancement for the city, public opinion gradually shifted. Records of these municipal discussions remain preserved. Despite this, on July 5, 1939, anti-industrial protests occurred and were supported by many local residents.
Polish engineers with experience in similar industrial projects designed the factory buildings. The new aviation facility was named the State Aircraft Factory (abbreviated as DSF).
Aircraft produced at this site included:
- DAR-9 Siniger – a trainer aircraft manufactured in spring 1943; across three production series, a total of 40 units were completed.
- Avia-135 – a Czechoslovak fighter delivered as kits; approximately twelve were assembled, tested, and transferred to the Air Force.
- DAR-10 – originally conceptualized as a reconnaissance plane at DAR; its prototype was constructed at DSF. This high-speed monoplane featured excellent maneuverability and stable controls with rapid ascent capabilities. Test pilot Eng. Petko Popganchev reported it outpaced the Avia-534, but the prototype was lost in a fog-related crash in 1942.
- DAR-10F – an evolution developed by Eng. C. Lazarov equipped with a Fiat engine, capable of reaching speeds up to 460 km/h. This versatile aircraft was suitable for reconnaissance, assault missions, horizontal and dive bombing, as well as air combat. Tested by Eng. Popganchev in March 1945, it did not enter mass production.
- Lazarov Laz-7 and Laz-7M – designed by Eng. Lazarov and his team, these low-wing monoplanes served as training aircraft for navigators and military pilots. They are considered highly successful and represent Bulgaria's most produced aircraft types with 160 Laz-7s and 150 Laz-7Ms manufactured.
- Laz-8 – a four-seat monoplane air taxi prototype created as a gift from the designers during the Bulgarian Communist Party congress in 1948; only one unit was built.
After World War II concluded, the State Aircraft Factory in Lovech remained Bulgaria’s sole military aircraft manufacturer following the cessation of operations at Kazanlak Aircraft Factory in 1947. By early 1949, this modest facility expanded into a major industrial complex designated as Plant 14, with technician Gancho Lazarov appointed as director. Concurrently, aeronautical engineering education continued at the Technical University in Sofia until 1954.
In 1954, COMECON decreed the termination of Bulgaria’s domestic aircraft industry. This decision left numerous specialists—including engineers like Dimitar Damyanov who had begun their careers at Plant 14—facing uncertain futures despite their dedication to aviation development.
From 1954: Introduction of New Products
Following the shutdown of the aircraft manufacturing sector, the company underwent several name changes and shifts in its production focus. It was successively known as the Bicycle and Motorcycle Plant, Balkan Automobile Plant, Balkan United Enterprise, Balkan United Plants, and Balkan Machine-Building Plant.
The initial phase of reorganization after 1954 involved a brief period of producing entirely unconventional items. However, the leadership of the former aviation factory demonstrated resilience by independently overcoming the crisis through a proposal submitted to higher authorities. They suggested commencing large-scale manufacturing of cars and motorcycles in Lovech, capitalizing on the factory’s existing equipment and skilled workforce.
From 1965 onward, the facility adopted the name Balkan. It comprised six subsidiary plants: one for automobiles, one for two-wheeled vehicles, a mechanical products plant, a plastics and rubber plant, and a tool manufacturing shop. Beginning in 1971, as part of DSO "Balkancar" (Balkancar), it produced components for electric vehicles and forklift trucks within Bulgaria.
Cars
By the late 1950s, during a period marked by strong technical expertise in Bulgaria, the concept of creating a Bulgarian automobile emerged. The objective was to establish a prestigious manufacturing line that would become the primary focus of the former aircraft factory.
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Initial development work on the first car prototype commenced in late 1958. At that time, a Volkswagen vehicle was stored on the factory grounds; its engine and chassis served as reference models. Specialists from Plant 12 in Sofia also participated in these early stages by successfully replicating an identical engine (after 1956, Plant 12 took over all engine production for Balkan motorcycles).
The design team led by engineer Damyanov included Yuli Kostov, engineer Kancho Kanchev, engineer Ivan Petrov (Deputy Chief Engineer), Georgi Filipov, Peycho Peychev, Georgi Lazarov, among others. Their responsibility was to develop the car body. The shaping of individual sheet metal components was done entirely by hand using wooden mallets on leather cushions filled with sand.
A major challenge for this team was managing the so-called "geometric development", which was drafted on a large board at full scale (1:1). This drawing served as the basis for creating templates that guided the production of wooden models. The final step involved segmenting the wooden model into parts used to cast metal dies for forming the external body panels. Marin Radev oversaw model construction while Georgi Lazarov managed forging of the external metal elements.
Pickups and vans
Alongside the passenger car, a prototype for a light truck derived from the Volkswagen Transporter was developed. This prototype closely mirrored the original vehicle in design. In September 1960, both car and pickup truck models were displayed outdoors at the International Fair in Plovdiv, prominently featuring a "Made in Bulgaria" label. Discussions regarding the potential manufacture of a light truck resumed in Lovech during spring 1962. By March of that year, engineer Damyanov's team initiated preliminary work on the project, comprising Ivan Savov, Vasil Valev, Bogdan Hambardjiev, and engineer Lyubomir Toshev, who was responsible for the suspension system. Their objective was to develop prototypes of both a light truck and a minibus sharing an identical front section within six months, aiming to showcase them at the 20th anniversary sample fair in Plovdiv.
Throughout 1962, the design department concentrated on producing an 800 kg payload light truck along with minibuses seating either 7+1 or 11 passengers, based on Soviet models such as the Volga and Moskvich. The pickup truck was fully manufactured in Lovech; however, for the 11-seat minibus bodywork, a visit was conducted to the bus manufacturer Chavdar in Botevgrad, which was then the sole specialized producer of bus bodies.
In September 1962 at Plovdiv, a minibus and light truck model were introduced under the name Balkan T800, receiving widespread acclaim supported by numerous enthusiastic articles in both Bulgarian and international automotive journals. By April 1963, a small batch of three trucks was completed, featuring wooden loading platforms instead of metal ones used in the initial prototype. These vehicles successfully passed testing, leading to approval for serial production of the Balkan T800. However, an unforeseen obstacle emerged: the USSR was unable to supply sufficient chassis and engine kits (with Moskvich still being the only widely produced private car there), and local manufacturing capacity was inadequate to satisfy domestic demand.
Despite these challenges, development proceeded. In 1965, the plant unveiled a new, more contemporary minibus model, followed by a scaled 1:5 van model in 1966. The exterior styling for this van was assigned to engineer Petko Mishev from the Center for Industrial Aesthetics and Artistic Design (CPEHP), which had been responsible since 1964 for designing nearly all Balkan motorcycles.
At the 1967 Plovdiv Fair, the Rila 700 prototype minibus was presented—based on the Moskvich 408—with its body crafted by Hristo Hristov, a leading architect from Lovech. The final series of Rila minibus designs were proposed in 1970 by Petko Mishev and Emil Ivanov, both prominent vehicle designers at CPEHP; however, these designs failed to secure approval from relevant authorities. Consequently, development of a Bulgarian minibus prototype ceased.
Motorcycles and Bicycles
Dimitar Damyanov served as the project leader for the initiative. The initial motorcycle prototype, named the Balkan M1, was unveiled at the 17th International Fair in Plovdiv in 1956. Manufacturing commenced in 1957, with the first 100 units completed by the end of that year. Engine production took place at Plant 12 in Sofia. Motorcycles equipped with 250 cm³ engines were manufactured up until 1971.
Starting in 1961, Plant 14 began producing mopeds featuring 50 cc engines, continuing this production until 1975.
Between 1971 and 1975, a moped variant with a 75 cc engine was also available.
Since 1990
In 1995, Balkan transitioned from a state-owned entity to a sole proprietorship with limited liability, followed by a conversion into a sole proprietorship joint stock company in 1996. Balkan AD’s principal operations include manufacturing forklifts and bicycles, as well as producing hydrodynamic transmissions, drive axles, and spare components.
During the initial phase of mass privatization between 1995 and 1997, the company was privatized. Since 1997, Balkan has functioned as a private joint stock company employing approximately 100 people. By 2011, Napredak Holding held a 44% ownership stake in the company.[1]