On 10.04.2023, Phytofarma EOOD began the implementation of the project "Technological Modernization in the Enterprise," funded by the European Union – NextGenerationEU under the National Recovery and Resilience Plan, funding agreement No. BG-RRP-3.004-1196-C01.

The overall goal of the project is to contribute to increasing the competitiveness and creating conditions for the sustainable development of Phytofarma EOOD as a manufacturer of high-quality vitamins and supplements, possessing stable market positions on a national and international scale.

The specific objectives of the project are:

- To create the company's necessary capacity for the efficient production of soft capsules from vegetable and animal gelling agents;

- To ensure the precision, speed, and quality of work in accordance with established standards and best practices;

- To optimize the cost structure of production, which will allow for a flexible pricing policy and higher net revenues.

In order to achieve the aforementioned goals, high-tech equipment with modern PLC control and functionalities will be delivered and put into operation within the framework of the project. This will have an overall targeted effect on the production activities of Phytofarma EOOD, as it will meet the enterprise's needs for increased efficiency, cost reduction, and ensuring the necessary higher productivity for a number of key products.

Under the project, a new production line for soft capsules (vegetable and gelatin) will be purchased, equipped with modern computer control, sensors, and detectors to ensure high-capacity and precise operation with optimal consumption of material and energy resources.

The activity of purchasing equipment will be carried out through external procurement in compliance with the rules for awarding activities for investments by final recipients according to Council of Ministers Decree 80/09.05.2022, the requirements of the Terms of Application, the Terms of Implementation and their annexes, as well as any other instructions and guidelines provided by the RRP Management Body.

It is envisaged that the activity will be implemented through the following stages:

1. Selection of a contractor (from the 1st to the 3rd month), including:

- Preparation and coordination of documentation for conducting the procedure (1st to 2nd month)

- Publication of the public invitation and collection of proposals (2nd month)

- Evaluation of the received proposals (2nd to 3rd month)

2. Conclusion of a supply contract with the selected contractor (from the 4th month)

3. Delivery of the new equipment (5th to 11th month)

4. Installation and commissioning. Signing of an acceptance protocol (11th to 12th month)

The key production process improved by the new equipment—the preparation of soft gelatin capsules—will result in more stable and high-capacity production and final products that are guaranteed to meet regulatory requirements and the highest quality criteria, even when using entirely plant-based materials. The new line will also contribute to higher efficiency and a reduction in the quantity of raw materials used in production, as well as lower labor costs, as it will not require the use of operators with highly specific technical knowledge.

The total budget of the project is 700,000 BGN, of which EU funding under the RRF is 350,000 BGN, and national co-financing is 0 BGN.

It is expected that project activities will be implemented by 10.04.2024.