KORADO Bulgaria targets new markets with high-margin radiators

The recent launch of production of eight-connector, universal radiators at KORADO Bulgaria will help the Bulgarian unit of Czech steel radiator maker KORADO enter new markets, the group’s CEO Vojtech Chamek said.

“From September 1, we are already producing these high-margin radiators that will help KORADO Bulgaria not only expand sales but add new markets in western and northern Europe,” Chamek told SeeNews in an interview last week. The Radik VKM8 is a universal steel panel radiator with eight connection ports, making it easy to install in home with different pipe setups.

Even though production of the new radiators is very sophisticated and includes a robotic increment, total investment was less than 300,000 euro and the company’s staff expanded by 15 people.

“At the beginning of the year my production manager Mr Sindelar came to me with a very revolutionary idea how we can manufacture the Radik VKM8 at KORADO Bulgaria without stopping production of our traditional radiators and spending around 1 million euro ($1.2 million),” Chamek said. “It was all very smart and cheap.”

The new radiators are expected to boost KORADO Bulgaria’s sales back to the record-high levels of 2021 and 2022, Chamek said. These years, KORADO Bulgaria's revenue reached approximately 56 million levs.

In the first half of this year, revenue decreased to some 16.2 million levs from 16.7 million levs a year earlier, according to the company's financial report. However, in terms of volume, sales increased to 161,299 units from 142,439 in the first six months of 2024.

As much as 80% of KORADO Bulgaria’s sales are carried out via the group. However, direct sales have expanded by 50% since the beginning of the year, Chamek noted.

“In the last three months of 2025 we will already have substantially higher volumes than originally anticipated. But the major start will be in January when the KORADO Group will start full scale supplies for Bosch,” he explained.

PARTNERING WITH BOSCH

In July, the Czech group said it is going to join the supplier network of Bosch Home Comfort Group. The KORADO radiators will be sold to the markets under the brand of Buderus.

“The contract with Bosch was something very serious, an expression of trust for what a Czech group can do. The product standards should be kept and nothing should change for our clients. The quality of Bosch should be sustained,” Chamek said.

Even though the main production for Bosch will remain with the mother company in the Czech Republic, the contract acted as a catalyst for the recent innovation at the Bulgarian plant.

“The Bosch contract will increase by 25% the volume we are currently producing in the group, which is quite substantial. That is why it was absolutely vital that we installed the new line in Bulgaria on time and ensure that capacity is utilised efficiently," Chamek explained.

For next year, investments at the Bulgarian plant will be target specifically efficiency improvements, including in robotics, aiming to add value to production, as well as hopefully completing the bathroom radiator production including painting and packaging Chamek also said.

Commenting on market trends, the CEO noted that enthusiasm for heat pumps has collapsed due to their high cost. Therefore, more homes prefer to keep their condensation boilers as the alternative to expensive heat pumps. Both can work with lower temperatures and save substantial energy costs. Both can be connected with our unique V-power radiators. These V-Power radiators can switch on and off depending on room temperature and can be connected to a condensation boiler or a heat pump. Ventilation equipment is another product category for KORADO which is growing very rapidly.

Founded over 60 years ago in the Czech Republic, KORADO has delivered its products to more than 30 million customers worldwide. Its portfolio includes classic panel radiators, bathroom radiators, designer radiators, and a wide range of convectors.