German Business Association in Serbia by CorD Magazine

GUIDE TO THE

German Business Association in Serbia

Traditional Partnership & New Perspectives November 2009

Traditional Partnership & New Perspectives

Guide To The German Business Association in Serbia

EDITOR Tanja Ostojić t.ostojic@cma.rs ASSISTANT EDITOR Andrej Klemenčič a.klemencic@cma.rs PROOFREADER Mark R. Pullen ART DIRECTOR Tamara Ivljanin, t.ivljanin@cma.rs SPECIAL THANKS TO: The Embassy of Germany in Belgrade Delegation of the German Economy for Serbia EDITORIAL CONTRIBUTORS Nenad Radojević, Ana Stojanović PHOTO Slobodan Jotić SALES Vesna Vukajlović, v.vukajlovic@ cma.rs; Ana Zagajac, a.zagajac@cma.rs GENERAL MANAGER Ivan Novčić, i.novcic@cma.rs FINANCIAL DIRECTOR Ana Besedić, a.besedic@cma.rs OFFICE MANAGER Tanja Banković, t.bankovic@cma.rs PRINTING Rotografika d.o.o. Segedinski put 72, Subotica GUIDE TO THE GERMAN BUSINESS ASSOCIATION IN SERBIA “TRADITIONAL PARTNERSHIP & NEW PERSPECTIVES” PUBLISHED BY alliance international media, in association with Delegation of the German Economy for Serbia Knjeginje Zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11) 308 99 77, 308 99 88 Fascimile: +(381 11) 244 81 27 E-mail: office@ allianceinternationalmedia.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2009

CONTENTS

ERNST BODE, President of the Delegation of the German Economy for Serbia and Montenegro and CEO of Messer Tehnogas ACCELERATED REFORMS

MICHAEL SCHMIDT, Director of the Delegation of the German Economy for Serbia and Montenegro NO SHORTCUTS

TIHOMIR RALJIĆ, CEO of Siemens Belgrade CAREFUL OPTIMISM

MILAN PARIVODIĆ, Chairman of Foreign Investors Services UNUSED POTENTIAL

SLOBODAN MILOSAVLJEVIĆ, Serbian Minister of Trade & Services - ECONOMIC PARTNERS A PRIORITY

ARTUR HERTLE, Economic Department Chief, Embassy of Germany in Belgrade - STABLE BUSINESS CLIMATE

MIODRAG BABIĆ, President of Hemofarm - SYNERGY OF KNOWLEDGE AND EXPERIENCE

4 Guide To The German Business Association In Serbia

DÖRTE WEIDIG, Chairperson of the Board of Directros of ProCredit Bank - RESPONSIBLE BANKING

RUŽICA ĐINĐIĆ, President of the Dr Zoran Đinđić Foundation GERMANY IS A TRUE FRIEND

DARKO BABIĆ, DHL Cluster Manager Western Balkans KEY WORD: LOYALTY

32 16

HEIKE PÖRKSEN, First Secretary for economic co-operation at the Embassy of the Federal Republic of Germany in Belgrade - CO-OPERATION IS IMPROVING

JUTTA GEHRIG, Director of the Goethe Institute Belgrade - CULTURAL DIVERSITY

DR ELKE HELLSTERN, DIRECTOR OF KFW Entwicklungsbank in Serbia RAISING EFFICIENCY

MAREK KUCHTA, Director of Lufthansa for Serbia, FYRMacedonia & Montenegro - BEST SOLUTIONS

BY WOLFRAM MAAS,

Ambassador of the Federal Republic of Germany Dear readers,

For Germany, 2009 is an important anniversary year. 60 years ago, on 23rd May, 1949, the German Basic Law, the constitution of the Federal Republic of Germany, was promulgated. Four years after the Nazi barbarity, which brought unimaginable suffering to almost all European countries, Germany got the chance for a new beginning. We confronted our past, drew lessons from our history and started to rebuild our country. We have to be grateful that we were assisted by neighbours and many countries all over the world which - irrespective of the past - were prepared to reach out to us and work with us. As a result, Germany became a key player in unifying Western Europe and building European institutions. 20 years ago, on 9th November, 1989 the Berlin Wall fell, opening the way for German reunification and the outreach of the European Union to Eastern and Southeast Europe. Today, Germany is surrounded by friends, a trusted partner to Europe and the world. We have every reason to remember these two milestone events in German history, which turned our destiny with gratitude and joy. Having enjoyed the support of our friends, it is now up to us to share our experience with, and support, countries like Serbia on their move forward towards the European Union. Although at times the path was rocky, I am happy to say that today Germany and Serbia are enjoying an excellent relationship. With the clear focus of the Serbian Government on the European Union, political co-operation is straightforward. Economically, Germany and Serbia are very close partners. Academic ties that have traditionally been strong are further strengthened by a wide range of co-operation and exchange. From theatre to music, film to fine arts, frequent contacts are mutually inspiring our respective cultural scenes. As reassuring as that is, there is always room to do more. Therefore, together with our Serbian friends, in November 2009 we are preparing “German Days”, a programme to raise awareness of the breadth of our relationship from politics to the arts, economy to education, science to sports. I invite all readers of CorD to participate in our efforts by joining us in concert halls and theatres, cinemas and before the tube. It would be great to see you take the chance to get to know a little bit more about Germany, but also about German-Serbian relations. I hope you will enjoy the upcoming “German Days”, as well as reading this jubilee edition on this topic.

Sincerely yours, Wolfram Maas Ambassador

INTERVIEW Ernst Bode, President of the German Economic Delegation in Serbia and CEO of Messer Tehnogas

ACCELERATED REFORMS

Ernst Bode is careful when he talks about new investments, particularly those in the banking sector most active chambers of economy in Serbia. What are your goals and priorities? The German Business Association in Serbia represents about 140 companies with a total of about two billion euros in annual revenues and approximately 13,000 employees. It is our goal to create value for our members by providing information, training, networking and a joint position on issues of general concern. Germany is one of the foremost investors in Serbiaâ&#x20AC;&#x2122;s economy. Do you believe your investments have lived up to their full potential? German companies were among the first that began investing in Serbia (e.g. Messer purchased the majority of Tehnogas and entered the Serbian market as early as 1997). However, investments have not yet achieved their full potential. This is also partly influenced by the general economic situation, which is slowing most business activities down.

iewing the situation in Serbia from a perspective which offers both good and bad, Ernst Bode is opti-

6 Guide To The German Business Association In Serbia

mistic about the long-term prospects and the future of German-Serbian business co-operation. Mr. Bode, you chair one of the

Where do you see space for improvements in the investment area? Besides the general improvement which will inevitably follow after the world crisis begins to subside, other improvements will surely take place after investing in the development and revival of Serbian industry and agriculture, after the adoption and implementation of new, modern laws and the cancelation of old, inapplicable

ones, which will hopefully speed up necessary procedures. Foreign investments can achieve their full potential only if the country’s economy becomes stronger and more competitive. Are you and your members generally satisfied with the business conditions in Serbia; do you believe Germany’s role as one of the biggest investors in the region is being taken into account adequately? Our members are generally satisfied with their investments in Serbia, although the level of satisfaction has been decreasing during the last few years compared to other countries in Eastern Europe. The reasons for this lie in the often long and painful administrative procedures and the lack of interest on the side of the local administrations and utility providers, etc., to solve the issues and remove obstacles swiftly and efficiently. Generally, I believe that the German contribution, which is most significant not only in terms of direct investments but also in terms of project financing, donations and political support, tends to be underestimated. Of course, that is also a shortfall on the side of the sender.

mies. The two countries have traditional, very long and strong economic relations. German technology has influenced Serbia more than any other country and Germany is the biggest trade partner of Serbia, if oil and gas are excluded. So, it was a logical step for German companies to enter Serbia and, although a lot has been done, I think there is still potential to do a lot more. The Serbian market has not yet seen the arrival of major German banks, which were to follow the arrival of German interests in Serbia. When can we expect this to happen? Unfortunately, it seems that, despite the good margins in the banking sector, Serbia is currently not attractive to German banks and I believe

of them implement these standards in the areas of health and safety, environmental protection and corporate governance as part of their worldwide company policies. This has a positive impact on local business partners and the general business climate in Serbia. To reinforce this trend, it is important to apply EU standards in Serbia and, thus, maintain a level playing field. It would neither be in the interest of German companies, nor the Serbian economy at large, if the companies that are applying EU standards are placed at a disadvantage. What hampers the arrival of new German investors and the expansion of existing ones the most? At the moment, new investments and the extension of existing ones is a very rare occurrence all over the world. I think that Serbia is generally attractive and that the investments will come, but for the moment everyone is still under the influence of the great crisis. Serbia could, in the near future, profit more than others from a recovery in the world economy if some smart measures are taken. The sharp economic downturn was triggered by external factors outside Serbia. At the same time, the crisis revealed Serbia’s vulnerability and internal deficits. In order to be in a good starting position once the world economy picks up again, reforms should be accelerated.

Serbia could, in the near future, proﬁt more than others from a recovery in the world economy if some smart measures are taken

German companies entered Serbia immediately after the sanctions were lifted. How do you see the relations between the two countries’ economies? Germany is the biggest economy in Europe and is geographically closer to Serbia than most other big econo-

that in the near future we will not see big German investments in this segment, which I believe does not exclude smaller engagements in some aspects of banking. How do you see the impact of your association on Serbia’s economy and local companies, when it comes to bettering the general understanding of EU standards? Our members are generally familiar with the EU standards and most

After 12 years in Serbia, Messer became a significant factor in the Serbian economy. When you compare

INVESTMENTS

SUPPORT

EU STANDARDS

Our members are satisﬁed with their investments in Serbia, although the level of satisfaction has been decreasing during the last few years compared to other countries in Eastern Europe

The German contribution, which is most signiﬁcant not only in terms of direct investments but also in terms of project ﬁnancing, donations and political support, tends to be underestimated...

It would be neither in the interests of German companies, nor the Serbian economy at large, if those companies that are applying European Union standards are placed at a disadvantage Guide To The German Business Association In Serbia 7

INTERVIEW Messer’s potential in Serbia with the achievements so far, what do you see? As any other company, we depend on the wellbeing and success of our customers, so we can be as good as the general business environment around us. Comparing Serbia with Western Europe, but also with some neighboring countries, I think there is a significant potential for growth and positive economic improvement. We shall hopefully all prosper from this after Serbia regains and develops its economic strength. What are the most significant plans of Messer Tehnogas in Serbia for 2010? Messer Tehnogas plans to maintain its strong and solid position in the Serbian market and continue growing and improving together with its customers and clients. On the internal plan, since the end of 2008 and throughout 2009, despite the difficult economic situation, there was no cutting of the number of employees in the company, and even the salaries were slightly higher compared to previous year level, which is also the plan for the following year. Furthermore, along with entering new markets, the plans for next year also include introducing new applications of gases in many industrial branches for a more effective production, environmental protection, production safety, quality, etc., and supporting our customers in their advancement and expansion. You are the most significant supplier of oxygen to hospitals in Serbia, including oxygen tanks. Do you find the changes you have to make in infrastructure significant and do they ever seriously obstruct the supply? Messer Tehnogas supplies medical oxygen as well as nitrous oxide (laughing gas), used as an anesthetic during surgeries, to Serbian hospitals and medical institutions and is the single producer of these medical gases in Serbia. Other companies from this field import medical oxygen and nitrous oxide and only fill cylinders in Serbia. 8 Guide To The German Business Association In Serbia

German technology inﬂuenced Serbia more than any other country and Germany is the biggest trade partner of Serbia, if oil and gas are excluded Messer Tehnogas is also the only company in the country with the European Union GMP certificate for these two gases and three certified laboratories. Besides supplying gas, the company also installs tanks for storing liquefied gases and builds gas supply installations and pipelines for the internal supply directly on customer’s sites. The changes in the infrastructure, however significant they are, never obstruct the supply and the hospitals and medical institutions always have what they need when they need it. For several years now, Messer has been the recipient of the award “Best from Serbia” in the category of foreign companies on the domestic market.

What do you believe makes Messer so distinctive in the eyes of Serbia’s business community? Messer Tehnogas has received the “Best from Serbia” award four times in a row, from 2005 to 2008, as the best foreign corporate brand in Serbia. It is a company with a very long tradition in the gas industry; Messer is celebrating its 111th anniversary this year, while Tehnogas was founded in 1929 and celebrates its 80th birthday. Over the decades, we have supplied and worked with countless companies and gained the trust of both the business community and the public. But the key to our success are our employees and the work and efforts each of them is putting into making Messer Tehnogas such a distinctive and recognisable brand. What benefits will Messer and other large EU companies have once Serbia enters the EU? Messer will particularly benefit from new environmental legislations, which must trigger significant investments in this field. Besides this specific subject, I believe that if Serbia suceeds in entering the EU with a good economic package and if the Serbian Government acts responsibly and professionally, creates trust and avoids the mistakes of some negative examples in the direct neighbourhood, EU accession will generally jumpstart the economy of Serbia. As a man who is well-familiarised with this region, where do you see Serbia in the next five years? I wish to see Serbia with higher growth rates and productivity improvements than the neighbouring countries, with investments in industry, modern equipment which will help save costs, improved quality and efficiency, which will make goods produced in Serbia competitive on the world markets. Most of all I would like to see the Serbian industry revived and see smart measures that will support the industry instead of permanently harming it and depriving it of any chance to be competitive on the world’s markets.

INTERVIEW Slobodan Milosavljević, Serbian Minister of Trade & Services

ECONOMIC PARTNERS A In the past several years, Germany has constantly been among the top three external trade partners of Serbia. Although the overall balance of external trade exchange is negative, last year’s exports were US$1.1 billion, while imports totaled US$2.7 billion

By Tatjana OSTOJIĆ

his year we mark the 20th anniversary of the fall of the Berlin Wall. This event is one of the most significant geopolitical shocks of the 20th century that triggered enormous changes around the world, but most of all in the countries of the former Eastern Bloc and also in the republics of the former Yugoslavia. This was one of the topics of the conversation with Slobodan 10 Guide To The German Business Association In Serbia

Milosavljević, Minister of Trade and Services in the Government of Serbia.

significant events of 20th century history and I would call it an event which fixed one historic injustice. Germany today is the most powerful economy in Europe, its most populous state with the greatest potential. The unification only contributed to strengthening German influence outside the European continent, as well as strengthening the EU itself. The fall of the Berlin Wall was the turning point of the Cold War era; the turning point which contributed to the unification of European nations. A positive event, which the former Yugoslavia could have taken much better advantage of, but didn’t. We blew our chance that the reform government of Ante Markovic gave, bringing us so close to Europe. Today we have a new chance, with positive assessment of Serbia on its path to visa liberalisation and, I hope, applying for EU membership soon. I expect that, with the approval of big European players - Germany in particular, Serbia can soon enter the procedure of EU negotiations. One of the main ideas of Zoran Đinđić was that the region as a whole, due to its historic problems and persisting

“I think that arrival of a respectable German bank would no doubt accelerate the arrival of other German investors” How did the fall of the Berlin Wall influence Serbia? How much did we gain and what was lost because of that event? This, by all means, is one of the most

negative, painful heritage, should enter the European Union. That means Croatia, Bosnia & Herzegovina, Serbia, Montenegro and FYRMacedonia. I believe this is

PRIORITY a lasting, sustainable development and positive not only for the people of the region, but for the countries of the EU as well, all in the sense of preserving stability and peace in the Balkans.

a generator of several billion euros of investments from Germany to Serbia. This is one of the topics we are trying to set up in our new relationships with Germany, and I believe that potential exists despite the crisis and all of the problems which German and Serbian economy are facing. Another great potential, used only in part, is the close relationship which the late Prime Minister Djindjic had with Germany. Through various meetings with the highest German officials, substantial interest was displayed, but it had not sufficiently materialised either in economic ties or the overall geopo-

“One of the main ideas of Zoran Đinđić was that the whole region, due to its historic problems and painful, negative experience, should enter the EU” Do you believe that Serbia then seized the chance, as a “new” independent state, to establish the useful and friendly bilateral economic and political relations with the “new” German state, as some other countries in the region did? We used this much less than the potential. The Serbian Diaspora in Germany is extremely important. That is one natural link in the sense of economy, business, science, sport and, indeed, in any other sense between Germany and Serbia. A link that contributes as much as one billion euros of direct payments of family members to Serbia and could be

litical support to Serbia. And this is still true. I proudly state that I am Vice President of the Dr Zoran Đinđić Fund, presided over by Mrs Ružica Djindjic and that we have fantastic co-operation with the German Government, their Ministry of Economy, more accurately with its branch for cooperation with East, which helps creating an entirely new economy elite in Serbia. We are talking about sending best Serbian students to practice in the leading German companies. The benefit is enormous. How do you see the way German-Serbian relations have developed in the past

PARTNER NO.1

GERMAN INVESTORS

t is my humble opinion that Germany is our Number One partner in the European Union and it should accelerate the European integrations of Serbia, the development of our economy, strengthening of Serbia’s competitiveness and, overall, the arrival of a better life in the region. I am sure that this will happen.”

o one has such obvious economic interest as Germany to invest in Serbia, because of the CEFTA agreement, the free-trade agreements Serbia has with Belarus, Turkey and Russia, as well as because of other beneﬁts that we offer, like cheaper energy and cheaper highly-educated labour. It is of mutual interest.

“I

“N

Guide To The German Business Association In Serbia 11

INTERVIEW 20 years, most of all in economic terms? We had several hard years, with no results, and then years with negative results. Since the year 2000 we have dynamism and progress, which is satisfying, but still below that which is possible. The overall external trade with Germany was 2.5 billion dollars in 1990, 628 million in 2000. We finished last year with 3.84 billion. In the last several years, Germany has been one of the three most significant trade partners of Serbia. Although the external trade balance was negative, we exported around 1.1 billion, while the imports stood at 2.7. billion dollars. Our export to Germany has been growing continuously, the dominant sectors being machinery parts, industrial equipment, metal products and fruit. Between 2000 and today, there have been 1.5 billion dollars of German investments in Serbia. With Austria, Greece and Norway, Germany is the biggest investor in Serbia, with 11% of overall investments. Germany invests mainly through pharmaceutical industry, chemicals, trade, services and agriculture. How do you see the political relations between the two countries? Have there been more misunderstandings or have things been going smoothly? I see more understanding and unlimited potentials and possibilities, but also the insufficient speed when it comes to making the agreements operational. When we talk about Germany in particular, I believe that the murder of Prime Minister Đinđić, was followed by four years of completely wrong politics up until the arrival of President Tadić. This was a dead time, where the relations reversed in stead of progressing. During the last two years, there have been positive dynamics regarding both bilateral meetings as well as the topics discussed. The talks on topics of infrastructure have been intensified. We see Germany as a partner when it comes to the largest electrical energy projects. I am sorry that Mercedes, who initially saw Serbia as one of the investment options, decided to invest half a billion eu12 Guide To The German Business Association In Serbia

topic now is how Henkel, Watz, METRO or Messer talk about our market, because in those sectors lies the potential for generating new investments. I am an optimist. I believe that large German business will come along with small and medium-sized companies. According to German surveys, these companies have say they have not been satisfied with the conditions for doing business in Germany over the past two, three years, both in the sense of profit as well as because of high costs. I believe that these companies will turn to Serbia as a potentially close destination for moving a part or their entire business to.

“I believe in the arrival of big German business, but also small and medium-sized companies” ros into building a new factory in Kecskemét, Hungary. I think that the next big project between Serbia and Germany could be in the traffic industry. I also see big potential in cooperation in the field of agriculture. In the wholesale sector, we have an extraordinary investment of METRO of more than 150 million euros. We expect this company to further expand within Serbia, but we also expect the arrival of other trade chains. The true quality is, that we have Germany represented in almost every sector of business. They have been constantly investing in Serbia and this is a good sign for other German investors as well. The time of members of Serbian government going to Germany is, I believe, over. The

So far, only a part of big German companies have entered the Serbian market. There were complaints that companies from Germany have more access difficulties in Serbia than companies from other countries or in comparison to domestic companies. Do you agree with this and are there any announcements of more German companies coming to Serbia? Surely there are some minor difficulties, but the mere fact that German companies have not decided to take their profit out of Serbia, but instead to invest more, say that this environment is good for business. Where do I see the limitations? We have not one single strong German bank here and I believe that an arrival of such a company would further accelerate the arrival of other investments. I also thing German retail chains and insurance companies should be present on the Serbian market. What are your expectations in GermanSerbian relations for the next five years? It is my estimate that the level of external trade will reach a minimum of five billion dollars by 2015 and I expect the level of direct investments to be around that figure. I would like to, in five years, say that we had underestimated the possibilities of co-operation between Germany and Serbia, but I am almost certain that the figures I have mentioned will be met.

INTERVIEW

STABLE BUSINESS Artur Hertle, Economic Department Chief, Embassy of Germany in Belgrade

The Economic Department of the Embassy of Germany in Belgrade represents one of the most important gateways for the German capital coming into Serbia. Artur Hertle is optimistic - both about the current position of German companies in Serbia and the prospects for new arrivals

they are satisfied with the outcome of the investments they made so far? Economic relations between our two countries are good. Germany is one of Serbia’s most significant trade partners. Many German enterprises have branches or representative offices here. Since the year 2000, German enterprises have invested more than 1.2 billion Euros in Serbia. In my opinion, however, it is possible to further increase these very positive figures.

erbia’s reception to foreign investments is to decrease in 2009, but the interest of German companies remains high. However, regional competition should be taken into account, as well as the fact that Serbia should be open to German investments not only from large firms, but also from medium-sized companies.

14 Guide To The German Business Association In Serbia

What do German investors expect from Serbia? Of course, investors that want to engage on the Serbian market in a longer perspective – and Serbia needs these long-term investments – expect a certain degree of security in their business plans. They need a functioning administration which is prepared to make decisions. They also need a judicial system that guarantees the frame for investments. And they need political stability. There are in excess of 130 German companies in Serbia. Would you say

Would you say that the business

INVESTMENTS erman investments, spanning from technology with companies such as Siemens, food with METRO, pharmaceuticals with Hemofarm and industry with Messer, represent a strong branch of the Serbian economy. Atrur Hertle believes the German presence in Serbia can still be increased, as more political stability makes Serbia a safer environment to invest.

CLIMATE

climate in Serbia is suitable for further German investments and, if so, in which sectors? German enterprises have invested more then 1.2 billion Euros in Serbia. German business people come on a regular basis in order to obtain information about possibilities to invest in Serbia, in almost all sectors. OBI is coming to Serbia, but some large companies are still on hold, like Deutsche Bank. What has to happen for these companies to be more active; are the reasons of a political nature or is it simply economic reality?

German business people come on a regular basis in order to obtain information about possibilities to invest in Serbia, in almost all sectors In my opinion, it is not only important to have large German companies coming to Serbia but also medium-sized companies which are the backbone of our economy. All companies want to have suitable business conditions. Like investors all over the world, German entrepreneurs weigh up the pros and the cons of a possible investment, along with the risks of an investment. And at this point Serbia is facing ever-increasing competition in the region. There are Serbian companies present on the German market. Why do you think a Serbian company should invest in Germany? Germany has a regulatory framework and a successful blend of tradition. With its world-renowned ”Made in Germany“ quality seal, Germany is a market leader in many key sectors. One of Germany‘s hallmarks is the high value placed on science and culture and the traditionally close ties between the scientific community and industry. The country offers investors all the ingredients of success, notably a well educated and highly trained labour force, as well as first-class infrastructure. Investing in Germany not only gives you access to one of the most promising domestic markets strategically positioned inside the European Union, but also to the world’s largest internal and export market.

Guide To The German Business Association In Serbia 15

INTERVIEW Miodrag Babić, President of Hemofarm

KNOWLEDGE & EXPERIENCE Hemofarm has, despite this crisis, managed to export more than half of its production during the first six months of 2009, recording 60% export growth when that period is compared to the same period of 2008. Hemofarm is the largest exporter of medicines from Serbia

By Ana STOJANOVIĆ

ermany’s biggest investment in Serbia, which is at the same time one of the biggest overall investments in the Serbian economy, was the purchase of Hemofarm by STADA. What this investment brought to Serbia, the similarities and differences between the two economies, as well as the plans of Hemofarm, were just some of the issues we discuss here with the President of Hemofarm, Miodrag Babić.

Germany’s STADA bought 100% of Hemofarm in 2006 for nearly half a billion euros. Until today, that investment remains one of the most significant for16 Guide To The German Business Association In Serbia

eign investments ever in the Serbian economy. What, in your opinion, did this investment bring to Hemofarm pharmaceutical industry and the overall Serbian economy? Surely everyone found it impressive to see a Serbian company so highly valued. Entering the STADA family, Hemofarm group acquired additional security and new

development perspectives. In the era of globalisation, it is difficult to keep pace with development, particularly when you are referring to a company in the Balkans. We realised that when we were entering the final phase of the firm’s privatisation, which, incidentally, we began among the first in the region back in 1989. And we made a good decision, which is of great importance to me personally, because I represented the interests of 65% of the major shareholders, but also of many smaller ones. It was a great responsibility. Serbia’s pharmaceutical industry became stronger with Hemofarm’s entry into the STADA Corporation. Our health system is slowly getting accustomed to getting medicines of the newest generation, which are transferred from the STADA group, made in Serbia, sold at home and exported. Synergy of knowledge and experience is valuable, because the pharmaceutical industry is among the branches with the steepest development curve. Hemofarm’s export potential has grown. It is true that we are somewhat forced to turn towards export, because of continual price problems at home, as well as because of the rapid market liberalisation and liquidity problems of retailers. Hemofarm has, despite this crisis, managed to increase exports year-on-year by 60% in the first six

VRŠAC TECHNOLOGY PARK

ome eight years ago, I came up with the idea of a Vršac technology park. Hemofarm, together with an Italian partner, started investing in building the first factory of the park and stopped there. However, the city got substantial financial support from the EU for this project, so we began the first phases of infrastructure works. I believe that next year we will begin building two or three factories, because some arrangements have already been made. Vršac has potential and I believe we will see them through.

months of 2009. Hemofarm is Serbia’s biggest medicines exporter, contributing to decreasing our external trade deficit.

How much do businesses and procedures in Germany differ from Serbia?

Talking about Hemofarm, I do not see a big difference, because we were always a step ahead of others. We approached EU standards long ago. We acquired the European GMP eight years ago, although we were in no way obliged to do so. Obligations came only after most of our companies had already acquired the certificate. Five years ago we started introducing and using the Sap system. We constantly invested in the advancing of technologies and processes. Our innovations reached far beyond the Balkans. These are only some of the examples which testify that we never differed greatly in our business from the companies in the West. And that was one of the key factors when a decision was made that someone will pay so many millions for a Serbian company. Honestly, and without being pretentious, we are not the average of this country. On the contrary, the Serbian practice is regrettably far from standardised.

Do you believe that Germany could have invested more in the Serbian economy, had adequate conditions been provided? Of course. I have enough experience to be able to say this with confidence. I learned a lot working with German businessmen. They are pragmatic, analytical and are not prone to risk taking. And investing in Serbia is pretty risky, when you take into consideration all the segments which have not been taken care of, plus the enormous

turbulences and huge, slow, state administration. Regulations are often problematic because of lacking interpretations which go along the lines: “We should do it this way, but the other way around would be fine too”. We, as a state and society, must get serious

corporation. How long has Hemofarm been exporting its products to Germany? Our medicines have been in German pharmacies for some 10 years, mainly the OTC remedies. It may seem that we were a bit late positioning ourselves on the market,

“I learned a lot working with German businessmen. They are pragmatic, analytical and are not prone to risk taking” and begin to act more responsibly towards ourselves and others. We must learn how to take into account the needs and interests of others. We did not go about creating economic and legal conveniences for investors. And that is key.

You have been the head of Hemofarm for 27 years. In the meantime, this company became a respectable international

but one must take into account that during sanctions the import of medicines to Serbia was subject to sanctions, let alone the export. We did not have illusions that under those circumstances we could make any significant step in a country with a strong pharmaceutical industry. We knew the circumstances in Germany well, as we had had a firm there since 1991. But long before the medicines, Germany had the opportunity

2009 / Hellenic Business Association 17

INTERVIEW to use dialysis equipment made in Vršac. Hemofarm had a factory there for producing dialysis equipment since 1982. This was high-quality material that began to find its place in centres for dialysis in Germany very soon. That factory was at first a joint venture with Germany’s Fresenius, which was and remained the best in everything connected to dialysis. It is interesting that the contract on joint investment came to an end at the time when sanctions were introduced against the former Yugoslavia. But following the initiative by Fresenius, which was agreed with the German government, we signed a joint venture agreement in 1993, with Fresenius owning 67% of the company. Four years ago, Fresenius bought out our share, but the factory - now a part of Fresenius - still operates within the Hemofarm industrial compound. Fresenius will also be one of the first companies to build production facilities within the Vršac Technology Park. Hemofarm earned its first GMP Certificate back in 2001 and now all our facilities operate with GPM EU certificates. That is a prerequisite for export to the EU. Russia is our biggest export market, but 35% of all our exports go to the EU, 15% to Germany. Since May this year, we started delivering to the U.S. after obtaining the highest FDA certificate. That is a confirmation of quality, as well as confirmation that the energy put into keeping pace with modern technologies in the pharmaceutical industry is worth it.

One of Hemofarm’s goals is to be one of the ten largest medicine suppliers in Russia, where you already have a factory. How is that plan progressing? It is going well. Among the 1,000 suppliers in Russia, Hemofarm is currently number 30. Our factory in Obninsk sailed through initial difficulties of introducing the local workforce to demanding processes. This year the production has been going well, so we can already talk about tens of millions of produced units. Along with the original offer, we have been transferring the products from STADA portfolio as well. The factory has GMP standards, so for the first time medicines from Russia are coming into the EU and they are coming from Hemofarm’s factory in Obninsk. The market is big, competition intense. We have strengthened our marketing team in Mos18 Guide To The German Business Association In Serbia

fact that we earned an FDA certificate for the most complex pharmaceutical forms, following four years of dedicated work of a large team of experts. The presence of our medicines in the EU will increase. We will have even better positions on the Russian market, while at the same time catering for our region, as well as the developed countries of the Middle East and Africa, the markets where we have been working for very long and are expecting big effects soon. STADA is supportive of our orientations and ambitions.

You have personally turned the city of

“The trend of development, of investing, of innovative approaches, which we have been pursuing for years, will continue” cow. There are very few people from Serbia in it. We hire local experts and then educate them and prepare them to work using new marketing approaches and tools. I believe that in the next five years we will manage to be among the top ten suppliers of complex high-quality medicines, adjusted to the new needs of the Russian market.

What are the business goals of Hemofarm for the next five years? The trend of development, of investing, of innovative approaches, which we have been pursuing for years, will continue. Orientation to sophisticated forms, medicines of greater therapeutic efficiency and further export growth will be among the key goals. We have achieved the maximum on the domestic market. We are strengthening our positions on the markets where we are already present and seeking new ones. Since May this year, we have been exporting to the U.S. Six months after obtaining the FDA certificate, we began delivering. Of course, we will not stop at that, particularly due to

Vršac, where your home factory lies, into a true wonder. Are there further plans? It is true that Vršac will offer a nice surprise to someone who has not been there for the past 15-20 years. Sanctions did not devastate the city. On the contrary, big efforts were exerted to ensure the city could go on, despite the closing down of a significant number of companies. It is true that I have contributed to this progress. I do not take “This can not be done” for an answer, so I gathered a group of businesspeople around me who made the city authorities become attuned to the needs of residents. The first thing to be reconstructed was the main square. Hemofarm started building a modern residential compound in 1994, which the people of Vršac now call Hemograd, representing a beautiful touch of modern architecture and the traditional Vojvodina style. Then we started building the Millennium Centre. Hemofarm was the largest donor, but there were also others. That project brought the people together. We were building even during the time of bombing. Hemofarm also built Hotel Villa Breg on the site of the old hotel, memorable for its terrace with a wonderful view. We do focus on the city, but the surrounding villages have not been left behind. Our Foundation also contributed to reconstruction of important locations in the city, like the courtyard of the Orthodox church which is, at the same time, a schoolyard as well. We invested in reconstruction of the staircase and a sightseeing spot close to the Catholic church. We took care of sport terrains and culture institutions in the city, as well as in the surrounding villages. We truly did a lot during the last few years.

INTERVIEW Michael Schmidt, Director of the Delegation of the German Economy for Serbia and Montenegro

NO SHORTCUTS M

ichael Schmidt, after five years in Serbia, runs the Delegation of the German Economy for Serbia and Montenegro, as well as managing the German Business Association in Serbia. His role offers him an excellent overview of the presence of the German economy in Serbia and also the knowledge of the real-life problems which the companies are facing.

Michael Schmidt talks about the increasingly active role that the German presence is having on Serbiaâ&#x20AC;&#x2122;s economy, as well as the fact that German investors seek to come to projects which have already proved successful within Serbia. Michael Schmidt is also the point of contact for incentives or problems that member companies may encounter upon their arrival in Serbia 20 Guide To The German Business Association In Serbia

You are the Director of the Delegation of the German Economy for Serbia and Montenegro (AHK)? What does the Delegation do? Our institutional set-up requires some explanation and is not obvious to the outsider: In Serbia, the Association of German Chambers of Commerce (DIHK), supported by the German Ministry of Economy (BMWi), decided in 2001 to establish the Delegation of the German Economy for Serbia and Montenegro, as part of the AHK-network of 120 offices in 80 countries. AHKâ&#x20AC;&#x2122;s are the foreign representative offices of DIHK and cover 97% of German trade flows worldwide. After the democratic changes in the year 2000, it was high time to establish a presence in Serbia. The Delegation in Belgrade covers Serbia and Montenegro and fulfills the tasks of any AHK: First, we are the official representation of German industry and commerce, in close co-operation with the Embassies. Secondly, we are supporting the establishment and functioning of local members organisations. Last but not least, and complementary to this, we are also service providers to companies. You are also the Managing Direc-

tor of the German Business Association in Serbia. What is the connection between the two institutions? The German Business Association (DWB) was founded at the end of 2003 on the initiative of the Delegation and numerous German companies present in Serbia. The Delegation provides the executive office for the association which comprises about 140 member companies. Currently the companies Messer Tehnogas, Hemofarm-Stada, Politika, Deutsche Bahn, Commerzbank and Profine are represented in our board. Our goal is to merge the Delegation and the Business Association into a fullyfledged German-Serbian Chamber of Commerce (AHK) under Serbian law. We are optimistic that the legal pre-requisites for this will soon be met in Serbia. The political and economic stabilization of Serbia, e.g. the EU-candidate status, could give this

development an additional boost. The German Business Association (DWB) is one of the biggest and most active bilateral business associations in Serbia. What is the structure of the membership and what are your plans for the future? DWB is a platform for all companies involved in business with Germany, including other European and Serbian companies. Currently about 20% of our members are manufacturing companies, 35% in trade and 45% service providers. Our membership therefore reflects the overall structure of the Serbian economy. At the same time this is a healthy basis for growth and co-operation: e.g. a well-developed and professional business services (lawyers, financial and HR consultants) are an important requirement for investments in the manufacturing sector. Just

Most large investments in the region were preceded by successful distribution activities in the respective market by connecting member companies with each other and with outside companies coming from Germany,

Guide To The German Business Association In Serbia 21

INTERVIEW we provide a powerful engine for promoting trade and investment between our two countries. What is the key for the German Business Association (DWB) to become an engine for promoting bilateral economic relations? I believe that we need to become more focused on the interests and the problems of our member companies and to provide them with added value. The personal contact with the members, flexibility and sufficient industry-specific knowledge are crucial to turn members into active members. The success of DWB and any business association is ultimately measured by the amount of active members, rather than by those paying the membership fee. I also see potential for external growth, i.e. a substantial increase in the membership. Especially manufacturing companies simply do not have the time, esp. during an economic, crisis to attend our events. We want to involve these companies in workshops and activities, often ad hoc, which directly and positively impact their business in Serbia. Despite the drastic fall of imports in 2009, Serbia continues to be an important importer of German products. As more and more sophisticated products and machinery are being imported from Germany, German companies interested in the Serbian market depend on reliable and efficient Serbian partners. We see a huge potential for potential distributors of German products to benefit from membership in DWB. But the Serbian Government

increase Serbiaâ&#x20AC;&#x2122;s export potential. The link between trade and investment is very strong: most large investments in the region were preceded by successful distribution activities in the respective market. For example, we only recently organised a trade mission to the EcoFair in Belgrade by the German Green Tech companies. Participants of the delegation mentioned that a few successful projects in Serbia could be the basis for moving parts of the production to Serbia. Unfortunately there are no short-cuts in this process and the sequence of trade before investment can rarely be reversed. Good trade relations and successful joint projects in innovative industries are therefore of mutual benefit and this is what we are working on together with the Serbia authorities.

The success of DWB and any business association is ultimately measured by the amount of active members, rather than by those paying the membership fee stresses the importance of investments, especially manufacturing and export-generating? Having previously worked as adviser in the Serbian Ministry of Economy, I am well aware of this. As I said, we are particularly interested in promoting imports of sophisticated investment goods and the know-how from Germany, which will ultimately

PROMOTING INVESTMENTS

e are particularly interested in promoting imports of sophisticated investment goods and the know-how from Germany, which will ultimately increase Serbiaâ&#x20AC;&#x2122;s export potential.

22 Guide To The German Business Association In Serbia

What kind of services do you provide and how does this relate to your other tasks? The AHK-system is supported by the German Ministry of Economy, but an increasingly large part of our budget is self-financing, i.e. through the provision of services. Membership fees only make up about 20% of AHK budgets worldwide. In Serbia we are particularly active by organising trade-missions and B2B events, co-financed public authorities in Germany, providing market information and business contacts to Serbian companies. We are also a representative of the Berlin Fair and, from the 1st November 2009 onwards, of Munich Fair, providing support to potential exhibitors and visitors to important fairs in various industries such as real estate, construction, environmental technology, electronics and tourism. All these activities create synergies with our other main tasks of representing German industry and commerce and of running and developing DWB as a membersâ&#x20AC;&#x2122; organisation.

INTERVIEW Veronika Puncheva, Managing Director of METRO Cash&Carry Serbia

GOOD CO-OPERATION METRO Cash&Carry is the world wholesale leader employing 100.000 people throughout Europe, Asia and Africa. Five of their 600 distribution centres are in Serbia, where METRO came in 2005.

eronika Puncheva became CEO of METRO Serbia following years of success as a board member in Ukraine. Native Bulgarian started her career with the German wholesaler in 1998. Ms. Puncheva is satisfied with how METRO is doing in Serbia and announces new projects. MCC came to Serbia in 2005 with 15 million Euros investment in Krnjaca and employed 300 people. Today you have five distribution centres, the investment totals 82 million and number of employees rose to 1300. How are you satisfied with the situation in Serbia so far? We are quite satisfied with our business in Serbia and today with our existing structure we cater for the biggest part of Serbian professional customers - traders and HoReCa. The number of local suppliers you have been working with in Serbia is growing steadily, approaching the number of 1000. Are you satisfied with this co-operation? We are very happy with our Serbian partners. We enjoy a high level of co-operation. We are finding more and more high qualitz Serbian products, which we export via our METRO network to other countries. Most frequently, those products are frozen fruit, canned goods, confectionary products etc. What percentage of Serbian origin goods you have in your wholesale centres? Majority of the food and non food products which we sell are sourced from Serbian producers or importers. Probably 90 % of our food and more than 80% of our non food offer are purchased locally. We do source internationally as well - together with other METRO countries - only for some special categories; mainly seasonal goods, some textile products and product lines which are specific for our customer needs - e.g. we have a special GASTRO range of products which is international. Are you satisfied with the range of products on Serbian market? The product offer on the Serbian market is quite stabile. In 2009 the whole marked noticed turbulences in the food and nonfood segment due to the global economic crisis. Some distribu-

tors went out of business and the market offer, especially in some non food categories, did not improve substantially. However the local producers, particularly in the food area, managed so far to sustain the crisis in a very good way and even widened their offer by launching new product lines. You have two distribution centres in Belgrade, one in Novi Sad, Kragujevac and Nis. What is the difference between these Cash& Carry stores in terms of number of products, offer and services? Our offer to the METRO professional customers is equally strong in all cities, our customers in all cities can find competent solution for their business with METRO C&C. Our ultimate focus are the needs of our professional customers, thus we do not compromise on services or assortment offer. What other major activities in Serbia are planned for 2010? We plan to develop the co-operation with the Serbian customers on a new level - to further develop strong assortment and service solutions for them, to approach closer to their needs in a comprehensive way. We would like to improve the country coverage and launch new types of distribution. You were the member of the Management Board of METRO in Ukraine and before that, you worked for METRO Bulgaria. Do you find these experiences helpful in Serbia? Every new country gives wider chances in terms of learning and development. Serbia is a land of opportunities and I’m happy to have a strong team with wide exposure to international experience which we can successfully apply and share in our local organisation. When I hear a comment “This is never going to work here, this is Serbia” - it’s just makes me focus even stronger as that is a good indicator that the time for this change has come! Guide To The German Business Association In Serbia 23

COMMENT

LOTS OF POTENTIAL

Dr Milan ParivodiÄ&#x2021;, Chairman of the Foreign Investors Services, former Minister of International

Serbia must demonstrate continuity of its democracy and stability and introduce serious legal and structural economic reforms.

Milan ParivodiÄ&#x2021; calls for continuity

conomic relations between Serbia and Germany have deep roots, as the Serbian economy - and particularly its industry - historically relied on German industry. The Serbian (former Yugoslav) industry standard is based on DIN, the Deutsche Industrie Standard. Some estimates say that around 75% of all machines operative

24 Guide To The German Business Association In Serbia

in Serbia today were made in Germany, not even mentioning German cars and other vehicles. Bilateral trade between Serbia and Germany is high: amounting to app. 2.25 billion euros in 2007. Exports from Serbia to Germany amounted to only 684 million, while imports stood at 1.57 billion. These figures make Germany, alongside Russia,

Serbiaâ&#x20AC;&#x2122;s most significant trade partner. The structure of trade between Serbia and Russia is much more monotonous: 90% of Russian exports to Serbia are oil and gas, while exchange with Germany is far more diversified. We have a very high international trade deficit with Germany, as with all developed economies. When you compare Serbian trade with Germany to the trade of other

– LITTLE OF ACTUAL

Economic Relations & Finance

countries with Germany, say Hungary which has 36 billion Euros of balanced trade with Germany - or Romania, which has 13.6 billion, Bulgaria, 4.1 billion, and Croatia, 3.6 billion, you actually see that the Serbian figures are minor. Obviously, the potential for growth of trade is huge. At the moment, Serbia’s main exports are steel, chemical products, fruits - like raspberries, blackberries and cherries then car tyres, wheat and corn. Serbia imports from Germany vast numbers of cars, new and used, as well as trucks,

trailers, healthcare products and drugs, aluminium products, paper and chemical products. DIRECT INVESTMENT IN SERBIA

Germany has around 160 registered companies in Serbia, including banks and non-governmental organisations.

Those companies are in retail, wholesale, manufacturing, banking and finance. They take part in the transport industry, energy and tourism. The German Embassy in Belgrade estimates that German investment amounts to 1.22 billion euros. On the other hand, the Serbian Ministry for Economy and Regional Development estimates in-

The death of Prime Minister Zoran Đinđić and the terrorist attacks of 11th September are two factors that contributed to signiﬁcantly lowering interest in Serbia

Guide To The German Business Association In Serbia 25

INTERVIEW vestments in the range of about 1.5 billion US dollars, which is roughly the same. The largest German direct investment to date was the purchase of Hemofarm by Stada for 450 million euro, followed by METRO Cash&Carry investing around 150 million euro, then Messer Tehnogas investing 134 million euros and Henkel which, according to German data, invested 104 million euro. The U.S. company Ball Packaging, which operates through its German branch, invested 75 million and the French-American company Tarkett invested 67 million euro. German investments also include Nordzuker in MK Komerc on the level of 40 million euro. There is also WAZ, which bought Politika and Štampa for 28 million euro, as well as more smaller investments. If we compare the total level of German investments to those made by Austrian and Greek investos, and if we take into consideration that the overall potential of Austrian and Greek economies amounts to a single-digit per cent of the German Economy, one can only imagine the unused potential. First came 11th September, when the world was shaken by the terrorist attacks on New York that deviated attention from Serbia and lowered the appetite for investment in worldwide. The assassination of Prime Minister Zoran Đinđić abruptly ruined the improving image Serbia had earned after the Velvet Revolution. Those are the two events

When one compares Serbia’s external trade with Germany to the external trade of other countries with Germany, one sees far more balanced trade in the latter that significantly lowered business interest it Serbia. It took two years after Đinđić’s assassination for the country to reappear, to a limited extent, on the world’s economic radars. In 2006, Serbia reached 5.5 billion dollars of direct foreign investments. But then came Kosovo and elections and, finally, the

GERMAN ECONOMY IN SERBIA

ccording to a survey of German Economy in Serbia, conducted in May 2009, the situation in Serbia is perceived as bad, but business relatively stable. Losses are expected throughout the year, but not lay-offs. Only 11% of German companies expect to increase investments, mere 5% say they will employ new workers. German businessmen seek greater legal security of investors, reduction of social-security contributions from 62% to 50%, administration which is more efficient, more effective fight against corruption and generally greater transparency in the business of the state, mainly in public procurements. German economy perceives productivity in Serbia as low, growth of the private sector is also seen as slow, while the state is perceived as the big spender on subsidizing companies which are not productive, while unemployment is still high. All this is reflected in a bad position which Serbia has as an investment and trade destination for German economy.

26 Guide To The German Business Association In Serbia

global crisis that ensures that this year Serbia is struggling to reach a billion euro of FDI. This clearly illustrates our weakness in export potential, due to low direct foreign investments, but also of the reduced appetite of Western European countries for FDI in general, particularly in Serbia - where reforms are moving at a slower pace. In Germany I see a positive attitude for the development of bilateral economic relations. The German Government supports large investments, like electric generation companies investing in joint venture projects with EPS. However, the Serbian state is slow in offering such opportunities and a shift in pace can only recently be detected. Really, a number of new projects have been started now in Serbia in building infrastructure and energy generation. POLITICS It is my impression that Germany, politically and economically, has developed a serious approach towards Serbia. The problem is that Serbia has demonstrated continuous discontinuity where the economy and political stability are concerned. Certain political priorities always took precedence over economic development, causing political discontinuity and turbulences, so it is no surprise that the German economy perceives Serbia as an unstable market. First of all politically, but also in terms of legal security. When Serbia demonstrates continuity of democracy, a functioning legal system and fundamental economic reforms, including restitution, consolidation of property relations, coordination of its actions, the creation of a one-stop-shop for foreign investors and when ministers personally take interest in large investments, then German companies will become more interested in Serbia. Serbia must stop experimentation with short-term political benefits and really focus on having political continuity of stability and democracy and on seeing through serious legal and economic reforms.

ANALYSE

THE NEW LAW ON PLANNING AND CONSTRUCTION IN SERBIA

he new Law on planning and construction TITLE OVER CONSTRUCTION LAND The New Law was an opportunity to resolve the prob(hereinafter: the New Law) was adopted in lem of usage title over the construction land nationalSerbia at the end of August 2009. The New Law ised in the period of socialism and assigned to various regulates the same legal areas as the previous entities for usage. Pursuant to the drafts of the new law, law on planning and construction, while most this was to be resolved through allowing investors to significant changes made are related to the procedure for obtain ownership instead of usage title and obtain the enacting planning documents and the procedure for obmost secure right over the land. However, this “revolutaining construction permits. The new Law also regulates tionary” change in this legal area did not find its place the issue of titles over construction land, but does not in the New Law. The ownership title over construction provide long expected and proclaimed changes to this land may be obtained only in the case that the land is legal area to their full extent. Although Serbia, especially developed and the owner of the building constructed Belgrade, is one of the most attractive countries in SEE in on said land is inscribed as the owner at the Public Real the construction market, greenfield investments in Serbia Estate Register. This means that could not cover Serbia’s potential indicated by high market demand Instead of three permits, as was investors will not be able to obtain the most desirable title over for this type of product. The main stipulated by the previous Law, a the land in a case the construcgoals of the potential investors, i.e. obtaining undisputable legal potential investor is now obliged tion land is undeveloped. On the other hand, the future of title over the land and completto obtain just two permits before already assigned usage rights ing the necessary procedures for is unclear, especially having in construction completion in a reastarting construction mind the fact that this legal title sonable time frame, were not met can no longer be a legal basis for obtaining a construcby the previous law on planning and construction. The tion permit. Moreover, investors which have obtained possibility of obtaining just usage (or long-term lease) tiusage title over the land in the course of privatisation tle over the land instead of ownership, long lasting proor bankruptcy proceedings will be obliged to either pay cedures for adopting urban plans, as well as rendering the market price for the land or construct buildings necconstruction approvals, were extremely discouraging for essary for performing the business activity of the privaevery potential investor. tised company, otherwise they will lose the usage title over undeveloped construction land. URBAN PLANNING The New Law prescribes the enacting of a number of byThe New Law prescribes strict terms for initiation of the laws and instructions which will fully interpret and improcedures on creating the urban plans, with possibility plement the provisions of the New Law and will hopefor the investor to actively participate in the creation of fully provide resolutions to the remaining problems in an adequate urban plan. this legal area. CONSTRUCTION PERMITTING Instead of three permits (urban conditions act, primary Janković, Popović & Mitić o.a.d. and secondary construction approval), as was stipu37 Carli Caplin street, lated by the previous Law, a potential investor is now Belgrade, Serbia obliged to obtain just two permits (location permit and Parkring 2, Vienna*, construction permit) before starting construction. AdAustria ministrative bodies authorised to render these permits *in co-operation with CHSH must act within the legal terms and responsible persons Cerha Hempel Spiegelfeld are facing sanctions in case of violating the legal terms Hlawati for rendering permits. Guide To The German Business Association In Serbia 27

INTERVIEW Ružica Đinđić, President of the Dr Zoran Đinđić Foundation”

GERMANY IS A TRUE FRIEND “I always found that our German partners know the situation in Serbia very well. They have understanding and honest intention to concretely help the citizens of Serbia and make our nearing to the modern European societies, smoother.”

“Experiencing Europe – young Serbian professionals in Austria – the programe of work practice Zoran Đinđić”. The programme of German Economy scholarships Dr Zoran Đinđić was one of the reasons for the conversation with Ružica Đinđić, President of the Foundation. Your late husband, former Prime Minister Zoran Đinđić, insisted on good relations with Germany. You continued that mission within your authorisations. What experiences have you gathered from your activities? My experience of co-operating with German partners is very good. I discovered they have good knowledge of the situation in our country. They are very understanding and have the most honest intentions to help the citizens of Serbia in the transfer to modern European societies, through projects like those of the Dr Zoran Đinđić Foundation. Apart from that, I must say that meeting our German partners on the project, I sensed honest empathy and strong personal support. By Ana STOJANOVIĆ

he Dr Zoran Đinđić Foundation, established six years ago, organises several projects – the most significant being the programme of German economy scholarships to young experts and students, entitled the Dr Zoran Đinđić Scholarship. Then there is the project “1000 young leaders”, carried out in conjunction with the National Office of Serbian President Boris Tadić, who is also a patron of the project. There is also the project

A bond between the two countries, which is particularly significant, is the large number of Serbian emigrants living and working in Germany. How do you view their role when it comes to business and cultural connections between the two countries? The role of our people living in Germany is very significant. This is the third or fourth generation of Serbian citizens living and working in Germany. Many were born there and became a part of multi-ethnic and open German culture and the way of

FOUNDATION HISTORY

he Dr Zoran Đinđić Foundation was established on 15th December 2003, following the assassination of the then Serbian PM. The foundation document was signed by the premier’s widow, Ružica Đinđić, successor Prime Minister Zoran Živković, as well as several of Đinđić’s ministers: Economy and Privatisation Minister Aleksandar Vlahović, International Economic Relations Minister Goran Pitić, Finance Minister Božidar Đelic, Minister of

28 Guide To The German Business Association In Serbia

Labour and Social Issues, Gordana Matković, and Minister of Tourism, Trade and Services Slobodan Milosavljević. “The intention of the founders is to keep a lasting memory of PM Đinđić and continue pursuing his ambitious goals of making Serbia a modern country and leader on the Balkans, as well as an important factor of developments in Europe,” - so said the founders on the day the Foundation commenced its work.

life. They transfer that experience to Serbia and, at the same time, German people learn of our country. Our emigrants need to be, as they are, loyal citizens of Germany, but at the same time the ambassadors of the country of their roots. That human, direct contact between different cultures, habits and religion is very important, as it contributes to better understanding and tolerance, which we all need so very much. Since 2004, the Dr Zoran Đinđić Foundation, which was created in co-operation with the Board of German Commerce for Eastern Europe and the Delegation of the German Economy in Belgrade, organises the German economy scholarship programme Dr Zoran Đinđić. What are the priorities of the programme? The priorities are spreading the number of scholarship awardees as well as companies and state institutions in which the recipients practice. It is our wish that the young and educated people of Serbia, in as large a number as possible, are introduced to an orderly system in terms of democracy, as well as the economy, but also learn of German culture and transfer the experience to Serbia. In which direction will the foundation’s activities develop? It is our wish to spread the number of recipients to young experts from the realm of culture and arts, then experts who are dealing with the development of the systems of state administration, international law and management. We hope for support and understanding of our German partners in pursuing those goals.

It is our wish to spread the number of awardees to young experts from the realm of culture and arts You have many friends among German officials. Are you in contact with them today and how do they see relations between the two countries? During the many years of my life with Zoran Đinđić, I made many friends from Germany who I can now say are true and honest friends who continued their friendship with me after his tragic death. Friends from Germany try to help the Foundation within their capacities, knowing that by so doing they are helping to create such a Serbia that Zoran strived for.

FOUNDATION GOALS

he goals of the Foundation were deﬁned in the founding documents.They are: to support and develop science and research in areas which contribute to promoting democratic relations and the political culture of society; to organise humanitarian and other activities connected with promoting democracy, democratic relations and the political culture within society; to promote the exchange of science and researchbased information with institutions around the world.

Guide To The German Business Association In Serbia 29

INTERVIEW

KEY WORD: LOYALTY DHL is a synonym for fast delivery. With more than 12,000 clients, 1,170 serviced locations, 120 employees and 1,000 deliveries per day, DHL is by far the most significant delivery agent to and from Serbia

arko Babić, Cluster Manager Western Balkans of one of the world’s leading express deliverers, speaks about the company whose name we use instead of words fast shipment and which meets all its client requirements against infrastructural, geographic and political odds.

To what extent has DHL become a part of the everyday needs of foreign and domestic companies in Serbia? DHL International Belgrade is celebrating its 20th anniversary in Serbia, while we have been present here through an agent since 1983. I can say that the key word for DHL’s position in Serbia is loyalty. We never let go: not during sanctions and not during the bombing. We offered service in difficult times and created a list of loyal clients who know they can rely on us at any time. The content of what we were delivering was different then than now. In times of sanctions and immediately after there was a lot of documentation connected with visas, as many wanted to leave. Now our clients are primarily companies and deliveries are mainly of a business nature. In terms of international clients, it is sufficient to say that out of 102

multinational companies from our global list, 64 are present in Serbia.

and they simply want the same level of service within Serbia as well.

What is the competition like in the sector of door-to-door deliveries in Serbia? Competition is like stomach acid. If it is in balance with the organism, then everything is fine. Unfortunately, Serbia’s market is unregulated and the analysis shows that more than

But can you offer them a price-competitive service? The main problem with the prices in Serbia is the high risk factor, causing the insurance to be high as well. I cannot say our service is always cheap, but I can say it is always the best.

Competition is like a stomach bacteria. If it is in balance with the organism, then everything is ﬁne

What about Serbia’s transportation network. DHL is associated with speed and efficiency. How can you live up to these standards with such poor infrastructure? Our current fleet of 56 vehicles covers more than four million kilometres per year. We can say that we are satisfied with the fact there have been truly only a few road accidents which we caused throughout those years. We constantly invest in the education of our drivers regarding safety, but I must say that, despite all the efforts, working in Serbia is a true challenge. We have 25 courier routes in Belgrade. Some of them cross Gazela Bridge and we truly fear the beginning of its reconstruction. Belgrade must have at least two more bridges across the River Sava and two more across the Danube. We used motorcycles to avoid congestion, but stopped because of safety concerns. We follow the dedication to reduce CO2 emissions by 2020, regardless of traffic increases.

60% of the door-to-door market is in the socalled grey zone. If companies were to be profitable in such an internal market, they would need an overall 30-40,000 deliveries per day. As this is not the case, we are focused on our share in the international market of express services, which is high at 65%. We have a 4% domestic market share in Serbia and the companies we provide the services for are our clients for whom we deliver to and from foreign markets

How did the crisis affect your line of work? The prices became more unstable. The end of the crisis will bring a significant freight change. Cargo will move from land and water to air. This will enable quick deliveries for a speedy recovery of the economy. But this will likely be a temporary solution.

Darko Babić, Cluster Manager West Balkans 30 Guide To The German Business Association In Serbia

Will Belgrade become a regional hub for shipments, in view of this air cargo increase? Yes. The plans are for Belgrade to become a sorting centre for air cargo for this part of the Balkans within the next five years. This means 15 to 20 million US dollars need to be invested in the city’s airport.

Guide To The German Business Association In Serbia 31

INTERVIEW Heike Pörksen, First Secretary for Economic Co-operation at the Embassy of the Federal Republic of Germany in Belgrade

CO-OPERATION IS IMPROVING

Heike Pörksen is the representative of the Federal Ministry for Economic Co-operation and Development, who came to Belgrade to follow the activities of German organisations which implement German development programmes, ensuring that German co-operation with Serbia is properly presented to the public

s Pörksen believes that German investments in Serbia are well-aimed at medium-sized and small municipalities where they directly improve people’s lives. In her opinion, Serbia is making good use of German expertise, though she adds there is still a lot of nitty-gritty work ahead. You represent the arm of the Federal Ministry for Economic Co-operation and Development. What does that entail? I originally come from the Federal ministry for Economic Co-operation and Development and have been posted at the German Embassy in Belgrade for three years. It is my home ministry that gives most assistance from the German Government’s budget. We are channeling the largest part of our funds via GTZ and KfW, as our main implementing agencies. So, we are giving grants via GTZ for technical assistance, which is carrying out consultancy and structural reform projects. The KfW is the investment arm, providing loans which merge with government grants. We also have other players like CIM, which provides integrated experts who mostly support economic development. For example, we have a CIM expert who is integrated into the Tourism Organisation of Serbia as a regular employee of the office, aided by some topping up from the German Government. How is the 121 million euros of German aid for 2009 being distributed? Since the beginning of our co-operation, we have concentrated on four focus areas which we agreed upon with the Serbian side: the promotion of efficiency in the energy sector, the rehabilitation of the water and sewage system, the support of municipal development and the promotion of private sector 32 Guide To The German Business Association In Serbia

development and the business environment. This year, some 10 million euros have been committed for technical assistance, channeled via GTZ. These are contributions to long-standing projects, which usually run six or even eight years. We feel that these kinds of processes of consulting each other on structural reforms need a lot of time and a lot of trust. You need to know each other and trust each other in order to provoke change - be that in municipal development, tax reform, energy efficiency or in the context of our legal reform project, which is aimed at creating good conditions for private businesses. All in all, we have 10 GTZ projects in various fields which are led by German experts. For example, we have a very experienced lawyer work-

Even though there are still a lot of difﬁculties, things have improved in the past year ing on this legal reform project. We have a teacher who used to work at the vocational school in Hamburg working on the Vocational Education and Training Reform. We also have an expert who worked in the Berlin tax administration and is now consulting here on the Serbian tax reform and reform of the tax administration. Many countries, but Germany in particular, have brought their expertise to Serbia in vast amounts. Excluding Bulgaria and Romania, which are in the EU, Serbia seems to be one of the few countries where such extensive foreign support in absolutely every arena is present. Would you agree? You will find similar amounts of aid in other Western Balkan countries. Bosnia, for

example, is being assisted in a similar way and also Albania and Kosovo. You will also find similar projects in Montenegro. All our projects are embedded in the regional context. We started assisting the region around 1999-2000 and we built up very similar portfolios in the neighboring countries, of which we can now profit a lot. For example, we have vocational education and training programs in various countries in the region. This means that people can actually compare notes and be in touch with each other. What has come out of this intertwining is a very interesting programme run by GTZ called Open Regional Funds. For example, if you work on export promotion, you can apply for a common project together with Montenegro and Bosnia to work jointly on this issue. In EU terms, you would call this cross-border programmes. If you could give a general estimate of the pace of German assistance to Serbia now, what would you say? Is it increasing rapidly or steadily, or is it, perhaps, at a standstill? I hear from my colleagues that especially in terms of legal reform, but also other issues, such as municipal financing, municipal tax reform, the pace has improved, since the government is now more stable, the partners stayed the same and there is more willingness to work towards getting the EU’s Aquis Communautaire implemented. Even though there are still a lot of difficulties, things have improved in the past year. Where would you say they have improved the most? It is difficult to say, because we work in various areas. I think that the whole area of getting the laws prepared and implemented has improved. GTZ is supporting the work on various draft laws such as the one on en-

ergy efficiency and on the property law, for example. Who will benefit the most from what Germany has given to Serbia this year? The municipalities will benefit most and that is how all the people, we think, can benefit most, because our money does not only go to Belgrade and Novi Sad, as potent, big players. Most of our programmes are geared towards medium-sized and smaller municipalities. GTZ has a focus on Eastern Serbia, along the Danube, and KfW is spread out to a lot of medium-sized towns to help reconstruct the water and sewage systems, but also the district heating. And we are working closely with The Standing Conference of Towns and Municipalities, which, of course, is the main communicating body with the municipalities. Will there be any change in allocation of German funds to Serbia in the future? We try to react to the crisis. For example, in our big programmes, like the programme on Export Promotion for Small and Medium-Sized Enterprises, we were analyzing, in depth, which sectors might still be having the chance to increase their export. One of such areas is organic food production, which still has a potential for export growth, because the relevant markets havenâ&#x20AC;&#x2122;t dropped as starkly as in other sectors. That is why, in our recent negotiations, we have put half a million euros into the promotion of that sector in which we are closely co-operating with the Ministry of Agriculture. We will also continue to intensely work on the tax administration reform. Once you improve the efficiency of the tax administration, you will have more revenue even in these difficult times.

Germanyâ&#x20AC;&#x2122;s help to Serbiaâ&#x20AC;&#x2122;s EU path is comprehensive. Are there major difficulties Serbia still needs to face or has the list improved to a level that there is no significant issues left? I think we are just at the start and believe that this start is taking a good pace. But, of course, the EU Aquis Communautaire has thousands of pages and the Copenhagen criteria present many challenges that need to be met. That is a lot of work. It is nitty-gritty, bureaucratic work which has to be done. I think some people have fully understood this and are working seriously, while some are not. Would you say that your mission has been generally satisfied or dissatisfied with what has been done?

There were times when governments were changing quickly and some politicised discussions were in the forefront and it was sometimes difficult to concentrate on the detailed work that needed to be done. That has become a bit better. There are, of course, enormous challenges still ahead.

How is Serbia using its funds compared to other Balkan countries? If you take, for example, the annual government negotiations we have just concluded, we had very efficient, smooth and quick negotiations with the Serbian Finance Ministry. My colleagues say that, comparing such negotiations with other countries in the region, these are the most efficient.

Guide To The German Business Association In Serbia 33

INTERVIEW Tihomir Raljić, CEO of Siemens Belgrade

CAREFUL OPTIMISM

In Serbia the name Siemens is associated with more than 150 years of tradition and complete electrification of the country Siemens’ presence in Serbia has been constant for more than 150 years. What is the difference between that previous Siemens and this one, established in 1996 for Serbia and Montenegro? There is no difference. It is the same Siemens that has been doing business in Serbia since 1847 and whose products started the way to Serbia’s electrification. We remained a trusted partner of Serbian economy and state in many affairs ranging from industry, via energy and traffic, to health institutions and information solutions. We took part in building the electricity, traffic and telecommunications infrastructure in former Yugoslavia, with the experience accumulated from working around the world. Today, we are the leader in almost every segment of our business. Tradition and experience give us strong market position. Parallel to that, we try to be good citizens of Serbia, a local company which supports not only the economy, but the society as a whole. We do this through programmes of corporate social responsibility as are the sponsorships of sport, science and cultural events like the 2009 Universiade. In which areas can Siemens be of particular help to Serbian

As developed markets are already seeing signs of recovery, we can be optimistic

economy?

The energy gained from fossil fuels is a limited resource. We must be very careful how we use it, so the future generations benefit from better, not poorer environment. We therefore must turn to renewable energy sources, which are plentiful in Serbia. May it be water, wind or biomass, a broad and smart usage of their energy will make Serbia a better, cleaner place to live in. In the future, the power of a country will be viewed through its energy independence, not by political or military influence. It is our task to create the conditions where Serbia would be as energy independent as possible. Siemens is already working on that – one of just a few factories for production of key components for the wind power plants in the world Loehr Elektro is located in Subotica and is one of the ten largest exporters from Serbia. 34 Guide To The German Business Association In Serbia

Your main focus in Serbia today is “Energy Efficiency Campaign”. What is the project based on? Climate changes, demographic growth and the rapid pace of urbanisation lead to extreme energy use and rapid decrease of the natural resources available. It is clear that careful and economic use is necessary, so in this campaign we try to alert the population on the significance of these questions and point to many advantages they can benefit from, if minimal energy saving is applied. Savings can be made through lower production costs in large factories but also with saving at home. In almost every walk of life, Siemens offers advanced, energy-friendly solutions, which can improve your life. For example, our LED bulbs use 80% less electric energy and last 50 times longer than ordinary ones. In comparison to 1993, Sie-

mens washing machines use 35% less electric energy and 46% less water. Thanks to such solutions, emissions of Carbon Dioxide and other pollutants have been lowered significantly. Means saved by such advanced Siemens technology are by no means negligible.

Siemens installed more than 6,000 wind turbines around the world. Could this be a chance for Serbia?

Loehr Elektro factory from Subotica is one of just a few in the world producing key components for those turbines. Their products have been installed on many wind farms around the world and the success of this factory can set an example for Serbiaâ&#x20AC;&#x2122;s development. I expect to soon see these turbines in Serbia as we see them in the neighboring countries. Serbia is a rich country. It is down to us to retain this wealth and use it in a sustainable way.

You frequently meet chief representatives of the government, regions and municipalities in Serbia. What is the general impression?

Serbia is a rich country. It is down to us to retain this wealth and use it in a sustainable way Municipalities around Serbia, which have taken part in the Sie-

able development of our company in order to, at the same time, have good results and take care of the planet. In these ideas, we are broadly supported by domestic companies. That is good to know, because it means we are not alone in efforts to develop ourselves and our business in a sustainable way.

What is, in your opinion, the future of Serbiaâ&#x20AC;&#x2122;s energy sector in the next 20 years, regarding energy resources, efficiency of their usage and environment protection? The wave of urbanisation has since long came to Serbia, so we now have large numbers of people living in cities, using large amounts of energy. Parallel to that, the price of energy is increasing, while the reserve of fossil fuels decreases. If Serbia has the intention of being the regional leader in energy sector, it is desired that it adopts, as soon as possible, a strategy for the development and exploitation of renewable energy sources as well as to increase the efficiency of the existing systems. If we do not know, how much we spend, we do not know how much we can save. Siemens offers large number of solutions in domain of production, transfer and usage of the electric energy, which can fundamentally change the way in which we perceive the use of energy. Of course, the change can not happen overnight â&#x20AC;&#x201C; we are talking about a long term process during which Siemens company will be a valuable partner to Serbia and its citizens.

mens Days, dedicated to energy efficiency, have realised the significance of this topic and triggered the interest of their citizens. The support we received from the part of mayors and companies doing business in these municipalities show that there is awareness of environment protection as well as for the concept of energy efficiency which reduces cost through using Siemens solutions.

To what extent will the crisis slow down the development projects planned for Serbia? When do you expect the market to return to normal? Thanks to great efforts on the part of our team, we managed to successfully close the business year. We look upon the future with careful optimism. The crisis had grave consequences on global economy, but as developed markets are already seeing signs of recovery, we can be optimistic. Naturally, broad stability, social and economic, is necessary for successful business. In short, the recovery is dependant on many factors, so it is difficult to predict what will happen. Siemens insists on environmental protection. How important are the advantages of your systems on a market like Serbian?

It is our goal to enable the users to develop their business on the platform of Siemens solutions, products and infrastructure which are united by imperatives of energy efficiency and environmental protection. We invest in the solutions and services which are aimed at stopping the pollution. Applying the legislative regulations in the realm of protection of our surroundings is of course the imperative of our business and we have implemented the concept of sustainGuide To The German Business Association In Serbia 35

INTERVIEW DĂśrte Weidig, Chairperson of the Board of Directors of ProCredit Bank

RESPONSIBLE BANKING ProCredit Bank came to Serbia in 2001 with the goal of offering professional banking services to small and medium size companies and to private agricultural producers. Socially responsible banking with relatively low loan amounts, but subsequently with lower risk, made ProCredit Bank one of the most trusted institutions in Serbiaâ&#x20AC;&#x2122;s banking sector.

the crisis, have been considered conservative. Crisis, in many ways, turned conservative into responsible. You came here in 2001. How did the first years of ProCredit Bank in Serbia look like? We had a clear, straightforward mission. We were about offering responsible banking services to private entrepreneurs and private individuals. While the need for private sector loans was tremendously high, right in the beginning it was even hard to convince companies that a serious, professional institution is ready to give loans to them. Following the need, however, we opened in Nis, Belgrade and Novi Sad almost simultaneously.

s. Weidig embodies a socially aware approach to banking as many of her sentences include words like partners, responsibility, standing by and

36 HGuide To The German Business Association In Serbia

help. In her opinion, a bank which approaches the client directly, invests larger amounts of work into assessing the credit situation and advises clients whose loans, rather than in millions of euros would be counted in thousands, would, before

After those initial steps, how would you say the situation evolved through time? Many banks came on the market afterwards. This was good as it modernized and professionalized the banking sector. But over the years thanks to a specialized approach and tailor made services in loans to small and medium size enterprises our market share reached up to 40%. We also included small farmers into our target group, people who were absolutely deprived of possibility of taking loans. In the agricultural sector we have pioneered and until today we are certainly the market leader when it comes to lending to very small and small primary producers. The market continued changing, but we kept doing what we did. Other banks started offering

loans which was an excellent and very needed development for the country. However there came eventually a time where loans were offered at every single corner. So, to have access to finance was not the issue anymore. Serbian economy was growing. A lot of money was poured into the country. Liquidity was available without problems. Probably one can even talk of over-liquidity. Fortunately, we have not seen highly over-indebted households in Serbia like we have seen it in many other countries, like in the

whether a long-term, investment loan is more suited or perhaps documentary business as opposed to advancing liquidity. All this is analysed with the client in detail so we can find a perfect set of banking services for our client and this is what we call partnership. We never operated on the principle of maximum volume of loans disbursed. The crisis teaches a lot of lessons. For example, that seeking partnership is not good only for the bank but also for the client. Clients are partners before the crisis but they are also partners

When it comes to small companies, you need to analyse more than just papers USA or also in other Eastern European countries. The National Bank of Serbia has managed to prevent this, introducing conservative measures for household loans. However the picture among companies is not the same: If you see balance sheets of many companies, over-indebtedness is not a rare phenomenon and many companies which are simply over-invested struggle with their financial obligations to banks. During the boom years without any doubt our way of dealing with private companies seemed conservative, but today, I am glad to see that our responsible approach has helped our clients to manage through the crisis. As your portfolio includes mainly corporate clients, what would you call responsible lending to companies? We want our client companies to be our partners. We want to provide appropriate finance for their business structure, to have a close look if what they need is working capital, hence short-term loans,

in times of crisis. We talk to them, they talk to us. Despite the crisis, they can still respect their financial obligations towards us. If there are additional needs for financing, even in the crisis, we are standing beside them. Given the dynamic situation in Serbia’s banking sector in recent years, what would you say about the competition? Through professional and responsible banking we want to give our contribution to the development of the economy and stability of a society. If you have such a strong mission statement it means that you are not going for short term profit maximization. You go for sustainability. Consequently you concentrate on segments which you believe have the potential to develop ad make contribution to general development. This, we believe is the segment of small and medium-sized companies as well as agriculture in Serbia. Other banks did not choose these segments in the first place because these

RESPONSIBLE APPROACH he picture among companies is not the same: If you see balance sheets of many companies, over-indebtedness is not a rare phenomenon and many companies which are simply over-invested struggle with their ﬁnancial obligations to banks. During the boom years without any doubt our way of dealing with private companies seemed conservative, but today, I am glad to see that our responsible approach has helped our clients to manage through the crisis.

segments are labor-intense and look risky at first glance. For us being professional in this segment means that a loan officer to disburse a reasonable, professionallyassembled loan to a farmer might sit in the car for two hours, drive, spend three hours with his client, see all facilities, house, fields and cattle. There is a real engagement in the relationship. In order to do this in such a way, you truly need to take great pleasure in what you do. Interestingly enough, when all the juiciest pieces of the “market cake” were distributed, all banks came down with their loan amounts and more and more they started joining us in our core segments of the market. The turbulent times we are in today will show whether it was enough just to analyse documents in order to take credit decisions for very small and small companies or whether our personalized, client oriented attitude to banking was the more sustainable approach. Do you also offer loans to private individuals? We are very critical towards unreasonably high loan amounts and unmanageable risks for private households, debts which are so long term for the person to oversee or loans in currencies which are not logically linked to the Serbian economy. The banking sector has been modernizing with such a speed that it was difficult for the population to digest it all. Especially the sudden offer of overdrafts, consumer loans, credit cards, housing loans, pension schemes, investment funds etc was overwhelming and certainly not accompanied by appropriate explanations. What we have done is to engage in financial education of clients about for example what savings are good for and why are they so important. So, we go, with the support of the state, for example to schools and teach how to use a loan, debit card, credit card, what banks do, how to get personal budgets straight etc. We address all ages, from primary schools to universities. This, we believe, is an investment in a qualified, emancipated population, which knows how to ask the right question in a bank. Guide To The German Business Association In Serbia 37

CULTURE Jutta Gehrig, Director of the Goethe Institute Belgrade

CULTURAL DIVERSITY Goethe Institute is the official ambassador of German Culture with 134 institutions in 62 countries around the world. In Belgrade since 1970, the institute moved to Knez Mihailova Street in 1983. At present, its library offers 12.000 titles

utta Gehrig talks about cultural diversity in Germany after the fall of the Berlin Wall, new German Nobel Prize laureate Herta Müller and about four decades of Goethe Institut in Belgrade. In the past twenty years Germany had undergone major geopolitical, social and cultural turbulence. Would you briefly describe today’s cultural reality in Germany?

Germany is a country with a rich and diversified cultural life. Because of the fact that culture has always been a responsibility and an important field of interest of the individual federal states, we have a very rich palette of museums, theatres, libraries and other cultural institutions all over the country, not only in big cities but also in smaller places. In times of economic crisis, this has always been questioned because these institutions can only exist with subsidies. One should, however not underestimate their importance in economic terms. A recent study has shown that in Germany there are more jobs in culture than there are in the car industry! Another recurring debate is that concerning the division between the so called “haute culture” like opera and grassroots culture like a theatre group for migrant children. The argument is that by subsidizing opera you help rich people to save money and that you should rather give the money to small local initiatives. Generally I would say that the German cultural scene is unique in its diversity and ways have to be found to value this diversity and to develop it further by including more people from different social and ethnic backgrounds.

BELGRADE WALL

n October the 30th, artist Frank Belter will start building The Belgrade Wall. Made of carton bricks, the installation will be exposed for 28 days to weather which will steadily demolish the structure. During that time, the visitors are welcome to paint or write grafﬁti on one side of the wall, as it was case with the Berlin Wall which was grafﬁti-covered on its western side. Belgrade Wall will stand on Trg Republike.

38 HGuide To The German Business Association In Serbia

How would you rate the level of cultural integration of the former divided German states in the unique cultural image of Germany? It depends on your perspective. Seen from outside, there is one German cultural scene because what matters most is the present and not the past. Seen from within Germany, this is still a sensitive issue, and debates keep coming up about the bias towards East-German culture, for example paintings created before 1989 in East-Germany not being included in a major retrospective exhibition of German art. Germany is hosting several million foreigners or people who have in previous decades moved to Germany. How are they integrated in German cultural mosaic? The cultural scene in Germany is already much diversified and the contribution of the so-called second generation migrants is now very well respected if you think of the success of people like film director Fatih Akin. But why should you call someone who was born in Germany a migrant of the second generation just because his parents emigrated to Germany? I think we still have a long way to go compared to countries like Great Britain or the US where it does not matter so much where your parents come from. This year’s Nobel Prize for literature was awarded to German writer Herta Muller. Do you see that the diversity of cultural resources in Germany is going toward creating of a pan-European

cultural scene, or is it the new German cultural reality? Hertha Müller is a great writer who started writing when she was still living in Romania as a member of the German minority. The fact that she writes about living in a dictatorship and suffering from persecution for political reasons is something she has in common with other writers like for example Imre Kertesz or Shalamov. So she is a part of the Euro-

the difference in your activities between twenty years ago and today? A lot has changed during that time. Internet has become an important tool for our activities. There are projects for all kinds of target groups that we do for the internet only. Also, unlike a few years ago, we have a regional strategic plan for our activities, which means we decide on certain thematic areas that we focus on for a few years.

I think we still have a long way to go compared to countries like Great Britain or the US where it does not matter so much where your parents come from pean tradition in her choice of subject - if you can call it a choice at all because she did not choose to go through all that she eventually had to face (just as Kertesz and Shalamov did not). What is the German national culture now like and what would be the main characteristics to highlight? We do not speak of a German national culture. It is the policy of the Goethe Institut to present culture from Germany, and by that we mean a work of art that was created in Germany or in the German language. This is why we can invite Dimitar Gotscheff as a theatre director (even though he is Bulgarian by origin) or Galsan Tschinag as an author, to give only a few examples. Goethe Institut has been operative in Belgrade for almost forty years. What is

What would be your priority list of activities for the year 2010? In 2010 we will focus our activities around two main themes: We celebrate the 40th anniversary of the institute in Belgrade and want to use this opportunity to look back at what was achieved in German-Serbian cultural relations during these 40 years and to celebrate with the institutions and the people who contributed to these achievements. At the same time we are aware of the fact that the global financial crisis is affecting artists and cultural workers. Cultural institutions suffer from budget cuts and artists have to find ways of existing without relying on public money. In this situation, it will be interesting to bring together artists from Germany and other countries in Western Europe with artists from former socialist countries to do a project on the effects of crisis. Maybe

Herta Müller, a Romanianborn German novelist, was awarded the 2009 Nobel Prize for Literature artists in the East have already developed strategies of how to deal with the crisis because they faced that situation many times. For example, after the political changes they could no longer rely on state funding which had been a secure source of income for some of them in socialist times. So we decided to focus on art in times of crisis and will among other things do a project with video artists from several countries. Our second focus will be on projects for young people, but instead of deciding for them we want to involve them in the decision making and the organisation of the projects. That’s why we are inviting young people who know some German to be part of our “Goethe Guerilla”, that is a group of people who will decide together with us throughout the year 2010 what sort of arts and music projects we will do.

Guide To The German Business Association In Serbia 39

INTERVIEW

RAISING EFFICI Dr Elke Hellstern, Director of KfW Entwicklungsbank in Serbia

KfW is the national development bank of Germany. It is a giant by all standards, with total financing volume reaching 75 billion euros in 2008. The bank is present in 66 countries of the developing world. KfW has been operative in Serbia on behalf of the German government since 2000 and in that time the level of the financial co-operation reached almost 750 million euros. Of the 121 million which the German government allocated to Serbia on 16th October 2009, around 110 million will be implemented through KfW in the framework of financial co-operation projects.

r Elke Hellstern does not hide her positive output when talking about the co-operation between KfW and Serbia. She believes not one of the KfW investments here were misplaced or failed. In her opinion, Serbia is by far the most significant partner in the region.

How does KfW work in Serbia work; is it grants, loans or both? In 2000 it was only grants and since then on we have been slowly switching to soft loans. If we only kept it at grants it is little likely that we would have been able to allocate more than 20 million euros per year. With loans, the inflow can be 6 to 7 fold. Does it pay off? Yes. For example, we can look at the project of the rehabilitation of Bajina Basta hydro power plant. With our support, EPS is investing 70 million euros in the turbine rehabilitation. But, with turbines rehabilitated, our loan will be amortized in less than 10 years. Why is KfW, along with the German economy as a whole, so interested in Serbia? There are in excess of 700.000 people from former Yugoslavia living in Germany, many of them come from Ser40 HGuide To The German Business Association In Serbia

IENCY

bia. So we are very interested in a good neighbourly relationnship where people enjoy good living conditions. Another reason is that Serbia, where we allocate by far the highest support in the region, is also the fastest in absorbing it. What you are saying is in stark contrast to the general image of Serbia being all but efficient. How is your experience different? Serbia is doing a relatively good job in all respects! There is, of course, a problem with cumbersome bureaucracy, but this is

true of many countries, Germany included. Four years ago it took two to three years for a project to go through Serbian government and parliament procedures. Now we need a maximum of one year. Efficiency to absorb foreign support is, thus, increasing. What about corruption, one of the most notorious problems in Serbia? With the money you allocate, the risk must be very high indeed. We avoid that by paying directly to the suppliers. We have international tenders, so non-German companies can participate. We participate in the tender evaluations together with our partners.

The key is that when we begin negotiations with a utility they have to say “We want to change towards higher efﬁciency”

Plastic Pipeline systems

What would you say is the ratio of Serbian vs. international companies which are chosen for a project? I would say it is around 40:60. Usually there are joint ventures or consortiums between international and local companies. You claim there are absolutely

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INTERVIEW Serbia has good energy potential. It produces 100% of its own energy needs: 30% by hydropower; 70% by lignite resources. We plan to continue investing in this sector intensely. But it is not only about big investments on the supply side, we also look at energy demand and consumption. For example, through our energy efficiency programmes through Serbian banks, a taxi driver can change their ecologicallyunfriendly car for an environmentallyfriendly option, or a municipality can change its street lighting using energysaving technologies. Such investments pay-off very quickly indeed.

none of the projects in Serbia where KfW had a negative experience. Where is the key? The key is that when we begin negotiations with, let’s say, a municipal water utility, they have to say “We want to change towards higher efficiency”. So then, while our arrangement with the company is ongoing, we do not only allocate the funds, but work on company’s accounting system, invest in raising their entrepreneurial skills, reducing their technical and economic losses. In a sentence, we do comprehensive institutional work on the company. So, once our arrangement is completed, we hope to leave a profitable company which no longer needs external support. Your investments in energy are the most significant branch of your work in Serbia. What state is the Serbian energy sector in? The energy sector itself has a good basis, but since there have been no significant investments for 20 years, the infrastructure has decayed significantly. But by far the biggest problem of the Serbian energy sector is not only the bad infrastructure currently, besides high investment needs, is the low energy tariff. It has been kept low to protect the socially weak. Although we think there should be a social plan for the poorest, energy subsidies for everyone, in our view, is a fatal error. By doing this, the government subsidises energy for all, which means that the bigger and wealthier energy users, like large companies, gain the most from subsidies. Furthermore, this is an incentive to waste energy and, thirdly, investments in energy saving or renewable energies are not economically viable. But an average Serbian family fears winter because of the extremely high cost of heating. Residents of cities around Serbia are paying for their remote heating throughout the year. How can a move towards raising the prices be made without hurting the majority of the population? There are several ways of looking at this. First of all, electrical energy is Serbia is not expensive. The price of a kilowatt hour is between four and five cents, while 42 HGuide To The German Business Association In Serbia

We have to be most active in times of crisis, to compensate for what commercial banks cannot do. in Germany it is up to three times as much. Serbia has the lowest electricity price in the entire region, including Kosovo. This winter, the population will massively use electricity for heating, which will put a major strain on the system. Now, remote, or central heating, has other problems. The key problem is energy waste due to old pipelines and boilers. Up to 60% of the energy is lost because of this. Secondly, people are not able to adequately regulate the heat, due to a lack of thermostats and regulating devices, so they have to open the windows and more energy is lost. Thirdly, Serbia needs consumption-based billing for heat, so you do not pay according to square metres but on the basis of the energy you use, regulated by heat meters. This is the standard all over Europe. We are working closely with the heating companies to make them more profitable.The next steps would be to reduce heat losses, introduce consumption-based billing and raise people’s awareness of rational energy use. In many “toplanas” the price for heat does not even have to be raised. What is Serbia’s energy potential?

What are your main plans for 2010? We will invest 70 million euros into rehabilitating the Zvornik hydro power plant. We will also be present with investments in district heating systems, water supply projects in Southern Serbia and other energy-efficiency projects. Has the crisis affected KfW? Although KfW development bank works mainly in so-called high risk countries, we were not affected by the crisis. On the contrary, we have to be most active in times of crisis, to compensate for what commercial banks cannot do. Many Russian ebergy companies are interested in Serbia. Do you believe a healthy balance is possible, where Serbia could have open doors to both EU companies investments from Russia? Serbia has the right to compare the offers it gets. It did sign the energy treaty with the EU countries and other countries of the region, first as Serbia and Montenegro in 2001, then as Serbia in 2008, but that in no way stops it from being open to Russian investments. For example, Russians are supplying the rehabilitation of the Đerdap hydro power plant, which makes sense, since the original turbines came from Russia. I believe the country should objectively evaluate the offers and choose the best. Serbia has big plans to expand its electricity production via three greenfield investments in thermal power plants. Two German companies are interested as well.

INTERVIEW Marek Kuchta, Director of Lufthansa for Serbia, FYRMacedonia and Montenegro

BEST SOLUTIONS

With the purchase of Austrian Airlines share, Lufthansa increased its position among the leading airlines of the world. The fleet of 549 aeroplanes carried 55.4 million passengers in the first nine months of 2009. Lufthansa’s position in Serbia is strong, with a recordbreaking 250,000 passengers in 2008.

arek Kuchta is optimistic about Belgrade’s role as the major regional airport and about the White Schengen prospects enabling free travel, but warns that the crisis in the airline industry may yet hit the

bottom.

What is the market share of AP Lufthansa in Belgrade? Lufthansa is offering 35 weekly flights from Belgrade to Frankfurt and Munich. We are continuously increasing our market share on the Serbian market. This year we hope to have a two per cent greater more market share than in 2008. How many passengers do you expect to carry to/from the AP Belgrade in 2009 and what are your plans for 2010, taking into account the possibility that Serbia will be subject to the “White Schengen” visa regime in 2010? In 2008 we had a record year, with nearly 250,000 passengers. We are confident of meeting this number again – despite the challenging economic environment. For 2010 we have no concrete plans for any change of our schedule in Serbia. However, as Europe’s leading premium carrier we will continue to offer a wide range of attractive services from advantageous 13 euro return fare without taxes to Frankfurt or 17 eur to Rome to highly flexible Business Class services. Our business is influenced by various factors, among others political situations around the world. We are looking forward to the “White Schengen” visa regime for Serbia and will continue to offer best possible transport solutions to our customers. How do you see the development of air transport in Serbia until 2015 and are you expecting Belgrade to become the regional hub by then? The current situation of airlines shows it is difficult to predict any developments in our industry. Currently worldwide the airline business is experiencing the worst crisis in its existence and remains unclear if the downturn has come to a halt. Belgrade is geographically well located and offers benefits to

passengers. Its importance will certainly increase over the next years. Taking into account the “Open Sky” policy, do you expect, in addition to “Emirates”, that other airlines from the East and the West will be interested to make Belgrade their European base? Theoretically more airlines could start to operate long-haul flights from Belgrade. Lufthansa has currently no concrete plans to do so. Our hubs in Frankfurt, Munich and Zurich offer seamless connections to around 200 destinations worldwide. With our recent acquisitions of shares of other airlines, the choice will even increase with hubs in Central Europe. How will “Open Skies” policy reflect the business of Lufthansa in Europe and in Serbia? Lufthansa is not operating any flights under the Open Skies policy. With our hubs in Germany and Switzerland we provide attractive offers to our customers. We are constantly evaluating various options in terms of expansion and new routes. In the near future we do not plan to offer long-haul flights from outside our home markets. Your co-operation with JAT is traditionally good. What kind of business contacts you have with this company today? We very much appreciate the good co-operation with our partner JAT. There are serious indications of the arrival of “low cost” companies to Serbia. Is it realistic to expect this before Serbia enters the EU? Low cost carriers emerging in the Serbian market is not necessarily linked to Serbia’s position in Europe. For general assessment of the Serbian market we recommend to contact general bodies such as the AEA. We are pleased to offer the usual high service to our customers on board and on the ground regardless of the fare paid. Guide To The German Business Association In Serbia 43

ECONOMY

FACTS & FIGURES GDP in 2008 was 2.863 billion USD with 1.7% growth rate to 2007.

ederal Republic of Germany is made of 16 federal states. Three of those are states within a city (Berlin, Hamburg and Bremmen). German rivers Rhine, Danube, Main and Weser, connected by cannals to neighbouring provinces, create European waterways network. In the provinces of Schleswig-Holstein, MecklenburgWestern Pomerania and Bavaria the economy is based mainly on tourism and agriculture. In parts of Baden-Württemberg, Rhineland- Westphalia and Bavaria wine making is an important production segment. Machine production and and car industry are based in Baden-Württemberg and Bavaria, while Western provinces are home to chemical and heavy industry. Frankfurt am Main is the centre of banking and service activities. New technologies are on top of industrial branches in Bavaria and Saxony. Main sectors in the provinces by the sea are martime trade and ship-building. Natural resources of Germany are iron, coal, calcium carbonate, wood, lignite, uranium, copper, natural gas, nickle, rural areas (33% of land in Germany). GDP 2004.

2005.

2006.

2007.

2008.*

GDP (in billion $)

2.416,0

2.514,8

2.668,9

2.809,7

2.863

Real growth rate of the GDP (in %)

-0,10

1,70

0,90

2,7

1,7

GDP per capita (in $)

29.285

30.505

32.432

34.181

34.800

Investment rate (in %)

17,7

17,6

17,1

17,3

18,9

Yearly inﬂation (in %)

1,1

by high energy prices and more expensive agricultural products. Germany saw VAT increase in January of 2007 from 16% to 19%, which influenced the growth of consumer prices. INDUSTRY Industry is the main pillar of German economy. After the Second World War almost all branches of industry grew synchronously. Most developed among industry branches are: mining, metal industry, production of building materials, textile, food, chemical, pharmaceutical, and industry of transport equipment as well as automobile industry and the production of communications equipment. Displayed in the chart below is in the rate of industry growth in the last five years. THE RATE OF INDUSTRY GROWTH (IN %) 2004. 0,2

1,6

2,0

2,3

2,8

* data for 2008 is based on estimation GDP in 2008 was 2,863 billion USD with 1.7% on year growth rate. The structure of GDP in 2008 was: - Services 69.0% - Industry 30.1% - Agriculture 0.9% The inflation rate has for the first time since 1994 crossed the 2% line back in 2007. Growth of prices in 2008 was influenced 44 HGuide To The German Business Association In Serbia

2005. 2,2

2006. 2,9

2007. 4,4

2008.* 2,2

*data for 2008 is based on estimation The most significant branches of industry are: -automobile (Germany has been for a long number of years the third on the list of world’s car producers, following USA and Japan. China had assumed the third place in 2006) -machine (in some branches of machine industry: oil hydraulics, pneumatics, making of machines for wood crafting, textile and printing machines, parts of the automobile industry and the production of car parts, machines for crafting of met-

al, machines for food production and packing, Germany holds one of the leading positions in the world) -chemical -airplane industry -electrics, precise mechanics, production of optical and medical instruments Germany also invests significantly in the technology for the environmental protection. Production of steel and textile industry are being increasingly dislocated to the countries with more favourable production conditions, while pharmaceutical industry had been mainly taken over by the international corporations. Most frequently grown in agriculture are: potato, wheat, fruits and vegetables. Beef, pork and poultry lead in the meat production industry. POPULATION Germany has a population of 82.37 million (July 2008) with yearly negative growth of 0.022%. After unification, Germany became Europeâ&#x20AC;&#x2122;s most populous country with highest population density (230 people per square kilometre). Population density shows equal spread throughout the country. Unemployment stands at 7.9% (according to The International Work Organisation), while the German Federal Agency for Employment states the figure of 10.8%. Workforce numbers 43.6 million. Most work in Services (67.8%), followed by Industry (29.7), while the least of employees (2.4%) are in Agriculture. In the bottom chart, see the movement of workforce in Germany as well as the rate of unemployment in the last five years 2004. Workforce (in millions) Unemployment rate (% of population)

42,6 10,5

2006. 42,6 10,6

43,3 11,7

43,7

43,6

7,1

7,9 (10,8)

*data for 2008 is based on estimation Regarding the age structure in Germany, 66.2% of the population is between 15 and 64. The youngest population, up to age 14 totals 13.8% of the population, while 25% are older than 65.

EXPORT AND IMPORT Total export of 2008 was 1.5 billion USD. Most frequent exports were: machines and equipment, engines, metals, products of electrical industry and engineering, telecommunication systems, means of transport, oil and oil products, textile industry products, food, gas, electrical energy, chemical products, as well as new technologies and knowledge. As a consequence of increased dislocation of production from Germany to the countries with cheap labour, the part connected to raw materials and semi-made products for production outside of Germany have increased. Main trade partners are: France, USA, Italy, Great Britain and Norway.

Growth of prices in 2008 was inďŹ&#x201A;uenced by high energy prices and more expensive agricultural products Imports totalled 1.2 billion USD in 2008. Most frequent import goods were raw materials, semi-made products and finalised products of all industry branches, various metals, electrical appliances and spare parts, food products and textile. Main import partners of Germany are: Norway, France, Belgium, China, Italy, Great Britain, USA and Austria. Chart shows the movement of export and import in the last five years: 2004.

2005.

2006.

2007.

2008.*

Export (in bil. $)

697

893

1.016

1.133

1.499

Import (in bil. $)

585

717

801

916

1.232

*Data for 2008 is based on estimation As is obvious, Germany in the observed period created a surplus in external trade balance. The most significant trade partners of Germany are the EU countries. As far as exports are concerned, Germany is among the first in the world when exports are concerned, with note that the part of services in German exports is barely 13%, which is a small percentage, compared to USA and Great Britain. PRIORITY SECTORS

riority directions of the development of German economy are: industry of the highest degree from iron to steel, mining, cement production, chemical industry, production of machines, vehicles (export of this branch in Easter Europe could grow at a rate of 8.9% per year, while export to Asia could grow up to 9.5%), tools, electronics, food and beverage production, ship-making and textile industry, making of medical, measuring and regulatory equipment, machinemaking as well as logistics (transport, warehousing and the distribution of goods).

Guide To The German Business Association In Serbia 45

20 YEARS ON

20 YEARS ON The Berlin Wall

It is 20 years since the Berlin Wall came down and the reunified Germany symbolised the collapse of communism in Europe. But for many of the people who live in the city today, the barriers imposed by the wall are still real

he aftershocks from the rise and fall of the Berlin Wall continue to create tremors in individual lives. And on a national level, the 20th anniversary of the fall is a moment to reflect on its own history and the many changes since that incredible night. On 9 November, Berlin’s Festival of Freedom will climax with the symbolic knocking over of 1,000 giant dominoes. Good idea, no doubt, but in truth the wall was not like dominoes. It was 155 kilometres long and patrolled at any one time by around 13,000 soldiers. It began one Sunday as barbed wire across the streets and evolved, as the years passed, into a complex and murderous set of barriers involving watchtowers, checkpoints, anti-vehicle trenches and a brightly desolate stretch of no-man’s land known as the death strip. According to new research by Dr Maria Nooke, of the Berlin Wall Foundation,

46 Guide To The German Business Association In Serbia

136 people were killed at this border. “That this system took lives to safeguard itself shows what a marginal role individuals played in that society,” says Nooke. “No value was given to a single life.” The wall has been called a killing machine, but its motivation was actually deeply human. GDR leader Walter Ulbricht was desperate to staunch the flow of citizens leaving for the west, and his vision of a wall through a city drew on the darkest depths of the human imagination. But in the end it failed. In May 1989, Hungary opened its border with Austria, and by July 25,000 East Germans had fled to the west through this route. In May, the Weissensee Peace Circle, founded by young activist Mario Schatta, monitored local elections in Berlin and declared the official results fraudulent. This and similar monitoring in other cities, notably Leipzig, began a wave of increasingly large demonstrations – which led even-

tually to the fall of the wall. Two decades on, there’s not much wall left. Part was auctioned by the East German government, most was ground into gravel and used to build roads, and a lot was carried off by souvenir-hunters. It would be easy to visit Berlin now and not see the wall at all. You have to seek it out. Your first stop might be the memorial on Bernauer Strasse. If the wall was an axeblow to Berlin’s heart, this was the point where the blade first bit. One side of the street lay in East Berlin, the other in the west. Some desperate residents of apartment blocks in the east jumped from their windows, aware that the pavement below was in western territory; all sought freedom, some found death. Even today, the atmosphere is sombre. The headquarters of the Berlin Wall Foundation are here. This organisation is dedicated to conserving what remains of the wall – 28 fragments in the city have protected status, including

a lengthy stretch on Bernauer Strasse itself. There is a feeling within Berlin that too much of the wall was destroyed, and that what is left should be cherished as an important historical monument and lucrative tourist attraction. “We are talking about uncomfortable heritage,” says foundation director Axel Klausmeier. “The wall is connected with fear, sadness, death and bad memories. But today it is impossible to imagine that it ever existed, and future generations will find it hard to believe. So it is vital to keep the wall because it proves it was really there.” says Klausmeier. The wall is becoming forgotten. A 2007 study suggested that German teenagers knew very little about it. However, the generation now in their 30s, born in the GDR but reaching puberty and young adulthood in the newly reunified Germany, are perhaps more significant. These are the wendekinder, children of the change.

The wall is connected with fear and bad memories. But today it is impossible to imagine that it ever existed They believe they experienced the fall of the Berlin Wall as a break in their lives, a massive cultural change at a time when they were undergoing personal change. New generation have certain characteristics in common – independent thinking, an anxiety about money, a feeling that German society is too con-

20 YEARS AGO 2 MAY Hungary begins to remove its border fence with Germany and receives no protest or retaliation from Moscow. It is the first rip in the Iron Curtain, and openly allows East Germans an escape route to Europe. 4 JUNE After years as an underground political force, independent trade union party Solidarity, headed by Lech Walesa (right), takes part in elections in Poland, the first to allow elected candidates into the senate. The party sweeps the polls, creating the first non-communist government in the country – and, indeed, in the Eastern Bloc. 23 AUGUST Two million people in the Baltic states of Estonia, Lithuania and Latvia link hands to form a 400-mile-long human chain in protest against Soviet rule. 23 OCTOBER The Hungarian Communist Party holds its last congress before renaming itself the Hungarian Socialist Party, ahead of the first free elections, in 1990. The People’s Republic of Hungary officially becomes the Republic of Hungary. 7 NOVEMBER East Germany’s communist-dominated government resigns following demands from thousands of protesters who had been gathering in West Berlin sincer the opening of the border between East Germany and Czechoslovakia.The

new – and final – leader, Egon Krenz, calls for free democratic elections. 9 NOVEMBER Nearly 40 years after the 155 kilometers construction was erected to stop East Germans escaping to the west, a press conference is held to announce that travel restrictions on East Germans have been lifted. At midnight, East Germany’s rulers grant permission for gates along the wall to be opened to allow the passage of hundreds of people who had converged on crossing points after watching the earlier press conference. 28 NOVEMBER The Velvet Revolution, a non-violent protest that amassed almost half a million people in street protests and general strikes, finally forces the communist party in Czechoslovakia to stand down, paving the way for the country’s first democratic election since 1945 – which would be held the following year. 16 DECEMBER Violent riots and protests take place in Romania against the last remaining communist leader in Europe, Nicolae Ceaucescu. 25 DECEMBER After days of protests, and having attempted to escape the protestors in Belgrade, Ceaucescu and his wife Elena are finally captured, tried and executed.

Guide To The German Business Association In Serbia 47

20 YEARS ON cerned with prosperity and not enough with social justice. They think it would have been worth looking at both systems and picking the best aspects of each. No-one could be in any doubt, walking around the shopping district of central Berlin, that this is a city driven by a love of making and spending money. Tourist stores sell genuine fragments of the wall, and on Friedrich Strasse you can pay to get your photo taken next to young men dressed as the Allied troops who once guarded Checkpoint Charlie. It is even possible to be photographed with your face sticking out through a lifesize wooden cut-out of Corporal Conrad Schumann. Meanwhile, further up Friedrich Strasse, the Westin Grand hotel is offering a Tear Down the Wall package. For €199 per person for a double room, you get two nights’ B&B, a map showing the route of the wall, a curried sausage and glass of champagne, and the opportunity to take a hammer and chisel and break a piece

of wall from a large slab the PR manager bought on the internet. This piece of wall – 3.7 metres high and weighing 2.7 tonnes – stands just outside the hotel, across the road from the Hugo Boss store. On the other side, English businessman John Mackenzie determine: “I was last in Berlin several years ago,” he says, “and it’s wonderful to see the progress that has been made.” All the time in Berlin there is tension between remembering the painful past and a desire to forget it; between commemoration and future life. The Germans have such a burden of history that questions of how to memorialise it are common. Often the future is prevailing. The spot on Bernauer Strasse where Corporal Schumann leapt the barbed wire will soon be covered by new apartments. The watchtower from which Hermann Döbler was shot dead is now a café noted for its fine views. The centre of Berlin, too, has changed utterly in the last 20 years. The

BERLIN Length of city border.............234 km Area..........................................892 km² Boroughs............................................12 Largest lake - Großer Müggelsee..... ...................................................743,3 ha Longest river - Spree............45,1 km Longest canal -Teltowkanal..29,1 km Tallest building - TV tower......368 m Total population..................3,416,255 Male population..................1,745,706 Female population..............1,670,549 Foreign nationals......477,000=14,1% Naturalizations............................7,710 GDP................................€ 83,600 Mio. Average monthly income.......€1,475 Capacity of budgetary..€ 20,775 Mio. Marriages.....................................11,511 Births...........................................31,174 Unemployment........262,042= 15,5% Public road network...........5,361 km Total length of subway, suburban rail, streetcar, and bus lines.......2,368. km Berlin is a city driven by a love of making and spending money 48 Guide To The German Business Association In Serbia

Trips taken on subway, suburban rail, streetcar, and bus lines..1,397.5 Mio.

Registered motor vehicles...1 421 687 Trees along roads...................424,590 Dogs..........................................108,509 Garden plots..............................75,276 Playgrounds..................................1,824 Hospitals.............................................71 Doctors.........................................6,961 Dentists.........................................3,162 Visitors..................................7,585,000 Overnight stays.................17,285,800 Theaters..............................................51 Theater performances..............9,912 Museums..........................................170 Movie theaters................................285 Sports clubs..................................1,763 Courts.................................................19 Public and private schools offering general education..........................826 Elementary and high school students....................................426,712 Trainees.......................................53,352 Colleges and universities................30 College and university students ...... ....................................................134,504

new government buildings are modern and monolithic, all girders and glass, a national desire for political transparency encoded in the very architecture. There are plenty of people, however, with good cause to remember how bad things were. Marita Ulbricht, an elegant woman of 66 sitting in the café of the Checkpoint

up in the boot of a Mercedes driven by a Burmese diplomat and headed for Checkpoint Charlie. Foreign diplomats were supposed to pass into the west unchecked, but infrared scanners revealed Ulbricht hidden in the car. Photographs in the Checkpoint Charlie museum show her climbing out of the

Charlie museum, is one of them. Ulbricht was born in 1943 and grew up in Sovietoccupied Berlin. She was 18 when the wall was built, which put an end to her trips into West Berlin for shoes and petticoats and to go to the cinema. She was “full of rage” at the wall, but sure it would only be temporary. After 20 years, however, while working as a secretary in a hospital, she could take it no longer and decided to attempt an escape. “I wasn’t desperate,” she says, “I was just fed up with all the repression. You had to take part in all these assemblies about issues that were of no interest to me. There were these May demonstrations and all this cheering, and that made me really puke.” She wanted to holiday in Italy and France, not Poland or Bulgaria. She wanted nice clothes and a nice flat. Ulbricht was an independent young woman with a taste for life’s pleasures, forced to live in a system at odds with her character. So when a man she trusted phoned and asked, “Are you still interested in buying this coat?” – a coded question – she said she was. On 26 September 1981, Ulbricht curled

boot wearing a fur coat and high heels. She doesn’t look frightened at all. “No, I was not in shock,” she confirms. “My heart wasn’t even beating any faster than normal. I never understood those women in prison who never stopped crying. When I decided to escape, I was fully aware of what would happen if I was caught. I knew I wouldn’t wake up in a palace of paradise.” She was put on trial and found guilty of illegal crossing of the border and betrayal of her country. Sentenced to over two years in prison, she served 14 months in terrible conditions before being bought out by the West German government. “My only regret,” she says, “is that I didn’t try to escape years before.” As Ulbricht tells her story, I Will Survive plays softly over the café speakers, which seems appropriate. She is just one of millions of Germans whose lives were darkened by their experiences in the GDR, and who will never forget those feelings of imprisonment and isolation. The wall may have fallen almost 20 years ago, but there are still a great many Berliners trying to get over it.

Guide To The German Business Association In Serbia 49

TRADE EXCHANGE

GERMANY A SIGNIFICANT

PARTNER TO SERBIA

Exchange of goods spanned in the period of 1997-2008 between 550 million USD in 1999 to 3.8 billion in 2008

ermany is one of the most significant external trade partners of Serbia. In 2008, it was Serbiaâ&#x20AC;&#x2122;s third largest export market (following Bosnia and Herzegovina and Montenegro and the second, viewed through the realized value of export, following the Russian Federation. In 2008, Serbia placed on the German market 10.4% of its overall realized export value, while Germany took part in the overall Serbian import value with 11.8%. The movement of trade exchange between Serbia and Germany, can, according to the data by the Statistical Office of Serbia, be seen in the following data: Year

Export

Index

Serbia had negative commercial balance during that entire period. Deficit has been growing constantly (exceptions being 2005 and 2006) and, in terms of value, it has been greater than the realized export in every observed year (since 1999). Deficit of the external trade exchange reached maximum value of 1.56 billion USD in 2008. The biggest scope of trade exchange between the two countries has been realized in 2008, when the figures reached 3.84 billion USD, which is an increase of 22.8% compared to 2007. The value of exports from Serbia was 1.14 billion USD, while the imports totaled 2.7 billion. Compared to 2007, exports increased by 21.8%, while

Import Index Overall exch.

1990. 1.091.657 1.430.929 1997. 337.322 30,9* 628.178 1998. 334.265 99,1 566.853 1999. 165.251 49,4 384.619 2000. 175.409 106,1 452.614 2001. 229.961 131,1 547.750 2002. 241.848 105,2 763.217 2003. 293.262 121,3 1.070.875 2004. 352.883 120,3 1.526.254 2005. 441.838 125,2 1.207.203 2006. 660.005 149,4 1.443.978 2007. 937.491 142,0 2.194.547 2008. 1.142.009 121,8 2.701.859 2009. 509.368 72,2 1.103.455 Jan.-jul *stands for base indexes in relation to 1990. Exchange of goods in the period 1997-2008 was between 550 million USD (when the exchange reached its low, being 4.5 times lesser than in 1990) up to 3.8 billion USD (the greatest value of trade exchange). 50 Guide To The German Business Association In Serbia

43,9* 90,2 67,9 117,7 121,0 139,3 140,3 142,5 79,1 119,6 152,0 123,1 65,6

2.522.586 965.500 901.118 549.870 628.023 777.711 1.005.065 1.364.137 1.879.137 1.649.041 2.103.983 3.132.038 3.843.868 1.612.823

Balance

Imp. covered by exports in % -339.272 76,29 -290.856 53,70 -232.588 58,97 -219.368 42,96 -277.205 38,75 -317.789 41,98 -521.369 31,69 -777.613 27,39 -1.173.371 23,12 -765.365 36,60 -783.973 45,71 -1.257.056 42,72 -1.559.850 42,27 -594.087 46,16 In 000 USD

imports rose by 23.1%. Negative trade balance was 1.56 billion USD (growth of 24.3%, 2008/2007) and the coverage of export with import was 42.27%. Germany has been, out of all the EU coun-

tries, Serbiaâ&#x20AC;&#x2122;s most significant trade partner in 2008 as was both the number one importer to Serbia (22.16% of al the EU import has been realized through imports from Germany) as well as the number one exporter (19.18% of overall exports into the EU countries has been realized through exports to Germany). According to data for the period of JanuaryJuly of 2009, the overall trade exchange was 1.612 billon USD, with values of Serbian export to Germany being 509 million and imports 1.103 billion. Exports have fallen by 27.8% and imports by 34.4% compared to the same period of the previous year. Deficit is still present and stands at 594 million USD. The coverage of imports with export was 46.16%. EXPORT Structure of export by purpose in 2008 shows the biggest participation of the reproduction products (totaling 855 million USD or 75%), with smaller amounts made with merchandise (totaling 206 million USD or 18%) with by far the smallest amount of work necessities (81 million USD or 7%). Viewed through the degree of processing of products, most frequently exported to Germany were the highly-processed products (55.7%), followed by customary-processed products (40.6%) ad unprocessed products (3.7%). The most important products exported in 2008, making 50.4% of our overall exports to Germany in 2008 were: parts of machines from group 716, 178 million USD; raspberries 59 million USD and warm can products. In the structure of exports to Germany in 2008, the percentages of exported goods was as follows: basic metals (29.2%); other

THE BIGGEST SERBIAN IMPORTERS/EXPORTERS The biggest importers of 2008 were: PORSCHE SCG, Beograd (4,2%), MERCEDES-BENZ Srbija i Crna Gora, Beograd (4,2%), Ball pakovanja Evropa, Beograd (1,7%),Tarkett d.o.o., Bačka Palanka (1,4%), TE-KO Kostolac, d.o.o. Kostolac (1,4%), RB KOLUBARA d.o.o. Lazarevac (1,3%), Narodna banka Srbije (1,2%),TETRA PAK Production d.o.o. Beograd (1,1%), HEMOFARM a.d. ,Vrsac (0,9%), DELTA motors d.o.o., Beograd (0,9%), DEWACO d.o.o. Beograd (0,9%), GRAND MOTORS d.o.o. Novi Beograd (0,8%), SCHMITZ CARGOBULL d.o.o. Beograd (0,8%), JUGOHEMIJA Farmacija d.o.o. Beograd(0,7%), HENKEL Merima d.o.o. Kruševac (0,7%), SIEMENS, Beograd (0,7%), BAYER d.o.o. Beograd (0,7%). First ten exporters participate with 18.3% in the overall imports from Germany in 2008.

electrical machines (17.6%); food and beverages (10.2%); chemical products (7.3%); other machines and equipment (6.8%); clothing and fur (5.5%); rubber and plastic products (4.3%); textile (3.5%). The first ten exporters contribute to 50.5% of overall Serbian exports to Germany in 2008.

The biggest exporters in 2008: US Steel Serbia, Smederevo (17,6%), Doo LES, Subotica (15,8%), HIP Petrohemija, Pančevo (4,5%), Impol Seval a.d., Sevojno (4,4%), A.D. „ 8.mart“, Beograd (1,7%), RTB Invest d.o.o. Bor (1,5%),Valjaonica bakra Sevojno, Sevojno (1,5%), „Hemofarm“,Vršac (1,3%), NIS a.d. Novi Sad (1,1%), MK „Rudnik“ a.d. Gornji Milanovac (1,1%), „Gorenje“ d. o.o.,Valjevo (1%), ATB Sever, Subotica (1%), Progres a.d. Mladenovac (1%), Narodna banka Srbije, Beograd (0,9%), West Pharmaceutical Services, Beograd (0,8%), Koncern Fabrika vagona a.d. , Kraljevo (0,8%),Tigar GUME d.o.o. Pirot ( 0,8%). * Source: Statistical Ofﬁce of Serbia necessities (887 million USD or 33%) and consumption goods (680 million USD or 25%). Viewed through degree of process-

The largest scope of the exchange of goods between the two countries was in 2008, when the numbers climbed to 3.84 billion USD IMPORT Out of overall imports, totaling 2.7 billion USD in 2008, the largest amount went into import of reproduction products (1.13 billion USD or 42%), followed by work

ing of products, most frequently imported from Germany were the highly-processed products (89.2%), followed by customary-processed products (9.5%) ad unprocessed products (1.3%). The most important products import-

ed from Germany in 2008, making for one third of our overall imports from Germany were: assembled passenger cars (178 million USD), vehicles for transportation of people (145 million USD); retail medicines, (76 million USD); motor vehicles for transportation of goods, dissembled (70 million USD); road pullers (69 million USD); motor vehicles for transportation of goods, assembled (56 million USD); trailers and semi-trailers for transportation of goods (44 million USD); machines with special functions (33.78 million USD); dredgers (24 million USD) and transport ers (22.3 million USD).

Guide To The German Business Association In Serbia 51

REGISTER AAA1 RENT D.O.O.  SIXT FRANŠIZE Žorža Klemensoa 19, BGD Tel: +38 11 328 6654 Fax: +38 11 218 1088, office@sixt.rs Sector: Rent-a-Car ADRIA MEDIA SERBIA D.O.O. Omladinskih brigada 88a, N.BGD Tel: +381 11 2079 900 Fax: +381 11 2079 988 b.rademann@adriamedia.rs www.adriamedia.rs Sector: Publishing ARNDT MANAGEMENT CONSULTING GMBH  NIŠ CONSULTING Bul. Sv. Cara Konstantina 80-86, 18000 Niš, Tel.: +49 69 974 67 136 reinhold.arndt@arndt-managementconsulting.com; www.arndt-management-consulting.com Sector: Human Resource Management ATRIUM CONSULTING D.O.O. Bul. Mihajla Pupina 165 G, N.BGD Tel: +381 11 220 5810 Faks: +381 11 220 5811 klott@atrium-consulting.com www.atrium-consulting.com Sector: Real estae BALKAN LAND DEVELOPMENT D.O.O. Žarkovačka 21g, BGD j.kaemper@balkan-land-development. com E-Mail:g.tripinovic@balkan-land-development.com www.balkan-land-development.com Sector: Real estate BALL PACKAGING EUROPE BEL GRADE LTD. Batajnički drum 21A, BGD Tel: +381 11 3770 644 Faks: +381 11 377 0844 david_banjai@ball-europe.com www.ball-europe.com Sector: Can production BASF D.O.O. Omladinskih brigada, N.BGD Tel: + 381 11 30 93 403 Fax: + 381 11 30 93 401 harald.kube@basf.com www.basf.rs Sector: Retail of products for chemical industry: chemicals, plastics, fertilizers, plant protection products BAUKU D.O.O. Kosovska 35, BGD Tel: +381 11 3034 527 Fax: +381 11 3220 905 bauku@beotel.rs www.bauku.de Sector: Plastic hose systems (hoses, coal pits and reservoirs) for sewage BAYER D.O.O. Omladinskih brigada 88b, N.BGD Tel: +381 11 2070 272 Fax: +381 11 2070 263 miodrag.stankovic@bayercropscience. com www.bayercropscience.com Sector: Medicines and health preservation products BDO D.O.O. Knez Mihailova 10, BGD

Tel: +381 11 32 81 399 Fax: +381 11 32 81 808 bdo@bdo.co.rs, www.bdo.co.rs Sector: Professional service in revision and consulting. Tax administration advising, acoounting and business support. HOLIDAY INN BELGRADE, BELEXPOCENTAR D.O.O. Španskih boraca 74, N.BGD Tel: +381 11 3100 040 Fax: +381 11 3100 100 t.pavlovic@holiday-inn.rs www.holiday-inn.rs Sector: Hotel BERLIN CHEMIE REPRESENTATIVE Prilepska 1, BGD Tel: +381 11 3657 098 Fax: +381 11 3657 101 office@berlin-chemie.rs www.berlin-chemie.rs Sector: Pharmaceutical products BIG DUTCHMAN INTERNATIONAL GMBH  NOVI SAD Bul. Oslobođenja 30a, 21000 Novi Sad Tel: +381 21 6334 141 Fax: +381 21 6 334 141 sasa.duric@bigdutchman.rs www.bigdutchman.rs Sector: Pork and cattle growing equipment BINVEX  STANDARD D.O.O. Požarevačka 35, BGD Tel: +381 11 3836 848 Fax: +391 11 3836 882 binvex@yubc.net Sector: Export, import BOŽIĆ I SINOVI D.O.O. Maksima Gorkog 2, 26000 Pančevo Tel: +381 13 331 166 Fax: +381 13 346 947 nikolaegic@bozic.rs www.bozic.rs Sector: Software development, computer production BTPEGROTOUR D.O.O. HRG SERBIA Cubrina 4, Sprat IV Stan 19, BGD Tel:+381 11 3038 920 Fax: +381 11 3283 304 gordana@rs.hrgworldwide.com www.hrgworldwide.com Sector: Business travel agency CDCOMPILE GMBH Dušana Vukasovića 50a/18, N.BGD flory@cd-compile.de msunjara@sbb.rs www.cdcompile.paycom.de Sector: Distribution of POS terminals CMS REICHROHRWIG HAINZ Cincar Jankova 3, BGD Tel: +381 11 3030 136 Fax: +381 11 3038 930 radivoje.petrikic@cms-rrhs.com www.cms.rrh.com Sector: Legal counseling (Austria and the South East Europe) COMMERZBANK AG  REPRÄSEN TANZ BELGRAD Genex Apartmani, Apt.112 Vladimira Popovica 6, N.BGD Tel: +381 11 30 18 520;

52 Guide To The German Business Association In Serbia

+381 11 30 18 521 Fax: +381 11 30 18 523 thomas.timme@commerzbank.com www.commerzbank.com Sector: Establishing of contact for German companies; general information on Serbian economy CONDATA D.O.O. Carice Milice 3, BGD Tel/Fax: +381 11 2629 021 vesna.gasic@condata.rs www.condata.rs Sector: Outsourcing/Offshoring, market analysis, finding the business partners CONFIDA CONSULTING D.O.O. Knez Mihailova 22, BGD Tel: +381 11 3039 104 Fax: +381 11 3039 105 c.braunig@confida.rs www.confida.rs Sector: Counseling of the managements of companies, revision CORPORATE MEDIA D.O.O. Dragoslava Jovanovića 13/I, BGD Tel: +381 11 3240 134; +381 11 3348 918 Fax: +381 11 3348 917 carim.grahn@cmserbia.com www.cmserbia.com Sector: Magazines for private clients CRAFORD INVESTMENT D.O.O. Paje Adamova 2, BGD Tel: +381 11 3699 115; +381 11 2665 122 Fax: +381 11 2665 457 petrovic@craford.rs, www.craford.rs Sector: Counseling of the management boards of companies CREDITREFORM D.O.O. Palmira Toljatija 5/III, N.BGD Tel: +381 63 383 410; +381 11 2696 059 Fax: +381 11 2672 998 k.ristic@creditreform.rs www.creditreform.com Sector: Solvency reports, procurement in the demand payment DAD DRÄXLMAIER AUTOMOTIVE D.O.O. Skladišna hala 1, Lokacija Bagljaš Aerodrom 23000 Zrenjanin Tel: +381 23 519 001 Fax: +381 23 519 056 paechnatz.joerg@draexlmaier.de www.draexlmaier.com Sector: Car parts supplier MERCEDESBENZ SRBIJA I CRNA GORA D.O.O. DAIMLER CHRYSLER SCG D.O.O. Omladinskih Brigada 33, N.BGD Tel: +381 11 3019 042 Fax: +381 11 3019 049 andreas.binder@daimler.com www.mercedes-benz.rs Sector: Mercedes vehicles and service DEKRA ZAPOSLJAVANJE D.O.O. Antifašističke borbe 12, N.BGD Tel: +381 11 2120 454 Fax: +381 11 2120 458 marko.bogdanic@dekra.rs, www.dekra.rs Sector: Employment mediation

DELTA GENERALI OSIGURANJE D.O.O. Milentija Popovića 7b, N.BGD Tel: +381 11 2012 750 Fax: +381 11 2012 748 aleksandar.supica@deltagenerali.rs www.deltagenerali.rs Sector: Insurance DELTA M D.O.O. Milentija Popovića 7b, N.BGD Tel: +381 11 2012 350; +381 11 2012 220 Faks: +381 11 2012 207 milka.vojvodic@deltamgrupa.rs www.deltamgrupa.rs Sector: Agriculture industry, food processing DELOITTE D.O.O. Makenzijeva 24, BGD Tel: +381 11 3812 100; :azeremski@deloittece.com Sector: Revision of financial statements, DERTOUR D.O.O. YBC Bul. M. Pupina 10V/II, 212, N.BGD Tel: +381 11 3119 618 Fax: +381 11 319 651 tatjana.cojic@dertour.de zdravko.majnik@dertour.rs www.dertour.rs Sector: Travel agency DEUTSCHE BAHN AG  REPRÄSEN TANZ BEOGRAD Takovska 6/II/2, BGD Tel: +381 11 3033 877 Fax: +381 11 3234 690 db.lobistics@sezampro.rs, www.bahn.de Sector: Railway transport, logistics PREDSTAVNISTVO DEUTSCHE BANK AG, FRANKFURT A.M.  GERMANY Balkanska 2, IV Sprat, Suite 1402, BGD Tel: +381 11 2055 052 Fax: +381 11 2055 053 nemanja.zugic@db.com, www.db.com Sector: Support to foreign companies with opening business in Serbia DEWACO D.O.O. Poenkareova 16 , BGD Tel: +381 22 366 400, Fax: +381 22 366 429 office@man.rs, www.man.rs Sector: MAN vehicles retail DHL INTERNATIONAL BEOGRAD D.O.O. Juria Gargarina 36, N.BGD Tel: +381 11 3105 500 Fax. +381 11 3105 510; +381 11 3105 599 darko.babic@dhl.com, www.dhl.rs Sector: International and domestic transport of shipments, logistics DORMA ELMAT Maksima Gorkog 135, BGD Tel: +381 11 2447 321 Fax. +381 11 2447 321 iviv@eunet.rs, www.elmat.me Sector: Anti-fire techniques and products DRÄGER TEHNIKA D.O.O. Tošin bunar 41, BGD

Tel: +381 11 3739 911 Fax: +381 11 3739 912 predrag.gvoic@draeger.com www.draeger.com Sector: Medical equipment, diving equipment DSD KONSTRUKTION D.O.O. Milana Petrovica 21, 21000 Novi Sad Tel: +381 21 6791 888 Fax: +381 21 458 228 minas@dsd-serbia.co.rs www.dsd-steel.com Sector: Steel construction, repair of bridges and halls EKAPIJA.COM D.O.O. Vladimira Popovića 14, N.BGD Tel: +381 11 2120 511 Fax: +381 11 2120 513 management@ekapija.com www.ekapija.com Sector: Investment portal EOS MATRIX D.O.O. Đorđa Stanojevića 12, N.BGD Tel: +381 11 3300 700 Fax: +381 11 3300 777 i.lada@eos-matrix.com www.eos-matrix.rs Sector: Consulting EUROCARGO D.O.O. INTERNATION ALE SPEDITION & TRANSPORT Selo Strojkovce, 16203 Vucje-Leskovac Tel: +381 16 230 400 Fax: +381 1679 4009 jasmina@eurocargo.rs www.eurocargo.rs Sector: National and international transport, EUROPOOL INTERNATIONAL TRACKSYSTEMS D.O.O. BEOGRAD Cara Uroša 11 , BGD Tel: +381 11 3284 391 Fax: +381 11 3284 053 matic@ep-tracksystems.com www.euro-pool.com Sector: Rail technologies EXECOM D.O.O. Bul. Kralja Petra I 89, 21000 Novi Sad Tel: +381 21 4770 500 Fax: +381 21 4772 998 bmilikic@execom.eu www.execom.eu Sector: Software and IT development FIRST DATA SCG D.O.O. Kopernikova 8, BGD Tel: +381 11 2071 100 Fax: +381 11 2071 115 olja.dakic@firstdata.rs www.firstdata.rs Sector: Financial services FORMAN BGD D.O.O. Srpskocrkvena 20, 22320 Indjija Tel: +381 22 555 814 Fax: +381 22 555 814 ecimovic@forman-gmbh.com Sector: Spare parts for automobiles FRESENIUS MEDICAL CARE SRBIJA D.O.O. Beogradski put bb, 26300 Vrsac Tel: +381 13 802 502 Fax: +381 13 821 060 igor.zivic@fmc-ag.com predrag.vranic@fmc-ag.com

Jurija Gagarina 11, N.BGD Tel: +381 11 395 1000 Fax:+381 11 395 1009 Sector: Dialysis materials production and retail GEZE D.O.O. Elemirski put BB, 23000 Zrenjanin d.farkas@geze.com, www.geze.com Sector: Design and production of construction technique GFK Milutina Milankovića 27, N.BGD Tel: +381 11 3130 500 Fax: +381 11 3130 053 mariana.agic-molnar@gfk.com www.gfk.rs Sector: Services in market research and consulting GRAH AUTOMOBILE D.O.O. Kneza Miloša Obrenovića bb 34227 Batočina Tel: +381 34 501 060 Fax: +381 34 501 061 aca.zlatic@grah-automotive.com Sector: Production of electronic installations for automobiles GRAND MOTORS D.O.O. Milutina Miankoviča 21, N.BGD Tel: +381 112090 661 stanko.radic@ford.rs, www.ford.rs Sector: Ford, Volvo and Land Rover vehicles retail and service GRUNER SERBIAN D.O.O. 29. Novembra BB, 16210 Vlasotince Tel: +381 16 230 603 Fax: +381 16 230 601 cedomir.bozilovic@elrad-int.si www.elrad-int.si ; www.gruner.de Sector: Design and production of electronic construction machinery GTZGESELLSCHAFT FÜR TECH NISCHE ZUSAMMENARBEIT GMBH Zupana Vlastimira 6, BGD Tel./Fax: +381 11 2666 544; uwe.stumpf@gtz.de, www.gtz.de Sector: Technical cooperation projects GU BKS D.O.O. Autobahn nach Novi Sad 2V, BGD Beograd - Zemun Tel: +381 11 2098 500 Fax: +381 11 2098 520 jarno.pitl@g-u.de, sasa.uzelac@g-u.rs www.g-u.com Sector: Door and windows manufacturing HEIDELBERG JUGOSLAVIJA D.O.O. Pljevaljska 2 B, BGD Tel: +381 11 3045 460 Fax: +381 11 2860 027 alexander.hufnagel@heidelberg.com www.heidelberg.com Sector: Printing machines HEMOFARM A.D. Beogradski put bb, 26300 Vršac Tel: +381 13 803 100 miodrag.babic@hemofarm.com www.hemofarm.com Sector: Pharmaceuticals HENKEL SRBIJA D.O.O. Bul. oslobođenja 383, BGD Tel: +381 11 2072 200 Fax: +381 11 2072 294 nenad.vukovic@rs.henkel.com

www.henkel-srbija.com Sector: Production of brands HINTE GMBH Griesbachstraße 10 D-76185 Karlsruhe Tel: +49 (0) 721 931 330 Fax: +49 (0) 721 831 42 40 ofreier@hinte-messe.de www.hinte-messe.de Sector: Trade and fair organizing HÖDLMAYR ZASTAVA D.O.O. Trg Topolivaca 4, 34000 Kragujevac Tel: +381 34 323 239 Fax: +381 34 335 916 markus.waeger@hoedlmayr.com www.hoedlmayr.com Sector: Transport and logistics HOLCIM SRBIJA D.O.O. POPOVAC Popovac kod Paraćina, 35254 Popovac Tel: +381 35 572 260 Fax: +381 35 572 577 frank.wild@holcim.com www.holcim.rs Sector: Construction materials HOLLEMAN D.O.O. Milinka Kušića 1/3, BGD Tel: +381 11 257 13 07 Fax: +381 11 257 13 89 info@holleman.rs, www.holleman.rs Sector: Transport HOYER D.O.O. Banjički put 62., BGD Tel: +381 11 3592 456 Fax: +381 11 3055 760 zarko.andjelkovic@hoyer-serbia.com www.hoyer-group.com www.hoyer-serbia.com Sector: Transport and logistics HYPO ALPEADRIASECURITIES D.O.O. Goci Delčeva 44, N.BGD Tel: +381 11 2226 809 Fax: +381 11 2226 896 aleksandar.zinaic@hypo-alpe-adria.rs www.hypo-securities.rs Sector: Banking ICC INTERNATIONAL CONSULTING CENTER D.O.O. Kralja Petra 32, BGD Tel: +381 11 3300 100 Fax: +381 11 3300 137 dragica.atanaskovic@icbgd.rs Sector: Counseling IVA 28 D.O.O. Jurija Gagarina 231/322, N.BGD Tel: +381 11 3015 640 Fax: + 381 11 3015 635 miloje.ercevic@iva28.rs, www.iva28.rs Sector: Heavy construction machinery parts maker KELLER GEOTECHNIK D.O.O. SRBIJA Ustanicka 189/I-6b,, BGD Tel: +381 11 3470 868 Fax: +381 11 3471 518 Tel: +43 (0) 3137 3767 1214 Fax: +43 (0) 3137 3767 37 r.thurner@kellergrundbau.at www.keller-geotehnika.rs Sector: Construction KFW BEOGRAD Župana Vlastimira 6, BGD

Tel: +381 11 3671 273 Fax: +381 11 3670 128 elke.hellstern@kfw.de www.kfw-entwicklungsbank.de/serbia Sector: Development aid KNAUF D.O.O.BEOGRAD Privredna Zona Gornji Zemun , Zona 4, BGD - Zemun Tel: +381 11 2074 500 Fax: +381 11 2074 530 ivanovic.milutin@knauf.rs www.knauf.com, www.knauf.co.rs Sector: Construction systems and applications LIBRA BEOGRAD D.O.O. Obalskih radnika 4g, 11030 Beograd Tel: +381 11 3540 174 Fax: +381 11 3545 152 librabgd@eunet.yu Sector: Traffic of medical products LINDE GAS SRBIJA Petrovoselski put 143, 21220 Bečej Tel: +381 21 6811 010 Fax: +381 21 6811 051 slobodan.macedonic@yu.linde-gas.com www.linde.com Sector: Production of technical and medical gasses LINDE VILJUŠKARI D.O.O. Autoput BG-NS 294a, BGD - Zemun Tel: +381 11 3757 401; Faks: +381 11 3757 362 vesna.j@linde-mh.rs, www.linde-mh.rs Sector: Retail and service of Linde vehicles LOHER ELEKTRO SUBOTICA D.O.O. Batinska 94 24000 Subotica Tel: +381 24 623 500 Fax: +381 24 623 592 istvan.sekula@loher.com www.loher.com Sector: Wind turbines LUFTHANSA AKTIENGESELLS CHAFTLUFTHANSA BEOGRAD Terazije 3, BGD Tel: +381 11 3034 944 Fax: +381 11 3225 009 info@lufthansa.rs, www.lufthansa.com Sector: Airline MÄNZ AND PARTNER D.O.O. Kralja Milana 10/II, BGD Tel: +381 11 2686 683; Faks: +381 11 2687 930 stula@petra-group.rs www.maenz-gruppe.com Sector: Construction MBS TEHNO, D.O.O. Bul. Despota Stefana 21, BGD Tel: +381 11 3229 219; Fax: +381 11 3347 482 direktor@mbstehno.co.rs www.mbstehno.co.rs Sector: Medical wrappings MEDIAPRINTSRBIJA DOO BE OGRAD POLITIKA DAILY Mosorska 14 , BGD Tel: +381 11 3301 161 Fax: +381 11 3373 042 werner.herics@politika.rs kabinet.dir@politika.rs Sector: Publishing and printing

MEDINIC EKSPORTIMPORT D.O.O. Daničareva 57, BGD Tel: +381 11 3047 744 Fax: +381 11 2837 009 ljiljana.belcevic@medinic-b.com Sector: Medical machines and material MERCK D.O.O. Djordja Stanojevica 12, N.BGD Tel: +381 11 2175 761 Fax: +381 11 2176 781 merck@merck.rs www.merck.rs Sector: Marketing and promotion of medicines MESSER TEHNOGAS A.D. Banjički put 62, BGD Tel: +381 11 3537 210 Fax: +381 11 3537 299 ernst.bode@messer.rs www.messer.rs Sector: Production and retail METRO CASH CARRY D.O.O. BEOGRAD Autoput za Novi Sad 120, BGD - Zemun Tel: +381 11 3777 366 Fax: +381 11 3777 580 veronika.puncheva@metro.rs www.metro.rs Sector: Wholesale METZ GROUP D.O.O. BEOGRAD Njegoševa 40, BGD Tel: +381 11 446 916 Fax: +381 11 2459 943 ch_becker@beocity.net www.metz-group.com Sector: Railway and energy projects MILOŠEVIĆ CREATIVE COMMUNI CATIONS D.O.O. BEOGRAD Resavska 49, BGD Tel: +381 11 3612 383 Fax: +381 11 3612 199 ivan@milosevic.rs, www.milosevic.rs Sector: Public Relations, Communication MOBEXPERT GROUP D.O.O. BEOGRAD Bul. oslobođenja 149, BGD Tel: +381 11 2468 423 Fax: +381 11 3910 770 roxana.mateescu@mobexpert.rs www.mobexpert.rs Sector: Furniture manufacturing MUEHLBAUER D.O.O. Aleksandra Stambolijskog 3b, BGD Tel: +381 11 3066 298 Fax: +381 11 2660 258 serbia@muehlbauer.de www.muehlbauer.de Sector: Microelectronics NEUMANN INTERNATIONAL AG BEOGRAD Kneza Sime Markovića 7, BGD Tel: +381 11 2182 588 Fax: +381 11 2186 763 boban.ilic@neumann-inter.com www.neumann-inter.com Sector: HR Consulting

NLB INTERFINANZ D.O.O. BE OGRAD Bul. Mihaila Pupina 165 v, N.BGD Tel: +381 11 2225 350 Fax: +381 11 2225 354 E-Mail:schneider@nlbi.ch www.nlbinterfinanz.ch Sector: Forfaiting, and RelationshipBanking OBI SRB TRGOVINA D.O.O. Vladimira Popovica 6/209, N.BGD Tel: +381 11 3018 518 aleksandar.pasic@obi.rs, www.obi.at Sector: Retail OFFICECOM D.O.O. BEOGRAD Tronoška 18, 11185 Belgrad Tel: +381 11 3774 535 Fax: +381 11 3774 538 marijana@officecom.rs www.officecom.rs Sector: Import and distribution of the brands PANOS INŽENJERING Bul. Oslobodjenja 127/IX, 21000 Novi Sad Tel: +381 21 4720 800 Fax: +381 21 4720 692 zeljko.pa ntovic@panosing.com www.panosing.com Sector: Communication and Information technologies PECOCAR D.O.O. Miletićeva 124, 23000 Zrenjanin Tel: +49 6235 490 966; +381 23 546 816 Fax: +49 6235 7901 peterbreuer@pecolit.com www.pecolit.com Sector: Fiber production PHIWA D.O.O. Matije Korvina 17, 24000 Subotica Tel:+381 24 647 222 bokabela@phiwa.com www.phiwa.com Sector: Hotel PMC INTERNATIONAL PERSONAL  UND MANAGEMENT BERATUNG GESELLSCHAFT M.B.H. BEOGRAD Kralja Petra 32, BGD Tel: +381 11 3282 417 Fax: +381 11 3282 416 pmc@pmc-international.co.rs www.pmc.at Sector: HR Consulting POLIKLINIKA MIRAMONTI D.O.O. BEOGRAD Tolstojeva 44, BGD Tel: +381 11 3671 352 Fax: +381 11 3679 452 info@poliklinika-miramonti.rs www.poliklinika-miramonti.rs Sector: Hospital POLYMITB D.O.O. ŠABAC Branimira Ćosića 6, 15000 Šabac Tel: +381 15 360 300; +381 15 360 301 Fax: +381 15 360 308 360 309 bilanpolymit@nadlanu.com www.polymit.com

Guide To The German Business Association In Serbia 53

REGISTER Sector: ABS plates PORSCHE LEASING SCG D.O.O. BEOGRAD Zrenjaninski put 11, BGD Tel: +381 11 2016 955 Fax: +381 11 3042 549 vojo.miladic@porscheleasing.rs www.porscheleasing.rs Sector: Financial and Operative Leasing PORSCHE SCG D.O.O. BEOGRAD Zrenjaninski put 11 P. fah 16, 11210 Beograd Tel: +381 11 3042 418; Fax: +381 11 3042 419; bojan.muravec@porschesgc.rs www.porsche.com www.porsche-scg.com www.porsche-holding.com Sector: Retail and servicing of vehicles PRICEWATERHOUSECOOPERS, D.O.O.  PWC BEOGRAD Omladinskih brigada 88a, BGD Tel: +381 11 3302 100 Fax: +381 11 3302 101 emmanuel.koenig@rs.pwc.com www.pwc.rs Sector: Financial revision, tax and legal consulting PROCREDIT BANK A.D. BEOGRAD Milutina Milankovica 17, N.BGD Tel: +381 11 2077 991 Fax: +381 11 2077 905 d.weidig@procreditbank.rs www.procreditbank.rs Sector: Loans for Small and Medium Size Enterprises PROFINE D.O.O. Batajnički drum bb, BGD - Zemun Tel: +381 11 2101 987 Fax: +381 11 3076 012 bojan.predojevic@profine-group.com www.profine-group.com Sector: PVC profiles PROTEKTORWERK FLORENZ MAISCH GMBH & CO.KG Miokovci b.b., 32000 Čačak Tel/Fax: +381 32 8822 45 nenadovic@protektor-srbija.com manfred.striebich@protektor.com www.protektor.com Sector: Construction profiles PS CONFIDAS D.O.O. Imotska 1, BGD Tel: +381 11 3956 800 Fax: +381 11 3956 888 a.samonig@ps-confidas.rs www.ps-confidas.rs Sector: Tax consulting P.S. TELEFONIJA A.D. BEOGRAD Kumodraška 241, BGD Tel: +381 11 3404 000; Fax: +381 11 3404 112 predrag.sofrenic@telefonija.rs www.telefonija.rs Sector: System-Integrator  RA ADVOKATSKA KANCELARIJA GIDE LOYRETT NOUEL Andrićev Venac 2/III 11 000 Beograd Tel: +381 11 3024 900 Fax: +381 11 3024 910 santoni@gide.com

www.gide.com Sector: Legal counseling  RA ADVOKATSKA KANCELARIJA JANKOVIĆ, POPOVIĆ & MITIĆ Čarli Čaplina 37, BGD Tel: +381 11 2076 850 Fax: +381 11 2076 899 nikola.jankovic@jpm.rs nenad.popovic@jpm.rs milos.mitic@jpm.rs www.jpm.rs Sector: Legal counseling  RA ADVOKATSKA KANCELARIJA JOKSOVIĆ, STOJANOVIĆ & PART NERS Internationalnih brigada 38, BGD Tel: +381 11 344 03 74 Fax: +381 11 344 59 72 milan@jsplaw.rs, www.jsplaw.rs Sector: Legal representation and counseling  RA ADVOKATSKA KANCELARIJA KARANOVIĆ I NIKOLIĆ Lepenička 7, BGD Tel: +381 11 3094 200 Fax: +381 11 3094 223 dragan.karanovic@karanovic-nikolic. com www.karanovic-nikolic.com Sector: Legal representation and counseling  RA ADVOKATSKA KANCELARIJA LUČIĆ & MILOVANOVIĆ Omladinskih brigade 88a, NBGD Tel: +381 11 3302 100 Fax: +381 11 3302 101 predrag.milovanovic@rs.pwc.com Sector: Legal counseling  RA ADVOKATSKA KANCELARIJA BOJOVIĆ & DAŠIĆ Gospodar Jovanova 83, BGD Tel: +381 11 3036 468 Fax: +381 11 3036 469 mbojovic@bdklegal.com vdasic@bdklegal.com www.kojoviclaw.com Sector: Legal counseling  RA ADVOKATSKA KANCELARIJA TOMIĆSTEVIĆDULIĆ Carice Milice 3/II, BGD Tel/Fax: +381 11 3285 227 ljubica.tomic@tomic-stevic.co.rs www.tomic-stevic.co.rs Sector: Legislation in economy REEMTSMA IMPERIAL TOBACCO SCG D.O.O. Diplomatska Kolonija 20, BGD Tel: +381 11 3067 545 Fax: +381 11 3067 187 vladimir.mikic@reemtsma.co.yu www.imperial-tobacco.com Sector: Production, import and retail REHAU D.O.O. Batajnički drum 283 E, BGD – Beograd - Zemun Tel: +381 11 3770 302; Nikola.Ivosevic@rehau.com www.rehau.rs Sector: Polymer products REUM D.O.O. BEOGRAD Carl-Reum-Ulica Veliko Polje, SRB- 35210 Svilajnac

54 Guide To The German Business Association In Serbia

Tel: +381 65 6284 606 sascha.vragolic@reum.de www.reum.de Sector: Machines for automobile industry ROBERT BOSCH D.O.O. Milutina Milankovića 11a, N.BGD Tel: +381 11 2052 331 Fax: +381 11 2052 333 jovanka.jovanovic@bosch.com www.boschsecurity.rs, www.bosch.rs Sector: Heating systems ROBERTS TRAVEL AND CONSULTING D.O.O. Majke Jevrosime 24, BGD Tel: +381 11 3032 135 Fax: +381 11 3224 796 Roberts1@eunet.rs Sector: Tourism S&FRIENDS SCHOLZ&FRIENDS D.O.O. Gospodar Jevremova 53, BGD Tel/Fax: +381 11 2639 640 tijana.adamov@s-f.com www.s-f.com , www.newmoment.com Sector: Integral Marketing Communications S&T SERBIA D.O.O. Narodnih heroja 43/XXIII, N.BGD Tel: +381 11 3116 221 Fax: +381 11 3117 665 predrag.vranes@snt.rs, www.snt.rs Sector: IT Solutions and service S.E. TRADE Slanački put 26, BGD Tel: +381 11 2972 223 Faks: +381 11 2972 223 nebojsavranes@zerowaste.rs www.zerowaste.rs Sector: Recycling SANO D.O.O. Mileve Simić bb, 21000 Novi Sad Tel: +381 21 446 917; +381 21 419 484 klara@sano.rs www.sano.rs Sector: Animal food SAP WEST BALKANS D.O.O. Omladinskih Brigada 88 b, N.BGD Tel: +381 11 3536 900 Fax: +381 11 3536 919 vladimir.popovic@sap.com www.sap.com Sector: Business solutions SCHENKER D.O.O. Batajnički drum 283 d, BGD Tel: +381 11 3757 717 Fax: +381 11 8488 331 slavoljub.jevtic@schenker.rs www.schenker.rs Sector: Transport, storage and customs services SCHOLZE GRUPPE D.O.O. Bul. Despota Stefana 13, BGD Tel: +381 11 333 7470 471 belgrade@scholze.rs www.scholze.de Sector: Construction SIEMENS D.O.O. Omladinskih brigada 21, N.BGD Tel: +381 11 2096 005; Fax: +381 11 2096 061 tihomir.rajlic@siemens.com www.siemens.rs

Services: Electronics SIG COMBIBLOC GMBH & CO. KG Hadži Ruvimova 61/33 21000 Novi Sad Tel: +381 21 6310 179 Fax: +381 21 6310 179 mile.strbac@sig.biz, www.sig.biz Services: Aseptic packing of liquid food SINALCO SRBIJA D.O.O. Gornja Toplica bb, 14243 Gornja Toplica Tel: +381 1460 048 Fax: +381 1460 047 michael.doerks@sinalcosrbija.com www.sinalcosrbija.com Sector: Beverages SPIEGELFELD INTERNATIONAL D.O.O. Neznanog junaka 14, BGD Tel: +381 11 3679 111 Fax +381 11 3679 112 nijemcevic@spiegelfeld.eu www.spiegelfeld.eu Sector: Real estate intermediation agency SUNOKO D.O.O. Trg Marije Trandafil 7, 21000 Novi Sad Tel: +381 21 4878 111 Fax: +381 21 522 277 info@sunoko.rs, www.sunoko.rs Sector: Sugar producer THYSSENKRUPP ELEVATORI D.O.O. Bul. Mihaila Pupina 10 z - apartman 443, N.BGD Tel: +381 11 2129 612; igor.tanaskovic@thyssenkrupp.com thyssenkrupp-elevator-serbia.com Sector: Elevators TM IMMO D.O.O. Djordja Stanojevica 12, N.BGD Tel: +381 11 3189 120 Fax: +381 11 3187 924 tmimmo@nadlanu.com Sector: Real estate development TRCPRO Preradovićeva 31, 21131 Petrovaradin Tel/Fax: +381 21643 3824; hotimir.licen@trcpro.rs, www.trcpro.rs Sector: Measurement systems TRENKWALDER D.O.O. Omladinskih Brigada 86, N.BGD Tel: +381 11 2129 063 Fax: +381 11 2274 089 m.grujic@trenkwalder.com www.trenkwalder.com Sector: HR services TÜV SÜD SAVA D.O.O. Starine Novaka 3, BGD Tel: +381 11 3035 533; Fax: +381 11 3245 552 bosko.gavovic@tuv.rs www.tuev-sued.de Sector: Certification UNIFARM MEDICOM D.O.O. Cara Dušana 264 , BGD - Zemun Tel: +381 11 2198 451 Fax: +381 11 2612 292 r.krstonijevic@unifarmad.rs www.unifarmad.rs Sector: Medical products

VICTORIA GROUP NOVI SAD Hajduk Veljkova 11, 21000 Novi Sad Tel: +381 21 4895 400 Fax: +381 21 521 204 nikola.vujacic@victoriagroup.rs www.victoriagroup.rs Sector: Food VIESSMANN D.O.O. BEOGRAD TRIŠE KACLEROVIĆA 27 L, BGD Tel: +381 11 3097 887 Fax: +381 11 3097 886 gub@viessmann.com www.viessmann.co.rs Sector: Heating techniques VOLKSBANK A.D. BEOGRAD Bul. Mihaila Pupina 165g, N.BGD Tel: +381 11 2013 259 Fax: +381 11 2013 270 sasa.ivanovic@volksbank.rs www.volksbank.rs Sector: Financial services WASI D.O.O. Pančevački put 38, 11210 Beograd Tel: +381 11 2078 227 Fax: +381 11 3318 532 sasa.marinkovic@wasi.rs www.wasi.rs Sector: Steel products WEISHAUPT D.O.O. BEOGRAD Bul. Mihaila Pupina 6, N.BGD Tel: +381 11 2200 601 Fax: +381 11 2200 610 Email: z.veljkovic@weishaupt.rs www.weishaupt.rs www.weishaupt.si Sector: Burners for liquid and gas fuels WILO BEOGRAD D.O.O. Mijačka 3, BGD Tel: +381 11 2851 275 dragan.simonovic@wilo.rs www.wilo.rs Sector: Pumps and air conditioning WINTERHALTER GASTRONOM YU D.O.O. Zrenjanski Put 84c, BGD Tel: +381 11 208 5950 Fax: +381 11 2710 348 www.winterhalter.co.rs Sector: Professional washing machines WOLF THEISS PC Ušće, Bul. Mihajla Pupina 6, N.BGD Tel: +381 11 3302 900 Fax: +381 11 3302 925 miroslav.stojanovic@wolftheiss.com www.wolftheiss.com Sector: Legal counseling WÜRTH D.O.O. BEOGRAD Pančevački put 38, BGD Tel: +381 11 2078 200 Fax: +381 11 2078 210 aleksandar.grgic@wurth.rs www.wurth.co.rs Sector: Electric machines for crafting XELLA SRBIJA Diše Đurđevića bb, 11560 Vreoci Tel/Fax: +381 11 8123 522 nikola.boroja@xella.com www.xella.rs Sector: Construction materials