Swiss Business Sector in Serbia 2010 by CorD Magazine

FDI Foreign Direct Investment

Swiss Business Sector in Serbia

Potentials for greater cooperation

Swiss Business Sector in Serbia 2010

Guide to

CONTENTS 7

H.E. MR. ERWIN H. HOFER, Ambassador of Switzerland to Serbia POTENTIALS FOR GREATER ECONOMIC COOPERATION

H.E. MR. ERWIN H. HOFER, Ambassador of Switzerland to Serbia DYNAMIC DEVELOPMENT

12 EDITOR IN CHIEF Tatjana Ostojić, t.ostojic@cma.rs ART DIRECTOR Tamara Ivljanin, t.ivljanin@cma.rs DESIGNER Miloš Aleksić, m.aleksic@aim.rs EDITORIAL CONTRIBUTORS Ana Stojanović PHOTO Slobodan Jotić, Darko Cvetanović LECTOR Pat Andjelkovic TRANSLATORS Snežana Bjelotomić PROJECT MANAGERS Vesna Vukajlović, v.vukajlovic@aim.rs; Marija Savić, m.savic@aim.rs; Snežana Terzić, s.terzic@aim.rs GENERAL MANAGER Ivan Novčić, i.novcic@cma.rs FINANCIAL DIRECTOR Ana Besedić, a.besedic@cma.rs EDITORIAL MANAGER Tanja Banković, t.bankovic@cma.rs PRINTING Rotografika d.o.o. Segedinski put 72, Subotica FDI Foreign Direct Investment – Swiss Business Sector in Serbia – Potentials for greater cooperation 2010 published by: alliance international media in association with Swiss Embassy Special thanks to Dragica Tomić. 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 2010

4 Swiss Business Sector in Serbia / 2010

Swiss Serbian Cooperation SUPPORTING SERBIAN EFFORTS

Culture - ALPINE CULTURE

Facts & Figures – MULINATIONAL ECONOMIC GIANT

Corporate – SCHINDLER TRADITION AND NEW START

Corporate - A COMPANY WITH AN INDIVIDUAL APPROACH

Goran Stojanović, Business Development Director of PharmaSwiss - NEW 20-MILLION-EURO FACTORY

Lukas Negedly, General Manager Austrian Airlines, Lufthansa and Swiss International Air Lines - BELIEVING IN SERBIAN MARKET

Gustavo Navarro, CEO Holcim Serbia – STRATEGIC INVESTMENT

EconomIc Cooperation between Serbia and Switzerland

Vladimir Medan, Chairman of the Managing Board of Basler Insurance - RELIABLE PARTNER FOR THE FUTURE

46 48

Tourism - ENJOYING WONDERFUL COMBINATION

Marco Zoppi, Chairman, youngculture - ADVANCED SOFTWARE ENGINEERING

Swiss Made Watches Export Watches 13.2 Bln

Brands – SWISS MADE

2010 / Swiss Business Sector in Serbia 5

6 Swiss Business Sector in Serbia / 2010

Potentials for greater economic cooperation

BY H.E. MR. ERWIN H. HOFER, Ambassador of Switzerland to Serbia

witzerland and Serbia have enjoyed a longstanding and friendly relationship, thanks to their geographical proximity, socio-economic similarities, closeness in interaction, and a significant diaspora living in Switzerland. Diplomatic relations were established almost a century ago, in 1916. Since 1991, Switzerland’s cooperation with Serbia has amounted to over 200 million euros An additional 40 million euros have been allocated for the new “Cooperation Strategy Serbia 2010-2013,” which represents Switzerland’s long-term commitment to supporting Serbia’s transition towards full European integration. Switzerland’s cooperation with Serbia has therefore become the centerpiece of our bilateral relations. In 2009, bilateral relations between our two countries received an impressive boost, underlined by a series of high-level contacts, including a visit of the President of the Swiss Confederation. I am particularly pleased that this momentum will be maintained throughout the current year with a particular emphasis on economic issues. It is no coincidence that for the bilateral relations between Switzerland and Serbia, the economy in general and our enterprises in particular play an increasingly important role in developing trade and investment potential for the benefit of both countries and their societies as a whole. Swiss companies have been present for a long time in Serbia and the potentials exist for much greater economic cooperation. The fact that over 100,000 Serbs are working in Switzerland represents a solid bridge of cooperation. Bearing in mind this great potential, Switzerland and Serbia stepped up their efforts to intensify bilateral cooperation intended to boost Serbian exports and to make Serbia more attractive to investors, including Swiss ones. After the first very successful Swiss-Serbian Business Forum in October 2009 in Belgrade, we are glad to announce that the SEC Chamber of Commerce Switzerland - Central Europe together with the co-organizer OSEC Business Network Switzerland and the Serbian Chamber of Commerce (PKS) will organize a “Business Day Serbia” on Tuesday, May 11th, 2010 in Zurich. It is therefore my pleasure to introduce this edition, which will give you an insight on new trends and future developments of Swiss-Serbian business relations, illustrated by a number of company presentations. It also includes a special interview, in which I will outline the political and economic relations between Switzerland and Serbia and identify areas for future co-operation.

2010 / Swiss Business Sector in Serbia 7

interview H.E. Mr. Erwin H. Hofer, Ambassador of Switzerland to Serbia

Dynamic dev From left: H.E. Mr. Erwin H. Hofer, Ambassador of Switzerland to Serbia, Vesna Arsić, State Secretary in Charge of Foreign Economic Relations in the Ministry of Economy and Regional Development of the Republic of Serbia, Mr. Werner Gruber, Board Director for Serbia at the EBRD, European Bank for Reconstruction and Development and Gustavo Navarro, CEO Holcim Serbia

By Tatjana OSTOJIĆ

oreign direct investment (FDI) is the key to Serbia’s further development, based on a competitive market economy, said H.E. Mr. Erwin H. Hofer, Ambassador of Switzerland to Serbia, for our special edition “Swiss Business Sector in Serbia.” FDI was one of the questions we asked H.E. Mr. Hofer. During the first half of 2009, trade between Serbia and Switzerland was 127.3 million dollars and the Serbian deficit was 68 million dollars. You believe that economic cooperation between two countries can be brought to a higher level. Where do you see a potential for this improvement?

“We are convinced that these positive trends will be halted only temporarily in 2009 due to the global economic crisis. Despite the downturn, positive developments in bilateral economic cooperation as well as the growing interest of businessmen of both countries are intensifying further joint business activities”

Looking over the last few years, we can observe a very dynamic development in our trade relations. We are convinced that these positive trends will be halted only temporarily in 2009 due to the global economic crisis. Despite the downturn, positive developments in bilateral economic cooperation as well as the growing interest of businessmen of both countries are intensifying further joint business activities. Recognizing these potentials, we are very pleased that the SEC Chamber of Commerce Switzerland – Central Europe, together with the OSEC Business Network Switzerland and the Serbian Chamber of Commerce took the initiative to organize a “Business Day Serbia” on May 11th, 2010 in Zurich. This business event is organized in the context of the 3rd Meeting of the Joint Economic Commission Switzerland – Serbia, which aims to improve and facilitate economic and

DEVELOPMENTS

STANDARDS

SUPPORT

Positive developments in bilateral economic cooperation as well as the growing interest of businessmen of both countries are intensifying further joint business activities.

We are currently working with our Serbian partners towards enabling Serbia to adopt food safety standards and expand exports of agricultural commodities.

In the four-year period, the Swiss Government will support Serbia’s European integration process by ﬁnancing cooperation programs in an amount over 40 million euros.

8 Swiss Business Sector in Serbia / 2010

velopment trade relations between our two countries. In the framework of common efforts to boost Serbian exports and to make Serbia more attractive to investors, on February 22nd, 2010 a Memorandum of Understanding on Swiss assistance to Serbia regarding intellectual property matters in the amount of over half a million euros was signed between State Secretary in the Federal Department of Foreign Affairs Michael Ambühl and Serbian Deputy Prime Minister Bozidar Djelic. Within Serbian business sector circles there is also the opinion that cooperation can be improved, and Vesna Arsic, State Secretary in the Ministry of Economy, sees room for improvement in the metal processing, chemical processing, and agriculture food processing industries, as well as in the area of attracting new investments in Serbia. Do you share that opinion? We absolutely share the view that Serbia has great export potentials. The main export possibilities are in the sectors of agriculture, IT, textiles, metal processing, food processing, tourism, and the machine industry. The mentioned products could find their way to the Swiss market provided that they fulfill the required standards and that they are competitive. Indeed, one important activity in our bilateral cooperation is to promote Serbian exports. Our programmes have included all the sectors you mention. We are currently working with our Serbian partners towards enabling Serbia to adopt food safety standards and to increase the use of geographical indications, both with a view to expand exports of agricultural commodities. Switzerland is a significant investor in Serbia. The Swiss economy’s biggest investment is definitively Holcim. What experience have Switzerland investors in Serbia had so far? As a matter of fact, the major Swiss investment in Serbia has been the Holcim Company’s purchase of the concrete factory in Popovac. Other represented sectors are the insurance sector, represented by Basler Insurance, the pharmaceutical industry with Roche, Novartis, Phamaswiss, and Sandoz, the energy and telecommunications sector, and the nutrition sector represented by Nestlé Adriatic Food. The SME sector is very interested in the IT sector in Serbia. However, the links of the Serbian economy to Switzerland are much more intense than the official figures would show, particularly since some major international companies operate in Serbia out of Switzerland. Foreign direct investment (FDI) is the key to Serbia’s further development, based on a competitive market economy. Within its cooperation with Serbia, Switzerland has therefore put commensurate efforts into projects aimed at boosting Serbia’s attractiveness for FDI. Among such instruments is the SECO Start-

Serbia’s market opportunities are certainly in the infrastructure, transportation, telecommunication, and construction sectors up Fund, aimed at financing promising joint ventures between Swiss and Serbian companies. We have also contributed to the World Bank’s Doing Business Report and the OECD’s Investment Compact, both of which are aimed at improving the business climate in the region. Last but not least, we are a major contributor to a series of investment and venture capital funds, such as the European Fund for Southeast Europe (EFSE). Most Swiss companies doing business in Serbia have had a positive experience. In particular, the workforce factor is highLEADING ECONOMIC ROLE

e are convinced that the Serbian economy can play a crucial role within the region with its strong historic links to European countries, its good basis of agriculture, industry, and the business environment. However, taking a closer look at the situation for the real economy, while considering the high correlation between competitiveness and the business climate, gives us a more critical picture. According to the World Competitiveness Report, Serbia still faces a low competitiveness index, even compared with some neighboring countries. The report even shows that the business climate in Serbia has deteriorated in 2009. As a matter of fact, Serbia slipped from 85th to 93rd position among 134 countries analyzed. 2010 / Swiss Business Sector in Serbia 9

interview Switzerland’s cooperation with Serbia is worth 10 million euros yearly. Since 1991, this has amounted to over 200 million euros between the European Free Trade Association (EFTA), of which Switzerland and Serbia are members. This agreement, which will boost our bilateral trade relations, is expected to come into force as soon as it has been ratified by all contracting parties.

lighted by many investors along with Serbia’s geographic location and availability of raw materials, as an advantage for establishing a business location here. Nevertheless, the most common problems that Swiss companies in Serbia report are insufficient transparency in the privatization process, complicated bureaucracy procedures, burdened administration, corruption, and lowlabor market efficiency. Which other economy sectors are of interest for Swiss companies? Serbia’s market opportunities are certainly in the infrastructure, transportation, telecommunication, and construction sectors. The Government of Serbia has envisaged a comprehensive national plan for road and infrastructure reform. Serbia hosts major road, rail, air, and river routes that link South-Central Europe and the Middle East with Western Europe. There are opportunities in the construction sector due to loans and grants from IMF, the World Bank, EBRD, and the EU. Furthermore, medical instruments and electronic equipment for medical use have a strong market potential. Serbia’s need for medical technology will continue to grow. Also, the software and IT industry will experience similar growth due to the plans of the government and many private and domestic companies to introduce computer technology in their operations. What is the status of the agreement on free trade that was signed last December between the European Free Trade Association (EFTA), whose members are both from Switzerland and Serbia, and has it been implemented yet? At the end of last year, a Free Trade Agreement was signed VISAS LIBERALIZATION

isa liberalization has a significant symbolic effect on the citizens of Serbia and the Western Balkans. The visa liberalization has eased procedural inconvenience and provided more opportunities for tourists, workers, and students. The opening of borders is nonetheless a vital step towards European integration and greater prosperity for the citizens of Serbia. It is too early now to feel the tangible effects on the business, but this measure represents a step closer to their inclusion into the EU and hope for a better future.

10 Swiss Business Sector in Serbia / 2010

Recently in Switzerland a new strategy regarding cooperation between Switzerland and Serbia for the upcoming four years was adopted. What kind of strategy is it, and what are its goals? Switzerland’s cooperation with Serbia started back in 1991 when the focus was first set on emergency aid for humanitarian needs. After the political changes following October 2000, Switzerland started to support the democratic government with a comprehensive cooperation programme aimed at fostering institutional reform with a view to enable a smooth transition towards a functioning democracy with a sustainable market economy. Today, this cooperation is implemented by two Swiss agencies: the Swiss Agency for Development and Cooperation (SDC) within the Federal Department of Foreign Affairs and the State Secretariat for Economic Affairs (SECO) within the Federal Department for Economic Affairs. The Swiss Cooperation Office Serbia, based in Belgrade, monitors all activities of the program in the country.

Most Swiss companies doing business in Serbia have had a positive experience Switzerland’s cooperation with Serbia is worth 10 million euros yearly. Since 1991, this has amounted to over 200 million euros. Recently, a new Cooperation Strategy Serbia 2010-2013 was formulated with Switzerland’s main partners in Serbia. In the upcoming four-year period, the Swiss Government will support Serbia’s European integration process by financing cooperation programs in an amount over 40 million euros. This support represents Switzerland’s long-term commitment to supporting Serbia’s transition towards full European integration. The goals of the Cooperation Strategy are structured around four main domains: economic development, rule of law and democracy, education and energy efficiency and renewables. With respect to the economy, Switzerland aims to assist Serbia to maintain macroeconomic stability, create employment, and improve competitiveness; in rule of law and democracy, to contribute to Serbia’s decentralization and to foster vertical integration between municipal and central state levels. We also aim to enhance the efficiency, equity, and quality of the education system, and to contribute to the needed modernization of electricity generation and distribution infrastructures while searching for ways to raise energy efficiency and the use of renewable energy sources in Serbia.

2010 / Swiss Business Sector in Serbia 11

swiss serbian cooperation

Supporting Serb in line with relevant national documents, such as the National Programme for Integration with the European Union, the Needs of the Republic of Serbia for International Assistance, social inclusion policies, and selected sector policies and strategies. The document was approved in December 2009.

FRAMEWORK

The Swiss Agency for Development and Cooperation (SDC) and the State Secretariat for Economic Affairs (SECO) have together drawn up the Cooperation Strategy Serbia 2010-2013 in association with development partners in Serbia and with various interested parties from the Swiss government. The Strategy represents Switzerland’s commitment to supporting Serbia’s transition towards a functioning democracy and a sustainable market economy (The text was prepared on the basis of the original document, edited and shortened by the editorial staff)

he overall goal of European integration and the four domains of the Cooperation Strategy 2007-2009 remain well in line with current government priorities, as formulated in several strategic documents and confirmed by the Serbian Ministry of Finance. This, along with long-term partnerships yielding tangible results and a relatively stable context, provides a sound basis for the future. Consequently, there is no need for the programme to be reoriented substantially. What is required is rather a refinement of thematic priorities and certain adjustments in approaches and work modalities. The Cooperation Strategy has been prepared

12 Swiss Business Sector in Serbia / 2010

Serbia has experienced considerable economic growth in recent years and is now a country with a clear European orientation and a strong will to take the social inclusion agenda forward. This and the Swiss programme experience are strong assets on which to build the Cooperation Strategy 2010-2013, making use of new opportunities for alignment with Serbia’s policies. While the new medium term programme thus contains elements of continuity, it is also designed to adjust to emerging challenges, including the repercussions of the global economic crisis on Serbia. Key national references are the National Programme for Integration with the European Union, the Needs of the Republic of Serbia for International Assistance, social inclusion policies – which are to replace the Serbian Poverty Reduction Strategy (PRS) – and selected sector policies and guidelines. A “selective” alignment approach will help to focus on topics where Switzerland has a comparative advantage, and to keep a distance where no agreement can be reached on basic concepts or methods. Selective alignment may also refer to programmes of other partners than the central government. On the Swiss side, the objectives of the Strategy for the Western Balkans of the Federal Council continue to provide the overall frame of reference. The Law on Cooperation with Eastern Europe provides the legal basis, and funding derives from the frame credit on the Continuation of Cooperation with Eastern Europe and the commonwealth of Independent States approved in 2007. Finally, the international points of reference are the Millennium Development Goals and the Paris Declaration on Aid Effectiveness, with the related Accra Agenda for Action. Based on these parameters, the Cooperation Strategy 2010-2013 has been designed with the objectives to support Serbia’s efforts towards European integration, by contributing to improving social inclusion and reducing poverty, and increasing the competitiveness of its economy.

ECONOMIC DEVELOPMENT Within the Serbian government’s numerous economic priorities, SECO and SDC will align with the following: maintaining macroeconomic stability, improving the competitiveness of SMEs, employment creation and regionally-balanced economic development.

bian eﬀorts DOMAIN OBJECTIVES SECO and SDC’s domain portfolio contributes to a functioning public and commercial financial sector, a conducive business environment and regulatory framework, strengthening the export potential of private enterprises, and SMEdriven pro-poor market growth.

Decentralization and local governance Municipal development remains the focus of the programme, which will support the implementation of the recently-passed laws on municipalities, local self-government and regional development

targeted in the short to medium term. Complementary activities will be explored at the national level. Interventions to enhance economic governance will include support for international standards and codes aimed at a sound institutional and market infrastructure. This sub-domain is aimed at producing direct improvements to generate competitive, transparent and reliable regulatory environments at national and local levels, thereby

Interventions in this domain will build on emerging needs and potentials in order to address the impact of the global economic crisis in a flexible manner.

FINANCIAL SECTOR SUPPORT The current macroeconomic imbalances impact directly on the public sector’s fiscal position, as well as the private sector’s access to finance. In the public domain, activities relate first and foremost to improving public financial management in order to optimize the use of increasingly scarce budgetary resources. In the commercial domain, a sustained access to finance and related services for SMEs must be ensured. The main activity lines are expanding financial intermediation in the banking and non-banking sectors and ensuring a greater depth of the financial sector and a stronger market infrastructure, in particular by restructuring the banking and insurance sectors. The government’s commitment to continue macro-economic stability policies and to restructure the banking and insurance sectors will be the crucial context variables to be monitored.

allowing SMEs to formalize their operations, do more and better business, and create new jobs. The regular Foreign Investments Advisory Service/International Finance Corporation (FIAS/IFC) sub-national “Doing Business” surveys in selected benchmark municipalities will assess progress in relevant performance indicators. These surveys are co-financed by SECO. In addition, the government’s progress in implementing strategies such as the “regulatory

BUSINESS ENVIRONMENT REFORM Economic competitiveness depends on a conductive business environment. SECO will continue to promote new reforms, especially at the sub-national level in medium-sized municipalities, with an emphasis on implementing policies, enforcing the regulatory framework and building related capacities. Ten out of twenty leading municipalities will be 2010 / Swiss Business Sector in Serbia 13

swiss serbian cooperation guillotine” will be a core context development to be monitored. Sub-domain: trade cooperation (SECO) Serbia’s traditional, large current account deficit calls for growth in sectors with export potential, hence an increased competitiveness of exports. To allow Serbia to capitalize on its WTO

membership – expected in 2010 and for which SECO’s support has been essential – trade-related deficiencies and opportunities are being addressed to increase the export potential of private enterprises. Main lines of intervention are (i) intellectual property rights through the enforcement of geographical indications (GIs); these are related to WTOTRIPS and intended to designate product quality, highlight brand identity and preserve cultural traditions; (ii) the European retailers’ programme for good agricultural products (GLOBALGAP) quality standard for export-oriented commercial agriculture; and (iii) export promotion for specific traditional agricultural products (in cooperation with SIPPO), as well as commodities and services with a high technological value (development of specific export clusters). Expected outcomes are directly related to these activity lines. Exports by commercial entities which introduce GIs and quality standards should increase measurably.

MAKING MARKETS WORK FOR THE POOR/M4P (SDC) A systemic SME- focused market development approach is relatively new to Serbia. Consequently, the potential for alignment with existing policies and strategies is limited. SDC has begun rolling out the innovative “Making Markets Work for the Poor” (“M4P”) concept, which intends to develop market systems so that they function more effectively and, in particular, also benefit the poor. To reduce regional imbalances, the focus of activities is to be in the southern and south-western regions, where five markets are to be developed 14 Swiss Business Sector in Serbia / 2010

RULE OF LAW AND DEMOCRACY (SDC) National priorities From the many priorities of central and local governments, SDC will selectively align itself with the following: the introduction of social inclusion policies, locallevel institutional capacity building, regional development, decentralization (including fiscal decentralization and municipal property divestment), municipal advocacy and lobbying capacities at the central government level, institutional capacity-building in the judiciary Domain objectives (SDC) SDC’s domain portfolio contributes to (i) fostering vertical integration between municipal and central state levels and promoting popular rights, as well as municipal support programmes, increasing the absorption capacity for decentralized responsibilities and competencies while respecting good governance principles and ii) drafting and implementing the social inclusion agenda and judicial reform Strategically, the programme will concentrate on (i) vertical integration and advocacy for municipalities’ interests in central government and, (ii) strengthening management capacities and good governance practices of municipalities in line with their increasing tasks and responsibilities in the course of the current progressive decentralization in Serbia. SDC will provide an institutional support to the Standing Conference of Towns and Municipalities (SCTM), the association of Serbian municipalities, with a view to contribute to improving interactions between the local and central levels of government. At the level of individual municipalities, the approach of working directly through local systems will be emphasized. The current level of harmonization with other donors must be maintained at least. Relevant context variables are i) the level of government commitment to decentralization, in particular related to a conducive legal framework, fiscal decentralization, as well as the transfer of municipal property and ii) the political willingness of municipalities to team up with the SCTM to advocate their interests at central level. Sub-domain: judicial reform and social inclusion While Serbia has already developed a national judicial reform strategy, implementation has not progressed in earnest, and there is a continued lack of public trust and confidence in the judiciary. The Ministry of Justice (MoJ) is aware of these shortcomings and has requested that the donor community supports the updating and implementation of the reform strategy. SDC has agreed to co-finance a World Bank multidonor trust fund. The expected outcome is a national judicial reform action plan for implementation.

interview Gustavo Navarro, CEO Holcim Serbia

STRATEGIC INVESTMENT

As one of the largest markets in SE Europe, Serbia has an excellent position, a competitive labor force, good telecommunication infrastructure, a favorable corporate tax policy, and as such should stand as one of the top investment destinations in the region By Ana STOJANOVIC

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believe that most foreign companies doing business in Serbia would agree that substantial room for improvement remains to be realised in the coming period. For example, as concerns the construction industry, it is absolutely imperative to radically improve the efficiency of obtaining permits and other painful administrative proceduresâ&#x20AC;? said Gustavo Navarro, CEO Holcim Serbia, for our Special edition.

In 2002, Holcim acquired the Novi Popovac cement plant. This investment is the biggest investment made by a Swiss company in Serbia so far, totaling 60.9 million euros and is considered an example of a successful privatization. If you had to compare doing business in Serbia back then and now, what would you say has changed for the better and what still needs to be improved? The acquisition of the Novi Popovac cement plant was a strategic investment for Holcim, since this company, as well as the Serbian market in a whole, have been perceived as high-potential ones. We were certain that we made a good choice with this privatization. Our business has developed rapidly and in our assessment Serbiaâ&#x20AC;&#x2122;s prosperity is yet to come. Unfortunately, the global financial crisis has affected the Serbian economy and every company on the market as well. This goes for Holcim too, especially having in mind that as a consequence of the general economic slowdown, the construction industry has been among the first to experience negative effects of this trend. Nevertheless, we remain committed to conducting our operations here, and are optimistic that this crisis will not reverse the 16 Swiss Business Sector in Serbia / 2010

Building healthy and harmonious relations between the environment and industry is absolutely imperative in order to preserve the natural wealth of our planet positive trends observed in recent years. As one of the largest markets in the SE Europe, Serbia has an excellent position, a competitive labor force, good telecommunication infrastructure, a favorable corporate tax policy, and as such should stand for one of the top investment destinations in the region. On the other hand, when we talk about land ownership, the permitting process, transparency, and enforcement of laws, there is still room for improvement. Holcim has invested an additional 100 million euros in plant modernization and social programs. Could you assess for us just how successful the overall investment was? With these investments, we have set up the highest Holcim standards in all business processes in the Popovac cement plant. Apart from technical capacities, we have invested in the human resources development, environmental protection, and all the other segments that have enabled Popovac cement plant to become a sustainable and successful company. I am happy to say that our efforts have paid off. Holcim has broadened its operations in Serbia, and now operates the Popovac cement plant, the RMX plant “Belgrade East,” and DTD Kamenko Gagrcin in Sombor, which Holcim purchased last year in order to continue its aggregates business development in Serbia. What is your view of the industry’s main competitors in Serbia? Apart from Holcim, two cement plants, Lafarge from Beocin and Titan from Kosjeric, are also operating in this market. All three cement plants have an annual production capacity of 2.5 million tons of cement, which covers the needs of Serbian construction industry. Regarding our competitors, we have nothing but respect, since both of them are highly successful companies. This fact always

keeps us on our toes and motivates us to work even harder and to improve and innovate all the time. Holcim is known for paying a great deal of attention to local community. What kind of local projects have you been engaged in? Holcim Serbia considers CSR to be one of the most

When we talk about land ownership, the permitting process, transparency, and enforcement of laws, there is still room for improvement important elements of business conduct, which serves as our guideline for decision-making and taking action. This mode of conduct has resulted in partnership with the local community, which is being demonstrated everyday through numerous projects. We have established a community advisory panel in the local community, with the aim of getting closer to our fellow citizens to find out their needs and dilemmas through open dialogue so that we can solve them in a constructive manner. In the first period, we supported the municipality mainly in infrastructure projects, but also we were engaged in cultural and educational ones. Within the competition of “Partnership for the Future,” launched

TOUGH BUSINESS YEAR

ccording to the IMF, Serbia’s economy has weathered the global financial crisis “relatively well.” Production decline has been contained, while decreasing domestic demand has helped the country make a significant external adjustment. On the other hand, the construction industry, on which our industry high-

ly depends, has been among the first industries affected by the economic crisis. Construction activities were severely reduced during 2009, as no new construction sites were opened. Bad solvency of contractors resulted in a strict bank crediting policy, which led to a decrease in project funding. Nevertheless, as I have already said,

we remain committed to this market, strongly believing in its potentials. I expect that in the next period Serbia will focus its economic policies on ensuring more sustainable growth, while boosting investment in infrastructure development, which is a good formula for construction industry revival. 2010 / Swiss Business Sector in Serbia 17

interview

in 2008, we have provided financial support for the realizaregulatory guillotine and new construction regulation which tion of 19 innovative projects, with sustainability potential promise vast improvements for builders and real estate deand educational character, implemented in the Paracin muvelopers. All in all, the rate of transitional reforms needs to nicipality. I will mention only some of them: an ecological be accelerated, which will improve business conditions and workshop “Through Recycling to Sustainable Paracin,” also bring Serbia closer to the EU. “Born Equal - Cultural Day for People with Disabilities,” You are quite engaged in environmental campaigns “Volunteering in Paracin,” the Center for Entrepreneurial and you have led many teams in cleaning up Serbia. On Supply and Demand, Theater Performance for People with the other hand, you belong to an industry that pollutes Disabilities, and many others. With the desire to find new the environment, but is also necessary for the economy. projects to give financial support, a competition in 2010 is How would you reconcile these two extremes? being held for the third time in a row. Holcim uses every Unfortunately, it is a fact that we are living in a world opportunity to be a good neighbor. By launching “Nase,” where scientific evidences undoubtedly implies that humana newspaper for the local community, entertaining a large ity is living unsustainably. Returning human use of natural renumber of visitors from Popovac and Paracin in the cesources within sustainable limits is what we, as a part of Holment factory, decorating communal rooms of an apartment cim Group, are aiming to imbuilding in Paracin in the scope plement, by doing business in a of the voluntary day, with the We remain committed to procurement of medical equipconducting our operations here, manner that fully observes and meets the present generation’s ment for the village dispensary, and are optimistic that this crisis needs without compromising supporting a football team, reconstructing a kindergarten, will not reverse the positive trends the prospects of generations to come. Building healthy and public parking, street lighting, observed in recent years harmonious relations between Popovac church, and many the environment and industry is absolutely imperative in order more. Going forward, Holcim Serbia will continue with to preserve the natural wealth of our planet. By responsibly positive contribution to the local community, with its primonitoring the impact of our production on the environmenority of being good neighbor. tal component of sustainable development, we are constantly According to you, Serbia is on a path leading to ecoimproving our performance in this field. We implement innomic recovery, but the country “still needs time” to novative solutions to reduce usage of natural resources by usharmonize its standards with those of the European ing alternative fuels, and are committed to reduce the group Union. Could you specify? average-specific net CO2 emissions per ton cement by 20% There is no doubt that considerable progress in this area from the reference year 1990. We monitor the emission of has been made over the last few years. However, I believe dust and gases, noise, impact on water and soil, as well as that most foreign companies doing business in Serbia would the changes of geological status caused by mining. Specific agree that substantial room for improvement remains to be attention is paid to the consumption of drinking water in orrealised in the coming period. For example, as concerns the der to minimize its use for production and maintenance. The construction industry, it is absolutely imperative to radically global policy of Holcim is to minimize waste generation, to improve the efficiency of obtaining permits and other painrecycle and reuse it, and to landfill only minimal quantities of ful administrative procedures. The construction industry is inert waste in a safe way. With this in mind, for 4 consecutive a safe bet for Serbian economy, and it would be a shame years, Holcim Group has recorded the best sustainability perto hinder its prospects by paperwork and bureaucracy. In formance in its industry, and was acknowledged as the leader this sense, we look forward to the positive effects of the of Dow Jones Sustainability index. 18 Swiss Business Sector in Serbia / 2010

BUHLER Profile Prepared for the future. Buhler is the global specialist and technology partner in the supply of plants and services for processing grain and food as well as for manufacturing advanced materials. The Group holds leading market positions as a provider of flour production and feed manufacturing installations, but also pasta and chocolate lines and aluminum die casting systems. The core technologies of Buhler are mechanical, thermal and biological process engineering. Buhler designs, develops, constructs, and installs plants and advises, trains, and coaches its customers. Thanks to its extensive expertise and the wealth of experience that it has accumulated over the decades, Buhler is in a position to develop unique and innovative solutions for its customers, enhancing their market success. Through its consistently high quality, Buhler has come to be known over the years as a reliable partner. It owes this reputation to its international service organization, which provides support to its customers around the world whenever and wherever they need it and throughout the life cycle of their plants. Buhler is active in over 140 countries and has 7,700 employees worldwide. In fiscal 2008, the Buhler Group generated sales of CHF 1,893 million.

Interesting Facts About Buhler Buhler in everyday life – not an everyday thing. Most people are not even aware of how many times a day they encounter products to which Buhler has contributed. Buns in the morning? The ink on newspaper? Perhaps a few noodles for lunch? The refreshing beer after work? Yes, a bit of Buhler is in all these things – for Buhler is a technology group and global market leader in Food Processing, Chemical Process Engineering, and Die Casting. Bread and bakery products. In the production of bread, bakery products, of breakfast cereals, grain must undergo extensive processing. The related grinding process has been continuously perfected during the 150 years of Buhler’s existence. Today, cast-iron rolls grind the grain to make products such as flour and semolina. Countless grain mills throughout the world use Buhler technology and equipment – from grain reception to cleaning and grinding up to packing and loadout. But Buhler capabilities are vaster, including ship unloading and bulk grain storage systems. Wherever in the world you buy bread, bakery products, breakfast cereals, you can be quite sure that the flour used in making these products comes from a Buhler plant. Beer. Want to quench your thirst or just treat yourself to something fine? A refreshing sip of two of beer is always welcome, no matter on what occasion. And Buhler helps produce it: numerous malthouses and breweries take advantage of the experience and quality offered by Buhler in processing the necessary ingredients such as barley, malt, or wheat to give the beer its unmistakable taste. Rice. Rice is consumed the world over, but because of the climatic conditions required to grow it, most rice processing facilities are located in Asia. There, Buhler plants process the different varieties of rice. But even before actual processing, the rice undergoes sophisticated operations: It must be freed from other grain and vegetable seeds on the basis of color. Buhler designs and supplies color sorting systems for this purpose.

Chocolate. The road from the raw cocoa to the bar of chocolate is long and involves numerous different process operations. Buhler has decades of experience in chocolate production – for the benefit of millions of chocolate lovers around the world. Pasta. Italy is its home. But pasta has now also become one of the most popular foods on a global scale. The steady rise in demand is evidenced by the booming industry, which Buhler supplies with entire state-of-the-art pasta production lines. Animal feeds. Since animal products are an essential part of human nutrition, animal feeds must be very high in vitamins and healthy. To meet this exacting need, Buhler designs and constructs feed manufacturing plants throughout the world. Snack food and such. What do many snack foods, breakfast cereals, and petfood have in common? They are all made by the extrusion process. Extruders force the raw material through the holes of a die, giving the finished products their characteristic appearance. The design and construction of such extruders is also an important activity of Buhler. Printing inks & paints, chemicals. Wherever pigments are applied, a relationship with Buhler products exists. Buhler is a global leader in the design and construction of plant and equipment for making all types of printing inks. Over 60 percent of all offset inks and even over 80 percent of all bank note inks in the world are made on the basis of Buhler process technology.

PET bottles, plastics. Engines, cell phone and laptop casings. Bio energy.

Official agency in Serbia: SIMIN Export-Import Engineering Narodnog fronta 73/II, 21000 Novi Sad Tel. + 381 21 469 711/ Fax. + 381 21 469 623 www.buhlergroup.com/ch / www.simin.co.rs / E-mail: siminexp@eunet.rs

economy ECONOMIC COOPERATION BETWEEN SERBIA AND SWITZERLAND

Meeting quality standards The growth of the trade between the two countries in 2009 was slower compared to 2008 due to unfavourable developments in the global economy. In 2009, the deficit in trading with Switzerland declined by 32% in relation to 2008, while exports covered 45.8% of imports, as opposed to 38.8% in 2008.

witzerland belongs to a group of moderately important foreign trade partners of Serbia. The value of goods exported from the Republic of Serbia to Switzerland covers 1% of the entire Serbian export. At the same time, goods and services imported from Switzerland make up 1.2% of the total Serbian import. Out of a total of 156 countries that Serbia traded with in 2009, Switzerland took 22nd place when it comes to Serbian exports and 24th place in terms of Serbia’s importing from Switzerland.

At the beginning of the monitored period (i.e. since 2001), exports have been rather modest and, up until 2003, export figures were on a decline while imports increased all the way to 2004, when exports started to grow at an average annual rate of 31%. Since 2005, export activities have been going up at an average annual rate of 36%, while in 2008 exports were 3.9 times higher as compared to 2001. In 2008, trade exchange with Switzerland grew by 18.9% in relation to 2007, while exports covered 40% of imports, as opposed to 28% in 2007. This tendency

Commodity trade between Switzerland and Serbia Year 2001 2002 2003 2004 2005 2006 2007 2008

Export 25 268 18 708 18 331 23 424 39 509 92,140 62,147 93.810

Import 78 494 104 478 156 225 176 068 125 790 150,698 222,087 241.400

2009

83.400

184.600

In 000 USD

Commodity trade 103,762 123,186 174,556 199,492 165,299 242,838 284,227 335.210

Balance -53 226 -85 770 -137 894 -152 644 -86 281 -58 558 -159 940 -147.590

Export’s coverage of import in % 32.2 17.9 11.7 13.3 31.4 61.1 27,9 38,8

268.000

-101.200

45,8

Source: Serbian Chamber of Commerce’s Informatics and Electronic Operations Centre 20 Swiss Business Sector in Serbia / 2010

slowed down in 2009 (compared to 2008) due to unfavourable developments in global economy. In 2009, the deficit in trading with Switzerland declined by 32% in relation to 2008, while exports covered 45.8% of imports, as opposed to 38.8% in 2008, owing to a 20% decline in trade exchange (in the same period, exports dropped by 11% and imports by 23.6%). In 2009, Serbia mostly exported the following products to Switzerland: electricity, fuel and lubricants, water pumps, spare parts for pumps, aluminum alloy products up to 3 mm thickness, frozen fruit (raspberries), panels, sheet metal, coiled copper strips, processed silver, and refined copper wire. The same year, Serbia imported from Switzerland mostly medication, antisera, liquid butane, plant protection chemicals, print dyes, milling machines, and electricity.

The biggest Serbian export companies in 2009 were the following: Energy Financing Team, RTB Invest, Impol Seval Rolling Mill, The Kolarević Construction Company, Dam-Mont, Tobler-Skele, and Lischtenberg Group The biggest Serbian export companies in 2009 were the following: Energy Financing Team d.o.o. Belgrade, RTB Invest d.o.o. Bor, Impol Seval Rolling Mill - Sevojno, The Kolarević Construction Company, Dam-Mont d.o.o., ToblerSkele d.o.o., and Lischtenberg Group d.o.o. The biggest Serbian import companies in 2009 were the following: Energy Financing Team d.o.o. Belgrade, A.D. Galenika, Dupont Serbia d.o.o.- Belgrade, Roche d.o.o. Belgrade, Jugohemija Farmacija, Pionir d.o.o., Loher Elektro d.o.o. - Subotica, Papir Print, Bimed Belgrade, Siemens, Inpharm Co. Belgrade and Hemofarm.

Most import-related trade in 2009 was regular buy/sell transactions, commission arrangements, financial leasing, and mediation services, while in the case of exports, they were buy/sell transactions, cultivation services, mediation services, and free zone trading. OPPORTUNITIES FOR EXPORTING TO SWITZERLAND The following economy sectors and branches have the biggest chances for exporting to Switzerland – agriculture, textile, metal processing, food processing, machine building, and tourism. Providing they meet Swiss quality standards, the following product groups could also be exported to Switzerland – natural ingredients (food processing industry, pharmaceutical industry and cosmetics), medicinal herbs, spices, essential oils, dyes, tinctures, wine, clothes, toys, arts and crafts products, garden furniture (indoor and outdoor), ICT products, metal processing and electronics, plastic and rubber products (for industry and domestic use), industrial wood (parquet floors, doors, window frames, wood pieces), and fruits and vegetables. When it comes to the transport sector, it is of vital importance that transport companies have a sufficient number of bilateral road transport licences, and establish more fre-

2010 / Swiss Business Sector in Serbia 21

economy new credit lines are also important. When it comes to this kind of credit arrangements, Serbia should aspire to attain a favourable position in the ERG (the Swiss government export guarantee fund). INVESTMENT COOPERATION BETWEEN SERBIA AND SWITZERLAND

The biggest Serbian import companies in 2009 were the following: Energy Financing Team, A.D. Galenika, Dupont Serbia, Roche, Jugohemija Farmacija, Pionir, Loher Elektro, Papir Print, Bimed, Siemens, Inpharm Co. and Hemofarm quent bus lines between the two countries. When it comes to industrial production, the biggest opportunities lie in production cooperation, especially when it comes to metal processing (machine building, electronic industry, and vehicle manufacture), the chemical industry, and the agricultural and food processing sector. Advancing banking and financial cooperation, which was quite successful in the past when it came to payment operations (especially in terms of the current account cooperation with UBS and Credit Suisse), and establishing

In 2005 and 2007, Serbia and Switzerland signed two significant agreements on promotion and protection of investments and cancellation of double taxation, which became a framework for better economic cooperation and investments. The Swiss company Holcim came to Serbia in 2002 by winning a tender for acquisition of a majority share in the Novi Popovac cement factory. The Executive Board of the Swiss concern has approved investments in the factory in Serbia in the range of 155 million euros over a five-year-period. With the aim of increasing cement production, out of the aforementioned sum 83 million euros will have been invested by 2010, which would double the daily production of clinker (the solid material produced by the cement kiln stage that has sintered into lumps or nodules) from 2,200 tons to 4,000 tons. The project also envisages an annual capacity increase of clinker production to 1.2 million tons via a series of infrastructural and technological activities, like the extension of the vertical raw material grinding mill, to be completed by 2016. Last year, Holcim completed its five-year mandatory investment programme worth over $90 million, which had been devised before the Popovac plant was bought in 2002. The most significant Swiss investment in the chemical sector is one made by Pharmaswiss (medication factory in Belgrade), which invested 3 million euros in 2006. The company plans to create 200 new jobs. Basler is the first Swiss greenfield investment in Serbia in the insurance sector. The company is a part of the Baloise Group, which has been operational in the insurance industry for the past 150 years. The Switzerland-based Home Art and Sales Services has bought a 69.09% share in Centrotekstil for 18.9 million euros. The company undertook to invest

Overview of privatisations / investments Privatisation mode Tender Tender Tender Auction Auction Auction Auction Greenfield Capital market

Company name The Novi Popovac cement factory Jugošped, Belgrade Centrotekstil, Belgrade Fidelinka Subotica The Majdanpek Copper Factory The Dušan Dugalić Company, Batočina (knitwear) Fabrika lekova Belgrade (Belgrade Medication Factory) Insurance Ineks- Ineko, Belgrade

22 Swiss Business Sector in Serbia / 2010

Buyer Holcim Home Art Home Art Mineco CDI Guldenhaus Verwaltunds Pharmaswiss Basler United Business Activities

Amount 60.9 mil € 3.6 mil € 18.9 mil € 10.6 mil € 2.6 mil € 15,000€ 3.0 mil € Not disclosed 548,000€

an additional 3 million and adhere to the basic stipulations of the social programme. When it comes to other privatisation processes in Serbia, it is worth mentioning the CDI Company from Geneva (engaged in copper production), which bought two factories from the RTB group (Smelting and Mining Basin Bor) – the Majdanpek Copper Pipe Factory and the Dušan Dugalić Company from Batočina. DEVELOPMENT ASSISTANCE PROGRAMMES Cooperation between Switzerland and Serbia is also evident through assistance programmes (starting in 1992), with Swiss help reaching the amount of 110 million euros. Cooperation is implemented via two government agencies: • Swiss Development and Cooperation Agency (SDC), which operates within the Swiss Foreign Ministry • SECO (State Secretariat for Economic Affairs) The 2006 – 2008 cooperation strategy for Serbia covers the following four areas: local self-government (partners are the municipalities of Čačak, Užice, Požega, Arilje, and Čajetina), public infrastructure (with the emphasis on the Serbian energy sector – 17 million euros), and education and development of the private sector (applying standards and export promotion with partners Serbian Chamber of Commerce and SIEPA – 12.5 million euros). In addition to this, cooperation is implemented via a regional assistance programme for the police and justice system, local culture, science, and research. Switzerland is also helping with the establishment of the Diplomatic Academy and advancing communication technologies. The country also has a moderate budget for extraordinary situations and urgent humanitarian efforts in Serbia. The suspension bridge on the Lim River in Priboj, which has been reconstructed with money from the Development Programme in Southwest Serbia, is just one example of successful assistance. The project cost 60,000 euros to implement, with the European Agency for Reconstruction and the Swiss Development and Cooperation Agency investing 54,000 euros, while the municipality of Priboj provided the rest of the money. Switzerland has also provided substantial donations and humanitarian aid to the Republic of Serbia. In the period between 2000 and 2006, the country donated a total of 93.92 million primarily for the energy sector, reforming and modernizing state administration, and assisting local authorities. As of 2000, Serbia has been a member of Swiss Constituencies in international financial institutions. Switzerland helped Serbia through an interest-free loan, with Serbia re-activating its membership in the IMF and European Bank for Reconstruction and Development. Switzerland also supported the initiative for the 2/3 of Serbia’s debt to the Paris Club to be written off.

2010 / Swiss Business Sector in Serbia 23

corporate Marco Zoppi, Chairman, youngculture AG

Advanced Software Engineering Our most positive experience was to find out how many highlyqualified and very talented software engineers there are in Serbia

oungculture is an international software engineering enterprise, specialized in development of web-based applications for companies in the most diverse branches. youngculture was founded in 1996, and today has more than 100 employees at its headquarters in Zurich, Switzerland, with branches in Belgrade and Nis, Serbia. For numerous international customers, youngculture develops tailored software solutions using state-of-the-art technologies and methods. The experience of doing business in Serbia was one of the topics that we discussed with Mr. Marco Zoppi, Chairman of youngculture. You came to Serbia, to Niš more precisely, in 2006. After four years of operations in Serbia, what are the most positive and the most negative experiences you have had here? Youngculture came to Serbia in 2004. Our main office is in Belgrade and in 2006 we opened a subsidiary in Niš. Our most positive experience was to find out how many highly-qualified and very talented software engineers there are in Serbia. As a downside, we consider the fact that there are still a lot of bureaucracy and regulations for companies, as well as rather high taxes and social contributions. How many employees do you currently have in Serbia and do you plan to hire additional staff? We currently have 80 employees and are planning to expand our staff up to 100 people by the end of 2010 and up to 140 - 160 employees by 2014. Serbian officials had plans for opening several IT parks in Serbia. How realistic is that? Switzerland had very positive experiences with IT Parks, especially for start-up companies, helping them to benefit from networking possibilities and good working and financial conditions. Because I don’t know about existing plans for Serbian IT parks, I cannot make concrete statements about these projects. What are your company’s strategic development direc24 Swiss Business Sector in Serbia / 2010

tions both in Serbia and the region?

Our main focus so far was to serve the German-speaking market, mainly Switzerland but also Germany and Austria. However, we are closely following the Serbian and the Balkan market, because we hope to gain more clients in Serbia as well. Your company is focused on satisfying your clients’ needs. What are your most important clients in Serbia and in other countries where you operate? All of our clients are very important to us. Our philosophy is to satisfy all our clients in the same way with no difference about size or turnover. In Serbia we made several projects for Komercijalna banka and some of our major clients in Switzerland are Crealogix E-Banking-the leading Swiss E-banking solution provider, Swisscom -the biggest Swiss telecom provider, Helsana Insurance – the largest Swiss health insurance company, Bank Vontobel – the leading Swiss private bank, Delta Energy Solutions – the leading solution provider for energy companies. In your opinion, what still needs to be done in order for the company to accomplish faster development? The speed of growth depends on many factors. One of the most important is the overall economic situation. In the past few months we felt an improvement, as many companies are again willing to invest in software engineering projects, such as eCommerce-, Web- or Mobile- Projects. With our excellent development center in Serbia and together with youngculture Zurich, we are ready to serve our existing and many new clients, and we are absolutely positive to reach our ambitious business goals.

2010 / Swiss Business Sector in Serbia 25

facts & ﬁgures

Multinational Economic Giant Switzerland, officially the Swiss Confederation (Confœderatio Helvetica in Latin), is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. It is bordered by Germany to the north, France to the west, Italy to the south, and Austria and Liechtenstein to the east.

witzerland is a landlocked country whose territory is geographically divided between the Alps, the Central Plateau and the Jura that yields a total area of 41,285 km2 (15,940 sq mi). The Swiss population of approximately 7.8 million people concentrates mostly on the Plateau, where the largest cities are to be found. Among them are the two global cities and economic centres of Zürich and Geneva. Switzerland is one of the richest countries in the world by per capita gross domestic product, with a nominal per capita GDP of $67,384. Zürich and Geneva have respectively been ranked as having the second and third highest quality of life in the world. The Swiss Confederation has a long history of neutrality—it has not been in a state of war internationally since 1815—and was one of the last countries to join the United Nations. Switzerland is home to many international organisations, including the World Economic Forum, the International Olympic Committee, the Red Cross, the World Trade Organization and the second largest UN office. On the European level it was a founder of the European Free Trade Association and is part of the Schengen Agreement. Switzerland comprises three main linguistic and cultural regions: German, French, and Italian, to which the Romansh-speaking valleys are added. The Swiss therefore do not form a nation in the sense of a common ethnic or linguistic identity. The strong sense of belonging to the country is founded on the common historical background, shared values (federalism, direct democracy, neutrality) and Alpine symbolism. The establishment of the Swiss Confederation is traditionally dated to 1 August 1291; Swiss National Day is celebrated on the anniversary

26 Swiss Business Sector in Serbia / 2010

DEMOGRAPHICS Switzerland lies at the crossroads of several major European cultures that have heavily influenced the country’s languages and culture. Switzerland has four official languages: German (63.7% total population share, with foreign residents; 72.5% of residents with Swiss citizenship, in 2000) in the north, east and center of the country; French (20.4%; 21.0%) to the west; Italian (6.5%; 4.3%) Resident foreigners and temporary foreign workers make up about 22% of the population. Most of these (60%) are from European Union or EFTA countries. Italians are the largest single group of foreigners with 17.3% of total foreign population. They are followed by Germans (13.2%), immigrants from Serbia and Montenegro (11.5%) and Portugal (11.3%). Immigrants from Sri Lanka, most of them former Tamil refugees, are the largest group among people of Asian origin.

ECONOMY If adjusted for purchasing power parity, Switzerland ranks 15th in the world for GDP per capita. The World Economic Forum’s Global Competitiveness Report currently ranks Switzerland’s economy as the most competitive in the world. For much of the 20th century, Switzerland was the wealthiest country in Europe by a considerable margin. In 2005 the median household income in Switzerland was an estimated 95,000 CHF, the equivalent of roughly 90,000 USD (as of December 2009) in nominal terms. Switzerland is home to several large multinational corporations. The largest Swiss companies by revenue are Glencore, Nestlé, Novartis, Hoffmann-La Roche, ABB and Adecco. Also notable are UBS AG, Zurich Financial Services, Credit Suisse, Swiss Re, and The Swatch Group. Switzerland is ranked as having one of the most powerful economies in the world. Chemicals, health and pharmaceutical, measuring instruments, musical instruments, real estate, banking and insurance, tourism, and international organisations are important industries in Switzerland. The largest exported goods are chemicals (34%

of exported goods), machines/electronics (20.9%), and precision instruments/watches (16.9%). Exported services amount to a third of exported goods. Around 3.8 million people work in Switzerland. Switzerland has a more flexible job market than neighboring countries and the unemployment rate is very low. Unemployment rate increased from a low of 1.7% in June 2000 to a peak of 4.4%, as of December 2009. Population growth from net immigration is quite high, at 0.52% of population in 2004. Foreign citizen population is 21.8% as of 2004, about the same as in Australia. GDP per hour worked is the world’s 17th highest, at 27.44 international dollars in 2006.

The largest Swiss companies by revenue are Glencore, Nestlé, Novartis, HoffmannLa Roche, ABB and Adecco. Also notable are UBS AG, Zurich Financial Services, Credit Suisse, Swiss Re, and The Swatch Group Switzerland has an overwhelmingly private sector economy and low tax rates by Western standards; overall taxation is one of the smallest of developed countries. Switzerland is an easy place to do business; Switzerland ranks 21st of 178 countries in the Ease of Doing Business Index. The slow growth Switzerland experienced in the 1990s and the early 2000s has brought greater support for economic reforms and harmonisation with the European Union. According to Credit Suisse, only about 37% of residents own their own homes, one of the lowest rates of home ownership in Europe. Housing and food price levels were 171% and 145% of the EU-25 index in 2007, compared to 113% and 104% in Germany. Agricultural protectionism—a rare exception to Switzerland’s free trade policies—has contributed to high food prices. Product market liberalisation is lagging behind many EU countries according to the OECD. Nevertheless, domestic purchasing power is one of the best in the world. Apart from agriculture, economic and trade barriers between the European Union and Switzerland are minimal and Switzerland has free trade agreements worldwide. Switzerland is a member of the European Free Trade Association (EFTA). 2010 / Swiss Business Sector in Serbia 27

facts & ﬁgures KEY SECTORS Mechanical and electrical engineering The mechanical and electrical engineering industries – known collectively in German as the MEM industries – are one of the major branches of the Swiss economy. The industries cover four main areas: metallurgy, mechanical engineering and vehicle construction, electrical engineering and electronics, and precision instruments. In terms of both size of workforce and value of exports, the second of these is by far the largest. At the beginning of 2005 more than 300,000 people were employed in these industries, which are the biggest industrial employer in Switzerland. They are highly export-orientated, which means that they depend to a large extent on trends in the international market place. Nearly 80 % of their output is exported, accounting for over 40% of Switzerland’s visible exports. Relatively high costs at home have led a number of companies to relocate part of their production abroad. The output of today’s MEM industries includes household goods, machine tools, construction plant, and highly specialised microelectronic apparatus. Pharmaceuticals Switzerland is among the world’s leading producers of chemicals and pharmaceuticals. The chemical industry focuses on dye-stuffs, perfume essences and food flavourings. The centre of the industry is Basel. The largest pharmaceutical companies are Roche and Novartis (formed by the 1996 merger of CibaGeigy and Sandoz). The chemical and pharmaceutical industries export 85% of their output. Watches

Switzerland is one of the world’s largest watch manufacturers. In terms of value, it is responsible for about half of all world production. The average price of a watch exported from Switzerland in 2006 was 410 dollars. But along with its luxury output, Switzerland is also known for the world’s best selling plastic watch: the Swatch. The watch industry exports 95% of its products, according to the export promotion body, OSEC. Banking

The Swiss are also world leaders in offshore private banking. In 2007, they managed close to 27% of all private offshore funds. Banks and financial institutions play a key role in the Swiss economy. The Swiss franc is among the world’s most stable currencies. The Swiss capital market is one of the most important in the world, and the two major Swiss banks – UBS and Credit Suisse – are major forces in the global financial market. In 2009, the Swiss financial sector employed 195,000 people, or 5.8% of the entire Swiss workforce. In addition, the major Swiss banks employ several thousand staff overseas. The Swiss financial sector also exerts a major indirect influence on employment in other sectors of the Swiss economy. The Swiss are also world leaders in offshore private banking. In 2007, they managed close to 27% of all private offshore funds. Indeed, one third of UBS and Credit Suisse profits are generated by their offshore banking services.

At the beginning of 2005 more than 300,000 people were employed in Mechanical and electrical engineering industries, which are the biggest industrial employer in Switzerland 28 Swiss Business Sector in Serbia / 2010

The Big Two At the end of 2008, there were 327 banks in Switzerland, including branches of foreign banks. However, the home market is dominated by two banking goliaths - UBS und Credit Suisse. Together their share of domestic deposits and loans stands at over 30%, and their total assets are some six times higher than Switzerland’s Gross Domestic Product (GDP)

Tourism

Almost one twelfth of Switzerlandâ&#x20AC;&#x2122;s workforce is employed directly or indirectly in tourism Almost one twelfth of Switzerlandâ&#x20AC;&#x2122;s workforce is employed directly or indirectly in tourism. The proportion is much higher in mountain regions than in the cities. The Swiss themselves also like travelling, with France the most popular destination for short trips, and Italy favoured for longer ones, according to 2003 figures.

Figures released by the World Trade Organisation ranked Switzerland 15th among world destinations for tourism earnings in 2005, and 14th for the number of visitors, which was estimated at 10.5 million. Visitors from abroad accounted for about three per cent of Swiss GDP in 2004. Tourism is the third most important source of export revenue, after the metal and machine industry and the chemical industry.

Insurance The Swiss spend a lot of money on insurance. Some is compulsory - like state pension contributions, pension fund and unemployment insurance, which are deducted at source from salaries, and health insurance which every resident must arrange privately. Tenants are generally obliged to take out personal liability insurance as a condition of their lease. Overall in 2004, an average Swiss family spent over 22% of its household budget on insurance. The Swiss are among the world leaders in expenditure on private insurance. Despite this, insurance companies earn half their money abroad. Switzerland is the leading insurance exporter in Europe.

2010 / Swiss Business Sector in Serbia 29

facts & ďŹ gures ty of Geneva set up an association to look after their interests. Lucerne was an important diamond trading centre until the beginning of 2002, when the South African de Beers group, which dominates the world diamond trade, transferred its business to London.

Overall in 2004, an average Swiss family spent over 22% of its household budget on insurance Trading companies Switzerland is home to a number of large international trading companies, whose business consists of buying commodities and selling them on to third parties. The commodities themselves, principally cereals, sugar, cotton, oil and gas, never enter Switzerland. These companies are not listed on the stock exchange. The trading companies often make an important contribution to the local economy, providing employment and paying taxes. The largest trading company is Glencore International, based in Zug, which was named in a survey issued in 2006 as the company with the largest turnover in Switzerland, and the sixth largest in Europe. In Europe Geneva is second only to London for the importance of its international trading and shipping businesses, with some 350 enterprises providing about 5000 jobs. In 2006 the international trading and shipping communi-

Human resources In recent years, Switzerland has also become a centre for the management of human resources. The worldâ&#x20AC;&#x2122;s leading staffing and recruitment agency, Adecco, has its headquarters in Switzerland, while a number of companies have moved their personnel management services to Geneva, or use the services of Geneva-based consultancies. This development has been favoured by the fact that Switzerland offers a stable social environment, and low tax rates.

Switzerland has a merchant navy, with around 30 ships transporting goods of all kinds apart from arms, operating under contract anywhere in the world Shipping Four per cent of Switzerlandâ&#x20AC;&#x2122;s Gross Domestic Product comes from the shipping and logistics sector. It employs some 130,000 people in Switzerland alone. The International Federation of Freight Forwarders Associations is based in Zurich. Surprising as it may seem for a landlocked country, Switzerland has a merchant navy, with around 30 ships transporting goods of all kinds apart from arms, operating under contract anywhere in the world. Their port of registration is Basel. The fleet - the most modern in the world - accounts for about 0.1% of world tonnage. Five companies sail ships under the Swiss flag. However, although there were once hundreds of Swiss working on these ships, nowadays very few of the sailors are Swiss nationals.

30 Swiss Business Sector in Serbia / 2010

corporate

SCHINDLER TRADITION AND NEW START

ince our founding in 1874, quality and reliability are synonyms for Schindler company. A very good description of Schindler elevator from the beginning of the 20th century you may find in the famous novel “Očevi i oci” written by Slobodan Selenic. First coming up for Schindler at this teritory was in the 1928. when a company from Ebikon, Switzerland established it’s first agency in Belgrade.Since than until now Schindler is in presence at this market. With tendency for opening the market to the world and with aspiration for beter quality of service and customer support, after several decades Schindler decided to establish its company in Belgrade again. As a consequent of this decision in mid 2008 our company Schindler d.o.o. started to work with aim to integrate all activities such as consulting, engineering, installation and maintenance of the equipment. Couple of last years were very important for our positioning at this market and we for sure share our success with our re-

liable partners. Most of the eminent projects in Serbia and Montenegro as well are users of our equipment. Some of them are commercial centres Delta City in Belgrade and in Podgorica, Airport “Nikola Tesla”, NBS, VMA, TV Tower Avala, Palata “Beograđanka”, GTC, “Bellville” suite, Mercator, Commercial Center Ušće. In this very moment we have an engagement in two very important projects; residential-commercial complex Blok 11 in Belgrade (Imperial Gradnja) and Tradeunique Plaza in Budva (TQ). The key of our success are our employees and these days we are very engaged about hiring new experts of various profiles who will for sure help us to improve and establish even more our leading position in this territory. Even so, we really do think that beside good references that we already have, this is actually the beginning of our success with a great obligation to legitimate our world wide name and to make Schindler to be the first choice of our customers and partners.

2010 / Swiss Business Sector in Serbia 31

corporate

A COMPANY WITH AN INDIVIDUAL APPROACH Metinvest metallurgical companies manufacture a wide range of high-quality steel products used in major steel consuming industries

etinvest is an international verticallyintegrated mining and steel group of companies. The Group comprises 24 leading industrial companies in the mining and steel industry of Ukraine and CIS. In Europe Metinvest is represented by Ferriera Valsider and Trametal – Italian re-rolling companies and the British carbon steel plate producer Spartan UK. The acquisition of Bulgarian Promet Steel is to be accomplished soon. Metinvest metallurgical companies manufacture a wide range of highquality steel products used in major steel consuming industries. In 2008 Metinvest enterprises mined 6.2 mmt of coking coal, produced 5.2 mmt of metallurgical coke, 31.3 mmt of iron ore concentrate of which 18.7 mmt was merchant concentrate, with the remainder being used for the production of 11.4 mmt of pellets; 8.2 mmt of crude steel, and 9.2 mmt of finished steel products. The products of the Group are well marketed in more than 75 countries all over the world. We are creating a global player that will be one of the leading mining and metals businesses in the world. After the merger of mining and metals assets of SCM and Smart Holding in September 2007, three new companies joined Metinvest Group: Inguletskiy GOK, Makeyevka Iron and Steel Works (Ukraine), and Promet Steel (Burgas, Bulgaria). Approval of acCONTACT DETAILS

Tel.+ 381 11 2660 007; Fax: + 381 11 2660 006 Alekse Bacvanskog 6,11040 Belgrade Email:office@metinvestsmc.rs www.metinvestholding.com 32 Swiss Business Sector in Serbia / 2010

quisition of Promet Steel by EU antitrust authorities is expected to be obtained soon. Metinvest Holding is the first Ukrainian company to have entered the World Steel Association WSA (formerly known as IISI - International Iron and Steel Institute). The company became a regular member of this International organization in October, 2007. In April 2009, Metinvest Group acquired a 100% stake in United Coal Company (UCC). The key rationale for the acquisition of UCC was its significant reserves of highquality metallurgical coal, which will help Metinvest’s coke and chemical facilities produce a better quality feedstock. As a consequence, the Group’s steel works will be provided with a higher quality coke, reducing iron production costs and improving quality characteristics. The Group will thereafter be more competitive in current and prospective sales markets. In November 2009, for the first time in Ukrainian history, Metinvest commenced capsize shipments of iron ore for export. The major shareholders of Metinvest are SMC Group (75% ownership) and Smart-Holding (25% ownership), which partner the company’s management. Being part of Metinvest Group, we can offer our customers the most advantageous terms. We keep our commitments. We work for each individual customer!

corporate Goran Stojanović, Business Development Director of PharmaSwiss

NEW 20-MILLION-EURO FACTORY PharmaSwiss plans to export its products to Central and Eastern Europe, which will be beneficial for Serbia’s foreign trade balance, whether we are talking about the overall balance or the one in trading with the EU In 2005, PharmaSwiss opened a production facility

in Serbia. Your plan was to invest 20 million euros in building an additional pharmaceutical factory. What are your expectations with regard to the future market share in Serbia, bearing in mind that the current share stands at 12%? Evolution of market share does not directly depend on having a new facility. The im¬plications of opening a new factory are earlier launch of new products and vertical integration of the production process, creating added value in the production process in Serbia and creation of new jobs. What will change operationally, employment, and

t the end of last year, Swiss pharmaceu¬tical company PharmaSwiss announced that in mid-2010, the company would start building a pharmaceutical plant in Belgrade, an investment worth 20 million euros. The factory is supposed to employ 200 people, and the pro¬duction is due to start at the beginning of 2012. This is what business development director of PharmaSwiss Serbia, Goran Stojanović said at the time. According to him, the new facility would increase production capac¬ities of PharmaSwiss in Serbia four to five times. The annual production capacity back then stood at 9 million packages of phar¬maceutical products. Aside from keeping the existing pro¬duction programme, the company plans to add new products to its production range. Pharmaceuticals produced in this factory will be exported to Poland, Lithuania, Latvia, the Czech Republic, Slovakia, former Yugoslav republics, Greece, Hungary, Bulgaria, Romania, Albania, Israel, and Turkey. Stojanović also said that the company was con-templating exporting to the former Soviet Union, prima¬rily to Russia, Ukraine, Belarus, and central Asian coun¬tries like Kazakhstan.

The new factory and the company’s business opera¬tions in Serbia were just some of the topics that we talked about with Goran Stojanović, Business Development Director of PharmaSwiss.

production-wise once the new factory is opened? We will create new jobs, introduce new technol¬ogies, maintain and improve, already high standards of pharmaceuticals that PharmaSwiss produces. Currently, Serbia imports 38 million euros-worth

of medication from Switzerland, while it exports only 2.2 million euros-worth of pharmaceutical products. Which countries do you plan to export to from your facilities in Serbia? PharmaSwiss plans to export its products to Central and Eastern Europe, which will be beneficial for Serbia’s for-eign trade balance, whether we are talking about the over¬all balance or the one in trading with the EU. Could you comment on the government’s decision to raise the price of medication by 7%? This is in line with the Law and is a result of the euro’s appreciating against dinar. As all domestic pharmaceutical manufacturers import the active substance for pharmaceutical products they produce, and as this active substance bears most of the price, adjustment of dinar prices is necessary. Aside from the aforementioned investment, what other plans do you have for this and next year? To assure regular supply of our existing products, to launch new products and to maintain their high quality.

2010 / Swiss Business Sector in Serbia 33

tourism

Enjoying Wonder Tourists are drawn to Switzerland’s Alpine climate and landscapes, in particular for skiing and mountaineering. In 2007 the World Economic Forum found that Switzerland had the most competitive travel and tourism sector in the world down by nationality: 16.5% Germany, 6.3% UK, 4.8% USA, 3.6% France, 3.0% Italy). The total financial volume associated with tourism, including transportation, is estimated to CHF 13.3 billion (as of 2006) although more may arise from fuel tax and sales of motorway vignettes. Of this sum, tourist travelling and lodging accounts for 52% (CHF 6.9 billion) or CHF 178 per lodging night CHF 13.3 billion correspond to 3.6% of Switzerland’s GDP. The major airport of Switzerland is at Zurich, main railway connections are to Geneva, Zurich and Basel. The main connection across the Alps is via the Gotthard tunnels (road and railway).

TOP HIKES

In the year 2006, there was a total number of 4,967 registered hotels or hostels, offering a total of 240,000 beds in 128,000 rooms. This capacity was saturated to 41.7% (compared to 39.7% in 2005), amounting to a total of 38.8 million lodging nights. 14% of hotels were in Grisons, 12% each in the Valais and Eastern Switzerland, 11% in Central Switzerland and 9% in the Bernese Oberland. The ratio of lodging nights in relation to resident population (“tourism intensity”, a measure for the relative importance of tourism to local economy) was largest in Grisons (8.3) and Bernese Oberland (5.3), compared to a Swiss average of 1.3. 56.4% of lodging nights were by visitors from abroad (broken

The total financial volume associated with tourism, including transportation, is estimated to CHF 13.3 billion (as of 2006) 34 Swiss Business Sector in Serbia / 2010

rful Combination Wine Route: A three hour hike on the Vineyard Trail from St. Saphorin to Lutry is filled with temptations. Terrace after terrace offers fabulous views over Lake Geneva. While local delicacies beckon from the pubs, the winegrowers keep their cellar doors wide open for you to get a taste of the landscape. The Lavaux wine region is so spectacular that it has been a Unesco World Heritage Site since 2007. Water Trail: France to one side and Switzerland to the other, with a river running through the middle: The Doubs. Its long, ruggedly picturesque valley is virtually uninhabited and being a nature reserve it is even more of a paradise for fishermen and hikers. The riverside path between Soubey and St. Ursanne opens up a truly original part of Switzerland. Through almost untouched riverscape, it runs past fish taverns and swimming areas. Chocolate and Cheese Trail: A real insiders’ tip! New territory waits to be explored on the diverse three hour hike between Charmey with its spa baths and Gruyeres with its castle, historic city centre and cheese factory. As part of the Alpine Panorama Trail from SwitzerlandMobility, this trail runs through the dream landscapes of the future nature reserve of Gruyere Pays-d’Enhaut, past the coves of the artificial lake Lac de Motsalvens and through the spectacular Jaunbach Gorge. Glacier Trail: Europe’s longest glacier is not listed as a UNESCO World Heritage Site for no reason. The landscape through which this four-hour hike from Bettmerhorn mountain station runs is spectacular. Flagstones make the mountain trail easily accessible and on a panoramic level high above the Aletsch Glacier it leads towards the magical Lake Märjelen. The Talligrat tunnel is a shortcut back to Bettmeralp. Alpine Experience Trail: This is the rock face of all rock faces, and its climbing routes are amongst the most spectacular in the world. But the myth of the Eiger North Face can also be an impressive experience from below - from the two hour long Eiger Trail, for instance. This trail runs close to the vertically dropping rock face from the Jungfrau Railways’ Eigergletscher station along to Alpiglen. An unforgettable alpine experience for anybody – the peak of emotions.

Family Trail: From Marchet the park ranger to Piz dal Fuorn the mountain spirit - the new Champlönch Children’s Trail from Parking Lot 1 to the Hotel Il Fuorn is quite an experience. Ten virtual companions appear at regular intervals on a hired GPS device, turning the two and a half hour hike into child’s play. Flower Route: Behind you the mighty Alpstein massif with the dominant Mount Säntis, and in front of you nothing but a vast expanse – the boundless view of the Appenzell hill country up to Lake Constance makes the Alpine Trail a real panorama tour. And in early summer the experience includes unparalleled flower scenery. The Emmentaler ridge walk: They say it is the fairest region of them all in Emmental: The alpine hike from the Lüderenalp on the Napf runs close to the ridge on a narrow path and past rustic inns. A beautiful view over the Alps, the Mittelland and the Jura is your constant companion.

THE BEST SKIING The jagged borders of Switzerland contain dozens of worthwhile ski resorts. Either you prefere downhill rac-

ing, to schuss down a Swiss mountainside in relative isolation or accompanied by many other skiers, or you pursue sports other than skiing (perhaps hang-gliding, curling, iceskating, or tobogganing), the Swiss ski resorts will match all your needs Here are some of the best skiing resorts in Switzerland. Grindelwald: This is one of the few resorts in the Bernese 2010 / Swiss Business Sector in Serbia 35

tourism

A SHOPPERâ&#x20AC;&#x2122;S PARADISE

With a myriad of boutiques and department stores, Geneva offers something for everyone. Itâ&#x20AC;&#x2122;s the watch capital of the world, a center for exquisite jewelry, and a place to find high quality Swiss and imported items. Before you leave, donâ&#x20AC;&#x2122;t forget to purchase some chocolate from one of Genevaâ&#x20AC;&#x2122;s master chocolate-makers.

tain, the Matterhorn. Much of the resortâ&#x20AC;&#x2122;s charm derives from its strict building codes -- youâ&#x20AC;&#x2122;ll rarely see a modern-looking building here -- and its almost complete lack of traffic. Davos: Itâ&#x20AC;&#x2122;s larger, with many more hotels, restaurants, apres-ski bars, and discos than its neighbor, Klosters , with which it shares access to a sweeping network of ski lifts and slopes. Davos attracts a sometimes-curious mixture of the very wealthy and the more modest. It has slopes that appeal to advanced skiers, intermediates, and beginners. Klosters: Named after a 13th-century cloister founded on the site, this resort is smaller, more intimate, and less urban than its nearest major competitor, Davos . A favorite of the royal families of both Sweden and Britain, it offers at least two easily accessible ski zones, the snowfields of the Gotschna-Parsenn and the Madrisa. St. Moritz: The premier ski and social resort of eastern Switzerland, St. Moritz draws a lot of folks familiar with the art of conspicuous consumption; this is as close as youâ&#x20AC;&#x2122;ll get to Hollywood in Switzerland. Itâ&#x20AC;&#x2122;s more distinctly Austrian than French in its flavor. Although only one or two authentic buildings remain from the townâ&#x20AC;&#x2122;s medieval origins, vast amounts of money have been spent installing folkloric fixtures, carved paneling, and accents of local granite in the public and private areas of most hotels.

SPAS & CLINICS Oberland that occasionally mistakes itself for a genuine city rather than an artificial tourist creation. It offers a healthy dose of restaurants, bars, discos, and, unfortunately, traffic. There are a lot of affordable accommodations here - itâ&#x20AC;&#x2122;s not nearly as snobby as some of the other resorts. Gstaad/Saanenland: Gstaad is the most elegant pearl in the larger ski region of Saanenland, on the western edge of the Bernese Oberland. Although you can find a few inexpensive lodgings if youâ&#x20AC;&#x2122;re lucky, donâ&#x20AC;&#x2122;t count on it. The jet set comes here to see and be seen, and thereâ&#x20AC;&#x2122;s a lot to do off the slopes, such as music festivals, shopping, and people-watching. Opportunities for skiing are widespread, but the slopes are hardly the most difficult in Switzerland. Skiing is best for beginners and intermediates. Verbier: This is the premier ski resort of French-speaking Switzerland, with an unpretentious panache and a funfilled atmosphere. Its restaurants serve some of the finest creative cuisine in the region; others make do with simple alpine fare for hearty appetites. If you donâ&#x20AC;&#x2122;t speak French, you wonâ&#x20AC;&#x2122;t feel uncomfortable -- many of the resortâ&#x20AC;&#x2122;s nightlife options cater to Brits. The resort is favored by worldclass athletes for the difficulty of many of its slopes. Zermatt: Itâ&#x20AC;&#x2122;s the most southwesterly of the great Swiss ski resorts, occupying a high-altitude plateau at the foot of Switzerlandâ&#x20AC;&#x2122;s highest and most-photographed moun36 Swiss Business Sector in Serbia / 2010

A Switzerland is known for its high standard in medical treatment offering its services in the clinics medical treatment sector, including the famous anti aging clinics. There is an extensive database of medical specialists in almost all specializations needed, based on the best packages at clinics and spas. RAILWAYS Swiss Federal Railways, formerly a government institution, it is since 1999 a special stock corporation with all shares held by the Swiss Confederation or the Swiss cantons. t 5SBWFMMFST QFS ZFBS NJMMJPO < > t 'SFJHIU QFS ZFBS NJMMJPO UPOT t -FOHUI PG SBJMXBZ OFUXPSL LN JO TUBOEBSE HBVHF VOtil 2005 also 74 km metre gauge) t 4UBUJPOT t 4UBUJPOT PQFO UP QBTTFOHFST t 4UBUJPOT XJUI GSFJHIU USBGGJD t $PNQBOJFT DPOOFDUFE UP QSJWBUF TJEJOHT BCPVU t 1BSLJOH DBQBDJUZ BU TUBUJPOT DBST t &NQMPZFFT t 1VODUVBMJUZ PG BMM USBJOT BOE PG UIF trains running on workdays with less than 5 minutes of delay t 4VCTJEJFT GPS PQFSBUJPO NBJOUFOBODF PG BTTFUT BOE DPOstruction investments (2007-2010): 5.88 billion Swiss francs The rail network of the Swiss Federal Railways is almost totally electrified

Clinic Biotonus: This biotonus clinic is highly specialised in the area of so-called “civilisation” illnesses - stress and obesity. The famous Centre Biotonus Clinique Bon Port is based on the high quality internal medicine, professionalism and the very rich experience of proffessional obesity medical team, as well as the diversity of the proposed reactive depression treatments. Health Center – Clinics Lemana: The Cell vital Switzerland clinics therapy (Anti Aging therapy), offering the chance to invest in your Health Capital and youth. The well known Cell vital Switzerland clinics therapy (known as the Cellular therapy as well) represents a significant step at the development of the natural and biological Swiss medicine. This Anti aging therapy is considered to be the exclusive specialty program of the Lemana Switzerland clinics health center. La Clinic: La Clinic is a Switzerland plastic surgery clinic where the focus is placed as much on medical perfection as it is on the artistic dentistry touch. The top of the world Switzerland clinics endocrinology surgeons and doctors are aware that techniques of rejuvenation and beauty are not just limited to a technical gesture that is purely medical. Clinic La Prairie: Clinique La Prairie accommodation features 23 guestrooms, 8 junior suites and 5 suites spread over the original residence with its interior preserved in traditional style and the contemporary Medical Swiss clinics Centre with its multidisciplinary treatment wing.

THE HUB

Zürich or Zurich is the largest city in Switzerland and the capital of the canton of Zürich. It is located in Eastern Switzerland at the northwestern tip of Lake Zürich. While the municipality itself has 380,500 inhabitants, the Zürich metropolitan area is an urbanised area of international importance constituted by a population of nearly 2 million inhabitants. Zürich is a mixed hub for railways, roads, and air traffic. Both Zürich Airport and railway station are the largest and busiest in the country.

2010 / Swiss Business Sector in Serbia 37

brands

Swiss Made Switzerland is in the highly unusual situation of being the home of three of Europe’s major languages, but apart from Rumanstch - spoken by only 0.5% of the population - it has no written language of its own. Whichever language group they belong to, the different Swiss communities have linguistic and cultural ties with one of their larger neighbours. It’s easier for someone from Geneva to speak to a Parisian than to a fellow Swiss from Bern, or for a native of Ticino to read Milan’s Corriere della Sera than the Neue Zürcher Zeitung

he language communities eat different things and have different traditions and customs. Even their shared history only goes back about two centuries. Before the Napoleonic invasion of 1798, some of the cantons even ruled other

parts of Switzerland. The inhabitants of what is now Canton Vaud, for example, were the subjects of Bern, and did not enjoy the same rights as the Bernese. The Swiss themselves are sometimes puzzled about what they have in common apart from their passport, what it is that makes them Swiss. The Swiss say they are held together by the desire to stay united. The general attitude is summed up in the formula “unity, but not uniformity.” So, what the Swiss have in common?

CHOCOLATE Heinrich Escher, mayor of Zurich, was introduced to chocolate in Brussels in 1697 and brought it back home, where it was discreetly consumed at the feasts of the various guilds which ruled the city, until the Zurich Council banned it in 1722 as unfit for virtuous citizens. (It had a reputation as an aphrodisiac). The Swiss in general had to wait several decades before wandering Italian “cioccolatieri” brought the drink to Switzerland. The first chocolate manufacture was set up around 1750 by two Italians in a former paper mill near Bern, the Schermenmühle. It was not a great success: the locals did not take to it, and the mill was soon given over to producing flour in-

38 Swiss Business Sector in Serbia / 2010

stead. Nevertheless, before the end of the century other factories appeared in western Switzerland - Vevey, Morges and Lausanne - and in the Blenio Valley in canton Ticino. The first chocolate shop in Switzerland opened in Bern in 1792.

SWISS ARMY KNIFE The VICTORINOX “Swiss Army Knife” is over 100 Years Old. This useful pocket Multi-Tool was legally registered on June 12, 1897. Over 34,000 of these pocket tools with the distinctive Swiss cross leave the factory in central Switzerland each day. Ninety per cent are for export to over 100 different countries and serve as ambassadors for Switzerland. Karl Elsener, the company founder, wanted to create work in sparsely industrialized central Switzerland and counter the emigration spawned by unemployment. To go from handcrafting to industrial production was at the time adventurous and required enormous determination. Today, this family business in Schwyz provides 950 jobs. After the soldier’s knife, which every recruit receives upon entering the army, Karl Elsener developed a new, elegant and light weight pocket knife, with six practical tools. He called this new model the “Officers and Sports Knife”. After an unparalleled success story around the world, the VICTORINOX “Swiss Army Knife” is even orbiting the

earth as part of the standard equipment of the Space Shuttle Crew. The knife has also been successfully proven on expeditions: in the arctic ice of the North Pole; on the highest peak on earth, Mount Everest; in the tropical rain forests of the Amazon, and elsewhere. Time and again, it has been a

2010 / Swiss Business Sector in Serbia 39

brands life saver in situations of extreme danger and great need. The New York Museum of Modern Art and the State Museum for Applied Art in Munich have selected it for their collection of excellence in design, and, since Lyndon B. Johnson, US presidents present guests with VICTORINOX pocket knives. Today, the “Officers’ Knife” is available in over 100 different models. Each knife must undergo seamless quality controls before being released for sale.

CHEESEMAKING

The technique of using rennet - a substance taken from the stomach lining of calves - to make hard cheese first appeared in Switzerland around the 15th century No-one knows exactly when or where cheese was invented - although it can be said for certain that it was not in Switzerland. One story has it that a merchant travelling through the desert 5000 years ago made the discovery by accident when the milk he was transporting in a bag made of a sheep’s stomach reacted with the natural rennet in the stomach lining and was churned into cheese by constant jogging. Be that as it may, cheese is certainly mentioned in the Old Testament in texts which may date back 3,500 years. Swiss cheese was mentioned by the first century Roman historian Pliny the Elder, who called it Caseus Helveticus - the “cheese of the Helvetians”, one of the tribes living in Switzerland at the time. For centuries the standard type was cottage cheese, made by souring milk, and which did not keep. The technique of using rennet - a substance taken from the stomach lining of calves - to make hard cheese first appeared in Switzerland around the 15th century. Since such cheese could be stored 40 Swiss Business Sector in Serbia / 2010

for lengthy periods it is not surprising that it soon became part of the basic fare of travellers. The monks who looked after the hospices at the top of some of the major passes, snowed in for part of the year, kept large stocks of it for their guests. And they needed to be large: one guest who passed through the hostel on the Great St Bernard pass was Napoleon, who - with the help of his 40,000 troops - got through a tonne and a half of the monks’ cheese in May 1800. (The monks had to wait 50 years before they saw any money at all for it, and it was only in 1984 that the then French President, François Mitterrand, made a token payment of the rest.) Once it could be stored, Swiss cheese soon became a valuable trading commodity. By the 18th century it was being sold all over Europe - even to the detriment of the local market, if a 1793 travel guide is to be believed: “It is rather strange that cheese and butter should be so bad in inns throughout Switzerland. Even in the regions which produce a lot of milk, it is hard to get good cream for your coffee or fresh butter, because the locals find it more profitable to make cheese out of their milk.” Switzerland soon exported not only cheese but cheesemakers too. Many of the thousands of Swiss emigrants who settled in the US in the 19th century were dairymen, some of whose descendents are still making cheese there today. Others were invited to Russia and eastern Europe to help set up a dairy industry. Some of them remained in those countries, but many eventually came back to Switzerland. It was Swiss cheesemakers who developed Tilsiter cheese, named after the town of Tilsit, which was then in East Prussia, and is now the Russian town of Sovetsk. They brought their new product back with them when they returned home. Even today, the Swiss government provides advice and practical help in cheesemaking as part of its aid to developing countries.

TUNNELS Efforts to improve the important pass routes date back to the beginning of history. They are generally blocked with snow in winter, so for centuries the Swiss have been tunnelling through them. The very first tunnel in a Swiss Alpine pass, the “Urnerloch”, was built in 1707-1708 to ease the passage over the St Gotthard. It was 64 metres long. The first road tunnel under the Alps was the Great St Bernard linking Switzerland and Italy. It was opened in 1964. Built more than 100 years ago, the 17 km-long Gotthard railway tunnel was the longest tunnel of its kind until 2007

The first road tunnel under the Alps was the Great St Bernard linking Switzerland and Italy. It was opened in 1964.

Switzerland have more high peaks than any other country in Europe, with 48 standing over 4,000 metres high

when the Lötschberg base tunnel (34.6 km) entered into service. Work on the second stage of the NEAT project, the 57km long Gotthard base tunnel, is currently under way. It is set to open in 2016.

MOUNTAIN RECORDS Switzerland is synonymous with mountains. Not only do they cover one third of the country’s surface area, but they are also of major historical, geopolitical and economic importance. The mountains, for example, have been the selling point of the Swiss tourist industry for more than 100 years. If the Swiss want to boast about their mountains, they are not short of reasons. They have more high peaks than any other country in Europe, with 48 standing over 4,000 metres high! The Swiss mountains can lay claim to the following records: • The highest railway station in Europe (the Jungfraujoch,

canton of Berne, 3,454 m). • The highest permanently inhabited village in Europe (Juf, canton of Graubünden, 2,126 m). • The highest brewery in Europe (Monstein, canton of Graubünden, 1,600 m). • The highest tram in Europe (Zermatt, canton of Valais, 2,222 m). •The highest exterior elevator in Europe (the Hammetschwand lift to the top of Bürgenstock, canton of Nidwalden, 153 m). • The steepest cog railway in the world (Pilatus, canton of Lucerne, gradient of 48%). • The steepest funicular railway in the world (the Gelmer at the foot of the Grimsel Pass, canton of Berne, gradient of 106% in places). • The steepest road used by coaches in Europe (from the Kander to the Kien Valley in the Bernese Oberland, gradient of 28%). • The longest glacier in Europe (the Aletsch, canton of Valais, approx. 23 km).

... AND A PASTURE THAT WENT ABROAD TOO Not quite such a success story as far as the Swiss were concerned was the accidental cession of valuable pasture land to Italy in 1821. A notary in Brig sold the Bettelmatt Alp, on the border between Switzerland and the Piemont, to an Italian, without realising that it would thereby change country. The pasture, sufficient for about 100 cows, is renowned for its juicy grass and aromatic herbs. But the creamy cheese it produces is now an Italian, not a Swiss, variety.

2010 / Swiss Business Sector in Serbia 41

culture

Alpine culture Strong regionalism in Switzerland makes it difficult to speak of a homogeneous Swiss culture. The influence of German, French and Italian culture on their neighbouring parts cannot be denied. The Rhaeto-Romanic culture in the eastern mountains of Switzerland is robust commonplace. The most common form of woodcarving is chip carving. Such carving is normally for the decoration of everyday objects, such as milk stools, neckband for bells, wooden spoons or walking sticks. Figure carving is also common, particularly of Nativity figures. In some areas the facades of houses are richly decorated using woodcarving. Embroidery is common on traditional clothing, particularly women’s clothing. Embroidery is often limited to prominent points, such as cuffs, hats and scarves. In the past embroidery was a home industry in the northeast and the east of Switzerland.

ARCHITECTURE Woodcarving is chip carving, also common, particularly of Nativity figures

olk art is kept alive in organizations all over the country. In Switzerland it is mostly expressed in music, dance, poetry, wood carving and embroidery. There are also a great number of regional and local rites demarcating times of the year. Yodeling, despite being stereotypical for Switzerland, is not widely spread and limited to some mountain areas. The same is true for the accordion which is sometimes called Schwiizerörgeli rather than Handorgel in German, implying that it was a Swiss musical instrument. The alphorn, sometimes called the alpenhorn, is a trumpet- like musical instrument made of wood. It is thought to have the perfect form for a musical wind instrument. The use of the alphorn is seen mainly in mountainous regions, can be very popular in some areas, and like yodeling or the accordion, it has become an epitome of traditional Swiss music. The melodies of folk music vary between regions. Generally those in pastoral areas are floating and wideranging. In the inner and southern Alps, however, the melodies are more songlike but of more limited range. Common and popular themes are about love and the homeland, but patriotic and pastoral as well as hunting themes are also

42 Swiss Business Sector in Serbia / 2010

There is a strong architectural tradition in Switzerland. The Romanesque style of the 12th century can be found in the cathedrals of Basel, Sion, Chur, Geneva and Lausanne. This style, which is rich in expression, can also be found on many castles and fortresses around the country, many of which preserved in a good condition. The cathedrals of Schaffhausen, Zug and Zürich are of the Gothic style, and the churches of Einsiedeln and St. Gallen are of Baroque

Le Corbusier (Charles-Edouard Jeanneret) was probably the most creative Swiss architectural export in the 20th century style. During the Renaissance, a large number of architectural masters gave their talents to Italy. Most of these came from the southern canton of Ticino. The Prisons near the Doge’s Palace in Venice and the Rialto Bridge in Venice were built by Antonio da Ponte. The Bridge of Sighs in Venice was built by Antonio Contino, and Domenico Fontana (1543-1607) designed the entire Lateran Palace in Naples as well as the facade of the St. John Lateran Church and the Royal Palace in the same city. Fontana’s nephew Carlo Maderno was an architect to Pope Paul V. San Carlo alle Quattro Fontane, the gallery of the Palazzo Spada and the Filippini monastery were built by Francesco Borromini, and Carlo Fontana was responsible for the facade of San Marcello al Corso and the Montecitorio Palace; Baldassare Longhena, from Maroggia, built the church of Santa Maria della Salute, the Rezzonico and the Widmann palaces; all in Venice. Old wooden houses in ZinalGiliardi and Oldelli families from Ticino set up architecture practices in Russia. Giovanni Giliardi built The Orphanage in Moscow, and his son Domenico Giliardi was in charge of the rebuilding Moscow public buildings, including the University, after the Great Fire of 1812. Domenico Trezzini built many places in St. Petersburg by the orders of Peter the Great; Pietro Trezzini (not related to Domenico) continued the tradition in 1740s. Le Corbusier (Charles-Edouard Jeanneret) was probably the most creative Swiss architectural export in the 20th century. He was the driving force behind the International school of architecture that heavily influenced almost every trend in buildings throughout the entire Western hemisphere in the recent past. Mario Botta is a famous architect who influenced modern architecture. The architects Jacques Herzog and Pierre de Meuron from Basel in the north of Switzerland have enjoyed fame in recent years, such as through the building of Tate Modern in London.

VISUAL ARTS In the 16th century Protestantism had a strong influence on visual arts in Switzerland. Samuel Hieronymus Grimm was a well known 18th century watercolourist and ink wash artist, although he created much of his note while working in England. There was almost no influence from Italian or French Renaissance. Chiefly in modern times did Swiss artists begin to emerge internationally. Alberto Giacometti is said to have derived much of his inspiration from the Etruscans, but became internationally known. Jean Tinguely

fascinated people from all over the world with complex moving sculptures constructed entirely from scrap materials. Paul Klee is sometimes regarded as Switzerland’s most original and impressive painter. Despite the relatively small number of internationally famous artists, there are considerable art collections in renowned museums around Switzerland.

LITERATURE The field of literature Switzerland produced a number of very well known writers. Jean-Jacques Rousseau was from Geneva. The critic and historian Jacob Burckhardt was from Switzerland. The house of Germaine de Staël in Coppet was a centre of European literary life during the 18th century. Other writers include Gottfried Keller, Conrad Ferdinand Meyer, Jeremias Gotthelf and Charles Ferdinand Ramuz. Hermann Hesse and Carl Spitteler both won a Nobel Prize for their works. In the 20th century the plays of Friedrich Dürrenmatt and Max Frisch impressed readers beyond the borders of Switzerland. There are a great number of regional dialects, especially in the German language. Even though standard German is commonly used for writing, there is a living dialect literature in many areas.

MUSIC

Common and popular themes of folk music are about love and the homeland, but patriotic and pastoral as well Switzerland is not commonly considered a leading musical nation. However, in the 20th century it produced a number of composers, such as Arthur Honegger, Othmar Schoeck and Frank Martin, all of whom have gai ned international renown. In Lucerne, the annual Lucerne Festival of international music takes place. Other places have similar festivals, ranging from country and western to pop and jazz. The Montreux Jazz Festival is particularly well known. 2010 / Swiss Business Sector in Serbia 43

corporate Lukas Negedly, General Manager Austrian Airlines, Lufthansa and Swiss International Air Lines

Believing in Serbian market We are confident that we have the best offer for customers travelling to and from Serbia of EU visas for Serbian citizens? We do not convey such detailed data for single markets, but we clearly welcome all measures that make air travel easier for our passengers. What is your current market share at Belgrade Airport? The three airlines operate a total of 73 flights a week from Serbia in their current schedule, with 35 Lufthansa flights from Belgrade to Frankfurt and Munich, 7 SWISS flights to Zurich, and 31 Austrian Airlines flights to Vienna with its partner, JAT. This makes the Lufthansa Group the leading foreign carrier in Serbia. What do you expect in terms of market share development by the end of the year? We do not convey such detailed data for single markets, but we are confident that we do have the best offer for customers travelling to and from Serbia. For example, Austrian

ogether with bmi and Brussels Airlines, Lufthansa Group companies provide convenient connecting flights to a total of 254 destinations in 101 countries around the world,â&#x20AC;? said Lukas Negedly.

As of January 1st, 2010, you have been general manager of Austrian Airlines, Lufthansa, and Swissair. Two years before that, you were general manager of Austrian, so you are quite familiar with business conditions in Serbia. What have been your experiences with the Serbian market so far? Very positive! Our Serbian business partners are extremely reliable and very open to new ideas. I like their flexibility and talent for improvisation. Also the experiences with local authorities are positive. If you submit all requested papers at the right time at the right place, things are working. They are just different compared to Austria or Germany.

Have ticket sales picked up following the cancellation

ECONOMY CRISIS

The global economy crisis impacted European airlines as well. More than ever, we just have to do our homework, which means cutting costs in order to provide attractive prices for our customers. We are already implementing different measures. 44 Swiss Business Sector in Serbia / 2010

The three airlines operate a total of 73 flights a week from Serbia in their current schedule. Lufthansa Group is the leading foreign carrier in Serbia Airlines has just increased the number of flights to and from Belgrade on January 10th, 2010. Since then, we fly from Belgrade to Vienna and back up to five times a day. There has been a lot of talk about global airline transport recovering soon. What do your head offices think about this? We see from our monthly figures that the passenger volume is gradually recovering. The situation with yields, however, remains tight. Prices are under pressure. Do you expect more low-cost companies to come to the Serbian market? I only can talk about our group of airlines, and we believe in the Serbian market. For us, it is very attractive. Along with Lufthansa, Swiss, we are doing our best to offer the customer the best connections at attractive prices. Of course, we are always working on continuous passenger benefits and new products.

corporate Vladimir Medan, Chairman of the Managing Board of Basler Insurance

RELIABLE PARTNER FOR THE FUTURE

asler is a member of the Swiss-based Baloise Group, which is among the thirty biggest insurance companies in Europe. The group has 150-year-long tradition and experience of the most reliable financial system in the world. What Basler brings to Serbia is security, contemporary business know-how, and the highest global insurance standards. What types of insurance do you offer? We are specialized in all sorts of medical insurance covering legal protection, cessation of business activity, insuring working areas (medical offices), and professional responsibility, which is one of the basic elements of the contemporary insurance system in Europe. Please bear in mind that Basler is the market leader in that area. One of the novelties that you have brought to this market is banking insurance. Banking insurance is applied to bank loans. This means that in certain cases Basler will continue to repay a loan if a person who took out the loan dies, thus eliminating the anxiety that that the person’s family will not be able to repay it.

Banking insurance can be also viewed as a form of saving. When it comes to the portfolio of traditional insurance products, Basler offers life insurance (combined and risk), legal protection and professional responsibility insurance in the medical sector, travel insurance, and property insurance. What makes Basler different from other insurance companies? Basler Insurance has an individual, tailored approach to each client, which entails much more than just selling insurance policies. We develop a trustworthy and reliable relation with each of our customers. Such a model, which has been very successfully implemented in EU countries, is now applied in Serbia too, thanks to the arrival of Basler, the first Swiss greenfield investment here. In Serbia, we want to raise people’s awareness about the need to have insurance, and we believe that the insurance sector will experience a real boom once economic growth picks up. Before we came to this market, we estimated that Serbia was sufficiently open and ready for such specific and highly profiled insurance as Basler’s, and this proved to be true. In only two years’ time, we have managed to accomplish significant results.

2010 / Swiss Business Sector in Serbia 45

swiss made watches

Export watch The watch and clock industry, Switzerland’s third largest exporter after the machine and chemical industries, has only one market : The World. Swiss made timepieces are to be found in all the countries of the globe. And, what is no less surprising, to suit all pockets, or almost so : from quartz fashion watches for a modest price to mechanical masterpieces, made of gold and decorated with precious stones, costing several million francs. It is this wide variety and its worldwide vocation which together have ensured the survival of the industry over the course of centuries.

atches, clocks and alarm clocks manufactured in Switzerland bear the designation “Swiss made” (or its abbreviation “Swiss”) as well as the logo of the producer or distributor. This label (“place of origin” in legal terms) enjoys a solid reputation throughout the world. And globalization of trade has done nothing to diminish its importance. On the contrary, the modern consumer is looking for a maximum of information when he or she goes shopping for a new timepiece. “Swiss made” embodies a concept of quality that has been forged over the years. It includes the technical quality of watches (accuracy, reliability, water-resistance and shock-resistance), as well as their aesthetic quality (elegance and originality of design). It covers both traditional manufacturing and new technologies (micro-electronics). The Swiss are not the only watchmakers to manufacture high-quality timepieces and are consequently faced with strong competition. However, thanks to their unique 46 Swiss Business Sector in Serbia / 2010

infrastructure and to their know-how and spirit of innovation, they have succeeded in maintaining their leading position. The intrinsic value of the “Swiss made” label, therefore, is the result of considerable efforts on the part of watchmaking companies, who are ultimately responsible for maintaining its reputation. While prestigious brand names have thrived, they have never relegated the “Swiss made” label to a secondary place. The brand names and “Swiss made” have always worked together in an alliance that provides the consumer with the best of guarantees. Certain regions in Switzerland have their own “place of origin” labels. One of the most renowned is “Genève”, which identifies top-quality timepieces made in the city and canton of Geneva. The Swiss watch industry is very active in safeguarding the integrity of “Swiss made” and its other regional labels of quality.

hes 13.2 bln SWISS WATCH EXPORTS

Swiss watch exports endured a difficult year in 2009. The world economic crisis caused a slump in demand that the sector was unable to shrug off. After five consecutive years of strong growth and a contraction which began in the fourth quarter of 2008, results were down sharply from the first months of 2009. The end of the year was more encouraging, albeit still showing a de¬cline which affected all markets and segments. Swiss watch manufacturers exported goods worth 13.2 billion francs in 2009. This level is below that recorded in 2006. The annual decline compared to 2008 was -22.3%, i.e. a deficit of 3.8 billion francs.

the sector is at a level last recorded a quarter of a century ago. The trend is however showing signs of recovery and the number of watches exported returned to growth at the very end of the year. In February 2010 Swiss watch exports showed steady growth, providing clear confirmation of the trend of previous months. Their value rose to 1.2 billion francs, an increase of 14.2% compared to February 2009. During the first two months of the year, the sector exceeded the 2009 level for the same period by 8.6%. Federation of the Swiss Watch Industry FH

FROM THE ROOTS UNTIL TODAY’S ACHIEVEMENTS...

he Swiss watch and clock industry appeared in Geneva in the middle of the 16th century. In 1541, reforms implemented by Jean Calvin and banning the wear of jewels, forced the goldsmiths and other jewellers to turn into a new, independent craft : watchmaking. By the end of the century, Genevan watches were already reputed for their high quality, and watchmakers created in 1601 the Watchmakers’ Guild of Geneva, the first to be established anywhere. One century later and because Geneva was already crowded with watchmakers, many of them decided to leave the city for the receptive region of the Jura Mountains. Watchmaking in the Jura remains indebted to a young goldsmith called Daniel Jeanrichard (1665-1741), who, for the first time, introduced the division of labour in watchmaking. In 1790, Geneva was already exporting more than 60,000 watches. The centuries were rich in inventions and new developements. In 1770, Abraham-Louis Perrelet created the “perpetual” watch (in French “Montre à secousses”), the forerunner of the mod-

ern self-winding watch. In 1842, pendant winding watches were invented by Adrien Philippe, one of the founders of the famous Patek Philippe watch company. At the same time began the production of complicated watches and the introduction of special features such as the perpetual calendar, the flyback hand and chronographs. The mass production of watches began at the turn of the 20th century, thanks to the researches and new technologies introduced by reputed watchmakers such as Frédéric Ingold and Georges Léchot. The increase of the productivity, the interchangeability of parts and the standardization progressively led the Swiss watch industry to its world supremacy. The end of World War I corresponds to the introduction of the wristwatch which soon became very popular. Its traditional round shape was generally adopted in 1960. In 1926, the first selfwinding wristwatch was produced in Grenchen, the first electrical watches being introduced later in 1952. In 1967, the Centre Electronique Horloger (CEH) in Neuchâtel devel-

The Jura Mountains with its various watchmaking centres oped the world first quartz wristwatch - the famous Beta 21. Since then, major technical developments followed without interruption: LED and LCD displays, Swatch, quartz wristwatch without battery, etc. Since more than four centuries now, tradition, craftmanship, high technologies and permanent innovation have allowed Swiss watchmaking industry to keep its leadership in the world watch market. Because or thanks to the different crisis it had to go through, Swiss watchmaking industry has always been in a position to answer the many technological, economical and structural challenges it was confronted with.

2010 / Swiss Business Sector in Serbia 47

COMPANY REGISTER ABB D.O.O. VERTRETUNG BELGRAD Aleksandar Cosic Kumodraska 235,11000 Beograd, irena.mitkov@rs.abb. com; aleksandar.cosic@ rs.abb.com ABS HOLDINGS SERBIA Nenad Popovic Brankova 30, 11000 Beograd, info@abs.rs www.abs-holdings.ru ADECCO EMPLOYMENT AGENCY D.O.O. BEOGRAD Kolenc Marko Gavrila Principa 8, 11000 Beograd, marko.kolenc@adecco. com; www.adecco.rs AED – STUDIO DOO Dragoljub Minic Nevena Pajic-Bobot Visokog Stevana 21 11000 Beograd minic_aed@ptt.rs AGROSTAR DOO Mihajlo Doric Ilije Ognjenovica 28, 21000 Novi Sad mdoric@eunet.rs ALSTOM (Schweiz AG) Zoran Ivic Predstavnistvo Beograd, Gračanička1, 11000 Beograd, zoran.ivic@ power.alstom.com

ANCORA O.M.S. D.O.O (AMC) Olgica Savic Vojvode Stepe 258/2 11000 Beograd +381 11 398 59 20 www.ancora.rs ancora@beotel.net AREVA T&D SA Biljana Miladinovic Gracanicka I, 11000 Beograd, biljana. miladinovic@areva-td. com ARIUS A.D. Vojislav Simic, Goran Marceta Narodnih heroja 30 11070 Novi Beograd vsimic@arius.rs gmarceta@arius.rs ARHI.PRO D.O.O Aleksandar Milic Cerska 29, 11000 Beograd, aleksandar. milic@arhipro.com ATAP Dr. Alexander Simic, Kneginje Ljubice 11 Jugovica 2a, 11000 Beograd, alexander. simic@translumina.net BASLER OSIGURANJE DOO Dr. Vladimir Medan Resavska 29, 11000 Beograd, office@ basler.rs BIOCLIN CENTRAL AND EASTERN EUROPE Béatrice Sauter Mike Alasa 26/VII/27,

48 Swiss Business Sector in Serbia / 2010

SRB-11000 Belgrade bioclin@kbcnet.rs www.bio-active.com BAYER D.O.O Miodrag Stankovic, Omladinskih brigada 88b, 11070 Beograd miodrag.stankovic@ bayercropscience.com BMS CHEMIE DOO Branko Drljaca Sladjana Loncar Blagoja Parovica 138 11030 Beograd, sloncar@bmschemie. co.rs B.P.M. EXPORT-IMPORT Petar Vujicic Djevdjelijska 19, 11120 Beograd 35 bpm@bpmwatches. co.rs COFIS Branislav Stanojevic, Gandijeva 5/ Appartm. 6 11070 Novi Beograd Taurunum10@gmail. com “TORMAX” AUTOMATIC Ljuban Basrak, Colos Basrak Surcinski put 9N 11070 Novi Beograd Ljuban.basrak@colos. rs COPECHIM Boris Vukobrat Dositejeva 4, 11000 Beograd copechim@eunet.rs

DANUBE FOODS GROUP Dr. Daniel Boehi Bul. Zorana Djindjica 8a/II 11070 Novi Beograd Daniel.boehi@danubefoods.com DEKOR ART D.O.O Laslo Mor Narodnog fronta 73 2100 Novi Sad dekorart@nscable.net DUFRY DOO BEOGRAD Iain Forrest Aerodrom «Nikola Tesla» 11180 Beograd 59, iain.forrest@rs.dufry. com DIAHEM-GRAMIM D.O.O. Dr. Andrej Gavrilovic Partner of DiaHem AG Distributor of DiaMed Switzerland Durmitorska 4, 11000 Beograd, a.gavrilovic@ diahem.com EFT ENERGY FINANCING TEAM Dr. Svetislav Bulatovic Bul. Mihajla Pupina 10 11070 Novi Beograd www.eft-group.net EKO FARM DOO NOVI SAD Zoran Mitrovic. Narodnog fronta 59 21000 Novi Sad Gordana Mogorovic, Kavadarska 14, 11000

Beograd, Ekofarm. zoran@gmail.com EMILIO STECHER DOO Mesa Podbicanin Velika Zupa bb, 31300 Prijepolje; mermer@estedoo.com www.emiliostecher. com ENIA D.O.O (SINTELON A.D. HOLDING) Dragoslav Maric Industrijska zona bb 21400 Backa Palanka dragoslav.maric@ eniacarpets.rs EUROBANK EFG A.D Beograd Filippos Karamanolis Vuka Karadzica 10 11000 Beograd cabinet@eurobankefg. rs www.eurobankefg.rs EUROCEM Milovan Klacar Kralja Milutina 53/28 11000 Beograd eurocem@eunet.rs EUROPEN GROUP DOO (IDENTICO) Branivoje Lazovic, general manager Olivera Stojanovic, Executive manager Trg Republike 3/V 11000 Beograd olivera@identico.rs FISCHER DOO Slobodan Janackovic Savski Trg 2 Kosancicev venac 11

11000 Beograd fischer.doo@bluewin. ch FROMM PAKOVANJE DOO Branislav Milenkovic Surcinska 21B/1, 11070 Novi Beograd b.milenkovic@frommpack.com GA DOO Ivan Alikalfic Jaše Prodanovića 26 11108 Beograd 12 Ljube Stojanovica 21 ivan.alikalfic@gadoo.rs GBD DOO Miodrag Gavrilovic, Djusina 9, 11000 Beograd miodrag.kovcic@ gbd.rs GEBERIT Predstavnistvo Ivan Džokić Vojvode Skopljanca 24, 11000 Beograd, ivan. dzokic@geberit.com POLIEURETENSKI SISTEMI (Representative of Georg Fischer GF) Petar Katic Zitni Trg 11, 21000 Novi Sad, petar.katic@ eunet.rs HOLCIM (SRBIJA) D.O.O. Gustavo Navarro 35254 Popovac 035/572 200 www.holcim.rs IBS INTER-BUSINESS SERVICE

COMPANY REGISTER

Ivan Alikalfic Kralja Milutina 32/V 11000 Beograd; ivan. alikalfic@gadoo.rs IGEAL OBERFLÄCHENTECHNIK IGEAL D.O.O Gordana Jankovic Pere Velimirovica 39-41 11000 Beograd Gordana@igeal.rs INTERMERKUR DOO Dejan Obradovic Zvecanska 38, 11000 Beograd office@intermerkur. com INTERMERKUR HANDEL AG Vladimir Ivanovic Predstavnistvo Beograd Zvecanska 38, 11000 Beograd vladimir.ivanovic@ intermerkur.com INTPRO D.O.O Vladimir Lazarevic Vojvode Stepe 120 11000 Beograd Vladimir@intpro.co.rs www.stadlerrail.ch

Francuska 37a, 11000 BGD decji_osmeh@betol.rs KOELEMAN FOODS PRODUCTS DOO Placide Machoud Njegoseva 77a, 11000 Beograd, Pere Jovanovica Komiricanca 27, 14253 Osecina, Serbia kfps@nadlanu.com; LIGHT STUDIO D.O.O Aleksandar Milic Marka Oreskovica 62 11000 Beograd lightstudio@sbb.rs www.regent.ch LUKAFOOD D.O.O. Momcilo Zivoinovic, General Manager Kneginje Zorke 84/II 11000 Beograd, iva.milivojevic@lukafood.rs MB BARTER & TRADING MBT PETIMPORT DOO Milorad Jevtic Francuska 16, 11000 Beograd m.jevtic@mbtbeograd.com; www. mbbarter.ch

MBT ZDRAV MBT KORAK D.O.O Zoran Markovic Terazije 35, 11000 Beograd, zormarkovic@ gmail.com www.mbt.com MEGALIS TRADE BEOGRAD Gordana KühneJovkovic Sitnicka 4,11000 Beograd, megalis.office@ isp.b92.net MERIS D.O.O. Zoran Dzelatovic Narodnih heroja 42/II 11000 Beograd merisbg@eunet.rs www.meris.net 3M EAST AG Milan Protic Predstavnistvo Beograd, Milutina Milankovica 23 11070 Novi Beograd mprotic@mmm.com METALIKA SOPOT Ivan Vuckovic Milosava Vlajica 116e 11450 Spot, office@ metalika.rs www.metalika.rs

METINVEST SMC DOO Dusan Bilkic Alekse Bačvanskog 6, 11000 Beograd, office@ metinvestsmc.rs MRG EXPORTIMPORT Milun Grbovic Ustanicka 25/3, 11000 Beograd , mrg@sbb.rs MSC BELGRADE Zorica Katanic-Rosaj Nemanjina 40/II, Kanc. 4 11000 Beograd office@mscserbia.rs NEOFYTON Zoran Tadic Danila Kisa 7a,21000 N. Sad, info@neofyton. com www.neofyton.com NESTLÉ ADRIATIC FOOD Cédric Boehm Bul. Zorana Djindjica 64a Beograd, Cedric. boehm@cs.nestle.com NESTLÉ ICE CREAM SRBIJA DOO Naum Janakiev

Milutina Milankovica 9b (III Bulevar), 11070 N. Beograd, nestleicecream@ rs.nestle.com NETSET GLOBAL SOLUTIONS Zoran Savic Osogovska 10, 11030 Beograd, zoran.savic@ netsetglobal.rs NITEA D.O.O. Vesna Jecmenica Žorža Klemansoa 19 11000 Beograd vesna@nitea.rs NLB INTERFINANZ D.O.O. Borut Müller Bul. Mihajla Pupina 165v 11070 Novi Beograd bg@nlbi.ch NORTHAMERICAN SURETIES(NAS) DOO Suncica Calic Radovana Simica Cige 38, 11000 Beograd sca@nas-ltd.com NOVARTIS PHARMA SERVICES INC. NOVARTIS ON-

COLOGY AND TRANSPLANTATION DIVISION Branislav Djordjevic Bul. Zorana Djindjica 71/18 (Pharma) 11070 N. Beograd, Branislav. djordjevic@novartis. com ORAH PROJECTS DOO Konstantin Vuk Savicevic Bul. Kneza Aleksandra Karadjordjevica 38 11000 Beograd, manager@orah.com www.orah.com PERSPECTIVES SOFTWARE SOLUTIONS DOO Drazen Tomic Hilandarska 22, 11000 Beograd tomic@perspectives.ch PETITE GENEVE Sava Petrovic Uskocka 7,11000 Beograd, zeneva@beotel.net PETRA GROUP MAENZ & PARTNERI

2010 / Swiss Business Sector in Serbia 49

COMPANY REGISTER D.O.O Dalibor Stula Kralja Milana 10 11070 Novi Beograd d.stula@petra-group.rs www.petra-group.rs PFIFFNER INSTRUMENT TRANSFORMERS LTD. Radovan Andrejic Serbia & Montenegro Vlajkoviceva 29 11000 Beograd pfiffner.srbija@eunet.rs; PIGMENTUM DOO Predrag Protic Cara Nikolaja Drugog 49 11000 Beograd, predrag. protic@ciba.com PHARMASWISS SA Petr Nemec Vojvode Stepe 18, 11000 Beograd; Petr.nemec@pharmaswiss. com PHONAK â&#x20AC;&#x201C; AURIS Stevan Jovanovic Jug Bogdanova 23 11000 Beograd auris@eunet.rs POPOV CLOCKS & WATCHES Milena Popov Zeleznicka 41, 21000 N.Sad, popovc.w@eunet.rs; www.augustereymond.ch POPOVIC COMPANY D.O.O. Aleksandar Zarin Cara Lazara bb 21234 Backi Jarak azarin@popoviccompany. co.rs, www.steinemann.ag PP EGERTON Milenko Popovic Grge Jankesa 8, 11160 Beograd, info@egerton.rs RADEX DOO Milos Matkovic Ratina 20a, 36212 Kraljevo- Ratina; info@radex.cc RE/MAX FRANCHISING SERBIA & MONTENEGRO Miodrag Kusic

Karadjordjeva 89/II 11000 Beograd m.kusic@remax-scg.com RINGIER D.O.O. (BLIC PRESS) Jelena-Drakulic-Petrovic Kraljice Marije 1/IX 11000 Beograd, jelena.drakulic@ringier.rs; www.ringier.ch ROCHE D.O.O. Vojislav Petrovic Milutina Milankovica 11a, 11000 Beograd vojislav.petrovic@roche. com SCHILLER PREDSTAVNISTVO BEOGRAD Milan Krkovic Sicevacka 1, 11000 Beograd, milan. krkovic@schiller.rs; www. schiller.rs SCHINDLER D.O.O BEOGRAD Goran Galic Bul. Milutina Milankovica 11a, 11070 Novi Beograd info@rs.schindler.com, www.schindler.rs STOS D.O.O (SWISS CLEAN) Aleksandar Gicic Frontovska38, 11000 Beograd, agicic@hotmail.com; www.s-to-s.com SANDOZ PHARMASEUTICALS Ljubisa Kukuric Representative Office Belgrade, Kneginje Zorke 2, 11000 Beograd, ljubisa.kukuric@ sandoz.com SAUTER BUILDING CONTROL SERBIA D.O.O Mladen Vukanac Alekse Nenadovica 15/II 11000 Beograd info@sauter.rs SECURITON D.O.O Rade Mandic Danila Lekica Spanca 31 11070 Beograd office@securiton.rs SELECTCHEMIE SERBIA Nikola Jankovic

50 Swiss Business Sector in Serbia / 2010

Bul. Mihaila Pupina 10 11070 Novi Beograd select@yubc.net SINGLETON SOLUTIONS GMBH Dejan Milosavljevic Milentija Popovica 1 34000 Kragujevac dejan@singleton-solutions.com SGS BEOGRAD Marinko Ukropina Boze Jankovica 39, 11000 Beograd; marinko. ukropina@sgs.com, www.sgs.com SIKA DOO Dragan Maksimovic Autoput za Novi Sad 244b, 11273 Zemun maksimovic.dragan@ rs.sika.com SIMIN EXPORT-IMPORT ENGINEERING Narodnog fronta 73/II 21000 Novi Sad siminexp@eunet.rs www.buhlergroup.ch Branko Simin SK-PRED D.O.O Srdjan Kuzmanovic Svetogorska 2/1 11000 Beograd office@skpred.com SYNGENTA AGRO SERVICES AG Dimitrije Djurovic Milentija Popovica 5a 11070 Novi Beograd dimitrije.djurovic@syngenta.com; www.syngenta.rs SWISS-CONCEPT D.O.O Hinko Sauter Kralja Milutina 32/VII 11000 Beograd swiss@sbb.rs LUFTHANSA SWISS INTERNATIONAL AIR LINES AUSTRIAN AIRLINES Lukas Negedly, Terazije 3, 11000 Beograd, lukas.nededly@austrian. com SWISS BUILDING

D.O.O(FELA PLANUNGS AG) Milivoj Djupovac Representative Office Danila Lekica Spanca 21 11000 Beograd hu@fela.ch SWISS CLEAN COMPANY D.O.O. Frontovska 38, Beograd +381 11 23 92 706 www.swissclean.rs office@swissclean.rs TELSONIC D.O.O. KAC Dusan Gazikalovic Laze Stejina 37, 21241 Kac, office@telsonic.rs www.telsonic.ch TEXIMP DOO Jovica Bodrozic Murska 14, 11000 Beograd jovica.bodrozic@teximp. com, www.teximp.com TOMAS DOO EXPORTIMPORT BEOGRAD Tomislav Stankovic Dobanovacki put 8 11080 Zemun tomastan@infosky.net www.rdm.com TRS SWISS PRODUCTION DOO Vito Oliva Rade Koncara 1 21131 Petrovaradin oliva.vito@trs-swiss.net UNICA INVEST D.O.O Dr. Markus Elsinger Dzordza Vasingtona 52/5, 11000 Beograd markus@elsinger.ch UNIVERSITY OF NEW YORK IN BELGRADE Miona Badzevic Andjelkovic Andre Nikolica 29 11000 Beograd m.badzevic@unyb.edu.rs; www.unyb.edu.rs VECO TRADE D.O.O Aleksandar Maric Svetog Save 32/3 11000 Beograd office@vermat.net VEKOM GEO D.O.O.

Veljko Fustic Trebinjska24, 11000 Beograd office@vekom.com www.vekom.com VIPOL D.O.O. Prodanovic Dragan Apatinska 4, 21000 N. Sad dragan@vipol.rs www.vipol.co.rs VISUAL IMPACT DOO Sasa Sipka Office Belgrade Deligradska 24, 11000 Beograd ; sasa@visuals.rs VUCOMM Nikola Vuckovic Bul. Zorana Djindjica 67 11070 Novi Beograd nikola@vucomm.rs www.vucomm.rs VULKO DOO Milanko Paunovic Visnjicka 15, 11000 Beograd, vulko@eunet.rs YOUNGCULTURE Nebojsa Jovic Terazije 41, 11000 Beograd, +381 11 334 64 60 n.jovic@youngculture.com www.youngculture.com THURSDAY GROUP SOUTH EASTERN EUROPE D.O.O. Ognjen Djurdjevic Kraljice Natalije 46-48 11000 Belgrade ognjen.djurdjevic@thursdaygroup.com www.thursdaygroup.com ZEPTER INTERNATIONAL Aleksandar Leko Bul. Mihajla Pupina 117 11070 Beograd generalmanager@zepter.rs www.zepter.com ZMR PAPIC Branislav Papic Pozarevaca32,1 1000 Beograd, papic@eunet.rs

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