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The proximity of Spačva’s forest resource, one of the largest integrated oak woods in Europe, covering approximately 51,000 acres, defines the business strategy of the company that has more than 50 years of experience in the wood industry.

In the first three decades of its existence the company was working on the saw mill materials, prefabricated wooden houses, windows, wood packaging etc. Production of some lines stopped in the 1980s and a factory producing veneers was opened instead.

Mr Puljiz said, “Today we have five factories: a saw mill, parquet production, a veneer factory, a final product factory and a bio fuels factory, with capacity to process annually about 75,000m3 of oak and ash logs. Currently we employ 700 people, but our ambition is to have again 1000 employees as we had before the economic crisis.”

Competitive advantages

All the company’s final products are made of solid wood. The oak used in the production has received international recognition and is formally known as Slavonian oak.

“One of our most profitable products is country flooring, a substitute for multilayer floor but made of solid wood, as are our doors. Country flooring is traditionally two metres long, but we are working on flooring of three to six meters. Currently there is a trend in interior design for a natural look and that is exactly where our products fit in,” explained Mr Puljiz.

High-quality materials are what the company’s products, especially parquet and flooring, are internationally recognised for. Other advantages include: genuine veneer made of oak and ash timber, firewood (briquette and pellets) produced from dry wood and sawdust that enables the exploitation of by-products and offers a better and cheaper alternative to heating with gas or oil. Internationally recognised

Many regions of the former Yugoslavia boast large forest areas and so competition in the wood industry is strong. Spačva invests in knowledge and technology for wood processing in order to stay ahead of the competition. Its current position in south-east Europe has improved after the recent Croatian accession to EU.

Mr Puljiz explained, “Membership of the EU helps us in getting new customers because the old technical difficulties in trading are eliminated. For example, Spačva’s forest base spreads to Serbia which uses the same raw material in its wood industry as we do. However, many customers are coming to us due to significantly simplified market regulations within the EU as well as because of the good quality of our products. More benefits will be seen in years to come.”

The most important market for Spačva is still Germany, although a large quantity of products is exported to France, Poland, Belgium and the Netherlands. Apart from

western Europe, the company is present in the countries of the former Yugoslavia, Turkey, Romania and Bulgaria. There is a clear plan to expand to the Russian market as well in the Middle East, which is becoming a favourable market for the wood industry.

“We are slowly returning to the UK as well,” added Mr Puljiz, “which was before our main market for the country flooring. After a short gap in trading, the interest for our various wooden products started growing again shortly before the London Olympic Games.”

Supplier network

Spačva has a long list of partners from the region. Given that the company uses its own raw materials, it does not have to import much (apart from some spare parts). “Our largest supplier, which accounts for 55 per cent of all supply costs, is Hrvatske šume d.o.o.,” said Mr Puljiz. “The Slovenian company Intercet d.o.o. supplies us with the woodworking machinery. WoodCare Denmark provides us with products for basic treatment and maintenance of the wood surfaces, while we buy cardboard packaging from Duropack Belišće.”

Among other suppliers are Axel Wirth Maschinen GmbH, Noži Ravne d.o.o., IKS Klingelnberg GmbH, Euro Janković, Crnov Commerce d.o.o., Transport etc.

All Spačva’s products have ISO 9001:2008 certification, FSC (Forest Stewardship Council) certification, CE marking, Real Wood label and the company is member of FEP (The European Federation of the Parquet Industry).

Environmental ethics

Living among such rich natural resources is a privilege but a responsibility as well. With its long tradition in industry, Spačva is a promoter of the importance of environmental awareness. “To become commercially usable, Slavonian oak needs to grow for 120 years. Our entire production cycle is based on exploitation of this material. Consequently, our business strategy is to focus on learning how to value and appreciate the longevity of its maturation and how to use it economically, in compliance with ecological standards,” explained Mr Puljiz.

Therefore in manufacturing, the whole product is used: from the initial stages of processing logs, through the usage of wooden waste for thermal energy within the system, up to the production of fuel briquettes and palettes that are renewable energy sources.

In accordance with this business orientation, Spačva has clear plans for the future. “Our strategy is to position ourselves in south-east Europe as a leading manufacturer in the wood industry. We are a large company with production facilities that allow us to concentrate on organic growth. We want to keep the image of a company that processes the best quality oak and bases its programme on the products made from the finest solid wood.” n Visit: www.spacva.hr

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