THE POWER OF COMMITMENT Mr Roman Nota, president of the board of management of Croatian Končar Generators and Motors Inc., speaks to Vanja Švačko about the company’s operations and the latest developments since we last featured the company a year ago.
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a part of Končar Group, Končar Generators and Motors Inc. is a leading Croatian manufacturer of equipment for the generation of electric energy. The core products are large and medium sized generators as well as motors. The company also deals with servicing, including overhauls, upgrading, revitalisation and modernisation of its own equipment, as well as of large hydroelectric power stations in need of new generators. The products are manufactured according to specific customer needs. This means that its product development is dependant to a large extend upon current market trends. Since the company serves many different industries (for example oil and transport), its product range includes engines for various purposes, such as those for tow vehicles, trams and trains. When asked about the importance of suppliers, Mr Nota says: “We manufacture all our products in-house and have partnerships with material suppliers. We also need
suppliers for certain components of our products. However, in Croatia we are facing a problem since many suppliers have stopped working, changed their scope of business or have not invested in modern technology. We cannot meet all our needs by outsourcing since it also has to be logical and sustainable.”
Necessary transition Croatia is currently going through a period of de-industrialisation and the attempt to restore the reputation of its industrial production represents a huge challenge. The whole process has had an overall impact on local businesses, including Končar GIM itself. Mr Nota explains, “Although nothing has significantly changed in the past year and market circumstances have been relatively stable, different situations are affecting various market segments in different ways. Owing to the fall in energy prices or some political and security reasons, certain projects get deferred or cancelled.
“Similarly, what has fundamentally changed in the past decade has been the investment structure. There are a growing number of smaller investors among dominant buyers of electrical energy who frequently grapple with getting concessions and licenses. Many of them continue to suffer major strains on their budgets, which eventually pushes our projects aside. Luckily, this has not had a dramatic impact on our business since the interest in our hydrogenerators is relatively stable.” The company will need to transition away from local economic problems in order to create an environment of self-sustaining growth, marked by investments.
In pursuit of fresh knowledge Končar Generators and Motors Inc. is aware that achieving such a strategic shift requires heavy investments in science and engineering. Having access to the group’s institute for electrical engineering helps the company to address the most important issues concerning production.
