Gas distribution in Croatia Successful webbing Croatia needs to diversify gas supply routes
Željko Tafra, owner and director, Tažex, Zelenika Montenegro - a favourable market for Croatian products
The museum of broken relationships I remember only happy days. Memorabilia of loves old and new
DEVELOPMENT NT PROGRA PROGRAMME RAMME
INTERVIEW
CULTURE
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Croa Croatian Business & Finance Weekly Established in 1953 Esta Monday / 8th March / 2010 Mon Yea Year III / No 0100 www.privredni.hr www
S U P P O R T E D
CENTENNIAL CELEBRATION
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am reliably informed that members of the general public in England, upon reaching their 100th birthday, receive a congratulatory telegram from the Queen. We in “Privredni vjesnik” regrettably do not qualify, although this edition is number 100. We do feel inclined to self-praise since we have so much to share and place before you. It is our intention to continue to report those aspects of Croatian economic and business life that you, our important readership, have come to expect. We have learned that our mix of news, interviews, analyses and personal viewpoints as well as the introductions to Croatian companies are well-received and widely followed. It is anticipated that in January 2012 Croatia will join the European Union. Our aims until that date remain the same – to show the world that Croatia has a lot to offer, both as a holiday destination and as an excellent country with which to do business. We will do all in our power to promote our benefits as well as support the local economy. Thank you for your support over the past issues; I hope that I and the whole ‘PVInternational’ team will be able to share with you the next 100 issues. Darko Buković Editor-in-Chief
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pvinternational pv international C R O A T I A N
C H A M B E R
O F
E C O N O M Y
AGREEMENT ON THE SOUTHERN ROUTE GAS PIPELINE
Great potential but extreme caution
Experts advise the government they should keep in mind their earlier experience with Russian gas sellers when negotiating over the new gas pipeline Igor Vukić
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f Croatia joined the Southern Route gas pipeline, that would enhance security of the supply of this energy resource and motivate the development of the gas market. However negotiations with the Russian side must proceed with great caution and know-how, using the experiences from former negotiations, warn Croatian gas system experts. The framework agreement on Croatia joining the Southern Route project was signed in Moscow by the Prime Minister, Jadranka Kosor, and her counterpart, Prime Minister Vladimir Putin. According to the agreement, a joint company will be formed between the Croatian state company Plinacro and the Russian gas monopoly Gazprom, where each company will own a 50% share. Experts familiar with earlier negotiations and with whom “Privredni vjesnik” spoke, warn that in the past Gazprom proposed several conditions for a large supply of gas, one of which was that Croatia give up the supply route from Austria via Slovenia which is now uses to supply gas. Croatia should not have agreed to this, and it must preserve its various sources of gas and sup-
ply routes, suggest those experts. A time for detail Boris Medvedev, Economic consultant in the Russian Embassy in Zagreb, says that Croatia joining the Southern Route is not conditional upon Croatia giving up the LNG project. According to Medvedev, gas from the terminal, a more expensive option than gas from the pipeline, is in any case intended for more developed markets of the West and Central Europe. The long-term agreement on the delivery of gas from Russia expires in November 2010, but Medvedev assures us that regardless of all negotiations, Croatia will still be supplied with the present quantity of
1.2 billion m3 of gas. Croatia and Russia, however, have signed a framework agreement on the project. Therefore, there is still time to discuss detail. Much will depend on the study of the construction of the Southern Route, announced for the end of this year, or the beginning of the next. The first cubic metres of gas should arrive in Croatia via the Southern Route some time in 2016 or 2017. The study will show whether the main gas pipeline would pass through Croatia, which would be used to transport gas from East to West through Croatian territory, or whether a spur will enter Croatia, for example, from Serbia, which has gone much further in its negotiations over its share of the pipeline.
2 VIEWPOINT
Privredni vjesnik Year III No 0100
THE FIRST 100 EDITIONS OF PV INTERNATIONAL
ZLATNA KUNA 2010
A valuable piece of the information mosaic of Europe
Positive thinking a prerequisite
Each edition of Privredni vjesnik, composed and translated into English, is available free-of-charge to readers globally
The crisis is with us but we must not succumb, we must rather free people from fear. Only then can Croatia use its exceptionally favourable geopolitical position
Lada Stipić Niseteo fter just over two years of regularly arriving in e-mail inboxes to various addresses in Brussels, the recipients of PV International now know their needs and interests are fully understood and the information presented will be read, studied, used and retained. Even by the 50th edition, PV International became a recognisable brand within the European Commission. The staff (who perform 99% of the work regarding Croatia’s EU accession) many times mentioned PV International as a source of useful information, which helps them to develop a specific country image. The promotion of PV International in Brussels included a CD
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of the ‘zero edition’. The European Investment Bank, for example, welcomed this CD with great compliments, and they have remained on the list of subscribers since the first issue. PV International serves as additional, neutral information on potential fund endusers and even the smallest piece of data is welcome when making a final decision. Information from PV International, as one of many sources of information covering current events in the country has been used extensively by the European Parliament to write reports intended to Croatia. Its interviews are very well-regarded, being especially acceptable for the diplomatic corp in Zagreb, and often lead to direct contact between the individual being interviewed and an embassy.
Although born in the former Yugoslavia, I have been living in Western Europe for nearly 40 years. My business is concentrated on South-Eastern Europe with its focus on agro-food and environmental/bio-mass/energy projects. PVI nternational is the only publication in the region that keeps me fully up-to-date with economic and business life in the whole region, something that is extremely important for my business. Today, the 8th March, we are celebrating two important events.....”The International Day of Women” and “The Centenary of PVI”. Congratulations to both, to all women and to the PVI team. Please continue in this way for the next 1000 editions. Best regards from the Capital of Europe, New East West Spirit Sprl Dejan Petrović, M. Sc. Electrical Eng., E.T.H., Zurich Phone/fax: +32 2 767 16 15, GSM: +32 475 32 07 77 E-mail: news.petrovic@skynet.be
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Drago Živković n times of falling income, rising unemployment, optimism disappearing and fear becoming more prevalent, there are still people who try to maintain a positive spirit, especially when based on real achievement. Last year during the most severe downturn this decade there was a shortage of such people. This year a host of positive-minded entrepreneurs gathered in the National and University Library in Zagreb, at the awards ceremony Zlatna kuna of the Croatian Chamber of Economy (HGK). “This is a deep structural crisis, which is a special challenge for small countries, and even more for Croatia since it is occurring in the context of our forthcoming EU accession,” pointed out the president of HGK, Nadan Vidošević, adding that we should join the EU without any illusions and with clearly defined national interests. According to Vidošević, Croatia has a future, with a different leadership and promoting its geo-economic position. “The government is aware of all difficulties a n d is ready to undertake proposals relating to the economy,” said the government vicepresident Božidar Pankretić. “We are facing a year of transparent truth and many painful reforms, and this requires a general consensus,” he stated.
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There is a glimmer of hope in the slowing fall in GDP which fell to 4.4% in the last quarter, and he sees a forthcoming turn in the negative trend of the rising unemployment. No need for fear Pankretić also praised the success of the first auction of liquidity credit, as opposed to Slovenia, where there were no bidders at a similar auction. “For this reason we are building optimism, since negative thoughts do not help,” said the vicepresident of the government. The parliamentary president, Luka Bebić, thinks quite similarly, posing a rhetorical question, “Do we have sufficient self-esteem and skills?”. Bebić says the crisis is with us now, but we must not succumb. We must rather free people from fear, especially those who do not employ new workers for fear they will be investigated. Bebić rather proposed another kind of atmosphere should be created in the country, which does not only prosecute criminals, but allows creative people to create. Bebić is convinced that only in this way can Croatia use its exceptionally favourable geopolitical position.
WINNERS OF ZLATNA KUNA Large companies: Končar-Energetski transformatori Medium-sized companies: Geofoto Small-sized companies: Nexus, Banks: Privredna banka Zagreb Insurance agencies: Uniqa osiguranje
For life-time achievement: Romano Božac, professor at the Faculty of Agronomy Innovations: Branimir Ružojčić, founder and owner of TEMA company Vjekoslav Majetić, founder and owner of Dok-ing company
www.privredni.hr Business & Finance Weekly
( € 210
DEVELOPMENT VELO OPMEN PROGRAMME 3
million
invested in first round of gas distribution
( € 380
million
in second development cycle
GAS DISTRIBUTION IN CROATIA
SUCCESSFUL WEBBING Croatia needs to diversify gas supply routes so that it does not depend on one interconnection via Slovenia Boris Odorčić
espite the long winter, Croatia managed to avoid problems regarding the supply of natural gas, and according to experts there are several reasons for this. The crisis caused a reduction in economic activity and consequently in gas consumption. Moreover, due to the recent elections in the Ukraine, the supply of Russian gas to European consumers was more secure last year. Nevertheless, Croatia needs to diversify gas supply routes, so that it does not depend on one interconnection via Slovenia, ensuring industrial production is continuous and uninterrupted, without consumers feeling any shortage. Thus, investment in big gas energy projects, such as new supply routes, the construction of the LNG terminal and additional storage facilities should not be ignored, since with greater consumption, Croatia will increase imports over the next 20 years from the present level of 40% to some 80% of the required quantity. Jerko Jelić Balta, Board President of the national operator for the gas distribution system Plinacra, advises “Privredni vjesnik” that when joining the neighbouring gas transportation systems are concerned, the most important interconnection is that with Hungary, with a capacity of 6.5 billion m3 per annum and which is currently under construction. When this project is completed, Croatia will obtain an additional supply route for natural gas. The Croatian route will be finished by the end of 2010, and it will be ready for operation at the beginning of 2011 together with the Hungarian route. This will enable imports of additional gas from the largest trading cen-
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tre of gas in Central and South Eastern Europe, the Austrian Baumgarten, he explains. Moreover, further interconnections are in the development phase. This primarily concerns the IonianAdriatic Pipeline – IAP, which would connect gas pipelines in Lika and Dalmatia, and further construction of the gas pipeline south of Ploče through Montenegro, with the Trans-Adriatic Pipeline (TAP) in Albania for the supply of gas from the Caspian Sea and Middle East regions. In this way, gas would be distributed to all countries effected by the IAP gas pipeline (Albania, Montenegro, Bosnia and Herzegovina, Croatia), whilst a share
of the capacity could be used for transit purposes. The capacity of 5 billion m3 per annum is currently under consideration. Half of this would be intended for the regional market, and the other half for transit, explains the director of Plinacra. Two development cycles Moreover, various other projects are being developed, which include several possible interconnections with the gas transport system of Bosnia and Herzegovina, where the most important strategic move is to connect the route Slavonski Brod– Bosanski Brod in order to con-
tinue the interconnection with Hungary. Connecting with the gas route Ličke Jesenice - Bihać is currently on-going. It would enable gas distribution for the canton Unsko-sanski in Bosnia and Herzegovina with the gas pipeline capacity of the system of Lika and Dalmatia. Several other small capacity projects, important in the regional sense of connectivity with Bosnia and Herzegovina and Slovenia, are in the development phase. “We are also in contact with Srbijagas, with whom we have agreed the possible interconnection corridor Sotin–Bačko Novo Selo,” he says. Gas distribution in Croatia, which started in 2002, continues to proceed successfully. The development plan, construction and modernisation of the gas transport system in Croatia by 2011 is divided into two development-investment cycles, whilst Plinacro is its carrier and investor. The sum of €210 million was invested in the first cycle between 2002 and 2006, and was successfully completed. The second development-investment cycle is currently undergoing implementation, from 2007 to 2011, with a value of €380 million. “Despite the global financial crisis, the approved revision did not cut investment in the sense of reducing the level of construction. We rather rationalised deadline plans of some projects. This means that an interconnected gas pipeline between Croatia and Hungary will be built in accordance with the Plan and approved revision, in conjunction with the second development-investment cycle. Moreover, the construction of the gas pipeline for Lika and Dalmatia, from Bosiljevo to Split, is also scheduled”, points out an executive of Plinacro.
4 INTERVIEW
Privredni vjesnik Year III No 0100
( €12 million
annual turnover of Tažex
( €1 million
investment in a shopping mall
ŽELJKO TAFRA, OWNER AND DIRECTOR, TAŽEX, ZELENIKA
Montenegro - a favourable market for Croatian products In Montenegro, Croatian products are regarded more positively than any other - similar to German products in Europe place in Europe, and the Bijela shipyard. We are also currently applying for the tender regarding the Port of Bar. Since Croatian companies showed interest for Plantaže 13 jul, you might find it interesting that the government of Montenegro paused their privatisation for a year. This decision expires in the first half of 2010, and we have yet to see what direction comes from the new decision.
Jozo Vrdoljak rivredni vjesnik spoke with Željko Tafro, owner of Tažex from Zelenika, the leading Montenegrin importer of beverages in the countries of ex-Yugoslavia, about the plans of his company, the position of the Croatian trademarks he represents and the prospects of Croatian products in this market. Moreover, his company achieves some €12 million in annual turnover.
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Why do you import wines from ex-Yugoslavian countries? These products have trademarks that customers still remember and they require no additional advertising. Even though their quality has improved immensely, they are familiar to our customers. This is why we try to create a comprehensive wine prospectus for the entire region. I think we are on the right track, and we are regionally unique, since no-one offers such a diversified range of products. In addition to wine producers, who also do you represent from Croatia? I first started to represent Maraska from Zadar. I also represent Pivac and Jambo in the sector of deep-frozen products, Sardina from Postira, Trenton and Nirs Split. We also work with companies owned by Agrokor. How are Croatian products accepted? Extremely well. Given the fact we regard Croatian products as better than any other, similar to German products in relation to
High sales How much Croatian wine is sold in Montenegro? It is difficult to say since there are many distributors. I can only say more precisely how much Croatian wine is sold by Tažex. For example, we sell over 20,000 bottles of Pošip Čara and some 8,000 of Matuško. Wines such as Zdjelarević, Kozlović, Matošević, Degrassi, Polesina, Kabola, Arman, Tomić and Agrokor also achieve good sales, as well as wines from Pelješac and Hvar. Europe. Furthermore, this market is similar to that of Croatia, especially the coastal zone of Montenegro. Many Croatian products are present on the Montenegrin market, especially those with traditional trademarks. What is the current situation in Montenegro? We are experiencing are own internal crisis. We do not have big interlinked systems that depend on the global economy. Our main problem is illiquidity, or rather
lack of payment to suppliers. I believe this could be solved quite rapidly if we wished. And your views on privatisation? Privatisation is coming to an end, since over 80% of companies have been privatised. There are still several other companies awaiting privatisation, such as the Simo Milošević Institute from Igalo, once interested in Zepter, then Plantaže 13 jul, the biggest vine plantations in one
What is the tourism situation in Montenegro? We have invested highly in the Budva Riviera. Its quality of accommodation and services has been quite elevated, which attracts wealthier visitors. Therefore, my company is investing some €1 million in the construction of a shopping mall in Budva. We have great expectations in Boka Kotorska from the biggest nautical project, Porto Montenegro in Tivto. My company has also initiated a nautical project in Zelenika. It concerns the construction of a marina with 150 berths in conjunction with a business and entertainment centre covering 1,200 m2 and a hotel for yachtsmen. The project is currently in the phase of obtaining licences, and it is worth €6 million. The completion of the project should mark a turningpoint for tourism in Montenegro, especially in Boka Kotorska. Despite gigantic investment, I think tourism in Montenegro has still not achieved results similar to those of the 90’s. The reason is the lack of beds, since some hotels are in poor condition, especially in areas surrounding the bay of Boka Kotorska.
www.privredni.hr Business & Finance Weekly
5
QUALITY AND INNOVATION
CROATIAN ROBOTS FIGHT FIRES AND FIND MINES - AND DIAMONDS Highly sophisticated machinery is mainly bought by U.S. and other armies, the UN, commercial companies involved in demining and mining as well as not-for-profit organisations Eleonora Dukovac emining machines of the Zagreb Group Dok-ing clear mine fields across the world and they have become a globally renowned brand. Purchasers of their remote controlled machines include the government of the USA, Russia, Libya, Sri Lanka, Australia, and recently the Italian Ministry of Defence, with an order worth €900,000.
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Focus on quality They have managed to reach a global zenith with their design and production of innovative, highly-sophisticated robots for demining, and have been recognised in over 30 countries. This year, they plan to enter Cuba, Vietnam, Sudan, Columbia, Nicaragua, Chile, Ukraine and Angola. They are counting on a 20% increase in production, which will
also include robots for mining and fire fighting. “Innovation is the base of Dok-ing. Demining robots are the core business from which our company developed. Regarding the market, it is specific with no standard offer or demand, and one cannot survive long-term from just one group of products. Therefore, we have started the production of bulldozers for mines, where the entire world represents a potential mar-
ket. Currently they are operating in mines in South Africa and Australia. We have also decided to produce a new generation of robot fire-fighting vehicles; these are hybrid machines which operate under all conditions with a rapid-response time. The Los Angeles fire-fighting department, as well as potential buyers in Greece, Lithuania and Chile are interested in them,” explains, Vjekoslav Majetić, owner and di-
rector of Dok-ing. He also adds that they launch one prototype each year, protected by a patent. Focus on quality and hand-made products using state-of-the-art components for the global market launched their success, considers Majetić. “We export over 90% of our production. Now, our biggest buyer is the American army which owns 40 demining robots. The military in general, but also the UN, commercial companies for demining and mining, and notfor-profit organisations are the most frequent buyers. However, the Croatian Ministry of Defence is our primary source and our best reference, which has helped us penetrate foreign markets, and we co-operate with them in the development of the demining programme,” points out Mladen Jovanović, head of projects for Dok-ing.
MEGABAJT – IT DICTIONARY
GAST EXHIBITION
Croatian FAQ’s
Exhibitors rise by 5%
In order for computer users to find answers to the most common IT questions as rapidly and easily as possible, the web site www.megabajt.org presented last year is a free IT dictionary in Croatian, named Megabajt. Its corpus explains over 1,500 of the most common terms, including the usual technical expressions encountered when working with computer technologies, terms which are used when describing the features of computer systems, as well as expressions used in contemporary computer j a r-
gon. The project was initiated by the NetAkademija from the Technical College in Zagreb. Toni Petrović, project creator and leader, says this dictionary, in a simple way, explains the basics of computer science, such as hardware, software, LAN, domain, IP address, and so forth. The idea came from practical personal reasons. “As a PR consultant I often write texts for IT companies, for which I required a reference or a simple explanation of an IT term. Since I have co-operated intensively with NetAkademija at the Technical College, I presented this idea to them and proposed they fund the project,” he explains. He also added that Megabajt’s special feature is that it is simply a dictionary, nothing more, nothing less. (B.O.)
This year 1,273 exhibitors from 15 countries gathered for the 15th International GAST Fair. In the world of business, GAST is recognised as the place to prepare for the forthcoming tourist season. “Our great success is that this year, in a time of recession and a fall in economic activity, we have increased the number of exhibitors by 5% over last year”, pointed out Sanja Vuković, director of the company Sajam Split. As an interesting addition, the furniture fair Furnitura will also
be represented, offering a series of events, professional conferences and exhibitions of interest to hoteliers, architects, designers, as well as to a wider audience who wish to inform themselves about the products from the local wood industry. The broad professional programme consists of competitions and an evaluation of product quality, as well as a series of charity events, whilst special focus is given to various professional and economic conferences. The GAST fair is also a leading gastronomic event, as well as a very important tourist event in Croatia. It encompasses various specialised fairs covering food, beverages, hotel and catering equipment, coffee, furniture (Furnitura), wine (Dionizijana), and tourism (Saturn). (J.V.)
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Privredni vjesnik Year III No 0100
CROATIAN FOREIGN CURRENCY MARKET Currency
Kuna exchange mid-rate
AUD CAD JPY CHF GBP USD EUR
4.831745 5.184674 5.989612 4.968823 8.042038 5.347946 7.268394
Source: HNB
EUR
7.29
USD
5.38
3.3.
4.3.
5.3.
6.3.
4.99
7.28
5.36
4.98
7.27
5.34
4.97
7.26
5.32
4.96
7.25
5.30
4.95
7.24 2.3.
WEEK ENDED MARCH 6, 2010
CHF
4.28 2.3.
3.3.
4.3.
5.3.
6.3.
4.94 2.3.
3.3.
4.3.
5.3.
6.3.
::: news 1.4 million employed in Croatia At the end of January, some 1,436,640 individuals were employed in Croatia, a fall of 20,567 (1.4%) over December 2009, according to data processed from the Central Bureau for Statistics. Of this number 1,172,077 were employed by companies, a reduction of 13,918 compared with the month before. Additionally the number employed in craft establishments together with those deemed to be freelance, decreased by 6,173. Exports increase to €0.59 billion Increased exports and a simultaneous drop in imports have improved the export/import ratio for Croatia. It increased from 49.7% in January 2009 to 61.7% in January 2010, according to provisional data from the Central Bureau for Statistics. Croatian exports amounted to €0.59 billion in January 2010, an increase of 13.5% year-on-year. At the same time, imports totalled €0.96 billion, an 8.7% drop in value year-on-year. Magma issues 2 million new shares Magma’s Supervisory Board supported the proposal of the Board regarding a shareholders meeting set for April 19 2010, and regarding an increase in capital through a public offer of 2 million new shares priced at €7.81 each. Shares will be offered without the prior publication of a prospectus, in compliance with Article 351 of the law on the capital market with exempted rights of priority.
BANK WARNING
Stop galloping public debt through fiscal consolidation This year HAAB analysts predict a 2.5% fall in GDP ising unemployment, weak consumption and credit activity in addition to a lack of investment will mark the Croatian economy in 2010 which will lag behind recovery in relation to the region, estimate analysts from Hypo Alpe-Adria-Bank (HAAB). Their macroeconomic analysis shows that Croatian GDP could fall by 2.5% this year, and that it is difficult to expect it to rise above 2% if there are no structural reforms, higher productivity and a reduction in the cost of labour. They are sure that public debt will increase to over 100% of GDP due to state indebtedness and late fiscal adjustment and higher expenditure related to the (re)financing of GDP reduction. This year, the state budget deficit will be higher than last year. It could account for 6% of GDP, in the region of €2.33
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billion. One reason is the breakdown in economic growth, reduced income and the anticipated activation of state guarantees for the shipbuilding industry amounting to 1.4% of GDP (some €0.55 billion), short-term costs of structural reforms and overdue uncollected debts. Reforms critical Today, when gross financing of the state exceeds 16% of GDP, and the anticipated cost of (re) financing in the mid-term will exceed the potential growth rate of GDP, a thorough fiscal consolidation is crucial in order to stop galloping public debt above 60% of GDP. Political alertness is also required for far-reaching emergency reforms in state administration, further reform of the pension system, health and social transfers
and subsidies, reduction of unaffordable (and often unnecessary) infrastructural projects and better control over state companies and pseudo-fiscal bodies, warns Hrvoje Stojić, Head of Economic Research Department in HAAB. According to their macroeconomic analysis, inflation will remain low this year, influenced by weak local demand and consumer purchasing power due to unemployment, the sporadic devaluation of labour costs, less personal lending to the public and a stable currency. HAAB analysts think that structural reforms will play the main role in controlling local inflation, directed towards sector inefficiencies, the strengthening of competitiveness and improving the functioning of the transport and logistic infrastructure. (E.D.)
www.privredni.hr Business & Finance Weekly
WE PRESENT 7
TEMAKS ZAGREB
PASTRY SHOP JAKŠIĆ, ZAGREB
A valued and sweet tradition Cakes are made according to 60 year old recipes but match the tastes of contemporary clients
Constructors of fair interiors The company continuously invests in equipment and technology development, and the quality of their work puts them in the forefront of the market airs and exhibitions in Hannover, Saint Petersburg, Zagreb, Paris, Bologna, Brussels, Frankfurt and Split are only a sample of last year projects of Temaks, whose main activity is the design, performance and fitting out of fair interiors and exhibitions. Thousands of square metres of exhibition space in Croatia and abroad will be handled this year as well by workers of the company from Zagreb, which has been working on fairs and exhibitions since 1993. “We constantly follow developments and trends in fair activities, and continuously invest in the development of our equipment and technology, and the quality of our completed work puts us in the forefront of the market”, says Slavko Paradi, Director of Temaks, which employs 12 staff and a further 12 depending on the need and volume of work. Paradi says they are ready to simultaneously take on the construction and fitting out of 3,000 m2. They have some 3,000 m2 of construction, and perform all work which includes carpentry work of stands up to 1,000 m2. They have their own car fleet for transporting material and people, and their own storage facility covering 500 m2 as well as the all
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accompanying facilities. Paradi says they are currently trying to obtain a construction license for a business residence, thus rounding off the entire technological process in one place. Methodical working “Our work proceeds as follows. A potential exhibitor applies for a venue at a fair in Croatia or abroad, and according to his needs, we help select the location. Once the project assignment is taken over from the exhibitor, we design the ideal project using computers and programmes for 3D space visualisation, and agree upon it with him. When we define the solutions, we make a final offer, and after it is accepted, we develop performance designs, and graphics. We prepare all the elements, load them on to lorries and send them to the fair together with the exhibits. Our fitting-out team follows the lorry, sets up the stand and afterwards it dismantles it and brings everything back to Croatia or elsewhere, whatever has been agreed”, explains Branko Grižić, manager-designer from Temaks. He also adds that this simplifies the exhibitor presentations, and enables them to use their time for quality preparations for the fair. (E.D.)
van Kovačić established his pastry shop in 1936 in Zagreb. Since that time it has been passed from generation to generation and although the grandson of Jakšić, Denis Loje, graduated from construction high school, he has spend 20 years in the business of making cakes, mastering his trade, as he says. Together with his cousin, he took over the Jakšić Pastry Shop eight years ago with the intention of continuing the tradition of cakes. However, when ‘Privredni vjesnik’ asked him whether his children would continue the tradition, Loje said he felt this was not certain since they have their own careers to pursue.
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Additive-free cakes “Our pastry shop is famous for its strudels, kremšnite (cream cakes), tea biscuits and chestnut cakes. They are all made according to 60 year old traditional recipes but are made to match the taste of contemporary clients. This means that whereas sponges used to be dry, today they are ore moist. Our range includes 30 types of cakes and several types of gateaux.
We make wedding and birthday cakes, as well as cakes for all occasions”, said Loje. “The cakes contain neither additives nor any inorganic ingredients. They are made on a seasonal basis, which means we do use deep-frozen fruit.” Whilst pointing out the importance of the cake quality, Loye said that the entire range is made using organic top-quality ingredients. Considering this shop is a family business, Jakšić Pastry Shop currently employs five staff, including two master pastry chefs. In addition to selling cakes, they also offer catering and a delivery service, and have regular clients throughout Zagreb. Therefore, they believe that big pastry shops, which are more attuned to quantity of cakes sold rather than quality, cannot compete with them. (S.P.)
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Privredni vjesnik Year II No 0100
THE MUSEUM OF BROKEN RELATIONSHIPS
I remember only happy days The display includes love letters from WWII, car keys, stuffed toys, a garden dwarf and a hatchet Sanja Plješa hat to do with those things that brought you together, which bonded you during the days of greatest love? Should you leave them in the back of the wardrobe or throw them away so they no longer remind you of past loved ones? The Zagreb artists Olinka Vištica and Dražen
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Grubišić posed the same question after ending their long relationships. Since some love affairs are not so sad that we would wish to forget them, this same thinking by the two of them created the wish to store the memory of their loved ones in one place. Thinking about the many people who have ended their relationships, they thought it would be pleasant to exhibit in one
place some of the old things that remind the individual about happy days and that still carry positive energy, helping to heal the ‘emotional shipwreck’. This is the background to the Museum of Broken Relationships. It is an artistic concept based on the assumption that articles own holograms of memories and emotions. Through their display, they aim to create a safe or secure memory for preserving material and non-material emotional heritage of ended relationships. Also, this is a cultural and tourism project which can certainly draw the attention of local and foreign tourists. Sponsors invited The collection continues to expand as a result of continuing donations from people worldwide who have ended their relationships. Considering that relationships end on a daily basis, theoretically this makes the display possible to be renewed, proposed Grubišić. He added that all information on the renewal of the display and donation of items can
be found at www.brokenships. com. Items, however, can be purchased during guest visits in co-operation with local partners. For now, the Museum of Broken Relationships holds some 600 different items; for example, love letters from WWII, car keys, stuffed toys, plates, coffee cups, a garden dwarf and even a hatchet. The Museum project started in 2006, and it has travelled to many countries. Global media have published reports on it, pointing out that this travelling exhibition is one of the best Croatian cultural exports. Therefore, the creators wished to make a permanent display of the Museum. “Our desire is to turn the museum into a unique cultural-tourist attraction, which will benefit the tourist promotions of both Zagreb and Croatia. The problem is, however, gathering funds for designing such a display, and so we invite all potential sponsors who could help the Museum of Broken Relationships to open its doors as soon as possible”, said Olinka Vištica.
::: news Construction of wind farm The Zagreb company Dalekovod has signed an agreement with Societe General - Splitska banka on the funding of a wind farm, worth over €16.2 million, to be built near Gračac, according to an announcement by Dalekovod. The company will be both investor and contractor for the wind farm, which should be completed by the end of this year. This is the first of many such plants in which Dalekovod will act as the investor and contractor. This year
they are also preparing to finance at least two such projects. Business conferences: €30.14 million in turnover Last year 4,869 business conferences were held in Croatia, achieving a turnover €30.14 million, according to data from the Central Bureau for Statistics. Last year, the total duration of conferences amounted to 9,390 days, with 384,476 participants, mostly local (89% or 342,920).
Istrian oil exported to U.S. and France MIH from Poreč, in co-operation with Istrian agricultural producers, manufacturing extra-virgin olive oil San Gurmano, increased exports to the U.S. and for the first time exported to France. Last year, the Fino Products company from Chicago started importing to the American market extra virgin olive oil San Gurmano. During 2009, 570 bottles were delivered, and another 1,740 bot-
tles were sent within the last few days, which is considerably more than for the whole of last year. A large quantity of olive oil in bulk has also been exported to France for the first time.