Interview: Zdravko Živković, director, Emporion Plus We have been living above our standards too long; it is time for change
Sika Croatia: despite the economic crisis, 30% growth Solutions for the secondary construction and industrial market
Dun&Bradstreet Good news for the Croatian economy Croatia keeps DB3d rating but trend is positive
INTERVIEW
PRODUCTION
ECONOMY
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Croatian Business & Finance Weekly Established in 1953 Monday / 14th June / 2010 Year III / No 0113 www.privredni.hr
S U P P O R T E D Co-operation through numbers
The peak of business co-operation between Croatia and Russia was reached in 2008. Exchange was valued at $3.4 billion, of which Croatian exports was a meagre $186 million. Energy resources and raw materials are imported from Russia, but the 2009 crisis reduced imports by 27%, to approximately $2.1 billion. Exports fell to $154 million, a 17% drop. According to data provided by the Croatian National Bank, Russia invested €126.6 million between 1993 and 2009. In the same period, Croatian companies invested €48.9 million in Russia. The largest amount of investment took place last year, when €30.5 million was invested. In 2009, investment from Russia to Croatia totalled €55 million, whilst last year only €6.2 million of direct investment was forthcoming. In 2009, Croatia was visited by 133,113 Russian tourists, a fall of 24% over 2008.
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pvinternational pv international C R O A T I A N
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CROATIAN-RUSSIAN CO-OPERATION
CROATIAN CHAMBER OF ECONOMY IN MOSCOW The opening of the office will be attended by Prime Minister Jadranka Kosor, who will once again meet with the Russian Prime Minister, Vladimir Putin
practice in Russia and contacts with potential partners. It will be possible to hold meetings within the office. On the Croatian side, export affairs will be monitored by Hamag and CBRD.
Igor Vukić fter 13 years since its first attempt, the Croatian Chamber of Economy (CCE) will open an office in Moscow. The situation was not favourable in the past, but there is no point in looking backwards. A new opportunity has now emerged, and exports bring great possibilities, said CCE President, Nadan Vidošević. For four years he has acted as economic consultant to the Croatian Embassy. Founded recently, the Business Council for Economic Co-operation with Russia will also give its support to Croatian companies. It will be presided over by Franjo Gregurić, president of the supervisory boards of Elka and IGH. The CCE branch will open on 19 July. The ceremony will be attended by the Prime Minister, Jadranka Kosor, who will once again meet with the Russian Prime Minister Vladimir Putin.
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Great interest from companies “We decided to open a branch in Moscow since of late we have received many requests from Croatian companies asking for our help in business co-operation with Russia,” noted Dunja
Konjevod, C C E vice-president. Previously, interest had shown when the Business Council was created, for which 110 companies applied. The Moscow office will be the focus for obtaining information about current tenders, business
Companies already operating in Russia, for example ACM, have agreed to share their business experience on this increasingly demanding market. The Croatian Embassy, lead by Nebojša Koharović, also extended its support for developing the “Russian front”, and the initial results in improving the export/import balance should be expected next year.
2 VIEWPOINT
Privredni vjesnik Year III No 0113
DR. SLAVICA SINGER, FACULTY OF ECONOMY, OSIJEK
Small enterprises – big employer Why is there not any ambitious and consistent policy of the Croatian government towards SME’s t is interesting that the Croatian impression of SME’s differs from that of the EU. We tend to think that SME’s do not turnover millions, and do not employ hundreds. On the other hand, everything revolves around SME’s in the EU, since they are those turning over millions and employing hundreds of people. In a recent article, entitled “Passion of the Small Entrepreneur,” Sandra Mihelčić, the best new young manager - CROMA 2009, explains quite well why Croatia cannot be called an entrepreneurial country. Entrepreneurs are at the end of the ‘food’ (financial) chain, and so are faced with the greatest burden of illiquidity. It is difficult for SME’s to participate in tenders for public procurement since either they do not meet the criteria or they are too weak for a joint approach. In general, banks do not know how to work with SME’s and trades, since banking criteria for obtaining loans are not in concurrence with SME’s. This is all depressing from the aspect of small entrepreneurs or trades, but it is also dangerous for the national economy. If the leaders of economic policy do not recognise responsibility for the lost development potential, since they failed to recognise the importance of SME’s, than we are all losers. Why should the difficulties of SME’s worry us, and especially the government? Because SME’s are the biggest employers in the country and they significantly contribute to creating new values. SME’s represent the majority in EU and Croatia, not only by number, but by how many they
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INTERVIEW: ZDRAVKO ŽIVKOVIĆ, DIRECTOR, EMPORIO
We have be standards; it Drago Živković mporion Plus is successor to the company Emporion Interiors, founded in 1993, as part of the Emporion Group. Zdravko Živković has been its director since 1997, and in 2006 the company separated from the Group and continued independent operations. In 2007, Emporion Plus took over the company Graditelj Karlovac (Constructor Karlovac), increasing the number of employees to almost 300 and expanding its spectrum of work. They built or equipped a series of business and tourist facilities, shopping malls and state administration buildings. Emporion Plus is currently working on a shopping mall, a retirement home in Rab, a residential and business centre, the BioGnost laboratory, an Orthodox spiritual centre, and is finishing Petrol’s petrol stations in Slovenia and a residential-business centre in Maksimir, Zagreb.
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employ (67% in the EU, 66% in Croatia) and how much they create in terms of added value (58% in the EU, 56% in Croatia). In 2008, the EU adopted a very ambitious support initiative for SME’s - Small Business Act for Europe - and it consistently monitors the formation of a supporting entrepreneurial environment with various programmes and recommendations. This includes decreasing administration and tax duties for micro, small and medium enterprises, foundation of micro-financial institutions (the Jasmine programme) and strengthening of financial instruments for new enterprises (the Jeremie programme). However, the most important recommendation relates to strengthening the discipline of payment, which many members immediately adopted. Why is there not any ambitious and consistent policy of the Croatian government towards SME’s, or rather the largest employer in the country? Without this employer, the problem of unemployment will not be solved. Not even through self-employment nor through new job creation of growing SME’s.
FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr
IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr
EDITOR IN CHIEF Darko Buković +385 1 5600003 bukovic@privredni.hr
TRANSLATION Tr@duco traduco@zg.t-com.hr
EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr
COUNSELLOR, INTERNATIONAL OPERATIONS, LANGUAGE EDITOR Ray Fletcher fletcher@privredni.hr
You have spent 30 years in the construction sector, 10 of which in Australia. Why did you go to such a faraway country?
I went to Australia in 1987, looking for work. I learned a trade there and remained until 1997. I lived and worked in Sydney, but since I worked over 100 hours per week, it is only now that I have a chance to get to know that city when I visit.
This crisis is the same as others; to us, crisis will never go away. This is why I find it strange when people continually complain
Can you compare the construction industries in Croatia and in Australia? The work attitude is completely different there than in Croatia. Not everyone can open a construction company as is done here. It is not enough to have €2,850 to start a company. Whole families work in construction. It is more work passed on through generations. Mother, father, son, daughter, grandparents often work to-
How did we manage to become poor? How do you see the near future in construction? Unfortunately, we are living with an ageing work force, which is exhausted. I am exhausted. I have picked up various professional illnesses through my hard work in Australia. We would like to speed up production, but we cannot do it with exhausted people. Young people would all like to be economists and managers, working in banks, buying and selling. As a people, we have a problem with our ‘no-work’ mentality. Look at farmers. When you have fertile land in Australia, you are a rich man. Here, with so much fertile land, we are not rich, but poor. People triumph here when they obtain a loan, because they do not understand that they have tied a noose around their necks. There are fewer banks willing to finance projects and financing criteria have become stricter. Capital is expensive, and a larger share is expected from investors. Before the start of a construction, future buyers or lessees must be known (signed up) for at least 50% of the project. Even pre-contracts must be given, which is quite difficult today.
www.privredni.hr Business & Finance Weekly
INTERVIEW 3
ON PLUS
en living above our t is time to face reality how to control our money. I cannot even watch the news, and I am irritated when people blame the state, and there is always someone else to blame. This is our mentality. A man can be proud to be Croatian in Australia only for one reason - everyone sacrificed their health by hard work. Just think if people worked as hard here. This crisis is the same as others; for us, the crisis will never go away. This is why I find it strange when people complain all the time. I am not doing well myself, but I do not complain. This is, now - the reality - and it can get worse. We have been living far beyond our standards.
I do not believe the EU project can succeed. Tito attempted something similar, but it did not work. There will come a time when Germany says it does not wish to work for the whole of Europe gether, and all their assets are invested in the company. There is no price dumping, and if your company goes bankrupt, you lose your passport for 10 years, or until you repay your debts. Many complain about illiquidity and the failure to settle debts by opening new companies. Have you experienced such problems? There is a debt burden that is causing us certain problems, but I believe it will be settled. I feel illiquidity is not a problem of the judicial system, but rather legislation that lets debtors start new companies. All it takes is to change that law, and it does not have to be original. It should be copied from other successful countries.
How do you evaluate the current situation in the real-estate market? There are fewer projects, construction prices have dropped and prices of materials are fluctuating which makes it difficult to plan business results. Licences for companies have been introduced. This means we need more people in order to obtain a licence, whilst insecurity in finding work for these people is becoming greater. There are also fewer infrastructural projects, which increases competition on the commercial construction market. Poor projects without infrastructure are no longer approved neither are the “anthills” - where there is not enough room for parking space; however, a good location and quality con-
struction will always find buyers. Have you regretted coming back to Croatia? No, never. There is much more ‘space’ here, but we do not know
What is your opinion on forthcoming EU accession? The EU will be our death sentence if we ever join. We will lose our identity, and we will lose everything. I recently visited Slovenia where we are working on Petrol’s petrol stations. Because of the Greek problem, each Slovenian had to ‘donate’ €200. I do not believe this project can succeed. Tito tried and failed. Therefore, I do not believe Europe will succeed also. The time will come when Germany will say it does not wish to work any more for the whole of Europe.
Australia is not all milk and honey For many people, Australia has a reputation of country filled with rich people. Is that really the situation? I do not regret learning how to work there, but of all people I brought to Australia, not one stayed; they all came back. Some who stayed would like to return, but they cannot afford the plane ticket. It is not as easy as everyone thinks. Where are all these expatriates and millionaires? Some would return if they really had millions. Of all our people who worked abroad, we might have 10 millionaires. These will never come back. They are Croatian in their heart, but Americans, Australian or something else in their way of thinking. I returned when my son was born. I did not want to stay there, even though I have nationality. Believe me when I say it takes hard work to earn your living there.
4 WE PRESENT VIN-STIL, VINKOVCI
Privredni vjesnik Year III No 0113
GEBERIT, ZAGREB
One product cannot yield success
Success is due to skilled and enthusiastic people, says Nenad Momčilović, senior representative
A new life for the old Slavonian slipper
Vin-stil has been producing traditional slippers for 30 years t is still possible today to put your feet into this warm slipper with its immediately recognisable furry and colourful look. This is due to the small footwear company, Vin-stil from Vinkovci, who have been producing traditional slippers for 30 years. However, the new life of the traditional slipper started a few years ago, when the town of Vinkovci started to promote it at fairs, as well as selling them across Croatia, especially during the tourist season. They have become a categorical Croatian souvenir which will soon will be patented and is produced the old way – with copious hand work.
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Everyone is delighted with počna slippers “Currently we are the only Croatian producers who legally mass produce such slippers. A high level of hand work is required in their making, and so there is visible difference in relation to machine-produced footwear. There have been no complaints about quality, even though people wash them in washing machines. Each product is hand made, cut, combed and sewn. The material we use is pork velour, eco-leather and natural fur,” explains Ljubica Brdar, owner of Vin-stil, which annually produces 30,000 pairs of slippers
and some 2,000 pairs of pre-footwear, known as “cvičke”, in various colours and sizes. They are sold from Umag to Korčula and Dubrovnik, as well as in Zagreb, Slavonia, and other cities in Croatia as well as in Italy, Slovenia and Denmark. A large proportion travel to distant countries, since they are bought by foreign visitors as a recognisable and practical Croatian souvenir. It is the summer season when Slavonian winter slippers are sold the most. They are sold through the retail network of Borovo from Vukovar, to certain shopping franchises and souvenir shops. Ljubica Brdar says their main problem is unpaid debts, whilst they have to pay in advance to others. In order to safeguard the procurement of quality raw materials from reputable and stable suppliers at competitive prices. Ljubica Brdar, who has spent over 20 years in the footwear industry, says they are forced to import raw materials, leather from Slovenia and fur from Macedonia, even though they are completely oriented towards Croatian companies. In this small business from Vinkovci, its five employees are optimistic and full of plans. There is a free market waiting that is welcoming to them, so they could be sold throughout Europe. (E.D.)
he Geberit Group, with 40 sales outlets and 16 production locations around the world, was founded in 1874 in the Swiss town of Rapperswill. Since its beginning, and especially after 1912, when the founder Caspar Melchior Albert Gebert patented the first toilet flushing mechanism, the company and later the Geberit brand, became famous for their revealing and concealed toilet flushing mechanisms. In Croatia, the Geberit Group has a branch in Zagreb, founded in 1999, employing nine people. Nenad Momčilović, director of the Croatian Geberit branch says the company also specialises in the production of sanitary equipment and full drainage systems for buildings, in addition to toilet flushing mechanisms. Some of their products include electronic fittings for sinks and urinals, as well as siphons, bath fillers and bath-showers. Geberit started production to the Croatian market through representatives in the mid 90’s. However, it has been shown that one good product is not enough to yield success, as this is rather due to skilled and enthusiastic people who promote them. The demand for creating a team of expert advisers quickly emerged. They primarily pro-
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moted technical solutions, and only indirectly sales, remembers Momčilović. Controlling difficulties He notes that since their range of products are intended for fitting into facilities by the construction industry, it can be evinced that the company has been hit by the crisis. The situation of the Croatian economy does not bring optimism, even though the Geberit Group took over complete control through the difficulties in Europe during the first half of 2009 and by the end of the year the rise in the value of its shares proved it managed to overcome the global recession. “As producers of flushing mechanisms, we were mainly affected by the halt in the construction of flats and hotels in Croatia. However, we managed to maintain a high market share even under these circumstances with our wide range of drainage systems. Considering the company has a leading position in sanitary equipment in Europe, Geberit is naturally faced by constant attacks from the competition. This is normal, and as long as competitors follow the rules of market competition, this benefits end users and investors,” concludes Momčilović. (B.O.)
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( 39 employees generated €14.22 million in sales
SIKA CROATIA: DESPITE THE ECONOMIC CRISIS, 30% GROWTH
Solutions for the secondary market There are a few companies which manage to operate successfully in the midst of an economic crisis, especially when their production is for construction and industry. Sika Croatia is one Sanja Plješa n 1910, a Swiss entrepreneur, Kaspar Winkler, worked on the electrification of the St. Gotthard railway tunnel, where he was in charge of the water insulation of the tunnel. There he presented a new type of roughcast based on silicon-carbide, which he called Sika 1. This new material proved a success, and the entire project gained international importance. This was the base of the Sika Group, which has been developing for the past 100 years and became a global company. Today, it has branches in 70 countries on five continents. Eleven years ago, a daughter company, Sika Croatia, was founded, which employs 39 workers.
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Products for construction and industry Sika’s products include products for construction and industry. On the technical side, the two sectors are well connected, but on
On-going technological development necessitates the need for constant training of employees, which is performed in two ways in Sika the marketing side they depend on completely different markets. The production of concrete is one of the basic areas of company operations. Its products also include concrete additives, repair roughcast and coatings for the protection and repair of concrete and various materials for static reinforcement where they particularly point their flanges
of carbon fibre for bridges and similar constructions. The core business of Sika is gluing and sealing, which encompasses various products based on polyurethane, silicon, cement and epoxy, and recently more types of hybrids. Their range also includes a hydro insulation programme, anti-corrosive protection and industrial floors based on epoxy. Regarding industrial products, they sell epoxy and seals for cars. “Since these are not produced in Croatia, we focused on the secondary market. In this segment we offer products for gluing car windows and components and coatings for the protection of the chassis. Even though the production of yachts and smaller boats is still not sufficiently developed, our company offers solutions for various constructional epoxies as well as epoxies for glass and teak,” outlined the director of Sika Croatia, Zoran Iljadica. Training abroad Sika faces the usual problems of the economic crisis. Iljadica says that not even the great-
Optimism with a reason For the past several years, Sika Croatia has been registering reasonable business growth of over 30% per year. They achieved the strongest growth in sales in 2007 (42% in relation to 2006). Last year, they achieved nett sales of €14.22 million, some 6.4% less than in 2008. As a result of business efficiencies, they achieved mild growth in their nett operating pre-tax profit (with 18.5% to 18.8% nett sales). Through the successful management of working capital, they also achieved a significant growth in the level of cash flow. Despite the crisis, this year Sika is planning to achieve similar results to last. est optimists expect the same or an increased level of activities in construction and industry in relation to previous years. It is possible that some industrial branches, which depend less on exports, will operate better. However, reduced demand and purchasing power, as well as difficultly of obtaining loans and the unfavourable effect of a slowing economy and investment take their toll. Croatia is not isolated, naturally, and it is evident that global affairs affect the business of companies and the general economy, pointed out Iljadica. Some of their foreign suppliers have problems with material deliveries and meeting their contractual obligations, mostly due
to the increased prices of raw material and onerous business financing. On-going technological development necessitates the need for constant training of employees, which is performed in two ways in Sika. Iljadica says the company is implementing so-called ‘budget training’ within the company budget, and this is divided into two practical programmes: the first is implemented in Croatia with local companies that deal with training, and the second is organised by foreign corporations in those European countries where Sika is present. Each year, the management and certain employees attend training seminars abroad.
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Privredni vjesnik Year III No 0113
CROATIAN FOREIGN CURRENCY MARKET Currency
Kuna exchange mid-rate
AUD CAD JPY CHF GBP USD EUR
5,062547 5,787735 6,515175 5,226351 8,760781 5,968169 7,236405
Source: HNB
EUR
ZB invest assets €0.63 billion Marking its 10th anniversary of operations, ZB Invest is celebrating with eight open investment funds with public offer, one open investment fund with private offer and a significant number of individual portfolios of securities. Through investment funds and portfolios, ZB Invest is currently managing assets worth over €0.63 billion through 75,000 investors, of whom private individuals’ comprise 80%. In total assets of open investment funds with public offer in Croatia, ZB Invest held the largest market share (34.6%) at the end of April 2010. €4.60 million profit for Croatian Post Croatian Post finished last year with €22.88 million in operating profit after a long negative period. After restructuring, 20 county postal branches were shut down, which decreased the need for administration and 2,000 employees were transferred from administrative to operational jobs. The level of gross salaries per employee in total income reduced from 72% in 2008 to 62% in 2009.
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6.09
8.6.
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7.27
6.07
5.26
7.25
6.05
5.24
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6.03
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6.01
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DUN&BRADSTREET
Good news for the Croatian economy Croatia keeps DB3d rating but trend moves from stable to improving
Vesna Antonić fter months of negatively noted business risk in Croatia, Dun&Bradstreet has finally given a more positive report. The reason for this is the new governmental economic programme, which D&B marks as a positive move for exiting the crisis, according to the statement from the credit reporting agency BonLine. Croatia’s rating remains the same (DB3d – mild business risk). However, the rating trend switches from stable to improving after a long period. This means that in due course Croatia can expect a higher state rating if current trends continue. Even the review of D&B creates a more positive investment climate in Croatia. Moreover, many big global mul-
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tinational companies rely significantly on the D&B report when deciding whether they will invest in a country or not. A higher rating for Croatia would automatically attract new potential investors to the market. Improved payment by Croatian companies to foreign counterparts D&B states the Croatian government has, for the first time since the global economic crisis, elaborated a comprehensive economic programme which encompasses short and long term priorities for exiting the crisis. The programme includes encouraging privatisation, decreasing fiscal duties, encouraging general liquidity through faster payment by public companies, rationalisation of the
tax system and increasing the efficiency of the public sector by reducing the numbers employed. Although D&B believes the government plan for recovery is not sufficiently detailed, they do point to specific measures, which they also mark as positive. For example, abolishing the crisis tax (2% and 4%), changing the income tax rate, cancelling reimbursement for holidays for workers in public companies and shortening payment deadlines for public companies, from 60 to 45 days. It should be stressed that since the beginning of the year, payments by Croatian companies to their foreign counterparts have increasingly improved, according to D&B data. This is mainly due to more rapid payment from public companies.
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RBA ANALYSIS
UNEMPLOYED DECREASES The rise in total employment continues to be mainly due to higher numbers employed in seasonal professions ccording to the latest data provided by the Croatian Employment Agency, 296,438 unemployed were registered in May, the lowest rate of unemployed this year. In relation to April, the figure fell by 12,237, or 4%. However, the unemployment rate in May was the highest since 2005, and is a consequence of negative trends in the labour market which started in the third quarter of 2009. Thus, the annual rate of unemployment is still comparatively high, even though its trend has been slowing. Year-on-year the number of unemployed rose by 40,169 or 15.7%. In May, 15,981 were newly registered as unemployed, whilst 28,218
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Employers survey According to recently presented data gathered by a survey by the Croatian Employment Agency, by the end of the year companies intend to employ 52,820 workers and make redundant 17,770. The survey was conducted during January and February, and 12,620 companies of all sizes participated (83.4% of the total). Most of the planned employment, some 78.5%, will be for a fixed time period, according to the CEA. According to company expectations, the reduction in total employment due to the economic crisis should slow, or reverse by the end of this year. Reductions in the numbers employed are expected in construction (3.1%), financial and insurance activities (2.6%), other service activities (2.2%) and the processing industry (1.1%). (J.F.) came off the registry. Of this number 18,342 found employment. Such movements have resulted in an increase in the employment rate (by 8.2%) in May over April. On a year-on-year
level, this is a 28.9% increase. The rise in total employment continues to be mainly due to a higher number employed in seasonal professions which is expected in the period running
Additional capitalisation of €20 million
Austrian Duropack takes over Belišće Group he Austrian company Duropack has concluded a public tender for the takeover of the Belišće d.d. company, in which it currently holds a 62.34% stake. The offer also included Bilokalnik-IPA and Unijapapir of the Belišće group, and the whole transaction is worth some €29.8 million. After taking over the majority share of the Belišće Group, in which they had a 24.7% share since 2008, the CEO of Duropack, Peter Szivacsek, announced at a recent press conference that they were planning additional capitalisation of Belišće worth €20 million. The intention is to improve the financial structure, reduce debts that reached €79.20 million during the previous year, and also continue investing in productivity and quality of Belišće. They are also searching for alternative financing options. The Austrian owner will retain future profits of Belišće for financing development and paying down the debt
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of one of the leading Croatian producers of paper and corrugated cardboard, with 10 production plants in Croatia, Slovenia, Serbia and Macedonia. Last year, income of the Belišće Group totalled some €127 million, with operating profits of some €4 million. Duropack is a unit of the strategic management holding Constantia Packaging
AG and the leading producer of corrugated cardboard in Central, South East and East Europe. With 12 production plants in eight countries and 2,105 employees, it achieved €262 million in sales during 2009, and €23 million in operating profit. For the past several years, they have been the largest foreign buyer of Belišće paper. (E.D.)
up to the start of the tourist season. A total of 6,588 were employed in seasonal professions, 35.3% more than in April and 18% higher than in May 2009. (V.A.)
Only 6% of individuals and companies pay insurance
Croatia osiguranje reimburses 130 claims for damage caused by flooding Whilst the number of damage claims caused by flooding increases every year, only 6% of individuals and companies have insurance against such risk, according to data provided by the insurance agency Croatia osiguranje. Based on additional insurance against all forms of flooding, Croatia osiguranje reimbursed 190 damage claims with a value of €0.24 million in 2008. The number of reimbursed damage claims increased by 70% (to 326) in 2009, at a cost of €0.82 million. During the first three months of 2010, 130 claims covering flooding were reimbursed (€0.17 million). In 2009, the company paid out €10.72 million in insurance claims covering crops and plantations, the majority of which related to risk against hail.
8 ::: news
Privredni vjesnik Year II No 0113
THE START OF CHARGING BERTHING FEES IN HARBOUR MASTER OFFICES
45 Croatian companies exhibit at fair in China At the international fair of goods for general consumption in the Chinese city of Ningbo, 45 Croatian producers represented their broad range of products (wine, olive oil, confectionery products, food additives, herbal preparations and cleaning products) for the first time. Chinese interest in Croatian participation at the fair was shown by their offer of a free stand. After the opening a presentation was held covering Croatian export and business potential. Badel exports graševina and plavac wines to China Badel 1862 has delivered to China roughly 70,000 bottles of wine to date, worth €200,000. This year, they expect a further four or five deliveries. Badel exports to China cover five types of wine: quality wines Svirče Plavac Hvar, Graševina Križevci and Rose Benkovac, and supreme wines Ivan Dolac Hvar and Postup Pelješac. The reverse labels on the bottles have been translated into Chinese, whilst those on the front and the wines themselves are original. This year, Badel will begin exporting to China a complete range of its Vigor vodka, which received excellent marks at tastings in the second half of 2009. Karlovačka pivovara employs 5,500 workers Karlovačka pivovara (brewery) presented its first report on sustainability, which describes the most important programmes and activities during 2009 in terms of economic, social and environment protection. Amongst others, the results of the study show that the total number of jobs in some way related to Karlovačka pivovara (including business partners and suppliers) stands at 5,500. This means that each job within the brewery leads to 14 additional jobs outside.
Duration of stay and vessel length to be taken into account, not the number of people Berthing fees will be charged according to vessel length and duration of stay. The price will not depend on the number of people staying on the boat Jozo Vrdoljak
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ince 7 June, Croatian harbour master offices will start a new system of charging for local and foreign sailors, based on the purchase of a unique vignette. Sailors will pay berthing fees and compensation for safe navigation in one place, with a unique vignette, which represents a type of ‘one-stop-shop’. Moreover, a flat payment for berthing fees is also possible. Earlier, this fee was charged in nautical tourism
Harbour master offices will work longer especially during weekends ports, on the basis of per person and overnight stay, pointed out Marina Halužan, spokeswoman of the Ministry of the Sea and Infrastructure. The flat sum berthing fee will be charged for yachts and boats over five metres, and equipped with bunks. The price will be charged according to the length
of the vessel and the period of time. The price will not depend on the number of people staying on board. New employees for charging of fees With the signing of the Agreement on mutual co-operation on the implementation of the projects e-Nautics, the Ministry of Sea, Transport and Infrastructure and the Croatian Tourist Agency have agreed on joint activities and individual obligations in the achievement of this project, whose goal is to simplify the collection of administration fees, which sailors need to do prior to sailing. In compliance with the Agreement, certain harbour master offices employing 67 workers, who will be responsible for the charging and issuing of vignettes to sailors during the tourist season. The work of all available personnel from tourist agencies and harbours will be organised in such a way that harbour master offices further adjust their working hours to the needs of sailors. More precisely, they will work non-stop during the day, and longer during
weekends (Saturday until 1 PM, and Sunday until noon). Integral management of the nautical tourism The work of new employees should create the conditions in which workers in harbour master offices will be relieved of administration work. Thus, they will spend more time at sea, which will greatly contribute to the safety of navigation and protection of the sea environment. In compliance with the adopted Strategy of nautical tourism development, a strategic goal has been met relating to the integrated management of the nautical tourism system, and an element of the project has been finished, which relates to the unique control and charge of berthing fees. Unique control can be created only with the vignettes and receipts that refer to the number of people and vessel, the charged berthing fees and charged price of the compensation for safe navigation. Thus unified data will be used by authorised bodies, whether they need it for monitoring accounts, charges and payment of berthing fees or for unique processing of statistical data.