Velimir Šonje, director, Arhivanalitika Consulting If you are offered 10 measures, ask yourself whether you can afford them
Buy Croatian and Diligent Hands 670 companies and small businesses present their products in 21 towns
Jadranka hoteli investment impetus The refurbished hotel is the perfect choice for all types of vacation
INTERVIEW PAGES 2-3
ECONOMY PAGE 4
TOURISM PAGE 8 2010
Croatian Business & Finance Weekly Established in 1953 Monday / 26th September / 2011 Year IV / No 0167 www.privredni.hr
S U P P O R T E D
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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
MERGERS AND TAKEOVERS
RUSSIAN PARTNERS ANNOUNCE NEW SHIPBUILDING PROJECTS
Croatia the most successful regionally
New jobs for Russian shipbuilders
Last year’s acquisition of Droga Kolinska by the Atlantic Group, worth €243 million, was also the biggest takeover in Central and Eastern and South-Eastern Europe. Last year, Croatian companies were the most active in terms of takeovers in South-East Europe (SEE), with 15 acquisitions worth €403 million. However, compared with West and Central and Eastern Europe, the SEE market is still stagnating according to the number of takeovers and mergers and significantly smaller numbers of transactions, according to data provided by the study Mergers and takeovers in Central and Eastern and South-East Europe in 2010, conducted by the consultancy, Roland Berger. The study also provides comparative data of completed mergers and takeovers in the SEE region over the period 2000-2010. The Bulgarian market was the most active, with a total of 243 mergers and takeovers worth €13.4 billion. Croatia was second with 135 concluded contracts worth €7.5 billion. On the other hand, Slovenia and Serbia were the most active countries in term of takeovers during that period.
The Croatian Chamber of Economy organised the presentation of 20 Croatian companies, large and medium-sized shipyards and marine equipment manufacturers in St Petersburg he company Hrvatska brodogradnja Jadranbrod has recently signed an Agreement of co-operation with the Moscow-based company Russian Financial Corporation, defining future co-operation on project exchange, ship building and overhaul, marine equipment sales and the financing of projects. The agreement between the Croatian and the Russian company was concluded in St Petersburg, at the Neva trade fair for shipping and shipbuilding. 20 Croatian companies, large and medium-sized shipyards and marine equipment manufacturers participated at the fair. Their participation was organised by the Croatian Chamber of Economy.
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Croatian Day in Russia “The Croatian shipbuilding industry places particular emphasis on the Russian market, where it has been present for over 50 years. Significant export results have been achieved in our co-operation thus far and there is huge potential in this field”, stated Zoja Crnečki, Industrial Sector Director at the Croatian Chamber of Economy. According to her, there is potential for co-operation in shipbuilding,
as well as in marine equipment from Croatian manufacturers to the Russian shipbuilding industry Participation at the fair is merely one of the activities organised by the Chamber in the international promotion of the Croatian economy and in the advancement and increase of Croatian exports and foreign investment in Croatia, added Zoja Crnečki. 3. maj, Brodosplit, Brodogradilište Kravljevica, Brodotrogir, Uljanik, Viktor Lenac, Adria-Mar, Montmontaža Greben, Tehnomont, Solin brodogradnja, Adriadiesel, ACM, Centaroprema, Croatia pumpe, Đuro Đaković – Kompenzatori, Indi metal, Pastor inženjering, Saacke, Somet
and Vemos exhibited at the common exhibition area covering 100 m2. Croatian Day was marked at the fair and the exhibition area was visited by many current and potential Russian partners, announcing new shipbuilding projects for the Russian market. The Neva trade fair is one of the most important world shipbuilding fairs. 0ver 600 exhibitors from Europe and China participated at the fair over 10,000 m2 of exhibition area. The fact that Finnish companies leased two pavilions for their presentation indicates the huge amount of interest for business co-operation with the growing shipbuilding industry in Russia. (I.V.)
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INTERVIEW
Privredni vjesnik Year IV No 0167
TIHANA KRALJIĆ, STATE SECRETARY, MINISTRY OF ECONOMY
SME’s are the key to recovery I n the Croatian economy of today, small and mediumsized entrepreneurs comprise 99.6% of the total number of economic operators, 66.6% of the number of employees and 51.6% of total income. During the past twenty years the number of SME’s has been increasing, whilst the number of large enterprises has dropped to 10%. According to data provided by FINA, during the first six months of this year, SME’s increased their total income by 35% yearon-year. The number of employees also increased by a modest 1.38%, but this data is important since it shows the end of the negative trend in the decrease of the numbers employed. The precondition for the development of Croatian entrepreneurship is the systematic and continuous implementation of subsidised measures at a state level, which has successfully been transferred to counties, cities and municipalities through partnerships. On the one hand this refers to the development of supporting institutions – development agencies, technological centres and incubators, and the development of entrepreneurial zones on the other hand. There are currently fifty such institutions active in Croatia. They developed rapidly in a way that today all county entrepreneurial centres operate as development agencies which took over regional development. Furthermore, these are the only institutions in Croatia with quality staff trained for the preparation and implementation of EU projects. Since Croatia will become an EU member on 1 July 2013, any discussion about entrepreneurIMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
have li “ We and ever a VELIMIR ELIMIR ŠONJE, DIRECTO DIRECTOR, ARHIVANALITIKA
If you are offe yourself wheth
The future of Croatia primarily depends on an issue that can cases we will not be able to avoid IMF assistance, which wou Jasminka Filipas ur interview with Velimir Šonje, an independent business analyst and Director of Arhivanalitika, was prompted by his recently expressed viewpoints in a newspaper column stating that politicians dare not tell the truth on the future of Croatia and that “a long period of borrowing is witness-
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ial subsidies is pointless. Those who are familiar with EU entrepreneurial subsidies will agree that Croatia recognises the need and quality incentive measures for the development of entrepreneurship. However, due to budgetary resources, they were unable to keep up with entrepreneurs’ needs. This will no longer be the case after EU accession. There are currently five projects from IPA pre-accession funds being implemented in the Ministry of Economy. Their aim is to train and prepare institutions and entrepreneurs for accession and the use of structural funds. SME’s are offered free counselling which will help them to adjust to the unitary EU market and prepare their projects for the withdrawal of assets from structural funds. If we do not take seriously the implementation of these projects at all levels – from the Ministry to entrepreneurs as end users – we will find ourselves with serious problems.
FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr
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INTERNATIONAL OPERATIONS Ray Fletcher fletcher@privredni.hr
Growth in the EU and the US has not been considerable, yet Croatia did not succeed in achieving it ing its finale, as we are threatened by a credit rating downgrade and a new crisis”. In addition, Šonje stated that government spending in international markets has seen an increase of nearly 2% in the last quarter. What can Croatia expect, in your opinion? There are two possible scenarios. One is optimistic. If we suppose that Europe will not witness an additional deepening of the crisis and that the actual threat of recession in the US and the EU will not prove considerably serious, we will be able to achieve slight economic growth during 2012 and a new government will be able to finance the deficit if it presents a reasonable fiscal framework in compliance with the Fiscal Responsibility Law: a 1% decrease year-on-year in general
government expenditure share of GDP, a decrease in deficit and a halt in public debt to GDP ratio growth. Nevertheless, this cannot be achieved if voters are simultaneously offered tax cuts and an increase in public expenditure. On the other hand, the pessimistic scenario anticipates much more and more severe turbulence, implying a stringent reduction in public expenditure which will have a considerable impact on social support and public sector salaries. Consequently, the future of Croatia depends on an issue that cannot currently be predicted: whether Europe will see a new financial crisis or recession, or not. I believe that in both cases, we will not be able to avoid IMF assistance, which would be highly beneficial. In my opinion, any other scenario is completely unrealistic. Would we have witnessed a more favourable situation had reforms been implemented in a timely manner? Croatia has not been as successful in finding a way out of recession as Europe and the US. I would like to emphasise the fact that the EU and the US observed the current slow growth issue merely a year and a half after exiting the recession. Growth in the EU and the US has not been considerable, yet Croatia did not succeed in achieving it. Croatia is currently witnessing the initial indications of slightly positive growth rates, which are considerably lower than the more successful European countries. This is primarily due to an array of erroneous government moves in 2008.
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ved under the illusion of affordable available funds for almost a decade. CONSULTING
”
red 10 measures, ask her you can afford them
nnot currently be predicted: whether Europe will see a new financial crisis or recession, or not. I believe that in both uld be highly beneficial. In my opinion, any other scenario is completely unrealistic Initially, the government denied any recession in Croatia for a long period. Subsequently, rather than entering into a deal with the IMF, we witnessed the populist rhetoric of “relying on our own resources”, which were clearly scarce. Additionally, Croatia witnessed turbulence within the governing party, resulting in a direct tax increase amidst the crisis; the forthcoming elections are trying to condone the faulty reform implementation. Croatia has wasted three years in terms of economic policy. The IMF predicts 3% GDP growth for Croatia in 2015. Would it be possible to achieve this sooner? We should be aware of the adverse attitude towards the market, entrepreneurship, private investment and privatisation in Croatia. It is impossible to win the elections on this platform. Rapid, almost instantaneous and comprehensive reforms implemented in order to increase effectiveness, commencing in the atrophied public sector, primarily within public companies, would create a solid back-
ground for expansionary growth in 2014 and in 2015. Nevertheless, these are unrealistic expectations, due to the already mentioned political and social restrictions. Could you explain what the reforms should consist of and how to deal with the issue of public sector and public companies? Croatia needs stringent and comprehensive public sector reform together with all public services. These reforms must simultaneously focus on effectiveness, which implies focus on motivation and the interest of key employees, as well as considerable improvement in monitoring and control, whilst retaining a minimum of social security and access for all users of public services. Nevertheless, this is easier to say than do and there are variations in the implementation of reforms in various sectors, such as for example, in education, in health, and in the energy sector. Consequently, it is not possible to give a brief overview of reforms. The answer to this question is not easy and will be definitely unpopular.
What is the difference between ‘political marketing’ and a serious political platform? Could you suggest to voters on what to focus while assessing economic platforms of the political parties? Political platform consistency is of crucial importance. The reality imposes a deficit decrease and a taming of public debt. This fiscal policy will generate long-term benefits in terms of a credit rating rise, whilst additionally followed by a lower capital price, correlating with prices in the EU, due to the lowered risk premium for Croatia. On the ot-
her hand, politicians should clearly present their expectations from the proposed measures in terms of their impact on growth and employment. Consequently, if you are offered 10 measures, ask yourself whether you can afford them, consider their impact on the profit and loss of the budget, as well as on growth and employment. The assessment cannot be perfectly accurate, since the future is uncertain by definition. Nevertheless, a considered assessment of the impact of in-
dividual proposals can indicate their consistency and the depth of deliberation. If politicians do not support their arguments with figures and do not reflect on their impact, you can indirectly conclude that they are merely engaged in ‘political marketing’, not having elaborated deeply on the measures. We should not give preference to politicians merely proposing ideas and spending more on public opinion analysis and PR, rather than on the professional preparation of their proposals.
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Privredni vjesnik No Year IV VN o 0167
( 235 productss
granted Croatian Quality label bel
( 116 products
Authentic Croatian Product label holders
BUY CROATIAN AND DILIGENT HANDS
Promotion of authenticity and top quality 670 companies and small businesses present their products in 21 towns 1997 Promotional campaign in 5
towns 30 companies participated 3 products holders of Authentic
Croatian Product label and Croatian Quality label
2011 Promotional campaign in 21
towns 670 companies participated 235 products awarded
Croatian Quality label, with
116 products Authentic Croatian Product label holders Krešimir Sočković he Croatian Chamber of Economy announced the most highly regarded and largest national promotional campaign under the slogan Buy Croatian for 2011. Additionally the Diligent Hands promotion sponsored by the Ministry of Economy, The Croatian Chamber of Economy and the Croatian Chamber of Trades and Crafts, which aims to give recognition to producers using their knowledge and talent to add value to traditional products. 670 companies and small businesses presented their products in Čakovec, Rijeka, Pula, Sisak, Zabok, Bjelovar, Split, Slavonski Brod, Vukovar, Velika Gorica, Osijek, Požega, Virovitica, Šibenik, Zadar, Dubrovnik, Karlovac, Koprivnica, Otočac, Varaždin and Zagreb. Since 1997 the Croatian Chamber of Economy has been pro-
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moting quality local products, holders of the Authentic Croatian Product and Croatian Quality labels, through the promotional campaign Buy Croatian, in order to increase the awareness of the importance of purchasing such products and to enhance the competitiveness of the Croatian economy as well as to contribute to the preservation of a national identity. The Croatian Quality label ensures product quality, fosters its global market penetration and deepens consumer confidence. 235 products have been awarded this label thus far, whilst 116 products are Authentic Croatian Product label holders. The importance of buying Croatian According to Milica RakušaMartulaš, promotional campaign Co-ordinator and Trade Sector Director at the Croatian Chamber of Economy, purchasing Croatian
quality products is of crucial importance. “It is of particular importance during the global economic crisis, as by opting for such products we contribute to job preservation, family welfare assistance, the enhancement of the development of
Official Facebook and Twitter profiles of Buy Croatian the local economy, current and forthcoming pensions as well as to the prosperity of future generations and primarily the prosperity of our children”, pointed out Milica Rakuša-Martulaš. According to the survey conducted in 2010, the promotional campaign Buy Croatian had significant support from the general public. Nearly three quarters of
respondents (73%) were prepared to opt for a higher priced, quality Croatian product, whilst 92% agreed it is of crucial importance to buy Croatian products in order to foster the development of the economy. Throughout the current promotional campaign, the Croatian Chamber of Economy has decided to use all the most powerful current communication tools. Consequently, the official profile of Buy Croatian has been set up on both Facebook and Twitter. The profile of Buy Croatian on social networks significantly contributes to raising awareness and informing the general public of local products, innovation and events in a userfriendly way. Social media jargon is used in presenting quality local products in order to make direct and friendly contact with consumers, particularly young consumers.
www.privredni.hr Business & Finance Weekly
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( 30,000
fattened broilers produced weekly
( 250,000
hatched poultry produced weekly
VALIPILE, SESVETSKI KRALJEVEC
Burgeoning poultry farming The plan is to build their own slaughterhouse to consolidate the production process, and aims to obtain some financing from EU pre-accession funds Drago Živković he history of the Valipile Company started some twenty years ago, when Josip Belko started to produce hatched poultry. In 1994 they introduced automated production
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Valipile produces turkeys intended for sale during Christmas increasing capacity from 5,000 to the present 250,000 hatched poultry each week. For the production of chickens, the company breeds its own flock, with a percentage of the eggs being sold at the peak of the retail season to well-known suppliers globally. Since 2001 the central office has been in Sesvetski Kraljevac, where there is also a hatchery and factory for animal feed covering 26,000 m2. The hatchery is divided into two separate areas in terms of technology; one for hatching turkeys and the
other for chickens. Total area of the hatchery is 2,090 m2, of which 1,530 m2 is for production. The incubators were bought in Italy, the air conditioning system from Austria, the management is Swiss and the boiler room was bought in Germany. Company slaughterhouse The hatchery was completely automated in co-operation with the French company Brueil and is constantly monitored by computers and the CCE system. Each delivery of eggs and total production process is controlled by the Centre for Poultry Farming of the Croatian Veterinary Institute. Since 2006 Valipile has been ISO 9001 and HACCP certified, and some twelve of their transport vehicles are equipped with air conditioning systems to insure a proper microclimate during all seasons. For the past several years, Valipile has also been producing chicken meat on a scale of 30,000 fattened broilers each week. The company
supplies its subcontractors with hatched chicks and feed with an obligation of repurchasing fattened broilers. They are then sold to smaller slaughterhouses and a share of the produced meat is sold under their trade mark Valipile. In addition to the production of chicken meat, Valipile also produces turkeys intended for sale during Christmas holidays. The plan is to build their own slaughterhouse in order to consolidate the production process, and plans to obtain some financing from EU pre-accession funds. Debt collection problematic The feeding factory has a capacity of eight tonnes of food pellet mix per hour. As well as the hatchery, it is also equipped with state-of-the art equipment and production is completely automated. Raw materials for the feed mix are carefully selected under constant supervision of their laboratory and additional control of certified laboratories of the Faculty of Agronomy in
Zagreb, and Croatiakontrola. The feed factory also includes a storage facility for bulk raw material, with a capacity of 3,000 tonnes, with indoor silos. In the immediate vicinity of the factory a palette warehouse was built with a capacity of 500 tonnes. Valipile employs 45 workers, mostly young to medium age, 10 of whom have a university degree. They market their products on the Croatian market, their main buyers being large centres, for example Interspar, Kaufland and Lidl, where their chicken is sold under the trade mark of the store. Their other buyers include slaughterhouses, agricultural pharmacies, veterinary stations and private poultry farmers. In terms of production, Valipile did not suffer the consequences of the recession; however, the collection of debts was problematic. Problems are severe. They have had to take out additional loans in order to maintain current operations. However, this is the Croatian reality.
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Privredni vjesnik Year IV No 0167
CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.505
5,435775 5,388419 7,260356 6,128378 8,554092 5,533029 7,483975
USD
5.56
20.9.
21.9.
22.9.
6.25
7.500
5.54
6.20
7.495
5.52
6.15
7.490
5.50
6.10
7.485
5.48
6.05
7.480 19.9.
WEEK SEPTEMBER 24, 2011
CHF
23.9.
5.46 19.9.
20.9.
21.9.
22.9.
23.9.
6.00 19.9.
20.9.
21.9.
22.9.
23.9.
::: news
UNICREDIT CEE QUARTERLY
Zagreb exporters show growth During the first six months of this year, exporters in Zagreb totalled €1.4 billion, which is 0.7% up over 2010. Imports decreased by 1.8% to €4.17 billion, according to data provided by the Statistics Department of the Office for Planning of the City of Zagreb. The majority share of Zagreb exports came from the processing sector with €1.27 billion. The most significant activities include oil derivatives, electrical equipment, pharmaceutical and food products.
Šaravanja: Visible deceleration in exports and imports
Lidl moving up in size Lidl’s 74th store in Croatia was opened in Osijek. After five years, Lidl has become one of the five biggest supermarket chains according to annual income. Lidl has so far invested over €3 billion in retail network development. Soon the company will open a new logistics-distribution centre with 130 employees, valued at €24.32 million. Crisis of sawmills During the past three years 30 small sawmills have been closed, said Marijan Kavran, Director of the Timber Cluster. There are 620 sawmills registered in Croatia but only 400 of them operate on a regular basis and register for the purchase of wood. Total Croatian timber industry annual income is around €1.1 billion. Of that amount, around €0.47 billion relates to the sawmill sector. Their problems will be discussed at the 2nd congress of the sawmill industry of Southeast Europe to be held in Slavonski Brod in October.
The next government will need to present a credible plan for decreasing the fiscal deficit and implement structural reforms to accelerate a sustainable rate of economic growth he crisis peak in the Eurozone during August and continuous tension in international financial markets is the key factor for Croatian economic movements in the region, stated chief economist at Zagrebačka banka, Goran Šaravanja, at the publication of the UniCredit CEE Quarterly for the fourth quarter of 2011. Unicredit also used the opportunity to reduce the growth forecast for Croatia in 2011, from 1.2% to 0.2%. Even before the most recent tension in financial markets, it was noticeable that export/ import growth is decelerating,
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The next government will have to present a credible plan for decreasing the fiscal deficit pointing to a weaker impulse in foreign countries and subdued local demand, said Šaravanja. Unicredit also decreased the growth rate forecast for Croatia in 2012, from 2.5% to 1%. The region affects the economy There are two main ways in which the surrounding region affects the Croatian economy. The first is through the increased financing costs for banks operating in Croatia and through decreased nett amounts of foreign
financing of the banking sector in relation to previous years. More specifically, foreign financing will exist for banks in Croatia, but not in the amounts of the past, explained Šaravanja. In this situation, we expect a further decrease in public debt, stagnation or, in the best case, minimum credit growth from companies in the private sector, whereas the refinancing of state obligations and budget deficit will take place under the conditions of limited access to finance. The second channel of the “transfusion” of the surrounding region is through decreased exports due to weaker demand. For this reason, a slightly higher deficit of the balance of payments is anticipated for 2012, by 2% of GDP in relation to 1.8% of GDP this year.
Difficult tasks for the forthcoming government The forecast for the budget deficit for this year has also been increased, from 5.7% to 6% of GDP. Unicredit also anticipates this deficit will decrease in 2012, even though it is impossible to discuss the incoming governmental first moves in terms of economic policy three months prior to elections. Our opinion remains unchanged: the next government will have to present a credible plan for decreasing the fiscal deficit in accordance with the Fiscal Responsibility Act during its four-year term, and implement structural reforms to accelerate a sustainable rate of economic growth if we wish to preserve our credit rating, concluded Šaravanja. (V.A.)
WE PRESENT
www.privredni.hr Business & Finance Weekly
TELLURIS-MEDIN, ZADAR
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METAL STAMPING FRESL, RUDE
Croatian snails
Hand manufacturing Some users include trade franchises, golf courses, poultry farms and the Chinese pharmaceutical industry elluris-Medin is an international, ecological company dealing in vermiculture (the cultivation of worms), heliciculture (the cultivation of snails), medical rural tourism, the organisation of promotional events and advertising agricultural and food products. Their programme includes natural organic fertiliser and a Croatian brand - a snail bred from two of the most common species Helix Pomatia (Burgundy snail) and Helix Aspersa Müller (garden snail). Furthermore, Telluris-Medin is an export agent for a variety of food products, such as water, cheese, energy drinks,
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The company was built exclusively on the vision and idea of philanthropy. crisps, honey and coffee. The company was founded in 2007 with headquarters in Zadar and production Briševo. They have around 50 employees, the majority of which are war invalids and those who fought in the Croatian War of Independence. Users of their products include trade franchises, golf courses and elite gardens, restaurants, fishing stores, poultry farms and the Chinese pharmaceutical industry. Grandfather influence Hana Medin, owner and CEO, points out that Telluris-Medin is
the only company in the world that incorporated certain aspects of Chinese medicine into gastronomy through the consumption of the red earthworm (Lumbricus Rubellus) and which also promotes new delicacies made of Helix Aspersa Müller. “We promote and present agriculture, ecological, rural gastronomy and medical tourism in an unusual and original way. The company was built exclusively on the vision and idea of philanthropy. The first step after opening was to help others. The phrase Good will return good has become our motto of working, functioning and communicating with business partners,” explains Hana Medin. Before starting the business, she researched the market, assessed the potential demand, studied the stock exchange and statistics. Afterwards, she ventured into agriculture in two of its somewhat rare and unusual branches – vermiculture and heliciculture. She stresses she did not rush into the business. The people around her helped her make the decision and her ‘genes’ did the rest. She grew up with her grandfather a well-known agronomy expert. He was no longer alive when she ventured into the business, but she received help from many of his colleagues and the Agricultural Counselling Service. She also travelled and gained experience in agriculture and its endless possibilities. (B.O.)
The production of kettles for fish stew, copper coffee kettles, plates for kotlovina, barbecue grills and various catering products he micro-company Fresl involved in sheet metal stamping and processing was founded in 1994. At the start the family was oriented towards product quality and hand processing of sheet metal since metal stamping. In addition to metal stamping, the techniques are also applied to forging, polishing and threading. Over the past several years we have manufactured new products which took time, effort and materials. When we established ourselves, we manufactured metal stamping products, but only for other companies. However, due to business optimism and opportunities, our scope of work spread into personal production and sales, said Marijan Fresl. They started producing kettles for fish stew, copper coffee kettles, plates for kotlovina (meat prepared in a pan with a wide rim), barbecue grills and various catering products. In addition to metal stamping, these products require metalworking, expert staff and appropriate machines. However, all is in vain without good marketing and sales. Hence the reason they sold products at fairs. High material investment and business risk did pay off and sales increased.
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In search of apprentices After a time we decide to start the production of brandy stills, which was not easy, pointed out Fresl. However, their production was simplified by excellent equip-
ment of workshop machinery and highly qualified staff. Profit was reinvested in the purchase of materials and machines. During the crisis Fresl was faced with the problem of higher materials prices, higher worker contributions, and the inability to collect debts or pay taxes. All this contributed to weaker demand and sales for their products. Last year they introduced the production of stainless steel thermal pots, especially valued in the catering industry. They also redesigned their image, created a web page and
High material investment and business risk did pay off printed new marketing material. Today we work only to order and for reliable partners and buyers with whom we have no problems with payment. Three workers are employed and the workshop is equipped with the majority of required machines with sufficient space for operations. We want to improve our business even more and have big plans and business expectations; we also intend to train two more apprentices noted Fresl. (S.P.)
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Privredni vjesnik Year IV No 0167
Jadranka hoteli investment impetus
€12 million for Hotel Punta The refurbished hotel as the perfect choice for single couples and recreational sportsmen: the option of becoming a pet-friendly hotel is under consideration Barbara Marjanović fter an investment of €38 million in the hotels Aurora and Vespera, the largest Lošinj hotel company Jadranka hoteli is starting a new investment cycle of €12 million on the 1st October in thee refurbishment of Hotel Punta; €3 million of this is the hotel company capital, whilst a €9 million loan has been granted by the Croatian Bank for Reconstruction and Development. “Quality is an imperative. The Aurora and Vespera Hotels have recently been recording the highest number of overnight stays over the previous years, indicating the necessity of an added value investment. Consequently, we will invest in Hotel Punta refurbishment”, stated Damir Mlacović, Jadranka hoteli Board Member.
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Limited capacity, larger rooms The refurbished Hotel Punta will begin operations on 1st June 2012, with slightly limited capacity yet larger rooms. Consequently the hotel will include 235 units comprising of 16 suites and 470 basic and 86 supplementary bedrooms. The largest investment will comprise room, bathroom and hall refurbishment, followed
by pool refurbishment”, stated Tatjana Braškić, Supervisory Board Vice President and Project Director. She added that Hotel Aurora provides has been especially designed with wellness programmes and a conference centre facility, whilst Vespera is the perfect choice for families with children. Punta, on the other hand, will be the perfect choice for both single couples irrespective of age, and recreational sportsmen, primarily tennis players. The hotel will provide professional nutritional advice to individual visitors, as well as professional assistance in the preparation of meals. Recreation will consist of pilates training, fitness and walking. According to Tatjana Braškić, the option of becoming a pet-friendly hotel is under consideration, as most targeted visitors are also pet owners. She pointed out that companies in Jadranka Group (Jadranka
hoteli d.o.o., Jadranka kampovi d.o.o. and Kamp Slatina d.o.o.) recorded 1 million overnight stays by 10th September 2011, a figure that was only achieved by 29th December in 2010. This indicates the pinnacle of business operation in an extremely successful tourist season. 930,687 overnight stays were recorded in the first eight months of this year, 9% up over last year and a 7% increase in performance above that anticipated. Further investment to follow We are aware of the fact that results for this year are also a consequence of market circumstances, due to foreign competition current problems and extremely warm and pleasant weather conditions. In addition, it is also due to intensive work on the market, primarily to quality services valued by visitors, encouraging them to
return. This year we have had the opportunity to provide services to visitors who normally opted for other Mediterranean countries and who will gladly visit our hotels in the future”, explained Tatjana Braškić, adding that after the completion the refurbishment, there will be a refurbishment of hotels in Čikat. In addition, a new project is anticipated regarding the Čikat camp. There is the possibility of applying for an EU grant for this investment, due to the forthcoming Croatian EU accession. Subsequently, there is a necessity for wellelaborated projects, according to Tatjana Braškić. She emphasised, with extreme satisfaction, that this year the Jadranka Group companies have been awarded ISO:9001 certification for quality management for the second time and ISO:14001 for environmental management.
::: news DM encourages volunteering Over 300 employees in the cosmetic products and drugstore chain DM have participated in the initiative “Croatia volunteering” as previously announced, donating 15,000 working hours. The initiative was launched by
the Croatian volunteer network, to mark the European Year of Volunteering and the International Day of Peace. DM, in co-operation with the Croatian rock band Parni valjak initiated a campaign “Believe me, they respect you here”, aiming to encourage volunteering of Croatian general public and positive changes in Croatian society with concerts and employee volunteering.
Kalem, an entrepreneur from Rijeka. Petrol acquired 51% of the shares in 2008. In 2010 Europetrol revenue from oil and oil derivatives sales stood at €255 million, whilst its total revenue stood at €271.7 million. Nett profit in 2010 was €5.2 million, a significant improvement in results over the previous year. Europetrol manages 50 petrol stations.
Petrol final acquisition of Europetrol Ljubljana Petrol has acquired the remaining 49% of the shares in Europetrol owned by Jozo
Siemens and Faculty of Electrical Engineering and Computing co-operation Siemens Croatia and the Faculty of Electrical Engineering and
Computing have recently concluded a Contract of Co-operation on scientific research and development and educational projects as well as a Contract of Co-operation in the field of automation and plant technology. The Faculty of Electrical Engineering and Computing and Siemens have been organising training courses for over 100 students for 15 years. Siemens provides the technological equipment for the training courses and laboratory practice. Consequently, students can acquire real knowledge prior to employment.