Đuro Horvat, Director of Agrokor Wines Wine production will face serious problems unless it penetrates foreign markets
Return to Arabian and MiddleEast markets Challenges can be overcome as we have vast experience in working under duress
PRIMAT RD The company has developed hardware and software for ticket machines in bank branches
INTERVIEW PAGES 2-3
NEW MARKETS PAGE 4
TECHNOLOGY PAGE 5 2008 2009 2010 2011
Croatian Business & Finance Weekly Established in 1953 Monday / 23rd January / 2012 Year V / No 0183 www.privredni.hr
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FOREIGN INVESTMENT
Zarubježnjeft planning to invest €1 billion in Croatia Nikolaj Brunič, Managing Director of Zarubježnjeft, notes the company plans to construct an oil infrastructure, explore oil and gas deposits and purchase OMV petrol stations Igor Vukić he Russian company Zarubježnjeft is planning to invest around €1 billion in Croatia over the next five years. Nikolaj Brunič, Managing Director, has recently pointed out plans to construct an oil infrastructure, explore oil and gas deposits and purchase OMV gas stations in Croatia and Bosnia and Herzegovina. In addition, the company will purchase Janaf, should the government decide upon privatisation. The company has already made an agreement with Janaf on the project of refined product pipeline (pipeline for oil derivatives such as petrol or diesel) which would link Slavonski Brod, Zagreb and Omišalj. The project was given priority by the former government. In addition, the company would participate in boosting Janaf capacity and is planning to participate with Janaf in a geological exploration tender of nine potential oil and gas deposits in Croatia. The investment value of the geological exploration would be some €100 million. Brunič discussed the plans of Zarubježnjeft with Radimir Čačić, Vice-President of the Gov-
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ernment and Minister of Economy. Zarubježnjeft is a publicly owned company and it is present in Bosnia and Herzegovina as the owner of the oil refineries Bosanski Brod and Modriča. It operates in Bosnia and Herzegovina under the name of Optima Grupa. The company owns 79 petrol stations selling the ‘Nestro’ petrol brand. It created the Zagreb-based company Nestro Adria and the Zadarbased Sava. Brunič explained that the company planned to begin oil and gas deposits exploration work with Ina. Nevertheless, they received no response from Ina to their co-operation proposal letter. Ina was a concessionary in exploration works, yet the government
abolished the concession due to the fact that Ina performance allegedly lacked promptness. Waiting for replies from Ina and MOL Zarubježnjeft has not received replies thus far from OMV regarding its takeover offer for the petrol station chain. The letter was sent following the OMV announcement of withdrawal from the retail market in several countries in order to strengthen production and focus on oil refining. In the event that the new government plans to privatise Janaf, Brunič stated that there is a satisfactory purchaser in Russia – Transnjeft, a state owned company specialising in oil and oil de-
If the government decides to privatise Janaf, Transnjeft will be interested to purchase rivatives transport. Residents and the local authorities of Slavonski Brod have often complained about air pollution from the refinery on the opposite bank of the Sava. Brunič admitted there had been problems, since they had purchased the facility lacking in state-of-the-art equipment. “Nevertheless, currently we have a satisfactory situation, with an increase in fish population in the Sava. Moreover, we will proceed with the modernisation of the refinery”, stated Brunič.
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Privredni vjesnik Year V No 0183
Zvonko Kusić, President, HAZU
Know-how and science have the greatest influence on economic development
irst Open Days of the Croatian Academy of Sciences and Arts were held in November, 2011. Various presentations, concerts, exhibitions, promotions and lectures were held in the science-research and museum-gallery units of the Academy, where academics, directors of individual units presented the Academy’s scientific, cultural and art activities. This opportunity was also used to present the Academy’s important activities since its founding, as well as its contribution to the building of a modern Croatia. Know-how, science and the education system have had the greatest influence on the economic development and social changes and they are of strategic importance for every community. The Academy is currently guiding the scientific community in the process of drafting the development strategy of the education system and science, and this is also the most important project. In 2012, the Academy plans to continue with events similar to Open Days. They also plan to intensify HAZU international activities. In
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IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
addition to bilateral co-operation with academies and scientific institutions of certain countries, their participation in working with international associations (European Science Foundation - ESF, All European Academies – ALLEA and Science Europe) will be especially important. The Academy plans to significantly contribute to international scientific and research projects through its Institutes. With its view of the future, HAZU wants to contribute to the building of a modern Croatia. This would include democratic means in order to establish order, discipline, responsibility and rewards for good work as well as sanction on laziness and irresponsible behaviour. People should advocate greater influence of expert and scientific opinion as oppose to a political one. Furthermore, the public needs to be constantly informed about the actual economic situation in the state, the need for important changes in behaviour and attitudes, as well as highlight the fact that a quick and painless recipe for exiting the crisis does not exist. Our assignment is to strengthen the legal system, build a society based on justice and honesty, trust in institutions, establish the rule of rights, know-how, culture, order, work, responsibility, an advanced and competitive economy, an efficient administration and high-level competency as well as an organised, eco-friendly, social and tolerant community, all of which makes Croatia a modern democratic state. These are the fundamental guidelines upon which entire progress is based.
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
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EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr
INTERNATIONAL OPERATIONS Ray Fletcher fletcher@privredni.hr
( around €220 million
invested in wine production by Agrokor in recen
ĐURO HORVAT, DIRECTOR OF AGROKOR W
Growing imb production a
Wine production will face serious problems unless it penetra Jozo Vrdoljak rivredni vjesnik talked with Đuro Horvat, Director of Agrokor Wines and the first and current President of the Association of Croatian Wineries at the Croatian Chamber of Economy on operations and the current issues in the Croatian wine business. Horvat revealed the plans and goals of wine producers, Association members, and clarified the principal problems which might arise due to the growing imbalance between wine production and consumption.
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What are your views on 2011? We witnessed an extremely satisfactory year regarding grape harvest throughout all the wine regions. We faced some problems with fermentation due to large variations in temperature. Nevertheless, the grape harvest wines of 2011 will certainly be of extremely high quality, according to the first quantities sold. What is the current situation in the market? Wine consumption is decreasing both in local and foreign markets. Consequently, wine producers are burdened with a surplus and need to find a way of dealing with this issue. Similarly, there has been a differentiation in consumption within wine categories with a currently higher demand for simpler wines and reduced demand for top quality and premium wines. The current share of 3.5% and 4% of premium and top quality wines of total wine con-
sumption at regional level is not satisfactory. A satisfactory share would be around 6% and 10% would be a long term goal. What would improve the current situation? We need to improve the local market, since there are currently still numerous obstacles. Wine quality has been enhanced and we need to preserve its continuity. Consequently, we need to implement new technologies and focus on producer training. Simultaneously, we need to penetrate new markets and foster the internationalisation of the project of Croatia as a wine country. What if it fails to achieve the desired goals? I believe the wine industry will face serious problems in the case that we fail to penetrate a foreign market. Our wine surplus is estimated at between 15 million and 20 million litres, which is a burden, since there are additional wine quantities from new crops and consequently there is increasing imbalance between wine production and consumption. It is particularly evident in red wine grape harvests, as in Croatia wine consumption currently stands at 70 to 30 in favour of white wine grapes. This implies a possibility of serious problems in red wine sales, since yields significantly exceed consumption, with the sole exception of local varietals. Unless we deal with these issues, we might be faced with a form of ‘cannibalism’, since wine producers will have
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nt years
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( between 28% and 30% market share of Agrokor wines
WINES
balance between and consumption
ates foreign markets since Croatian wine surplus stands at between 15 million and 20 million litres to fight for their customers. Currently, we are not aware of it, yet it might transform into a serious issue. Several new wine producers, who have planted around 500 hectares of red wine grape varietals, are going to appear in the market in the not too distant future. What can be done to avoid “cannibalism”? All the projects launched within the wine industry have the goal of grouping and joining all the forces in order to begin a new and a successful story of Croatia as a wine country. The fact that Croatia has been identified as a tourism country is a significant advantage, since we believe in a high level of potential co-operation between the wine and the tourism sector. A well planned project Wines of Croatia will be implemented to join the countries which could assist us in tackling the issue of wine market expansion. I believe there is not much room for growth in the regional market, since our position here is satisfactory. Hence, we need to look for more effective promoters.
Is there satisfactory co-operation between small and large producers in Croatia? I am pleased to say we have made significant moves by planning and implementing the project focused on the branding of Croatia as a wine country. We have strengthened our communications and mutual confidence. We needed some time to overcome our individual interests and start working on this project. We can achieve our goals only through joint activity, since wine cannot be branded on its own. Consequently, we have all grouped and used all our efforts to be identified as a wine country in the world map. What parameters will be used in assessing achievements? Is market share highly indicative? Our success will be reflected through export figures. Our exports are currently witnessing a slight growth, whilst imports are slightly decreasing. We certainly cannot be pleased with the current situation. Nevertheless, we need to admit that our wine producers have not been prepared for in-
Foreign investment What investment is Agrokor Wines planning in the near future? Agrokor Wines has made significant contribution to increasing quality by having created a Wine Academy. Agrokor Wines continuously invests in crops and new technology and has mainly completed its investment in Podunavlje and Istria. We are planning the modernisation of the wineries on Pelješac. The company is currently working on its portfolio and focusing on branding new products. We have invested around €220 million in wine production in recent years and now have a market share currently standing at between 28% and 30%.
ternationalisation or for more significant world market penetration. Our goal is to export between 25% and 30% of production, which would ease the local market. The success of Croatia as a wine country will significantly exceed the importance of individual success. We need to be able to rely on strong promote r s and be identified by local varietals. We must not compete with
identical world varietals in the first stage as we need to promote our local varietals. Malmsey wine, Graševina and Plavac wine are the three varietals which will significantly contribute towards the creation of our new identity in the first stage. Clearly, our other local varietals will not be neglected. We need to focus on style, character and product standardisation. The new Wine Law needs to define many issues in order to achieve success in world markets. We need to prepare for new markets and new consumers. Our huge advantage is the fact that Croatia is a tourism country and wine can also be a tourism product with a selective VAT rate.
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Privredni vjesnik Year V No 0183
Return to Arabian and Middle-East markets
Co-operation brings new contracts Safety challenges can be overcome and Croatian companies have vast experience in working under difficult circumstances, according to companies already in contact with the new authorities Igor Vukić fter the Arab Spring, many possibilities opened for export projects for Croatian companies in Arab and Middle Eastern countries. References, quality and reputation acquired over the years are still a recommendation to local companies for open and invitation tenders. “In our experience, considering that certain contracts and tenders have been large and demanding, it is crucial that companies work together since this will decrease expense and increase chances to obtain work”, says Tomislav Leko, board member of Geofizika. The company suffered great losses due to the war in Libya, and it was forced to remove all workers from the war zone. Geofizika is constantly in contact with investors in Libya regarding the future completion of the project. “Depending on the situation in Libya, we expect work to resume in three to six months”, explains Leko. Geofizika is also trying to find new work in other countries in the region. They are currently very close to signing a contract in Oman. Crosco, a company for drilling, oil and gas researching as well
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as a member of the Ina Group, also want to continue working in Libya. According to a statement by Ina, they want to resume work as soon as possible and they have already contacted their customer. After the situation calmed, Ina continued its work in Egypt. The most complex situation is in Syria where Ina is developing a project of oil and gas production. “Due to the escalating political unrest in Syria, we are constantly upto-date with the daily events. An evacuation plan is prepared if the political and safety situa-
Croatian companies have a reputation of being quality constructors tion should require it”, states the company. Security challenges postponed a road construction in Afghanistan managed by Birotehna from Slavonski Brod. According to Dubravka Lipovac, Chief Representative of Birotehna in Kabul, construction will start in accordance with the evaluation of safety conditions. In November 2011, Birotehna completed the construction of a school for 250 students in
Homaro Faruk near the City of Mazar-i-Sharif. The school was financed by the Croatian Ministry of Foreign Affairs, and protection was provided by the Croatian soldiers from the Peace Corps. Solvable problem Dubravka Lipovac regards that safety issues, in accordance with advice given by international experts, can be overcome and there is a good chance for Croatian companies to sign new contracts in Afghanistan. She has recently become chief representative of the Croatian Chamber of Economy in Kabul, which has already researched the market, and in addition to construction projects, there could also be work in logistics, food and similar sectors. The condition in Iraq has been more stable after the war, especially in the North. In Erbil there is a Croatian House lead by Jasim Daher, and in co-operation with Jerko Vukas, Croatian ambassador in Baghdad, she promotes quite enthusiastically for Croatian companies to work here. With their help, the Dubrovnik company, Trames signed a contract for a large project Durrat Samarra in the province of Saladin, north of Baghdad. The
project will include the construction of a new town of 2 million m2. Trames is authorised for managing the project, the drafting of spatial, planning and technical documentation, engineering, supervision and quality control. The contract is worth $600 million, and the value of their input is estimated at $200 million. Marko Balija, Director of Trames, pointed out that this contract confirms the global competitiveness of the Croatian profession and opens new possibilities for other Croatian companies. Ingra has been present in Iraq and Algiers for 40 years, which confirms that Croatian companies have a reputation of being quality constructors. They also have representative offices in these countries. They have built ports and dams in Algiers, and have also completed many other projects. In Iraq, they are working in the energy sector and are currently expecting the results of a tender for the construction of state buildings. They did not leave the country even during the most dangerous period of the war. As a result they have an immense degree of experience in safety procedures and completing work under the most arduous of circumstances.
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PRIMAT RD
We see potential despite the crisis The company has developed hardware and software for ticket machines in bank branches and other institutions Boris Odorčić rimat RD was established 20 years ago, specialising in fitting security, banking and storage equipment. Later, the business expanded to equipping facilities, construction, installation and craft work, including the fitting of sanitary systems. During the past several years, Primat RD has become one of the leading Croatian companies in the area of office chairs and lounging products, including designers like Herman Miller, Dauphin, and Diwar. They also design and produce custom-made furniture. In 2010, company turnover was €6 million, registering growth year-on-year. They employ 27 highly skilled workers. The central office is located near Zagreb. Viktor Rožman, Director of Primat RD, explains that their customers are local and foreign com-
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panies who want a partner who will manage their projects from concept to completion as well as fulfil the strict criteria of quality performance and short deadlines. “What we find most important is to guarantee that work will be executed in line with the rules of the profession and that we will provide required services even after the project”, says Viktor Rožman.
Liquidity an advantage Looking at the situation today and the market in general, Rožman describes it as “a sea full of fish which companies sail across in fishing boats. When they arrive at the place guided by GPS, it often happens they do not catch anything. This is how Primat RD sees the market that we still regard as potential despite the crisis. We use technical tools,
software and programmes for market monitoring to find possibilities. However, even when we find them, there is no guarantee we will be contracted”. He also adds the company advantage is its know-how, experience, approach, creativity and liquidity. They visit some of the most important world fairs that cover their business areas and keep up with the latest trends they try to apply in Croatia. “One of the most important aspects is to introduce state-of-the-art materials and technological solutions that we apply when creating new products and services. A good example is the implementation of ticket machines in the branches of banks and other institutions for which we developed Croatian hardware and software. This innovation has raised the quality of bank services and decreased crowding in branches”, concludes Rožman.
WASTE MANAGEMENT
EMPLOYMENT
First three phases
Fight against illegal employment
The time consuming and expensive process of waste management in Croatia has resulted in only three concrete projects that will soon be completed, mainly due to ISPA and IPA funding. The state signed a contract for funding local administrations, providing additional motivation for completing the goal by 2018. The project of the Centre for Waste Management near Šibenik is well underway with the first phase already completed. With an additional €1.57 million, Šibenik will close the financial construction of the €1.17 million project, which will be of
great value for the city and the county, points out Mayor Ante Županović. The two other centres for waste management –in Istria and in the County of Primorje and Gorski Kotar – are still in their beginning phase. They are expected to be completed in two or three years. The Istrian centre is valued at €32.45 million, of which €6.4 million has been provided by the Fund for Environmental Protection and Energy Efficiency, and €10.38 million by the Istrian County. The centre near Rijeka will be worth €33.3 million, of which the Ministry of Finance will provide a loan of €11.2 million. This is a loan that the Ministry of Finance obtained from the European Investment Bank (EIB). Its total value is €200 million and it should cover national co-financing of all infrastructural projects funded by the EU funds, including waste management centres. The repayment deadline is 20 years, with a grace period of five years and an interest rate of 3.987%. (D.Ž.)
Illegal employment is a great problem in Croatia and it is up to this government to eradicate it as much as possible. Only then will some things become simpler, more transparent and we will be able to know the precise number of unemployed, said Minister of Labour and Pension System, Mirando Mrsić, at the conference Local employment partners - future of the new financial perspective. The conference was used as an opportunity to present the results of phase three of the project Human Resources Development - Local initiative for promoting employment, valued at €1.87 million. The project was funded by the EU. Each county drafted its own strategy for human resource development, depending on the local specifics and real needs of the labour market, and established local partnerships. These partnerships consist of the
representatives of the Croatian Employment Agency (HZZ), employees, unions, associations and other local co-partners, explains HZZ Director, Ankica Paun Jarallah. The representatives of Pannonian, North-West and Adriatic Croatia presented their strategies and project ideas. Tatjana Tihomirović, who works at HZZ Department for Project Implementation, said that certain problems were detected during project implementation which will have to be dealt with and solved. The biggest problem is the lack of knowledge regarding EU project as well as lack of motivation and a complex bureaucracy. It will be necessary to improve life-long education and strengthen social entrepreneurship through which it would be possible to provide psycho-social aid to the unemployed, especially women, young people and those with disabilities. (J.F.)
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Privredni vjesnik Year V No 0183
CROATIAN FOREIGN CURRENCY MARKET Currency
7.57
5,509669 5,516668 6,660416 6,261108 8,814812 5,858026 7,561540
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
5.98
18.1.
19.1.
20.1.
21.1.
CHF
6.27
7.56
5.94
6.26
7.55
5.90
6.25
7.54
5.86
6.24
7.53
5.82
6.23
7.52 17.1.
WEEK JANUARY 21, 2012
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USD
5.78 17.1.
18.1.
19.1.
20.1.
21.1.
6.22 17.1.
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19.1.
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21.1.
ILLIQUIDITY
Many do not anticipate a higher standard According to GfK, around 47% households evaluate their financial state poorer in relation to a year ago, and 46% feel they are at the same level. Only 7% of households have a better living standard than a year ago. Almost the exact estimate was also given by people in other transitional countries. Living standards were better only in Poland where the public feels their life is easier than a year before. Foreign investment In the third quarter of 2011, foreign direct investment in Croatia was approximately at the same level as in the first and second quarter, totalling €373.3 million. This is 6.1% more up over the same quarter of 2010. Despite this increase, investment is still far below the level before the economic crisis, according to the latest RBA analysis. The decreased investment is due to a high level of risk aversion, and also an environment that does not motivate investment or manages to attract it in relation to other regional countries. 2.3% inflation In relation to the previous year, the inflation rate stands at 2.3%. According to data published by the Central Bureau for Statistics, December prices dropped by 0.4% in relation to November and increased by 2.1% on a year-on-year level. On a year-on-year level, food prices increased by 3.7%, clothing by 1.6% a n d petrol a n d
2,3%
Blocked companies owe €5.5 billion 53,175 companies blocked for over a year by the end of November 2011 with €4.5 billion in outstanding liabilities ccording to data provided by the Financial Agency (FINA), the total value of outstanding payments of 70,061 blocked companies stood at €5.5 billion, where over 83% was long term frozen assets, indicating an increase in total outstanding overdue liabilities and the number of insolvent companies over the end of October 2011, since the total value of outstanding payments of 68,489 companies (legal and natural persons) stood at €5.4 billion at the end of October. It was pointed out by the Financial Agency that there was a slight increase in the total outstanding payments over the end of October 2011 and in the number of companies blocked for 60 days, 360 days and over 360 days. Hence, there was a 1.4% increase
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in the number of insolvent companies blocked for 360 days over October. Over 75% of companies faced long term blockage, whilst the value of their frozen assets stands at 83.1% of the overall total debt. The end of November 2011 saw 53,175 companies blocked for over a year, with €4.5 billion in outstanding payments. 35.8% companies have been blocked for five or more than five years amongst long-term blocked companies. In debt with no employees 52.1% of 70,061 blocked companies were legal persons; 83.7% or 36,532 legal persons, employing 41,532 staff, showed €4.6 billion in outstanding debt; 1,650 legal persons were blocked up to 30 days (321 up over October),
yet their debt was €81.4 million lower over October. Blocked legal persons facing short term freezing of 30 days accounted €65,500 in outstanding payments, whilst blocked legal persons facing long term freezing of over 360 days accounted for €3.75 billion in outstanding payments. The Financial agency indicated that a large number of companies with a high value of outstanding payments facing long term freezing have no employees. Consequently, over 75% of legal persons (21,079) facing this situation have no employees and their total outstanding debt stands at €2.14 billion. 56.8% (14,259) natural persons facing long term freezing have no employees and their debt stands at €0.4 billion. (V.A.)
www.privredni.hr Business & Finance Weekly
WE PRESENT
LOZA VRDOLJAK, SPLIT
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SERVICES AND PRODUCTION CO-OPERATIVE NEOS, OSIJEK
From addicts to good workers The co-operative has become a type of “nursery” for skilled workers and an excellent example of multipurpose social entrepreneurship
Food and wine par excellence In addition to people from Split, the restaurant has become a favourite haunt of those who often order food and wine to be delivered to their yachts he company Loza Vrdoljak was founded two years ago and specialises in providing hospitality-related services. The company includes two hospitality facilities called Zrno Soli (eng. grain of salt). They are one of the most prestigious restaurants and cafés in Split. The restaurant Zrno Soli quickly turned into a favourite haunt of business and public people from all over the world. The restaurant owners paid tribute to salt by writing the word with a capital “S”. Salt has always been important in a material and symbolic sense. Centuries ago, Roman generals would be rewarded with salt. Even today, we say that wise and clever people have a “grain of salt” in their brain, and this omnipresent ingredient also symbolises the entire Mediterranean. Zrno Soli is included in the top ten Split restaurants and has views of the sea.
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€1,000 wine The restaurant is unique since it also has a view of the old town. The restaurant and café are both located in the new administrative building of ACI Marina Split, which is why it also became a favourite place for those who often order food and wine to be delivered to their yachts. In addition to its ideal location, the owners also say their
menu distinguishes them from the competition. “The menu includes superb food that we prepare exclusively from fresh ingredients whether it be fish, fruit or vegetables. We supply food every day, paying special attention to organic ingredients”, points out Ivo Vrdoljak, CEO of Loza Vrdoljak, adding that Zrno Soli became most famous for its pasta. “We make our own past and offer various pasta dishes. Our chocolate cake has impressed even the most demanding customers and our prices are competitive. We pay special attention to offering seasonal ingredients”, explains Vrdoljak. Loza Vrdoljak currently employs 16 staff and this number considerably increases during the tourist season. Even though the company director did not plan to offer more than 50 varieties of wine, this number now stands at 100. “Croatia is a country of wine and customers are quite meticulous in this respect. Nevertheless, the proportion of 50% of Dalmatian wine has been preserved. The other half includes wines from other parts of Croatia as well as foreign”. Dingač has recently been included on the wine list of Zrno Soli, and not just any kind of Dingač since its price is over €1000 per bottle. (J.V.)
he services and production co-operative NEOS represents an unusual and efficient method of social entrepreneurship intended primarily for ex-users. The idea was created by Ne-ovisnost, an association which is an example of the successful rehabilitation of addicts. With the help of experts and exusers, young people from all parts of Croatia arrive at the rehabilitation community near Đakovo. After rehabilitation, some are placed in a residential community in Osijek where they undergo a re-socialisation programme. However, after these procedures end, employment becomes a problem. It is difficult for ex-users to find work since employees do not trust them. This is why the co-operative was established. It employs all those who successfully finish a programme of rehabilitation and re-socialisation and who want to work. “The cooperative was founded in 2009, and we received significant help from the Ministry of Economy since we applied for tenders and participated on three projects.
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Car wash and carpentry Furthermore, the co-operative is of a social character and its aim is to secure work for people, explains Zdenko Antolović”, director of NEOS. There are currently four workers
employed in a car wash operation that also offers dry cleaning services for furniture and carpets. They invested in a laser engraving machine and digital printer, and one of their latest activities is carpentry. The car wash is situated in a leased space in the centre of Osijek, with the carpentry and press workshops being located in the BIOS Entrepreneurial Centre where they work with various kinds of digital presses (posters, calendars, brochures, T-shirts, mugs, stickers and laser engraving on wood and plastic). Additionally, they also produce concrete elements and maintain green surfaces, flower gardens and canals. In the future they plan to produce various souvenirs made of wood, glass and other materials. In financial terms, Antolović says they operate with a ‘positive zero’. There goal is to find their place on the market primarily with the quality of their services and price. The annual turnover stands at around €46,500. There are currently four permanently employed workers and seven others from the association Neovisnost that help when needed. After two years of working, this co-operation has become a type of “nursery” of skilled workers and an excellent example of multi-purpose social entrepreneurship. (S.S.)
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Privredni vjesnik Year V No 0183
Shopping and Entertainment Centre, Slavonski Brod
A huge Colosseum in Slavonia in the near future The €50 million value project will see the construction work completed in August and the opening of the City Colosseum in October Sanja Plješa he opening of one of the most state-of-the-art shopping and entertainment centres in Slavonia – the City Colosseum, a project worth €50 million, is projected for October 2012 in Slavonski Brod. It is one of the largest investments to be implemented in Croatia this year. The refurbishment of stores will begin following the completion of construction work aimed at the beginning of August, as announced at the presentation of the project at a press conference. The Centre will cover 23,176 m2 with 60% leased surface area. Lease holders are mainly well-known companies such as H&M, C&A, Plodine, Bipa, Deichmann, Expert, Intersport and New Yorker. The centre will include cinemas, catering facilities and numerous stores. In addition, it will include covered walkways.
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At the crossroad of European transport corridors City Colosseum is being constructed at the crossroad of routes linking the A3motorway with Slavonski Brod and with one of the busiest border-crossings –
The shopping and entertainment centre is the first phase of the City Park Slavonski Brod project Slavonski Brod- Bosanski Brod, with an average annual turnover of 7 million passengers. The investor in the project is the Slavonski Brod-based company City Centre Colosseum, the construction contractor is the Dubrovnik-based company Konel and the Zagreb-based real estate company Krammer&Wagner
Nekretnine will manage the lease contracts. The centre is expected to create 350 jobs. In addition, mainly local materials are being used in the construction, with particular focus on environmentally friendly materials, as pointed out by Konel. According to the profitability study, the Slavonski Brod gravitation area, as a forthcoming state-of-the-art shopping centre, is estimated to cover an area of 40 km, including Bosnia and Herzegovina. In addition, an underground garage with 406 parking spaces has been constructed and currently the construction
of the first of the three floors is being completed. Hence, it is estimated that 50% of the Colosseum construction work will have been completed in the forthcoming month. The centre will provide free wireless internet access and a free city bus to and from Slavonski Brod. The shopping and entertainment centre is the first and the most important phase of the City Park Slavonski Brod project, which will be surrounded by the Colosseum. The total value of the entire project is €80 million, with City Park expected to employ 450 staff.
vourable savings conditions, as stated in the communication.
the recently held session of the Tourism Council of the Croatian National Tourist Board. In 2011 €16 million was allocated from the State Budget for tourism. In 2012 a total of €6.6 million will be allocated for joint advertising. Veljko Ostojić, the Tourism Minister, pointed out that this year the amount allocated for advertising in the press has been slashed, with considerably more focus on on-line and internet advertising.
::: news HPB interest rates on savings increased
The Croatian Postal Bank has increased the fixed interest rates on local currency term deposits over a period of between 1 and
36 months. In addition, it has introduced a possibility of depositing local currency and euros with a fixed interest rate and for a period of between 24 and 36 months. Fixed interest rates are up to 4.20% for local currency term deposits for a period of 36 months and 3.50% for term deposits in euros. The bank is aiming to arouse interest amongst the general public for savings in HPB by introducing more fa-
Lower funding for tourism The Croatian National Tourist Board programme for 2012 is worth €33.7 million, which is 12% lower than 2011. It is estimated to receive €12.6 million from the State Budget and in case it does not, the Croatian National Tourist Board will decrease advertising in the press, as stated at