Hendal survey According to the survey, 51.5% of participants would like to merge with another company to survive on the market
Services sales income exceeds €10 billion Since 2011, when totalled €1.2 billion, income has been increasing €200 million a year
Greatest investment potential The location of Solin is ideal, full and it is most youthful city in Croatia
PAGES 2-3
PAGES 6-7
PAGE 10 2008 2009 2010 2011 2012
Croatian Business & Finance Monthly Established in 1953 Tuesday / 1st June / 2015 Year VIII / No 0248 www.privredni.hr
S U P P O R T E D
B Y
T H E
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
ZLATNA BILANCA AWARDS
Šonje: Private companies responsible for recovery Large companies have restructured, operate profitably and medium-sized companies have reduced losses. Small companies, occupying the majority of the market, moved from losses in 2013 to positive results in 2014, and also increased the number of employees Igor Vukić nvesting in employee training paid off for the company Simplex from Slavonski Brod. Their reputation in assembling elevators has brought them contracts in Germany, France, Italy, Turkey and other countries. They have recently been awarded the Zlatna bilanca Award (Golden Balance Award) for successful entrepreneurship, awarded by the Financial Agency based on analysing all elements of their business operations. Last year’s results achieved by entrepreneurs bring optimism. The trends are positive, and the economy shows signs of recovery, FINA Board President, Anđelka Buneta, highlighted. Large companies have restructured, operate profitably and medium-sized companies have reduced losses. Small companies, occupying the majority of the market, moved from losses in 2013 to positive results in 2014, and also increased the number of employees. Companies which have been in private ownership since their establishment are responsible for economic growth, Economic Analyst, Velimir Šonje, concluded. Of 1,000 large Croatian companies (based on total income), some 650
I
have been in private hands since their inception. State companies reduced income 3.5%; got rid of 7,500 workers, but their highest salaries increased 5.8%. Private companies were more flexible. They restructured and increased income 9.4%. Exports increased by 15.7% and profits by 43%. At the same time, the highest nett salaries grew at a slower rate compared with those in the state sphere. These results clearly show which of the two is more efficient in Croatia. Unfortunately, there are no signs of new privatisations, Šonje said. New economic models Post crisis period, new economic models bring new challenges. For example, the digital era complicated the lives of many that were once business giants, says Boris Vrabec from Gartner, an IT company specialising in consulting and analysis. Companies will have to adapt, invest in additional training and hiring experts. Many companies appoint special commissioners in boards or establish departments for the digital economy. The state is also trying to adapt to digital business operations, Assistant Minister for e-Croatia at the Ministry of Public Administration, Leda
Lepri, opines. After introducing e-građanin (e-citizen) service, e-poslovanje (e-business) these will be introduced for entrepreneurs. Other models are also in their development phase. For example e-construction licence which will be introduced
throughout the country. Data collected by these services form the basis of development and other models of digital business. The European Union is having specific problems regarding the development of the digital economy. CEO of King ICT Plamenko Barišić, highlights. Consumer rights, taxes and copyright protection are not harmonized in member countries. The U.S.A. and China enjoy greater advantages in this respect. However, 75% of the economy will still be based on traditional industries, whereas only 25% will include digital projects. The digital economy is actually not a revolution - it is only a new business channel which should be understood and used properly, Barišić noted.
Golden Balance won by… In addition to the main Golden Balance Award, Stilex from Slavonski Brod also won an award for its business in the construction sector. Unija nova won in the water protection and waste management area. Pet minuta won the Golden Balance in the ICT category. Eurest Čilipi took an award for accommodation and food, Comprom plus from Varaždin had the best balance sheet in the processing industry. Quarry Gorjak won in the category of mining, and Paška sirana in agriculture. The Golden Balance for the transport went to Trade Air with Bauhaus standing out as the best in trade. Termoplin from Varaždin won in the category of energy production.
2
Privredni vjesnik Year VIII No 248
( 70%
level of entrepreneurs believing it makes sense to concentrate offers
HENDAL SURVEY CONDUCTED EXCLUSIVELY FOR PRIVREDNI VJESNIK
Clusters work, but wit much merging According to the survey, 51.5% of participants would like to merge with another company to survive on the market. even at the cost of closure Igor Vukić lmost 70% of Croatian entrepreneurs feel the need for a company or an institution that would unify their offer and sell Croatian products abroad, according to the result of a survey conducted by the Hendal Agency, exclusively for Privredni vjesnik. Those surveyed include decision-makers in 400 companies. The representative sample was divided into five types of activity (production, construction, tourism, trade and transport and services) and according to company size. The results thus provide an objective insight into the attitude of Croatian entrepreneurs.
A
Croatian entrepreneurs rely mainly on themselves: 64.8% do not outsource services According to responses, only 13.5% feel a company or institution that would sell products of multiple companies on the international market, is not required, as Exportdrvo or Astra did in the past. The concept on forming clusters within one industrial sector for the purpose of improving sales of products on local, and especially international markets, is positive. However, around 14.5% feel they can be more successful on their
own, while 40% have a positive attitude and wish to join clusters. Around 45% have a neutral attitude. Clusters could be a worthwhile option for joint participation on international markets, especially when this concerns contracting work on larger projects, owner of Bernarda (company making mattresses, beds and similar products), Bernarda Cecelja said for Privredni vjesnik. For example, it would be easier to obtain work regarding the construction of hotel complexes or hospitals if Croatian companies joined forces. Each company would perform its part, acting as supplier of equipment, construction work, design or IT support. Co-ordinated approach benefits everyone Bernarda co-operates with the Wood Cluster of north-east Croatia, founded in Varaždin in 2013. The cluster is an expert centre for the wood processing industry of the region, specialising in research-development projects. Furthermore, it also promotes cooperation between designers and entrepreneurs for the purpose of creating competitive products. “We have a Wood Cluster within Croatia and it is very successful in connecting and promoting producers of raw material. However, much more could be done regarding a joint approach to tenders in selected countries. Our company sells many of its products in Russia, and it is clear to me that we
could all benefit from a co-ordinated approach. The Croatian Chamber of Economy could do a lot here through the business council for Russia, Bernarda Cecelja highlighted. Velimir Bohač from the wine cluster Grozd Plavac mali knows very well that the path from entrepreneurial desire to merge to the realisation of common interests, is a strenuous one. As a substitute for the word cluster, the Croatian word grozd (grape cluster) is suggested, which in this case
fits nicely with the cluster activity. Grozd Plavac mali merges 12 wine producers, representatives of the Faculty of Agronomy and other parties interested in promoting this renowned wine varietal. However, there were difficulties in realisation. Wine producers, located mainly in south Dalmatia, are focused more on producing and creating wine in cellars than on discussing plans for promotion and marketing; those already established on the market are somewhat jealous of
www.privredni.hr Business & Finance Weekly
3
( 14.5%
of those surveyed believe they can be more successful on their own Attitude towards participating in clusters
thout too
Negative attitude, I do not wish to participate in clusters
14.5 45.0
Neutral attitude
% Positive attitude, I wish to participate in clusters Don’t know / I do not wish to answer
39.8 0.8
The need for a company/institution which would unite products and sell Croatian products abroad
Around 34% are neutral and 13.8% do not want to merge
Negative attitude, it is not needed
13.5 17.3
Neutral attitude
each other, avoid merging, thinking they can achieve greater success on their own. Bernarda Cecelja agrees that personal interests of entrepreneurs are often an obstacle to merging. For his interview for Privredni vjesnik, Dalekovod’s CEO, Paško Vela, opined that the lack of will to merge derives from the fact that better conditions can sometimes be obtained from suppliers on other markets. From time to time, even better than those offered by the departments of one’s group.
What’s mine is mine On one hand, the long-lasting economic crisis jeopardised the business of individual clusters. On the other, it motivated entrepreneurs to merge. According to Velimir Bohač, clusters can be a good model for concentrating supply and reducing production costs. According to the Hendal survey, 51.5% of participants would like to merge with another company to survive on the market. Around 34% are neutral and 13.8% do not want to merge even at the cost of closure. The concentration of the sales network of Profil, Mozaik and Algoritam is one of the merging models for the purpose of improving the current state on the market, which is so bad at the moment that the established publisher Algoritam applied for pre-bankruptcy settlement since it has €3.98 million of debt. The emotional connection with one’s project is also evident from the responses given to the question on whether they would like to sell their company if a potential customer could make a satisfactory offer (right price, relationship with workers). Almost 48.3% of entrepreneurs answered “no”, with 39.5% answering “yes”, 12.3% did not wish to answer the question. Also, Croatian entrepreneurs rely mainly on themselves: 64.8% do not use outsourcing; 23.3% use it occasionally, and only 10.3% use it regularly.
% Positive attitude, it is needed Don’t know / I do not wish to answer
69.0 0.3
Attitude on merging companies to survive Negative attitude, I do not support merging
13.8 34.5
Neutral attitude
% Positive attitude, I support merging Don’t know / I do not wish to answer
51.5 0.3
Willingness to sell the company 48.3
No, I would not agree
Yes, I would agree
%
39.5
Don’t know / I do not wish to answer
12.3
Outsourcing 64.8
No, I never uses 23.5
Yes, occasionally
% 10.3
Yes, regularly Don’t know / I do not wish to answer
1.5
4
Privredni vjesnik Year VIII No 248
( €110 million
value of tenders won by Dalekovod in Norway
PAŠKO VELA, PRESIDENT, MANAGEMENT BOARD DALEKOVOD
Preparing for tough
50% of staff would have to be made redundant should trading volume be halved. External circumstances may often specific objectives set by the company. Unless these decisions are made soon, employees will not be paid. That was o Igor Vukić ollowing the Pre-Bankruptcy Settlement Agreement, the stabilisation of business activity and recapitalisation, Dalekovod is turning towards new large foreign projects something that is a substantial challenge. Privredni vjesnik talked about these issues with Paško Vela, Management Board President, who has been leading the campaign since June 2014. Norway is one of the ‘old’ markets where the company is making significant progress. “We have recently won two tenders worth around €110 million in Norway. One will start in June and the other next year. We are currently waiting for the final decision to be made by the administrative body of Statnett, a transmission system operator, but do not expect any surprises. We believe the signing of the
F
We cannot expect to increase our business activities in Croatia and so need to focus on global market contract will occur by the end of May. We have been operating in Norway for the last six to seven years where we have been constructing overhead power lines and providing a substantial and an increasing amount of equipment produced in our Velika Gorica-based factory. We believe we will win several tenders worth around €100 mil-
lion over the next several years. Norway has been focusing greatly on construction, as she is striving to connect north and south with overhead power lines, over substantial distances. Electricity sources are in the north and they need to be supplied to the south for local use as well as export. We are striving to enter a new business segment there, covering medium and low-voltage power grids”, noted Vela. What are the basics for winning a tender in Norway? Is it low price? In Norway, the price is rarely considered as the primary selection criterion. Each country defines the price level, the technological readiness of performance and references, to name a few, in the overall bid assessment. In some cases, price may be only one segment or one half of the assessment. Unfortunately, in Croatia the price is the primary feature. Consequently, projects are failing and they are implemented ineffectively, which subsequently increases maintenance costs. Hence, we, along with the representatives of several other companies, support the introduction of the “Norwegian model”. Nevertheless, the policy is slightly inert. Our legislation is insufficiently accurate, and those inviting tenders simplify the entire process by selecting the lowest bidder hence avoiding providing any explanation concerning their choice. Ordinances concerning this issue are imperative to provide assistance to the tender committee in its operation. Hence, we should adopt the Norwegian model.
What is the current situation in the European market for companies in your field of work? Dalekovod is currently facing a dramatic business upswing, which is partly due to currently favourable market conditions, and partly the result of our strategic orientation towards the global market. We are not expecting to increase our business activities in Croatia and hence we need to focus on the global market. We believe that this approach will lead to a doubling of revenue over the next several years. We are planning to reach around €0.27 billion, as opposed to the current €0.15 billion and we are focusing on Europe in its entirety. We anticipate more work in Poland, Ukraine and Kosovo. I am convinced that we will receive good news from Ukraine in the near future. Irrespective of political issues and conflict there? I believe it is primarily for these reasons. Infrastructure reconstruction is fundamental in the Ukraine and this is the area in which we are primarily involved. Against the backdrop of current political circumstances, Ukraine is being provided with strong political support from the EU and the US who are encouraging large-scale investment there for the construction of the vital electricity infrastructure, as well as support by development banks providing affordable loans. We will contribute to this as a reliable and a professional contractor. I would not even wish to state the value of this work. Dalekovod is well-positioned; we have a representative office
there and anticipate favourable developments. We also have offices in Poland where tenders worth several hundred million euro are being prepared. We already have an ongoing project that was contracted a year ago, which we are working on in part-
www.privredni.hr Business & Finance Weekly
5
( around €0.27 billion
expected revenue over the next several years
her times
n lead to difficult decisions, but are inevitable to achieve the one of the problems faced by Dalekovod whilst waiting for the results of the legal action and yet the state may already commence charging for late payment penalties. Nevertheless, Poland has huge potential. I believe it will soon become our most important market after Norway. We contracted a project worth €8 million and are anticipating new tenders worth between €20 million and €30 million. We have strengthened relationships with local government and state-owned agencies and are expecting a vast range of new medium-sized projects.
nership with a foreign company. Poland is slightly riskier than Norway, as contractors need to purchase land on the route of the overhead power line, which may lead to legal action and result in increased costs. One may find oneself in adverse situations
What has changed in Dalekovod business activity following EU accession? The business activity has been simplified due to reduced administrative hurdles. We have become both a domestic and a European company, which still gives us an advantage over those outside the EU. Yet, there is another problem. Professionals have been given the chance to leave the company and find employment in Europe, which is extremely important for us, since we not only have to retain our employees, but also need to hire new ones. Dalekovod currently employs around 1,400 staff and this year we created 150 new jobs and are planning to create 100 more by June, due to an increase in the scope of work. It has to be mentioned that currently the opening of some production facilities in Croatia, which employ some 40 workers, often brings together a large number of members of government. We are aiming to retain our employees through fair work relationships, stable
Theory or achievement Can Croatian companies agree on several joint appearances on global markets? What are the obstacles to clusters? Everyone is addressing this topic, yet actual achievements are insignificant and this is not due to owners or managers. It is primarily the result of normal market behaviour. One is striving to complete the work of adequate quality and at a reasonable price. Unless one can achieve a reasonable price on the domestic market, one will normally resort to the global market. It may sound unusual, yet in some countries it is not cost-effective to engage the companies within our group. In some countries it is more cost-effective to engage a local supplier rather than install pylons for overhead power lines that we produce in our Velika Gorica-based facility. We are open to co-operation with Croatian companies, yet it always primarily implies the issue of cost-effectiveness concerning a specific project. business and advancement opportunities. It is obvious that employees in Norway receive substantially higher salaries that help them greatly upon their return to Croatia. Consequently, we are opting for employee rotation and to provide them with the opportunity to increase their earnings. We offer a stable salary and they are also offered bonuses for opting to work abroad. Foreign companies offer salaries only for the duration of the project. Hence, one needs to consider all the pros and cons of this type of working, for both themselves and their family that may have remained in Croatia. We are aware we are facing severe competition and we need to invest a great amount of effort and carefully establish relationships with our employees. The Pre-Bankruptcy Settlement Agreement was a highly stressful period for the company. What conclusions can be
drawn from the period preceding the Pre-Bankruptcy Settlement Agreement? Irrespective of the market situation, the management is normally blamed for any failures. One always needs to prepare for tough times; we need to keep abreast of developments; decisions need to be made that may be unpopular with the general public, yet could prove beneficial for the company. 50% of staff would have to be made redundant should the trading volume be halved. External circumstances may often lead to difficult decisions, yet they are inevitable in achieving the specific objectives set for the company. Unless these decisions are made, soon company employees will not be paid. That was one of the problems faced by Dalekovod. We did not react on time, we invested energy and effort into non-core activities, we focused on real-estate projects and we were heading for crisis.
6
Privredni vjesnik Year VIII No 248
CONSTRUCTION CONTRACT SIGNED
Solar power plant costing €0.9 million The County of Virovitica and Podravina starts the construction of a unique solar power plant connecting renewable energy and agricultural production. The construction contract was signed by the County, which will provide 20% of funding (80% will be funded by the Environmental Protection and Energy Efficiency Fund) and contractors –Working from Varaždin and Kograd from Pitomača – under supervision. The Sinerot Project, based on which the power plant will be built, is valued at €0.85 million. Construction will start soon and the deadline is scheduled for the end of the year. In addition to being a unique model of merging renewable energy and agriculture, the land where the future power plant is built, will be used entirely for cultivating vegetables such as kale, peppers, zucchini and parsley. Concerning its innovative construction system, this will be a unique power plant for Croatia, and probably Europe also. Furthermore, it will
brought in by telecommunications
CROATIAN EXPORT OF SERVICES CONSIDERABLY
be one of the largest in the County of Virovitica and Podravina, said County-Prefect Tomislav Tolušić. Moreover, the agricultural land will also be used by high-school students from Slatina, and any surplus energy produced by Sinerot will be used by the County of Virovitica and Podravina in elementary and high schools. The solar power plant will also serve as a demonstration school facility intended for high-school students specialising in professions related to renewable energy. The Faculty of Agriculture in Osijek is one of the project partners. (A.M.)
INTERZUM FAIR
Great interest in Croatian wood products
The Croatian companies Interijer Drvopaneli, Euro Interijer, Drvo Prom, Finvestcorp and Spin Valis showed their products at the international wood industry and new technologies fair, Interzum, held in Cologne. According to Viktor Horvatinović, CEO of Finvestcorp, the fair proved to be an excellent place for making deals and creating new opportunities for selling products to the Euro-
( €385 million
pean market. “We have quality part-finished and finished wood product, identifiable in Europe and the local market. Therefore, we can sell into every demanding market”, Horvatinović highlighted. The Drvopanel CEO, Vlado Farkaš, pointed out this company achieved great success during the past year. This year, the company decided to present its products at Interzum, with support from the CCE, mainly since the German market proved to be very interesting and ready for business co-operation with some Croatian companies. Additionally, statistical data show Croatia exported $1.297 billion of wood products and furniture. At the same time, imports of the same type of products were $573 million. (S.P.)
SERVICES SA €10 BILLION Offering its services abroad (or to foreign tourists within the around €200 million Igor Vukić ervices income that Croatian entrepreneurs earned from foreign customers last year, reached €10.2 billion, according to data provided by the Croatian National Bank. Since 2011, when it totalled €1.2 billion, income has been increasing around €200 million a year. Income is calculated based on services offered abroad and services offered to foreign tourists and visitors to Croatia. The majority of services were offered to German customers. For the first time this amount exceeded €2 billion last year. In addition, there are services offered to countries that are Croatia’s biggest trading partners. Services offered to Italian customers totalled €1.09 billion, Austria (€991 million), Slovenia (€615 million) and Switzerland (€428 million).
S
Trade and related business services totalled €388.4 million Tourism services bring in the highest income. Last year it was €7.4 billion, in 2011 it was €6.6 billion, and exceeding €7 billion of 2013. The Germans were top tourist customers last year (€1.8 billion), followed by Italians (€934 million) and Austrians (€853 million). Transport services earned around €995 million, with Belgium leading with a total
of €101.7 million in services provided to their public and companies in 2014. In addition to road transport services, ship transport was also a significant contributor. Construction and culture for export International transactions linked with construction services were worth €65.8 million. The majority of construction services were in Great Britain (€14.5 million), followed by Algeria (€ 11.8 million) and Switzerland (€5.9 million). Several years ago, the
www.privredni.hr Business & Finance Weekly
7
( €93.8 million
brought in by research and development
Y HIGHER THAN IMPORTS
ALES INCOME EXCEEDS N country), ranging from construction to entertainment, each year Croatian entrepreneurs increase their results by
for Teva, as communicated by Pliva. IT companies have started to achieve higher income by selling development services abroad, developing programmes for various activities, from the entertainment and gaming industry, to agriculture (Agrivi, Farmeron). Furthermore, university research centres and the Ruđer Bošković Institute have recently become more included in international tenders for development projects. Services management and counselling also has a significant share, with income totalling €336.4 million. Hungary, Belgium, the Netherlands, Austria, Serbia, Switzerland and Germany participate with double-digit figures. Trade and related services earned €388.4 million. Personal, entertainment and culture related services totalled €53.6 million.
Croatian Chamber of Economy (CCE) organised a presentation of Croatian companies at a construction show in Great Britain; Ingra has been present in Algiers for many years. Last year, Ingra signed a contract for €3 million for the design and delivery of power plant equipment. Insurance services were worth a total of €24.4 million. The price of various repairs reached €122.3 million or €10.4 million more than in 2013. The processing of various products earned a total of €236.7 million. The estimated value of finishing services of
products was published for the first time in the tables of the Croatian National Bank. Financial services brought €63.7 million to Croatian entrepreneurs. Top customers included partners from Belgium, U.S.A. and Great Britain – slightly over €10 million from each country. Telecommunication services earned €385 million. Income totalling between €20 million and €30 million was divided between several countries: Slovenia, Austria, Italy, Bosnia and Herzegovina, Serbia, Germany, U.S.A. and Sweden.
Copyright fees, the right to use intellectual property from other countries, totalled €15.7 million. The highest sum was in the U.S.A. (around €2.2 million); followed by Bosnia and Herzegovina (€1.6 million), as well as Serbia and Slovenia (€1.3 million each). Research and development services earned €93.8 million, the largest coming from Israel (€15.5 million) and from Great Britain (€13 million). The Israeli company Teva is the owner of Pliva. Zagreb is one of today’s leading research and development centres
Export of services Croatian customers paid €2.9 billion for using foreign services. This is €80 million less than in 2013. A total of €700 million was paid for transport services, and €634 million for tourist trips. Expenditure on financial services totalled €207 million. A total of €267 million was paid for telecommunication, computer and information services. Croatian users of management and counselling services paid €322 million. Services related to trade, technical and other business services totalled €357 million, around €20 million less compared with 2013.
8
Privredni vjesnik Year VIII No 248
DR. IZTOK SELJAK, CHAIRMAN OF THE MANAGEMENT BOARD SUMMIT100
Summit 100 is a key regional economic platform annual sales; Serbian colleagues in Russia have successfully completed projects such as the University of Sochi, Skolkovo, CSKA Stadium etc. and through colleagues in BiH, places in the Arab world - Qatar, Saudi Arabia and other countries. Does the list include the development of the high-speed railway project and Smart Cities for South Eastern Europe? When we can sit down in the high-speed train in Ljubljana and quite soon arrived in Zagreb and after a further hour and a half we were in Belgrade and the next hour and a half in Skopje, then the region will actually be quite better connected.
r. Iztok Seljak believes that we have an extremely valuable generational opportunity to develop our region from that perceived as part of the problem into that which is part of the solution in order to drive Europe’s recovery from the crisis. He is Chairman of the Board of Summit100, regional platforms for the integration of the economy, which was formed in 2011 on the initiative of the Managers Association of Slovenia, the Serbian Association of Managers and the Croatian Employers Association.
D
What is the idea behind the movement Summit100? In 2010, businessmen felt the need to start to re-connect to joint appearances on third markets, and to begin removing systemic
barriers that were erected between them, especially mental ones, in the minds of the region, in order to begin again the reopening of the region to the outside - and thus become more interesting for the entry of foreign capital. Summit 100 today is a key regional connection platform for economic development. Who is involved in Summit100? The Management Board of Summit100 has brought together the leading representatives of key managerial associations of each of the regional countries, including members of over 100 leading businessmen in the region, who jointly strive for successful development. We represent a significant percentage of regional GDP and have a large informal and formal impact and
accountability. What are the visible results from Summit100? We have directly contributed to the concept of joint participation in the development of the region as a whole; a concept that has been adopted by all Presidents of the region, from Slovenia to Albania. Today we present an important economic parallel political process Brdo-Brioni or the basis on which it may obtain practical space for its implementation. Concrete initial projects in the field of joint ventures in third markets has been successful. Phoenix, the construction consortium, which consists of 45 companies in the regional construction sector, has 30,000 employees and €5 billion in total
This year’s Summit100 conference is the fourth. What does it mean to be part of this event? It is remarkable networking, with a circle of people, within which respect for fundamental values and an ethical approach devise and achieve large projects in the region and beyond. It is developing a personal relationship with the majority of presidents, prime ministers and ministers of the region, through which you can proactively contribute to the completion of important regional projects and to ensure participation in them. Who are the participants – it is an event that it is not possible to register? Summit100 is usually attended by 150 key managers within the region by personal invitation. This ensures the composition, which has the necessary reputation and the power to achieve the set goals. This means around 30 participants from the Association Of Managers in Slovenia; all who have an interest in their active participation in Summit100, are welcome to connect with us.
www.privredni.hr Business & Finance Weekly
9
MICHAEL DIXON, GENERAL MANAGER, GLOBAL SMARTER CITIES, IBM
Why Smart Cities Turn to Analytics for Managing Water and Electricity hile there is always interest in the exciting innovations in cities – such as intelligent transportation systems – the backbone of any city, operation is comprised of efficient water pipes and reliable electrical wires. The availability, delivery and consumption of natural resources like energy and water is far more important to cities than a new fleet of buses. Optimising resources is particularly relevant for cities because of their impact on both ‘liveability’ as well as resilience. One clear path to such optimisation is through the combination of analytics, mobility and predictive maintenance. With such solutions, city leaders can not only improve the delivery of services, but also better engage their citizens in the process. IBM and Veolia, the world’s leading water services company, have
W
come together to do just that. Announced today during Smart City Expo and World Congress, in Barcelona, IBM will help Veolia create and manage a new set of digital services and solutions to improve system performance for utility clients. In addition, they will create new turnkey, readyto-use digital solutions for cities currently managing their own services. Understanding the water-energy nexus is necessary if we want to contribute to solving both issues simultaneously and stop moving problems from one resource dimension to another. Technology like analytics and mobility are tools available to cities of all shapes and sizes, and the solutions that these tools can yield are replicable and cost effective. Partnerships between public and private entities, as well as among private companies with shared
interests, are crucial if we are going to meet the challenges of
global urbanisation. Let’s get to work.
10
( 29,000
Privredni vjesnik Year VIII No 248
overnight stays in Solin in 2014
( 46% increase
in tourist arrivals during the first quarter of 2015
SOME 100 CITIES THROUGHOUT THE WORLD IN THE COMPETITION
The city with the greatest investment potential named as Solin The location of Solin is ideal, and we have been the most youthful city in Croatia for several years Jozo Vrdoljak laženko Boban, Solin mayor, has recently received acknowledgement for his city, Solin, awarded by the Europe Business Assembly (EBA) in London, declaring that Solin was a prime business destination, as well as a city of immense potential for investment. Around 100 cities globally entered the competition. “We were surprised by the award, as we did not have comprehensive insight into the criteria used, and had little idea how we were included in this prestigious list. We were only informed that there were 11 fundamental criteria upon which selection was based, such as geostrategic position, the vitality of the city and the stability of political governance.
B
The label of prime investment destination implies support by the Europe Business Assembly regarding investment attraction Another important criterion was security, as well as the effectiveness of city administration and the institutions linked with business activities. The geostrategic position of Solin is ideal and we have been the most youthful city in Croatia for several years. Concerning security, Solin and Zagreb are two Croatian cities signatories of the European Forum for Urban Security – EFUS”, explained the mayor of Solin. He pointed out the fact that acknowledgement is merely the
start of the development of Solin in terms of evaluation of archaeological and historical tourism, which is covered in development plans and programmes. “The acknowledgement is an affirmation of the effectiveness of our work to date, and the transparency of operations both towards entrepreneurs and citizens. Retaining the effectiveness of state institutions that participate in decisionmaking, or the issuing of documents required by investors, is fundamental for our forthcoming work. This award provides encouragement for all decisionmakers towards more effective business activities, as well as encourage further investment”, opined Boban. Memorandum signed The European Business Assembly (EBA) and Solin have recently signed a Memorandum following which they undertake to exchange useful information and participate in joint activities aiming to promote the investment brand of the city, as well as to establish permanent
co-operation and promote the investment potential of the city as a participant in the Prime Business Destinations programme. Furthermore, Solin will provide information on investment projects and areas of interest to investors. Subsequently, the EBA will present all investment opportunities on its website, as well as the current programmes and facilities. It will also conduct a comprehensive analysis of the investment potential, applying a broad range of measures, to enhance investment opportunities and provide assistance in investment attraction. “We will engage in the joint organisation of events to attract potential investors and organise visits to investment projects. Participants from EBA will comprise investment companies, venture capital funds, companies and entrepreneurs interested in co-operation and investment. We will also agree on other activities to meet the objectives to increase the investment potential of the city”, stressed the mayor. Moreover, the city of Solin will
be provided with assistance for the search for potential partners and investors with the aim of developing sustainable solutions for urban development. In addition, several international investment summits will be organised covering science and practical lectures, roundtable discussions and business consulting. Tourism results Solin has been identified as an industrial city, due to a wide range of production facilities in the area, such as AD Plastika and part of CEMEX. Nevertheless, during the last several years, the city has seen increasingly improved results from tourism and further investment in tourism facilities has been announced. In 2014, it was visited by 10,516 tourists compared with 2013 when it saw only 6,551 tourists. In 2014, the city recorded 29,000 overnight stays compared with only 17,500 in 2013. During the first quarter of 2015, arrivals and overnight stays jumped by 46% in relation to the same period in 2014.
www.privredni.hr Business & Finance Weekly
11
( €0.13 million allocated
by Croatian Chamber of Economy towards EU voucher project
FINANCING CONSULTING SERVICES
FIRST VOUCHERS ALLOCATED Assistance provided by the Croatian Chamber of Economy in 2015 will settle the costs of consultancy services for some one hundred applicants for EU funding he Croatian Chamber of Economy has allocated €0.13 million towards the EU voucher project, aiming to provide co-financing for project documentation for 100 entrepreneurial projects. This will significantly contribute to the ability to absorb EU funding, as well as strengthen the competitiveness of the Croatian economy, highlighted Luka Burilović, President of the Croatian Chamber of Economy during the allocation of the first 14 vouchers. “During the period 2014 to 2020 Croatia has €10.6 billion at her allocation, yet thus far the take-up of funding has been extremely poor and entrepreneurs are faced with many problems concerning co-financing and project implementation. The first workshops for potential users have recently been held in the Croatian Chamber of Economy, which has also established close co-operation with state administrative bodies responsible for the programming and implementation of EU funding”, stressed Burilović. He added that through the establishment of the Centre for EU in 2012 the Chamber has been striving to boost the implementation of EU
T
funding. “Our principal objective is the provision of services to its members, not only in the area of EU funding implementation, but also in their overall business activities”, noted Burilović. During the first phase of the implementation of the new service by the Chamber of Economy Voucher My EU project, the funding is intended for co-financing of consultancy services for the preparation of projects of the European Agricultural Fund for Rural Development. These have been initially allocated €46,400 and throughout the year, funding will rise to €0.13 million. There are 35 acceptable applicants during this phase and the first 14 applicants – PPK Karlovac Meat Industry,
Olvin plus, Trešnja, Cret proizvodnja, OPG Alojs Jug Farm, Euroalp, Stancija St. Antonio, Bio dvor, Nociar, Čakovec Mills, Viro sugar factory, Piškorić, Agro Jakšić and Consultus navigo – have already received vouchers. Upcoming new tenders Marija Jakšić, Director of Agro Jakšić, pointed out that this voucher will be used to obtain assistance for the renovation of agricultural machinery. “Investment in new equipment and new technology is imperative in order to boost our competitiveness. I believe we will win the tender and be able to co-finance the renovation of our equipment, the purchase of a new tractor and
a new combine harvester through EU funding”, she pointed out. Alojz Jug, owner of the farm, announced that he is planning to apply for assistance for the renovation of his orchard, as well as the purchase of equipment required for processing. “I currently own organic apple trees covering 7.4 hectares and we are working on over 60 hectares of land with our subcontractors for the production of our brand Maričini sokovi (Marica’s juices). I believe we will win the forthcoming tender due to the Croatian Chamber of Economy and consultants, and that we will be allocated assistance to enhance our competitiveness”, emphasised Jug. In addition to My EU project services, the Croatian Chamber of Economy has launched a wide range of new services for entrepreneurs – EU tenders, Entrepreneur-exporter and mobile teams. A new tender for voucher allocation is anticipated in the forthcoming future for projects cofinanced under the Operational Programme Competitiveness and Cohesion intended for SME’s, as well as for tourism projects. €39,750 will be allocated for this purpose. (K.S.)
CHAMBERS OF ECONOMY IN ZAGREB AND BUDAPEST
€362 million exports, €1 billion imports Strengthening of inter-chamber co-operation between Zagreb and Budapest creates new opportunities for their respective economies, and connections and relationships between companies from different sectors, primarily in industry and energy and tourism sectors, as has been concluded during a meeting at the Zagreb-based Croatian Chamber of Econo-
my held during the visit of the delegation of the Hungarian Budapest-based Chamber of Commerce and Industry. Co-operation can be increased through regional projects co-financed from EU funds, as well as through technology transfer and joint investment in economy The Hungarian Chamber of Commerce representatives were presented with the economic pro-
file of the Zagreb-based Croatian Chamber of Economy, as well as the tourism potential of Zagreb. The Hungarian representatives also showed interest in the current situation on the real estate market. The total trade in goods and services between Croatia and Hungary in 2014 stood at €1.49 billion, in addition to exports to the Hungarian market of €362 mil-
lion and substantially higher imports from Hungary of €1.1 billion. Tourism showed improved results, due to a rise in arrivals and overnight stays of Hungarian tourists, by around 12% in relation to the previous year. (K.S.)
12
Privredni vjesnik Year VIII No 248
( 54% of tourists
arrive in Croatia through tourist agencies
Small and family hotels
Stories behind the house Tourists opt for small and family hotels far more frequently than for hotels in large hotel chains mall and family hotels provide specific programmes and a homely ambience for their visitors. Moreover, they deliver a personalised service with added value and mainly focus on meeting visitor needs. The programme is based on ‘stories’ and hence owners need to tell stories to attract visitors. It is important to highlight the competitive advantage of a specific tourist destination and hence include excursions or thematic dinners in the programmes. Free workshops have been organised to provide information on increasing revenue from small and family hotel capacities, and striving to enhance revenue small and family hotels achieve. One such workshop has recently been held in Zagreb, organised by Hotelijer.hr portal in co-operation with the CMT consulting and manage-
S
ment in tourism company, the Croatian Chamber of Economy and the National Association of Small and Family Hotels. Ivan Gašpert, a CMT consultant, stated that small and family hotels need to focus on personalised sales in order to increase revenue. “Specific features of tourist
destinations need to be defined in order to complete and upgrade a tourism product. Moreover, all stakeholders in tourism in some destinations need to be connected in order to jointly work on this tourism product”, highlighted Gašpert. Tourists opt for small and family hotels primari-
ly for their specific features and, according to statistics, tourists return to such hotels much more frequently than hotels owned by large chains. Concerning the personalised sale of small and family hotel capacities, Gašpert believes that their competitive advantage implies primarily their individualised approach and adapting themselves to visitor needs. He is convinced that owners of small and family hotels need to exploit the potential of the Internet and co-operate with online tourist agencies that operate at lower commission levels, and provide more affordable prices of accommodation packages. According to statistical data, 54% of tourists arrive in Croatia through tourist agencies and thus tourism operators need to use all marketing tools to attract the largest possible number to Croatia. (S.P.)
DESIGN AND CERTIFIED ECO-FURNITURE
Bernardo Bernardi experiences new Era t the recently opened exhibition of Era product in Zagreb’s Oris – House of Architecture - architect Andrija Rusan announced her exclusive co-operation between Oris and Era regarding new furniture production from the well-known local Croatian designer and architect, Bernardo Bernardi. Production should start this autumn. Bernardi is a man of many interests, a graduated architect, interior designer and designer in general as well as culture ambassador in spirit, Rusan pointed out. He also noted that at the beginning of the 1950’s Bernardi expanded the concept of
A
designing furniture to all its elements (office desks, chairs and panels with legs). The furniture was robust with a strong and elementary visual effect, excellent proportions and highly func-
tional. Many years later, Bernardi developed a line of sofas and chairs that brought him many awards in Croatia and abroad. The Bernardo Bernardi Award for the most successful achievements in design and interior design was established in honour of this Croatian designer. The manufacturing programme Bernardi furniture represents one of the highest achievements of Croatian design. Since Bernardi furniture has already stood the test of time, Era Group decided to restart production of this already branded
furniture. Rusan pointed out Croatia would soon be able to proudly present its Bernardi just as many other countries revived their design icons. For example, the Scandinavians and their Hans Wegner, Finn Juhl or Greta Grossman. Just like all other Era products, the furniture carrying the Bernardi brand will be original, and will be guaranteed by the signature on every piece. Moreover, each piece of furniture is original since it is made of wood and which cannot be repeated. (S.P.)
www.privredni.hr Business & Finance Weekly
13
( €79.6 million
nett losses made by Dubrovnik entrepreneurs
BUSINESS RESULTS OF ENTREPRENEURS IN TOP 20 CROATIAN CITIES ON FORBES LIST
Entrepreneurs in Zagreb achieved highest nett profits Zagreb ranks first according to the number of entrepreneurs, the number of employees and total achieved income. In 2014, entrepreneurs in Zagreb achieved €2.52 billion in profits, up 20.9% over the year before plit ranks first on the Forbes list as the best city for living and business. According to data published in the Register of annual financial reports, Split had a total of 6,427 entrepreneurs over the past year. Of 20 cities included in the Forbes list, Split, as the centre of the County of Split and Dalmatia, takes second place according to the number of entrepreneurs, the number of employees and total achieved income – according to data published by the Financial Agency. As expected, Zagreb is first and Rijeka third. In 2014, a significantly higher employment rate and income growth compared with 2013 was recorded in Buzet, where the number of employees hired by entrepreneurs increased 13.4%, while income grew by 15.4%. Entrepreneurs in Velika Gorica achieved the highest increase in total income (15.7%) compared with other cities on the list. They are followed by Buzet (15.4%), Poreč (14.2%) and Pula (11.1%), confirming the
S
Based on average number of employees per individual entrepreneur, Bakar is the top city in 2014 skills of entrepreneurs in Istria. Based on the average number of employees per entrepreneur in 2014, Bakar is first (15 employees per entrepreneur), followed
Zagreb
by Buzet, Varaždin, Sveta Nedelja and Čakovec (11 employees per entrepreneur). ranks sixth (10 employees per entrepreneur). All other analysed cities have fewer than 10 employees per entrepreneurs on average, with Novigrad taking the last place (4 employees per entrepreneur). Economic indices best in Rovinj According to available data, 10 cities stand out for the highest average monthly nett salaries paid to employees last year. For example, those in Velika Gorica received the highest average monthly nett salary (€866), followed by Rovinj (€768), Zagreb (€753), Dubrovnik (€725), and Bakar with €686. For comparison, the average monthly nett salary paid by entrepreneurs was €646 across Croatia. In relation to 2013, out of 20 listed cities in 2014, the highest profit increase (pre-tax profit less
Split
Rovinj
Rijeka
tax) was seen by entrepreneurs in Velika Gorica (104.2%), Pula (99%) and Samobor (44.6%). In 2014, entrepreneurs in Zagreb achieved €2.52 billion in profits, up 20.9% more over the year before. Based on nett profits achieved last year, entrepreneurs in Zagreb achieved the best results. Of 20 cities listed by Forbes, the highest nett losses in 2014 were made by entrepreneurs in Dubrovnik (€79.64 million) compared
˝Dubrovnik
with €10.95 million net losses achieved in 2013. The highest positive ratio of achieved income to expenditure in 2014 was from entrepreneurs in Rovinj, with an economic index of 1.35, followed by Karlovac (1.09). Entrepreneurs in Rovinj also saw the highest increase in assets and capital profitability. Despite the decrease in 2014, entrepreneurs from Karlovac still show stability in the level of assets and capital profitability. (V.A.)
14
Privredni vjesnik Year VIII No 248
( 140 cruise ships currently in Croatia
( 110 vessels moored in Krilo Jesenice
PORT AUTHORITIES HAVE NOT KEPT ABREAST OF THE BOOM IN SMALL SHIPBUIL
Cruise ship operators fro they have been denied r Katica Hauptfeld, director of the Katarina Line agency, stated that foreign ships have an advantage position in that t Jozo Vrdoljak ajestic, a motor yacht owned by the Ercegović family from Krilo Jesenice which received its first visitors at the beginning of May, is a new vessel in the fleet of the Opatija-based agency Katarina Line. She is an A Plus category ship and provides accommodation in19 double cabins. Her dimensions are 37m length with a beam of almost 8m, and is owned by three brothers – Zoran, Goran and Mladen Ercegović from Krilo Jesenice. In Krilo Jesenice, there are currently over 50 vessels. The fleet comprises of ships of all ages divided into 4 categories, all owned by Croatian families, mainly from Krilo Jesenice near Split. During the 2015 season, three new ships will join the fleet in addition to Majestic. The Krilo Jesenice-based ship operators became involved in cruise activities during the 1960’s by converting ships that were previously used for the transport of sand, oil, food and other goods, to be used primarily to meet the needs of cruise excursions. Currently this is normally a family business transferred from generation to generation.
M
Programmes for cruise excursions The Opatija-based agency Katarina Line has continuously expanded its business and developing new markets globally, as well as attracting new tourists. “In addition to cruising, which has made us market leaders, the
agency is primarily involved in incoming tourism throughout Croatia, which implies the organisation of coach tours, excursions and a broad range of tourism services. Last season we achieved good results, although not excellent. Nevertheless, we are satisfied with these results against the backdrop of severe competition and current economic conditions. This season we are anticipating similar turnover and hoping to see a slight growth irrespective of the fact that May has shown worse results compared with last year”, stressed Katica Hauptfeld, Director of Katarina Line agency. During the 2014 season, Katarina Line recorded 23,000 cruise passengers and attracted almost 100,000 passengers to Croatia. 50 ships, which have been grouped into four categories, have already arranged bookings for the 2015 season. Tourists have the
Concession holders generate higher revenue from one-day mooring of a yacht compared with revenue generated by us, notes Arsen Ercegović opportunity to select from a basic wooden sailing ship (called trabacollo or trabakul and are traditional sailing ships on the Adriatic Sea with two masts), and of ‘B’ category with joint toilet facilities, ‘A’ category ships providing individual toilet facilities, and new metal vessels in 2 categories – ‘A
Plus’ and ‘Deluxe’. The principal difference between these categories is the size of the cabins and joint facilities, as well as the interior and services provided. There are some 15 tours for vessels, with weekly departures from Opatija, Split and Dubrovnik, normally scheduled for Saturdays, yet, due to the large number of ships and affordable airline tickets, some departures by Katarina Line have been transferred to other days of the week. Mooring and business operation issues “Currently our most challenging issue is that of ports”, pointed out
Katica Hauptfeld. “During the last ten years, small shipbuilding has experienced exceptional growth and the interest in this type of holiday is similarly exceptional. Nevertheless, local port authorities have not kept abreast of these developments and we are currently facing substantial problems concerning the mooring of vessels in ports such as Split, Hvar, Korčula and Dubrovnik. Opatija, our focal port, has not seen growth for years and currently cannot provide safe mooring. In addition to mooring issues, there are also problems with power and water supplies and consequently Split is now not
www.privredni.hr Business & Finance Weekly
15
( 10 new ships
announced by Krilo Jesenice over the forthcoming season
DING
om Krilo Jesenice say rights to their own sea
hey are exempt from tourist tax payment in Croatian ports as well as being provided better moorings and full services
provided with sufficient power and water supply facilities. We have striven to unburden ports at weekends through the introduction of new programmes and
departures during the working week, rather than exclusively on Saturdays, yet the current number of ships simply exceeds port capacity. It is a serious problem, as these destinations are unavoidable for most tourists visiting Croatia for the first time”, explained Katica Hauptfeld. She also noted that an additional problem is that foreign ships have an advantage in that they are exempt from tourist tax payment in Croatian ports and are provided better mooring facilities and comprehensive services, irrespective that the agency regularly announces ship arrivals to all port authorities and harbourmaster offices as much as six months in advance. “Their purchase prices of oil and food are significantly lower in relation to ours and are hence overly privileged. This is obvious if one considers similar programmes in Greece and Turkey where prices are considerably lower compared with ours, especially during the pre- and post-season. These countries clearly subsidise flights, as well as both hotel and ship operators. Furthermore, these countries ad-
vertise prices of around €159 for seven days accommodation including return air fare included in the price”, highlighted Katarina Hauptfeld. Arsen Ercegović, ship owner from Krilo Jesenice and President of the Croatian Association of Private Ship Operators, warned that he and his colleagues are faced with an immense problem of mooring throughout the tourist season. “It is not a problem of mooring for ferries and catamarans; it is primarily a mooring problem concerning yachts, since we believe they need to be provided with moorings in marinas rather than in ports open to public transport. Our biggest problem is with concession holders who are aiming to increase their earnings at all costs, and therefore a one-day mooring for a yacht is more profitable for them than we are. Consequently, in ports where concessions have been granted, we have to pay €0.53 per kilowatt-hour, whilst for example in Šibenik we pay €0.13 per kilowatt-hour. The same applies to the issue of water sup-
Event Ship Nada the largest floating conference centre Enthusiasts of niche cruising programmes have been given the opportunity to organise their business meetings, conferences and a range of entertainment events on Event Ship Nada, a 35-metre motor yacht converted from a vessel once owned by the former Yugoslav Army and has been deteriorating in Montenegro. She can currently accommodate 140 people and is a floating multi-purpose conference centre, provided with comprehensive audio and video equipment. Davor Maričić, Director of Ilirija Travel, an agency operating under the Ilirija Group, pointed out that this yacht is also intended for both day and night cruises organised by the agency during the peak tourist season, as well as for business meetings, conferences, seminars, specific business meetings and gala receptions, banquets and weddings. The yacht has a luxury restaurant and lounge bar.
ply, mooring and waste disposal”, explained Ercegović. Investment by vessel operators There are currently 140 cruise ships in Croatia intended for several day cruise excursions, of which 110 ships are moored in Krilo Jesenice. According to Arsen Ercegović, ship operators will see 10 new ships constructed in several shipyards during the forthcoming season. He pointed out that during the last seven or eight years, 55 new ships have been constructed to meet the requirements of ship operators from Krilo Jesenice and around 10 more in other areas. It is anticipated we will see at least 10 new ships in 2015. According to Ercegović, increasingly luxurious ships worth several million Euros are being constructed. “Ship construction started one year prior to the grant of incentives, and the former Ministry of Maritime Affairs subsidised the construction of the hull. During the last three years, we have been able to cover the costs at least partly and the remainder is ensured through HBOR financing or through Split-Dalmatia County. Our ships, family houses and all our assets are mortgaged and consequently this is a highly demanding job. New ships have substantially upgraded our competitiveness, which is fundamental in terms of the possible arrival of foreign ship operators, and we have met conditions for the expansion of the season which currently lasts around five and a half months”, stressed Ercegović.
16 ::: news Losses at Viro Group
Privredni vjesnik Year VIII No 248
( 1080 ºC
temperature at which metal walnut opener are brazed
The most innovative and most rewarded Croatian souvenir During the business year of 2014, Viro Group earned €0.15 billion consolidated income. Total business income stood at €0.14 billion and financial income at €1.51 million. Total consolidated expenditure was €0.17 billion, and business expenditure €0.17 billion, which comprised 97% of total expenditure – according to data published in the Annual consolidated financial report for 2014 on the website of the Zagreb Stock Exchange. The Group achieved almost €30.4 million in losses during 2014. HPB lowers interest rates From 1st July, Hrvatska poštanska banka (Croatian Postal Bank) will lower its interest rate on all existing and current loans with variable rates. In line with the fall of national reference rates for both euro and kuna, applied by HPB, interest rates on loans with a foreign currency clause will be 0.20% lower or 0.15% lower on kuna loans in relation to the present conditions. This is HPB fourth reduction of interest rates during the past 18 months. Platform for online trading
Zagrebačka banka presented its ZB Trader, a new trading platform which enables users online trading on global stock exchanges as well as the Zagreb Stock Exchange. The service available in Croatian language provides easier and faster trading of securities and consists of ZB Trader Global for foreign markets and ZB Trader HR for the ZSE. ZB Trader allows online trading with over 19,000 stocks globally for ezaba clients. The services is also available to other users via its desktop version.
KRTZ for walnut lovers Small tool and souvenir united a Zagreb designer and craftsman from Zadar. hat does not damage the core is distinguished by its unique The walnut opener that iency design and high efficiency t is small, light, symmetrical, intended for left-handed and right-handed, made of stainless steel, and shaped as a walnut leaf – the name of this product is Krtz! It is a copyright work from Zagreb designer Tea Janković and Neven Glavić, a professional knife sharpener from Zadar. The product is the best, most innovative and most rewarded Croatian souvenir. Its name stands for a knife for splitting walnuts without damaging the core. “Our family owns a house surrounded by many walnut trees”, says Tea Janković. Once I spent the entire winter splitting walnuts with a tiny knife. My hand hurt; I cut myself several times, so I decided to use other tools, but they were not practical. Then I asked what kind of an industrial designer I am, if I cannot make something better, more practical and unique? – she remembers. After turning her idea into a sketch and then a model, she consulted various metal producers concerning the material and production. In the end, she found the most cooperative man, Neven Glavić, a knife sharpener from Zadar.
I
Several weeks to create a prototype In addition to the method of manufacture, Neven suggested some changes in the product shape to simplify its use, and after several weeks the prototype was ready. They applied for a tender and the expert panel selected this product as one of the 10 top products. The tool and souvenir is much better than any other currently on the market.
In addition to several souvenir shops the product is also sold online Compared with other products which have a revolving part for opening the shell, Krtz does not damage the core, Tea Janković highlights. This allows whole walnuts to be used as decoration on cakes or processed in some other way, she proposes. The knives are produced from a single piece of metal in Zadar. When they are finished, they are shipped to Austria for brazing - thermally processed at 1080 ºC. Then they are cooled and the temperature lowered to
200 ºC, which secures high-level strength. However, for now this tool and souvenir is not available in many stores. It is not sold in airports, but you can find it in souvenir shops in Zagreb, Split and Zadar or the Lone Hotel in Poreč. “We are not present in many places, but I believe we will slowly start to expand our sales network”, suggests Tea Janković. Lovers of walnuts and beautifully designed kitchen tools, as well as those in search of elegant and interesting business gifts, can find this product online, and its designer believes it will soon be available in the majority of tourist location through the help of the tourist boards. (K.S.)