Pvi0252 by NEstar

Croatian shipyards With unpublished contracts added, total value of work increases to $US1.8 billion

Interview: Franjo Koletić He owns five companies in region, 500 retail outlets and one factory in China

Croatian Tourism Days Award winning hotels, destinations, camps, beaches, events...

PAGES 2-11

PAGES 20-21

PAGES 16-22

SUPPORTED BY THE CROATIAN CHAMBER OF ECONOMY

www.privredni.hr

PVinternational C R O A T I A N

B U S I N E S S

F I N A N C E

M O N T H L Y

November 2015, Year VIII, No 252

CCE REPRESENTATIVE OFFICE IN SHANGHAI

NEW RELATIONS WITH CHINA The President of the Croatian Chamber of Economy, Luka Burilović, invited Chinese entrepreneurs to export their goods to Europe via Croatian ports

fter Brussels and Moscow, the Croatian Chamber of Economy will open a representative office in Shanghai this spring. This clearly shows the importance of cooperating with the Republic of China, said CCE President, Luka Burilović, during a recent meeting with Chinese Premier Li Keqiang, held during the visit of the Croatian President, Kolinda Grabar Kitarović, to the Peoples Republic of China. President Burilović invited Chinese entrepreneurs to export their goods to Europe via Croatian ports. The CCE can provide all the help required if they intend to invest in Croatia or anywhere else in the European Union. The message from the CCE President is clear, and China is ready to take steps towards opening a market for Croatian products, especially those from the agricultural sector, the Chinese Premier said.

During the meeting of Croatian representatives and their Chinese hosts, President Grabar-Kitarović highlighted that Croatian-Chinese bilateral relations have been upgraded with multilateral components, co-operation in the form of the EUChina dialogue and other forums. “We are especially happy about the strong interest in China in Central Europe”, the President said. The Croatian delegation also met with representatives from the Chinese business community and visited the research centre of Huawei. Total value of trade between the Republic of Croatia and China was $US654 million in 2014, and imports from China were eight times higher than Croatian exports to China. According to the latest statistics (the ﬁrst ﬁve months of 2015), imports and exports increased by 27% in relation to the same period of 2014. The CCE is also

trying to stimulate co-operation with Hong Kong with which Croatia exchanges $20.9 million of goods, of which exports total $9.6 million. Co-operation was established with the Hong Kong Trade De-

CHINESE PREMIER ANNOUNCES A STEP TOWARDS IMPORTING CROATIAN GOODS velopment Council. A total of six seminars for Croatian entrepreneurs have been held to date regarding the possibilities of co-operating with Hong Kong. The seminars have been held every two years since 2004. (I.V.)

CROATIAN SHIPYARDS

SUSTAINABLE AND BUSINESS TRENDS

The order book is for 40 vessels, including ships, platforms, barges, hulls, and is va $US1.5 billion. When unpublished signed contracts are added, the value of work $US1.8 billion. The figures are even higher when overhaul work at the shipyard Vi are added - a shipyard without an order book by Jozo Vrdoljak vrdoljak@privredni.hr

ccording to data provided by Hrvatska brodogradnja – Jadranbrod, the order book for Croatian shipyards is relatively full, from the end of September. Data show that the shipyards will be busy until the end of 201 7, and even to the ﬁrst quarter of 2018. It is evident that the structure of contracted work has changed. The former predominant focus on tankers has shifted to the construction of ships of various sizes and types, mainly specialised vessels. The current order book is for 40 vessels, including ships, platforms, barges and hulls with a total capacity of around 560,000 dwt, valued at over $US1.5 billion. In addition to contracted work, shipyards have a few contracts that have not been published yet. There are also contracts for non-shipyard production. This means that the overall value of work could increase to $US1.8 billion. Together with data on the overhaul shipyard Viktor Lenac, which does not have an order book since its business method is different, the value of work increases further. This busy schedule is a good reason to feel optimistic about a successful ﬁnale of the current restructuring process and the sustainability of the shipyards, without state subsidies. Large shipyards currently employ around 7,200 workers and an additional 490 in Viktor Lenac. Depending on the timeline,

2 | PVinternational | November 2015 | No 252

Croatian shipyards have 2,000-3,000 subcontractors. An additional 10,000 workers are employed in the accompanying production of shipping equipment. In total, there are around 20,000 workers directly or indirectly employed in the industry. In relation to the period prior to privatisation, shipyards undergoing a restructuring process reduced the number of employees by 20%. It is also important to mention that the educational system is also related to sustainable business market activities of shipbuilding, that is, shipbuilding high schools, universities and the Brodarski institut.

ULJANIK GROUP: €1 BILLION ORDERS The Uljanik Group highlights the huge steps taken in terms of sales and contracting new projects during 2015. Their order book contains 22 construction projects, of which 10 are in Pula and 12 in Rijeka. Their total value is €1 billion. Concerning production capacity, it is full in both shipyards for 2016 and 2017, and a certain percentage of capacity is booked for 2018. These are contracts with a currency clause that ensures stable business. The contracts contain elements to protect against price increases in shipping steel. Even the dollar aspect has been protected with a currency clause in recently signed contracts, Head of the Uljanik Business-Information Systems, Hrvoje Markulinčić

CROATIAN BUSINESS & FINANCE MONTHLY

INDEPENDENT

alued at over increases to iktor Lenac

Ivana Ivanovic/PIXSELL

Brodosplit also developed a strong nonshipbuilding programme, with over 30,000 tonnes of contracted steel constructions. The most significant contract is the MoseVenice project, where 41 steel doors for the Malamocco and Chioggia inlets are under construction. These mega-blocks are built for Italian customer Fincantieri.

No 252 | November 2015 | PVinternational | 3

CROATIAN SHIPYARDS an advantage on the market and guarantees business sustainability, Markulinčić reveals.

Order Book 30.9.2015 Shipyard

Number of facilities

dwt

Cgt USD (mil)

3.MAJ

257.120

129.682

303,0

BRODOSPLIT GRUPA

41.222

72.661

243,0

BRODOTROGIR/HBT

95.000

49.856

121,0

ULJANIK

167.595

230.684

855,0

Total

560.937

482.883

1.522,0

Source: Hrvatska brodogradnja - Jadranbrod d.o.o.

highlights.

When we perceive the revenue planned for this year and next, we see it will triple. We believe this is a credible indicator of the situation we were in and the situation lying ahead. Hrvoje Markulinčić, Head of Uljanik – Business – Information Systems

According to Markulinčić, the Uljanik Group is also active in shipbuilding niches. Moreover, the shipyards are still building vessels of medium and high value in compliance with Group strategy. Quality restructuring, integration in the Uljanik Group and quality project contracting under the wing of the Group, resulted in evident business sustainability of 3.maj, which was the main goal of the restructuring programme. “Guided by this, we initiated the finalisation process of restructuring before the competent state bodies, even before the scheduled 2017 date. When the restructuring programme ends, 3. maj will have a more stable market position, which is especially important for ship owners who contract for complex and highly specialised ships. We will continue to insist on establishing the basis for future co-operation with state institutions, based on the model existing in the European Union”, Markulinčić explains. He says the loss made during the past year was anticipated and within the planned framework. However, when the revenue planned for this year and the next is considered, it can be seen it will triple. He also believes this is a credible indicator of the past situation and the situation ahead. Uljanik is starting the finalisation process after several years of an exhausting crisis that left its mark on Group financial results. The pressure of unemployment affected all the company’s reserves. At the same time, Uljanik’s competition either perished or drastically cut staff, Markulinčić highlighted. The Uljanik Group currently employs 4,137 workers. “What distinguishes us from the rest and the fact that we are still competitive is that Uljanik, together with ship owners, build ships from zero. This means the project can be modified according to the requirements of the ship owners during the construction process. This is not the case in many shipyards, but gives us

4 | PVinternational | September 2015 | No 250

BRODOSPLIT: MARKET POSITIONING TOWARDS MORE COMPLEX PROJECTS According to Board President of Brodosplit Tomislav Debeljak, the construction of 17 new ships is active in the shipbuilding section of the order book. One is a river cruiser, currently under construction and equipping phase (105 metres long). Another ship in the construction phase is a work ship of concrete (48.5 metres long), and five equivalent sailing ships (54 metres long), one of which is under construction. One cruising/sailing ship 162.2 metres long is also under construction. It will have five masts and 6,400 m2 of sail area, making it the largest sailing ship in the world. The first of a series of five patrol boats for the Ministry of Defence of the Republic of Croatia (MORH) is also under construction. These are 43.5 metres long with an 8 metres beam. The project-technical documentation for four ships for transport 165 metres long and a beam of 26.5 metres containers (1,500 TEU each) is in the drafting phase. Mini-cruisers, the construction of a steel hull and superstructure of a sailing ship with two masts (46 metres long and 9.2 metres beam) are in its realisation phase.

SINCE THE TAKEOVER OF BRODOSPLIT, DIV HAS INVESTED OVER €0.1 BILLION IN RESTRUCTURING In addition to the construction of vessels, Brodosplit has also developed a strong nonshipbuilding theme, with over 30,000 tonnes of contracted steel constructions. The most signiﬁcant contract is the Mose-Venice project, where 41 steel doors for the Malamocco and Chioggia inlets are under construction. These mega-blocks are being built for an Italian customer, Fincantieri. The ﬁrst of the two huge portal lifts for container transfer, the Boxer 6000 type, is also under construction. These lifts were contracted by a German company, Kocks Krane. The diesel-engine factory is constructing its second of two, equivalent electronic twocycle low speed diesel engines of the newer generation for Brodotrogir. One of them has already been delivered. Brodosplit is also con-

CROATIAN BUSINESS & FINANCE MONTHLY

By signing a buy-sell contract with the Government and DIV-Brodogradnja, the shipyard from Split avoided bankruptcy and certain liquidation. In over two years, since DIV took over Brodosplit, the company contribution to the restructuring process after privatisation totals over â&#x201A;Ź0.1 billion. For those less informed, the personal contribution serves to strengthen company business in difficult times and is part of overall restructuring costs. â&#x20AC;&#x153;After 40% of the possible implementation period, we managed to perform considerable operations leading to long-term sustainability. The acquisition of Brodosplit and the planned restructuring, created DIV preconditions for sustainable business without state subsidies. In other words,

UNEQUAL STATE TREATMENT The restructuring is going according to plan.

Value of delivered vessels 1.200.000.000 1.000.000.000 800.000.000 600.000.000 400.000.000 200.000.000

2015.

2013.

2014.

2012.

2011.

2010.

2009.

2007.

2008.

2006.

2005.

2004.

2003.

2002.

2001.

1999.

2000.

1998.

1997.

1996.

1995.

1993.

1994.

1992.

1991.

1990.

1989.

1988.

Source: Hrvatska brodogradnja - Jadranbrod d.o.o.

structing a sheet and repairing a bearing ring of the furnace for the Cemex concrete factory. This would mean that Brodosplit has 17 contracted ships and a series of non-shipbuilding projects. It employs 2,352 workers and its entire work programme has a positive end calculation, according to Debeljak. The company is fully employed for this year and the following two. Some orders even date until 2018. Currently, Brodosplit is participating in several international tenders and direct negotiations, from which Debeljak anticipates new contracts.

3. maj shipyard operates satisfactorily, so the owner Uljanik Group initiated the finalisation process of the restructuring programme before the scheduled deadline

No 250 | September 2015 | PVinternational | 5

CROATIAN SHIPYARDS

Uljanik is specific, since the vessels here are built from ground zero upwards. This means the project can be modified according to the requirements of the ship owners during the construction process, which is not the case in most shipyards

not a single recently contracted piece of work made a loss, which is the main determinant of restructuring. As before, the business is showing a constant growth trend in total volume and exports. We are satisﬁed with what we have achieved and this is evident from our ﬁnancial reports”, Debeljak explains. When comparing business activities and restructur-

ing with other Croatian shipyards, Debeljak says that Brodosplit introduced to all daughter companies and all employees the restructuring process prior to privatisation. On the other hand, the companies 3. maj TIBO and 3. maj MID were extracted from the 3. maj shipyard, bought by Uljanik, but also certain other shipyards whose debts were taken over by the

TOMISLAV DEBELJAK:

LACK OF SKILLED WORKERS PERSISTS The Board President of Brodosplit Tomislav Debeljak, highlights that despite the level of registered unemployment, the shipyard is constantly aggravated by a lack of a skilled work force. Unfortunately, the available structure does not correspond to our needs. Hence why we applied for licenses for foreign workers on many occasions, as we are unable to ﬁnd local workers, Tomislav Debeljak says. According to Debeljak, the main goal of the Board is to position Brodosplit on the market to build more complex ves-

6 | PVinternational | November 2015 | No 252

sels and constructions at the same time implementing changes in all business processes in order to increase productivity and performance efficiency. Brodosplit contracts for work they are able to execute with all their resources, and naturally, with a positive ﬁnancial outcome, which is a precondition for the survival of any business. The number of vessels is not important in order to have a proﬁtable business. What is important is selling them at a price exceeding their cost. In addition to price, it is important to reach the level of pro-

ductivity where deadlines are met and capacity use is optimised. It is desirable to build large vessels, but more important than the price is the relation of price, deadline and available technology. Brodosplit can survive by building vessels of various sizes, and should not suffer from ‘size complex’, but take success into account, Debeljak says.

CROATIAN BUSINESS & FINANCE MONTHLY state. Some of them Uljanik sells today, with debts written off which it does not add to total restructuring costs as in the case of Brodosplit, Debeljak adds.

VIKTOR LENAC: RECORD YEAR Viktor Lenac shipyard was privatised after the bankruptcy procedure and operates solely under market conditions. This shipyard, specialising in overhaul, modiﬁcation and offshore activities, is not in the restructuring process. According to Board President Robert Škiﬁć Viktor Lenac, as an overhaul shipyard, does not have an order book unlike shipyards, for new constructions. Overhaul works, the highest proportion of company revenue, is work under short-term contracts and execution deadlines. “Currently, our capacity is full until

IN TERMS OF MODIFICATIONS AND LARGE OVERHAUL WORK, SUCH AS THE OVERHAUL OF THE COMMAND SHIP OF THE 6TH AMERICAN FLEET, USS MOUNT WHITNEY, ŠKIFIĆ SEES THE FUTURE POSITIONING OF VIKTOR LENAC the end of this year in terms of contracted and announced work. Viktor Lenac implemented the majority of its restructuring after exiting bankruptcy procedures, even though this process is still ongoing due to the necessary organisational changes, adaptation to market conditions and competition. We are doing all of this for the purpose of increasing efficiency and competitiveness, Škifić explains. Viktor Lenac currently employs 489 workers. Škifić says he is satisfied with this year’s results. “I am not only satisfied with the profit we anticipate, but also with the revenue that will exceed €60 million by the end of the year our highest revenue ever achieved in one year, Škifić says. According to the senior person of Viktor Lenac, the shipyard has positioned itself on the market as one of the leading overhaul shipyards in the Mediterranean, an area that is the

main source of revenue for Viktor Lenac. “Our advantage in relation to other shipyards is the ability to perform large conversion projects, where our main competition does not include the shipyards in the Mediterranean, but those from western European countries. We proved this with our modification of the Cable Enterprise barge for an Italian customer Prysmian. Owner and technical management V. Delta describes this modification as one of its most successful projects. It is precisely in this segment of modification and large overhaul work, such as the overhaul of the Command ship of the 6th American fleet, USS Mount Whitney, guaranteeing long-term stability and filling our capacity, that we see the future positioning of Viktor Lenac on the world shipbuilding market, Škifić explains.

BRODOTROGIR: POSITIVE FINANCIAL RESULTS In 2014, Brodotrogir earned €0.9 million in after-tax proﬁt. Total revenue was around €44.7 million, 60% up in relation to 2013. Since the start of privatisation to date, Brodotrogir’s have assets increased 2.7 times. Brodotrogir currently employs around 980 staff. The number of employed exceeds the requirements stipulated in the Privatisation Act. Around 480 workers left Brodotrogir, but around 270 new staff were employed, reducing the average age by ten years. 21/2 years have passed since the start of privatisation, as well as the restructuring process. “When we compare the planned restructuring dynamics, which entailed every restructuring aspect and investment with a realised dynamic, we can conclude we are running six months late. This delay is due solely to objective reasons which no-one from Brodotrogir or the ownership could have prevented. Despite everything, we should be satisﬁed since many things have already been done by Brodotrogir and the City of Trogir. All planned activities and business is undertaken, despite the difficulties”, points out Mateo Tramontana,

Board Member of Brodotrogir. Brodotrogir has recently delivered a chemical tanker, that was built for a personal maritime company Trogir Maritime, and an-

other is being built that should be completed next year. New constructions specialise in shipping chemical and oil products, a capacity of 49,500 tonnes, 184 metres long and 32.2 metres beam. Brodotrogir plans to build between three and six offshore vessels. These will supply the huge pipe-layers with pipes, intended for building pipelines, oil pipelines and wind turbine towers. Furthermore, the ships are designed for

We wish to preserve our position on our present market, but we are also entering new niches of highly sophisticated vessels using our ﬂexibility, know-how and help from our partners and new business models Mateo Tramontana, Board Member of Brodotrogir

I am not only satisﬁed with the proﬁt we anticipate, but also with the revenue that will exceed €60 million by the end of the year, our highest revenue ever achieved in one year Robert Škifić, Board President of Viktor Lenac

No 252 | November 2015 | PVinternational | 7

CROATIAN SHIPYARDS OVERVIEW OF GLOBAL AND EUROPEAN ORDER BOOKS World – August 2015 Country 1.

China

transporting other special cargoes. “We will not venture into this project alone, since we have a Dutch partner in one of the segments. The value of these ships is approximately equal to one of the chemical tankers, but they are much shorter and contain more sophisticated equipment. What is important is that this type of vessel has no competition on the market since it is built especially for this purpose, Tramontana says.

TWO DOCKS AND A NEW TRAVEL LIFT Concerning other activities, a smaller dock was commissioned in February, which Brodotrogir bought in Kraljevica and refurbished it completely. This dock, specialising in maintenance and the overhaul of yachts weighing up to 800 tonnes, was completely full from February to June. “Meanwhile, our old dock license for use expired at the end of June, so we replaced it with a younger dock from Kraljevica”, Tramontana says. “After replacing the dock, we were able to continue working on the overhaul of vessels weighing up to 85,000 tonnes. Thus, we returned to our old activities: the overhaul of heavy ships. Next season both docks will be in use for the ﬁrst time, and we anticipate better results and higher revenue. We have more news. We 8 | PVinternational | November 2015 | No 252

will receive a travel lift at the end of November, which will allow us to lift ships weighing up to 600 tonnes. This will include tourist boats, yachts and smaller commercial ships sailing the Adriatic”, Tramontana highlights. The future of

122.382.451

43,64%

83.175.301

29,66%

3. Japan

53.645.341

19,13%

4. Philippines

8.660.692

3,09%

3.122.635

1,11%

6. Brazil

2.360.549

0,84%

2.153.902

0,77%

8. Taiwan

1.603.754

0,57%

9. USA

1.066.270

0,38%

10. CROATIA

528.310

0,19%

11. Iran

277.810

0,10%

12. Turkey

228.424

0,08%

13. Russia

211.091

0,08%

14. Bangladesh

203.592

0,07%

15. The Netherlands

192.060

0,07%

16. Indonesia

108.710

0,04%

17. India

107.030

0,04%

18. Argentina

98.400

0,04%

19. Germany

95.480

0,03%

20. Italy

49.600

0,02%

138.090

0,05%

Vietnam

21. Rest of the world Total Europe

NETT ASSETS OF BRODOTROGIR HAVE INCREASED 2.7 TIMES SINCE THE START OF THE PRIVATISATION Brodotrogir lies in full implementation of the restructuring programme as stipulated by the Privatisation Act. “We wish to preserve our position on our present market, but we are also entering niches of highly sophisticated ships using our flexibility, know-how and with help from our partners and new business models”. Brodotrogir has partly built its own marina. The first phase is finished, and the second is in progress.

2. South Korea

5. Romania

Brodotrogir has partly built its own marina. The first phase is finished

dwt

280.409.492 100,00% 4.52 9.420

1,62%

Europe – August 2015 ZEMLJA

dwt

Romania

3.122.635

68,94%

CROATIA

528.310

11,66%

Turkey

228.424

5,04%

4. Russia

211.091

4,66%

192.600

4,25%

6. Germany

The Netherlands

95.480

2,11%

49.600

1,10%

8. Poland

Italy

33.685

0,74%

9. Serbia

32.340

0,71%

10. Ukraine

28.955

0,64%

11. The Czech Republic

4.550

0,10%

12. Greece

1.750

0,04%

0,00%

16. Rest of Europe Total

4.529.420 100,00%

Source: Hrvatska brodogradnja - Jadranbrod d.o.o.

INTERVIEW SINIŠA OSTOJIĆ, General Manager, Hrvatska brodogradnja-Jadranbrod

OUR SHIPBUILDING INDUSTRY IS EXTREMELY IMPORTANT AT A EUROPEAN LEVEL

Croatian shipyards are oriented towards building smaller vessels for special purposes and higher added-value. As well as the already familiar orientation towards building tailor-made vessels and the recognised construction quality, Croatian shipyards could also have an entrée in to the demanding world market by Jozo Vrdoljak vrdoljak@privredni.hr

rvatska brodogradnja d.o.o. was established by a Government decision in 1994, as a corporate body co-ordinating the presence of the local shipbuilding industry on the international market. Three years later, Hrvatska brodogradnja d.o.o merged with Jadranbrod – Croatian Shipbuilding Industry Association

that has connected shipyards and Croatian producers of shipping equipment for the past 50 years, with a central office of Hrvatska brodogradnja - Jadranbrod in Zagreb. The company is primarily a supervising and reference body for the Croatian Government, and the European Commission, during the ongoing restructuring and privatisation process

of large Croatian shipyards. Privredni vjesnik spoke with the company General Manager, Siniša Ostojić, on the condition of the global shipbuilding market, the position of shipyards and the actual state of the shipyards’ restructuring process.

 How would you compare the situation in the Croatian shipbuilding No 252 | November 2015 | PVinternational | 9

INTERVIEW industry today with the past period, specifically concerning the delivery of ships? In terms of the deliveries shipped from the Croatian shipyards the best period was between 2007 and 2011, known as the boom period of the global shipbuilding market that preceded the actual privatisation and restructuring process of large Croatian shipyards. 2013 was the worst and it coincided with the signing of privatisation contracts and the beginning of the restructuring process. Indices from 2014 and 2015 point to a recovery, that is, a gradual return to former levels. Of course, under new business conditions. SHIPBUILDING INDUSTRY

2% - 5% share in total number employed in the industry around 1.2% share of Croatian GDP during the past 10 years around 12% share of total Croatian exports 60 - 65% share of local component in each ship produced around 2.7 – the multiplier factor

 What is the situation with the implementation of the restructuring programme of Croatian shipyards? Is everything going according to plan? Contracted deals form the basis of all restructuring programmes. Full order books show that solid foundations have been built for meeting the contractual conditions, that is, the implementation of the approved restructuring programmes. The European Commission has been informed about every important restructuring process and its progress through half-year reports on the implementation of the restructuring programme. The ﬁnal goal of all shipyards is to achieve sustainable business based on market principles. This is a demanding task under the existing conditions of the

FOR EACH DOLLAR EARNED BY THE SHIPYARDS, CONSUMPTION ON THE LOCAL MARKET INCREASES 2.7 TIMES global shipbuilding market. The new owners of shipyards and their management are responsible for turning them into shipyards capable of surviving on the global market.

 How significant is the shipbuilding to the Croatian economy? The Croatian shipbuilding industry is extremely important for the economy. On one hand, this is an extensive industry in terms of work, and on the other, it is an important numerical indicator of the overall Croatian economy. Therefore, the shipbuilding industry, depend10 | PVinternational | November 2015 | No 252

Siniša Ostojić, General Manager, Hrvatska brodogradnja-Jadranbrod

ing on the year observed, holds a 2%-5% share in the total number employed in industry. It has had an average share of approximately 1.2% of Croatian GDP during the past decade, and around a 12% share of total Croatian exports. The current local component in each ship produced totals 60-65%. The multiplying factor is about around 2.7, which means that for each $1 earned by the shipyards, spending in the local economy increases 2.7 times. The importance of the shipbuilding industry is even greater for the local community.

 What are the trends of the global shipbuilding market? The global shipbuilding market has a complex structure. Even though it is correctly structured at certain times, it is extremely subjective to various unpredictable influences. Therefore, we have a fresh example of low oil prices on the world market throughout 2015, which directly affects the market for building tankers and offshore ships. On one side, the low oil prices do not bring much optimism for oil and oil derivative producers, which is why investment in new sites are quite limited. This situation has a direct influence on decreasing the number of contracted construction works for offshore vessels, and a drastic influence on decreasing freight rates. The quantity of contracted tankers also reduced, and freight rates decreased. It was difficult to predict such a situation a year or two ago, while today it forms a

SHIPYARDS THE FOCUS OF ATTENTION

part of everyday life in shipping and the shipbuilding industry.

 What are the market trends for the building of container ships? There is a distinct trend of building big container ships on the market. Their capacity ranges

THE FINAL GOAL IS TO ACHIEVE SUSTAINABLE BUSINESS. THE NEW OWNERS OF SHIPYARDS AND THEIR MANAGEMENT ARE RESPONSIBLE FOR TURNING THEM INTO SHIPYARDS CAPABLE OF SURVIVING ON THE GLOBAL MARKET between 14,000 TEU and 21,000 TEU, mainly longer series of up to 10 ships. These giants are mostly built in South Korean, Japanese and Chinese shipyards, whilst other shipbuilding countries do not build vessels of this size. These ships have the capacity of 21,000 TEU, meaning they can carry 21,000 containers of 20 feet (six metres), and they are 400 metres long and around 60 metres wide. This corresponds to the size of four football ﬁelds. They are driven by 90,000 horsepower engines. The market price of these boats is around $US155 million. Unfortunately, Croatian shipyards are not equipped for building such vessels since they exceed the technical capacities of our yards.

 How do our shipyards cope with this situation? As we said before, Croatian shipyards are oriented towards constructing smaller vessels for special purposes with higher added-value. As well as the already familiar orientation towards building tailor-made units and the recognised quality of construction, Croatian shipyards could also have an entree into the demanding world market in this segment. It is clear that the construction of standard vessels, such as tankers and bulk cargo vessels, should not be the present main focus of Croatian shipyards since they can hardly compete with the shipyards of the Far East. The order books clearly show the European shipbuilding industry is not as powerful as it once was, but a glimpse at the European order book brings optimism since the Croatian shipbuilding industry is extremely important at a European level.

Brodarski institut needs to be restructured

rodarski institut from Zagreb will have to be restructured to offer shipyards those services they need most, Economy Minister Ivan Vrdoljak pointed out during the discussion on the state of shipbuilding, organised by the newspaper Jutarnji list in October. This topic was also discussed during the same week at the international fair of maritime equipment Pula Boar Fair held in Pula. During this discussion, Minister Vrdoljak reminded that the Government has recently helped Brodarski institut to overcome its difficulties. For years, the institute has been developing ship prototypes, testing materials and vessel properties. However, it seems it has become obsolete. If it cannot adapt, it will perish, the Minister said. Tomislav Debeljak from Brodosplit says he would be delighted to use their services, but they recently had to refer to a similar institute in Poland, since the expertise required from the Brodarski institut was four months overdue.

IF IT DOES NOT ADAPT, THE INSTITUTE WILL PERISH, SUGGESTS THE MINISTER In addition to large shipbuilders, representatives of small and medium sized companies also met in Pula. Gordana Deranja, Board President of Tehnomont from Pula, illustrated the difficulties in obtaining ﬁnance, as a result of which the Croatian shipbuilding industry cannot keep up with foreign competition. All shipyards suffer from the lack of a qualiﬁed workforce. Regardless of their education, new workers required too much time to enter the full working process. Therefore, some shipyards started offering scholarships for students to which they will reveal the secrets of the shipbuilding trade during their studies. (I.V.) No 252 | November 2015 | PVinternational | 11

EVENT TRADITIONALLY GREAT SUCCESS OF CCE PROMOTION

BUY CROATIAN SHOULD BECOME A LIFESTYLE Many tourists and Zagreb locals used the opportunity to buy products from 250 Croatian producers at discount prices Authors: Ilijana Grgić, Krešimir Sočković

T I invite you to feel patriotic every time you go shopping and pay your respect to the true heroes of today – our producers.

CCE President Luka Burilović

he promotion Buy Croatian (Kupujmo Hrvatsko), organised by the Croatian Chamber of Economy, created a real ‘šušur’ on the Zagreb’s central square, and this Dalmatian word perfectly describes this event since it means something lively, cheerful and positive. Many tourists and Zagreb locals used the opportunity to buy products from 250 Croatian producers at reduced prices. It can be said that this year Buy Croatian matured, since it has been taking place for the past 18 years. A new concept was presented based on which the Croatian economy was presented through individual regions. Companies, artisans and family-owned farms, associations and co-operatives exhibited their products in an area divided into four units, but which encompassed central Croatia, Slavonia, Dalmatia, Istria and Kvarner. On the other hand, leading producers, including 45 large companies (Podravka, Vindija, Dukat, Kraš, Franck, Zvijezda, Borovo), were presented in the centre of the square as a special unit. The main concept turned out to be a huge success – the awareness of producing and purchasing local products was raised. “By buying Croatian products, we are preserving jobs, creating new vacancies, preventing the young from leaving the country and protecting the Croatian economy. Therefore, I invite you to feel patriotic every time you go shopping and pay your respect to the true heroes of today – our producers”, CCE President, Luka Burilović, proposed. He also added this promotion should become a lifestyle we should live 365 days of the year. The Mayor of Zagreb, Milan Bandić, expressed his support for this promotion. After visiting the

12 | PVinternational | November 2015 | No 22

stalls, the President of Croatia, Kolinda GrabarKitarović, said this was a praiseworthy exhibition of Croatian products competitive both on European and global markets.

NEW JOBS “We are all obliged to work on promoting and marketing our products throughout the world and create niches for quality Croatian products, since this is a way of creating new jobs and boosting the economy”, President Kolinda Grabar-Kitarović highlighted. She also hopes that after the opening of the CCE representative office in Shanghai, the vast Chinese market will gradually open to Croatian products. The Croatian Chamber of Economy started the national campaign Buy Croatian in 1997 and it promotes all Croatian quality products, and over 2,000 of those products were presented on the central city square. The company that decided this promotion would be an ideal place to show their new models is Borovo. They presented their seasonal production of ﬁve new models. “We try to participate in every CCE programme, especially those that raise the awa-

CROATIAN BUSINESS & FINANCE MONTHLY

reness of the importance of buying original Croatian products, since after all we are the largest Croatian producer of footwear with an 80-year tradition, said the Head of the Marketing and Market Research at Borovo Martina Tomljenović. The promotion Buy Croatian is also important for the textile industry, and one of the companies that presented their products to the public was Čateks from Čakovec.

OVER 2,000 LOCAL PRODUCTS PRESENTED AND OFFERED ON THE CENTRAL SQUARE ZAGREB “We have been participating in this programme for many years since it is a kind of promotion for us. Čateks is the oldest Croatian textile company and we want to communicate to the public. Our company is known not only in Croatia, but also globally. We sell our textiles and special textiles for homes not only on the local market, but also on foreign markets,

said Head of Sales in Čateks Gordana Nedeljko, who pointed out they are proud of having survived so much turbulence so far. As she says, now they can bravely march ahead. Products from Ivanićplast from Ivanić-Grad attracted great interest. This company found its place on the market by producing toilet seats, and it is the leading company in the south-eastern part of Europe in this area. This is positive, even though we do not expect much in terms of sales at this type of show. However, it is important we are present. Moreover, we have participated in every Buy Croatian show so far, said Head of Procurement and Retail in Ivanićplast Šteﬁca Bedeković.

We are all obliged to work on promoting and marketing our products globally and create niches for quality Croatian products since this is way to support the opening of new jobs and boost the economy.

FAMILY FARMS This promotion is especially important to food producers. As well as large-sized food companies, several family farms also presented products. Ana Delić from Županja presented her cured meat products; their specialties are local Slavonian products, and everything is produced from pork. This type of promotion is valuable and it should be organised more often, pointed out the owner of the family farm Ana Delić. The promotion is becoming more focused on the youngest, so a competition of literary and artistic works of high school and elementary school children was organised, inspired by the theme Buy Croatian.

President Kolinda Grabar-Kitarović

13 | PVinternational | November 2015 | No 22

NEWS

TOURISM

NUMBER OF FULL-TIME EMPLOYEES INCREASING

VITICULTURE AND WINE PRODUCTION IN CROATIA

During the first nine months of 2015, Croatia saw 1,188 people employed in tourism on a full time basis, up 34.9% compared with the same period in 2014. According to data provided by the Croatian Institute for Health Insurance, during the first nine months of 2015, there were 36,796 newly employed people in tourism, down 0.2% in relation to last year. The most in-demand occupations in tourism during the first six months of 2015 were waiter, chef and assistant chef.

THE FIRST WINE TA EVENT AT NATIONA LEVEL

MORE TOURISTS IN ZAGREB

119,180 tourist arrivals were recorded in Zagreb in September, a 10% increase compared with the same month last year. 200,601 overnight stays were recorded for a 13% increase. Americans were the most numerous tourists in September, followed by those from South Korea, Germany, Spain and Great Britain. During the ﬁrst nine months of 2015, Zagreb saw a total of 792,423 tourist arrivals, 13% up year-on-year. Moreover, 1.36 million overnight stays were registered, an increase of 13%.

From 24th to 26th November, 2015 the Croatian Chamber of Economy is organising the First national wine tasting event entitled “Vina Croatia”. The aim is to select the best Croatian wines for further promotion at international fairs and wine competitions Sanja Plješa

roatia has a long tradition of viticulture and wine-production. Over many decades has been evolving and, in order to further promote the profession of wine producers, four years ago Croatian wine makers decided to establish an umbrella Wine Makers Association within the Croatian Chamber of Economy. They began working on the creation of a unique strategy and brand of Croatian wines entitled Vina

National programme for the wine sector “As opposed to last year, this year’s grape harvest has shown excellent yields and we can anticipate high quality wines”, stressed Božica Marković, Director of Sector for Agriculture, Food Industry and Forestry at the Croatian Chamber of Economy. She added that the preparation of a new ordinance for wine labelling was under way, and it would be passed at the Winemakers Association session and Management Board session at the Croatian Chamber of Economy. Božica Marković pointed out the fact that the national programme for the wine sector is about to undergo considerable changes, with a special focus on the promotion of Croatian wines at a global level, as well as on the health effects of wine, provided it is consumed in moderate amounts.

14 | PVinternational | November 2015 | No 22

Croatia – Vina Mosaica. Against the backdrop of this brand strategy, the Association divided Croatia into four wine regions for marketing purposes: Slavonia and Podunavlje, the Croatian Uplands, Istria & Kvarner region and Dalmatia. As a consequence, there are also four regional wine associations: Graševina Croatica, Vinistra and Vino Dalmatiae, Association of Dalmatian Winemakers, although the Croatian Uplands Association is currently being established. Since last year, the Wine Makers Association at the Croatian Chamber of Economy has been a member of the European Wine Association Comité Européen des Enterprises Vins (CEEV) that represents European wine producers and wine trading.

WINES RATED IN EIGHT CATEGORIES The Wine Makers Association is organising the ﬁrst national wine tasting event entitled “Vina Croatia” from 24th to 26th November, 2015. The results of the review will be presented at the 10th VINOcom- International Festival of Wine and Culinary Art on 27th November. “The competition is organised to provide an opportunity to select the best Croatian wines for participation at International Wine Fairs. They will be used as representative wines to be sent to international wine competitions. Only those wines produced by Croatian wineries will participate in the ﬁrst Croatian wine tasting event, and they will be rated in eight categories using the classical method and in accordance with international rules. The professional adjudication panel will

KOPAČKI RIT NATURE PARK

ASTING AL

White water lily walkway The wooden walkway has been constructed from oak and locust wood, in addition to several hundred cubic meters of solid oak

S be made up of local and international oenologists and sommeliers from neighbouring countries, as well as from Germany and England”, stated Igor Barbarić, Secretary of the Wine Makers Association. He added that the Association is subsequently planning to develop a brochure with recommendations on the best-rated wines providing information on where to purchase them.

ince this year, the Kopački rit Nature Park has been enriched with an additional appealing feature. The idea was to follow the example of a well-known 8 kilometres long Turkish bridge that used to extend between Osijek and Darda, built in only 15 days by 25,000 soldiers of the Sultan Suleiman the Magniﬁcent in the 16th century, and to construct a similar 2,550 metres long walkway in Kopački rit Nature Park. The white water lily walkway extends through this unique swamp area and its meandering paths connect the Park Reception Centre and the port. The wooden part of the walkway has been constructed from oak and locust tree, in addition to several hundred cubic meters of solid oak. The construction was ﬁnanced by the Ministry of Environmental Protection and the Ministry of Tourism, as well as the Environmental Protection Fund. (S.S.)

POSITIVE HOPES AN IMPERATIVE Speaking about the ﬁrst wine rating event at national level, Gianfranco Kozlović, President of Wine Makers Association, pointed out that one has to have positive expectations concerning

WINE WILL BE RATED IN EIGHT CATEGORIES USING THE CLASSICAL METHOD IN ACCORDANCE WITH INTERNATIONAL STANDARDS the wine rating event. He stressed that Croatian wines are currently not adequately branded and thus are not treated with due consideration. “We will do our best to change the negative perception of Croatian wines. We have long tradition and our participation at international wine fairs will signiﬁcantly contribute to the recognition of domestic wines. It is fundamental for Croatian winemakers to improve their position in relation to international winemakers”, concluded Kozlović.

A new walkway constructed following the example of the 8-kilometer long Turkish bridge between Osijek and Darda built by soldiers of Suleiman the Magnificent 15 | PVinternational | November 2015 | No 22

CROATIAN TOURISM DAYS

AWARD WINNERS presented at Croatian Tourism Days THE MOST SUCCESSFUL RURAL TOURISM DESTINATION

CROATIA 365

TOURISM EVENT OF THE YEAR [1] SPLIT RIVIERA

[1] ULTRA EUROPE

[1] ETHNO VILLAGE

[2] OPATIJA AND

FESTIVAL

KARANAC

RIJEKA

[2] ADVENT IN

[2] KONAVLE

[3] NORTH-WEST

ZAGREB

[3] GUPČEV KRAJ

ISTRIAN CLUSTER

[3] ŠPANCIRFEST STREET FESTIVAL IN VARAŽDIN

THE MOST SUCCESSFUL HEALTH TOURISM DESTINATION

SUSTAINABLE TOURISM [1] BLUE WORLD

[1] OPATIJA [2] MALI LOŠINJ [3] KRAPINSKE TOPLICE

– INSTITUTE

[1] AQUAPARK

OF MARINE

ISTRALANDIA

RESEARCH AND

[2] THERMAL

CONSERVATION

BATHS TUHELJ

[2] ST MARTIN THERMAL BATHS

THE MOST SUCCESSFUL CITY BREAK DESTINATION [1] SPLIT [2] ZAGREB

RECREATION AND ENTERTAINMENT

[3] SIGNIFICANT LANDSCAPE GAJNA

[3] ADVENTURE PARK CADMOS VILLAGE

BEACH OF THE YEAR [1] BEACH CAVA,

INNOVATION OF THE YEAR

[3] DUBROVNIK

[1] MOBILE

DUBROVNIK

APPLICATION

[2] LIDO, OPATIJA

“ZAGREB BE

[3] BEACH NIKOLINA, BAŠKA VODA

THERE”

AUTHENTIC COASTAL DESTINATION “SMALL COASTAL TOWN” [1] BOL [2] RAB

[2] MOBILE APPLICATION “ZADAR TRAVEL”

EDEN [1] GORNJE

[3] “FALL IN LOVE WITH

MEĐIMURJE

CRIKVENICA”

[3] FAŽANA

CULTURAL ATTRACTION OF THE YEAR [1] MUSEUM OF

THE MOST SUCCESSFUL SUMMER HOLIDAY DESTINATION

ANTIQUE GLASS IN ZADAR

[1] ROVINJ

[2] HOTEL

[2] POREČ

ADRIATIC, ROVINJ

[3] DUBROVNIK

[3] KRAPINA NEANDERTHAL MUSEUM

16 | PVinternationa PVinternational al | November Nov vemb e er 201 2015 15 | No 22 2

CROATIAN TOURISM AWARD 2014 LIFETIME ACHIEVEMENT AWARD OMBRETTA BELIĆ ILIJAŠIĆ AMELIA TOMAŠEVIĆ ANTON ŠTIFANIĆ ZA 2014. GODINU – KATEGORIJA POJEDINAC ALEKSANDAR DURMAN FRANJO MAKOVEC JASNA ĐURKOVIĆ

CROATIAN BUSINESS & FINANCE MONTHLY TOURISM FORUM

A SUCCESSFUL SEASON AND SUBSTANTIAL INVESTMENT Investment of €650 million is expected during the forthcoming period, and is intended to upgrade the quality of accommodation facilities, as well as the promotion of tourism products, pointed out Branko Grčić, Vice-President of the Croatian government

roatian Tourism Days, a traditional convention of hospitality workers, has recently been held for the 19th consecutive time, organised by the Croatian Chamber of Economy, the Croatian National Tourist Board and the Ministry of Tourism. The convention included also a traditional Croatian Tourism Forum which this year addressed the issue of “Sharing economy- New Millennium Tourism”, as well as presentations by Google Croatia “The impact of the Internet on tourism” and destination branding – “Croatia –

AN ADDITIONAL €7 BILLION INVESTMENT IN TOURISM INDUSTRY EXPECTED BY 2020 full of life” that presented a new concept of umbrella communication and a new Croatian Tourist Board campaign. Moreover, the traditional meeting between hospitality workers with representatives of the Croatian government was held during the convention. Finally, awards were presented to individuals, tourism industry representatives and best destinations. A new award programme of 28 awards in 7 categories: Destination of the Year, Croatia 365, Sustainable Tourism Award, Innovation of the Year, Visitor Attraction of the Year, Corporate Sector Award and Best Hospitality Employee

Award. The categories have been developed in line with the current Tourism Development Strategy and the Strategic Marketing Plan of Croatian Tourism. A new award programme is intended also as a tool for the monitoring, control and enhancement of quality and effectiveness of all aspects of tourism. The Croatian Tourist Board also presented its Tourism Flower – Quality for Croatia Awards in the corporate sector, although this year the category has been extended. In addition to existing awards for hotels, camp sites and marinas, awards for Destination Management Company have been intro-

duced, as well as for best hostels, private accommodation, charter companies, restaurants and rural tourism.

MEETING BETWEEN GOVERNMENT REPRESENTATIVES AND HOSPITALITY WORKERS In addition to showing excellent results, this year’s tourist season was also successful concerning investment. An additional €7 billion investment in the tourism industry is expected by 2020, and is intended to enhance the quality of accommodation facilities, as well as for the promotion of tourism products in 17 | PVinternational | November 2015 | No 22

CROATIAN TOURISM DAYS diverse destinations, highlighted Darko Lorencin, Minister of Tourism, during the traditional meeting between hospitality workers and government representatives held within Croatian Tourism Days convention in Poreč. Branko Grčić, Vice-President of the government, emphasised the fact that tourism is the “crème de la crème” of the Croatian economy, due to its substantial share in GDP and its positive balance of payments over the last two years. “Through pre-bankruptcy settlement agreements we have managed to ﬁnd partners for a dozen state-owned tourism companies that were struggling with debts for years, and now they are currently heading for a more promising future. Moreover, the importance of investment via the Croatian Bank for Reconstruction and Development has to be highlighted, as the

bank provides loans at affordable rates, a grace period and a long-term repayment period which is fundamental for a large number of projects”, stressed Grčić. He added that investment worth €650 million is expected during the forthcoming period intended for enhancement of the quality of accommodation facilities, as well as for promotion of tourism.

A PRIVATISATION BID FOR KUPARI Elaborating on further investment in tourism, Gordan Maras, Minister of Entrepreneurship and Crafts, pointed out the fact that on 14th October his Ministry invited a tourism tender worth €40 million available through EU Funding and such funds will be allocated when available. Moreover, diverse subsidies worth over €1 billion are intended for quality improvement and additional programmes

provided by hotels during the period between 2014 and 2020. “We are aiming for investment in order to boost revenues generated by these facilities”, noted Maras. Mladen Pejnović, Head of State Property Management Office, stressed that there are currently no state-owned tourism companies in Croatia that show an operating loss and a privatisation bid for Kupari has also recently been placed. During the last two years the Environmental Protection and Energy Efficiency Fund has invested €11.2 million in restoration of Nature Parks and National Parks and an additional €15.8 million has been allocated for the same purpose over the next two years, stated Sven Mueller, Director of the Fund, adding that a tourism energy efficiency project is also about to be implemented. (S.P.)

INTERNATIONAL PANEL - PRIVATE ACCOMMODATION AND TRENDS IN TOURISM

PRIVATE ACCOMMODATION – THE ORIGIN OF HOSPITALITY AND TOURISM

he Private Accommodation Forum within Croatian Tourism Days held in Poreč also included an international panel covering private accommodation and trends in tourism, with the participation of a large number of individuals including Pantazis Pastras, a Greek consultant for private accommodation. He pointed out the fact that last year Greece made a rapid recovery in tourism and was visited by 22 million tourists. Nevertheless, there is currently no unique Association in Greece that would bring together private accommodation service providers who are constantly faced with a vast army of problems. For example, the owner of a private accommodation facility cannot rent it for a period of less than 30 days, unless they have a special licence. On the other hand, there are those who cannot afford the maintenance of their facilities and therefore cannot rent them. Hence, 18 | PVinternational | November 2015 | No 22

the issue of the future of such facilities needs to be addressed. Nedo Pinezić, President of Private Accommodation at the Croatian Chamber of Economy, believes Croatia has adopted a better model of organised tourist accommodation compared with Greece, pointing out that private accommodation was the birth of Croatian tourism. Boris Žgomba, President of the Association of Croatian Travel Agencies, shares his opinion and believes that co-operation between Croatian travel agencies and tour operators with private accommodation providers is fundamental. Furthermore, networking among private accommodation providers and co-operation with producers and tourism service providers is vital. Destination products can be improved primarily through co-operation between public and private sectors, as well as among all stakeholders in tourism and

the state, as emphasised during the panel discussion. On the other hand, representatives from Bosnia and Herzegovina highlighted the fact that tourism programmes in their country currently still lag considerably behind those provided in Croatia, although there are positive advances. Međugorje provides the largest number of beds in private accommodation, whilst Mostar boasts a higher diversity of hotel services and programmes. (S.P.)

CROATIAN BUSINESS & FINANCE MONTHLY

CROATIAN CHAMBER OF ECONOMY Recently presented the Tourism Flower – Quality for Croatia awards to the Business sector BUSINESS HOTEL OF THE YEAR

ESPLANADE ZAGREB HOTEL, ZAGREB

LUXURY HOTEL OF THE YEAR

THE TASTES OF CROATIA – CATERING FACILITY OF THE YEAR

HOTEL MONTE MULINI, ROVINJ MARINA OF THE YEAR

CONFERENCE HOTEL OF THE YEAR

GOURMET RESTORAN SAN ROCCO, BRTONIGLA PRIVATE ACCOMMODATION OF THE YEAR

D-MARIN DALMACIJA, BIBINJE – RADISSON BLU RESORT, SPLIT HOLIDAY HOTEL OF THE YEAR

SUKOŠAN HOSTEL OF THE YEAR

PRIVATE ACCOMMODATION VUGLEC BREG, ŠKARIĆEVO CAMPING SITE OF THE YEAR

HOTEL DUBROVNIK PALACE, DUBROVNIK

BOUTIQUE HOSTEL FORUM, ZADAR CHARTER COMPANY OF THE YEAR CAMP AT SEA

WELLNESS HOTEL OF THE YEAR

CAMP STRAŠKO, NOVALJA

ANGELINA TOURS, BIOGRAD N/M CASINO HOTEL MULINO, BUJE SMALL & FRIENDLY HOTEL OF THE YEAR

DESTINATION MANAGEMENT COMPANY OF THE YEAR CAMP ON THE CONTINENT

CAMP TURIST GRABOVAC, RAKOVICA

HOTEL WALDINGER, OSIJEK

GULLIVER TRAVEL, DUBROVNIK

19 1 9|P PVinternational Vinternationall | November Novemb mbe er 201 20 2015 5 | No 22

INTERVIEW FRANJO KOLETIĆ, owner, Mirnovec Pyrotechnics

MEMORABLE FIREWORKS It appears that the Mirnovec Group will be developing in two directions. One is pyrotechnics, a segment in which the company has become a regional market leader and in which we intend to maintain our leadership position. The other is the entertainment industry and tourism and in that area we are waiting to see the initial results of our projects, and will subsequently decide on when and the value of our investment, as well as the target by Sanja Plješa pljesa@privredni.hr

he Samobor-based company, Mirnovec Pyrotechnics, is well-known both in Croatia and the region, as well as internationally, for its organisation of splendid pyrotechnic shows and ﬁreworks. The owner, Franjo Koletić, was interested in inﬂammable substances from an early age: he was certain he would become involved in this aspect when he grew up. Nevertheless, the fact that Mirnovec Pyrotechnics is also involved in tourism is not so well-known among the general public

 You are the owner of one of the most well-known companies producing and distributing pyrotechnics. How did you start?

MIRNOVEC PYROTECHNICS...

ranks among the top 20 international companies involved in creating mega shows co-operates with over 50 companies globally owns 5 companies (and 500 retail outlets) performs over 400 fireworks shows annually

MIRNOVEC PYROTECHNICS EXPORTS OVER HALF ITS GOODS WITHIN THE REGION I was interested of pyrotechnics as a child. I have always improvised explosives and pyrotechnics with my friends – usually cans containing carbide or steel wool usually used for dishwashing. We would set the steel wool on fire and spin it on a rope and would get a magnificent effect of a spinning sun. Once, unfortunately I caused fire in my father’s barn of hay bales. Many years later, in 1995 a friend told

20 | PVinternational | November 2015 | No 252

me about an amendment to the law allowing private companies to distribute explosives in this region. The law referred to ‘entertainment pyrotechnics’ as a category. I became fully aware this was the activity I would be involved with. For ﬁrst two years, I worked and acquired additional knowledge in a German company Nico and two years later, I visited China. Then I founded the company Mirnovec Pyrotechnics that is currently co-operating with over 50 pyrotechnic companies globally.

 Are you satisfied with business results of your facility in China? Are you planning to open more, similar facilities there, or perhaps even in other countries? The situation in the pyrotechnics industry during the last fifteen years has changed considerably, primarily in China. The goods are not as affordable there as they used to be and labour costs have also greatly increased. Obstacles concerning pyrotechnics imposed on China by Europe have been on-going, and affecting the price of goods and transportation costs. This has been at the forefront of our activities recently. I cannot disclose details of this issue as this would imply a breach of confidentiality.  What were the business results achieved during the financial crisis and do you currently see any positive developments? Fortunately, we have not been overly affected by the economic crisis, at least concerning our business results. We have worked on several smaller-scale firework shows and retail analysis shows that spending at an individual level has decreased, although there is an increase

CROATIAN BUSINESS & FINANCE MONTHLY

We own five companies regionally and 500 retail outlets, and perform over 400 firework shows annually, says Franjo Koletić

in the number of individuals interested in our products, implying there is currently still room for growth. Nevertheless, Mirnovec Pyrotechnics has been exporting over half its goods to countries throughout the region and some companies in the region are our permanent and loyal customers. In Croatia, we are dominant in fireworks, yet we are also involved in mega pyro-musical and multimedia shows globally, primarily in Berlin, Montreal, on Malta, Macau, Rome, Korea, Neufeld, Muscat, Hannover, Vilnius, Kaliningrad, Courcheval, Szczecin, Salalah, Brno, Eisenach and Bucharest. In addition to large-scale firework shows, we are also involved in the creation of scenic and special effects on stage, as well as in the film industry, where competition is almost non-existent. Irrespective of the economic crisis, we have invested substantial resources in new equipment and corporate infrastructure.

 In addition to producing and distributing pyrotechnics substances, you are also involved in other activities. Could you tell us about it? In addition to pyrotechnics, we have been investing in tourism. Our Mirnovec Ethno farm, covering 4 hectares in Samobor, will be open from October. Moreover, the construction of the ﬁrst amusement park similar to ‘Gardaland’ is about to start in Biograd na Moru and will be implemented over several phases. The ﬁrst phase

will be the construction of an amusement park covering an area of 50,000 m2. We have the potential and the expertise to construct an amusement park and we are excellent at entertaining people, primarily the younger ones. Hence, the Croatian ‘Gardaland’ will include at least 30 most modern attractions, ranging from carousels to roller-coasters. In addition, we will create 70 new jobs.

 You recently participated in one of the largest Asian fireworks festivals in South Korea. What were your impressions? Considering the fact that we rank among

THE SITUATION IN THE PYROTECHNICS INDUSTRY OVER THE LAST FIFTEEN YEARS HAS CHANGED DRAMATICALLY, PRIMARILY IN CHINA the top 20 companies globally in organising mega shows and arouse immense interest and excitement among the audience wherever we perform, it is not

a problem for us to participate in prestigious festivals and competitions anywhere, as well as in tenders in which we usually create a winning bid. Hence, we select three or four ﬁreworks events on an annual basis that we attend, as we also have commitments on the domestic and regional markets. Regarding our participation at Pohang International Fireworks Festival in South Korea, we have left a memorable impression on the organisers and the audience and we have already received an invitation to participate at a festival to be held in Seoul in 2016. The organisers claim the festival was watched by several hundred thousand people who are fond of, and can appreciate, high quality ﬁreworks.

 What are your business plans for the future? We believe Mirnovec Group will be developing in two directions. One is pyrotechnics in which we have become a regional leader and in which we are striving to maintain our leadership position. We own ﬁve companies regionally and 500 retail outlets, and perform over 400 ﬁrework shows annually. We are aiming to increase our participation in global tenders for large-scale shows and festivals. Concerning the entertainment industry and tourism, we are waiting to see the initial results of our projects and will thereafter decide on when and value of any investment, as well as the target. No 252 | November 2015 | PVinternational | 21

BIZNIS PLUS 6TH BUSINESS PLUS FORUM SKOPJE

Darko Buković, Mujo Selimović, Kočo Angjušev, Minčo Jordanov, Dragan Kovačević, Denis Matijević

Nebojša St

CRUCIAL IMPORTANCE O Market adaptation, diversification of risk, permanence of quality and innovation, to name a few, are prerequisites for successful exports, where uncertainty is the greatest challenge for the business sector, as pointed out during the 6th Business Plus Conference by Darko Buković bukovic@privredni.hr

ver 400 businesspeople, entrepreneurs, owners, investors and founders of new start-ups were recently in Skopje to share their experiences, discuss the challenges they constantly face and provide proposals on how to enhance regional co-operation among companies. Four panels of the Conference held in Skopje under the Business Plus project and in

STRONGER CO-OPERATION IN THE REGION IS A PRIORITY, POINTED OUT MIRKO ŠAROVIĆ, MINISTER OF FOREIGN TRADE AND ECONOMIC RELATIONS OF BOSNIA AND HERZEGOVINA co-operation with Privredni vjesnik addressed the issues of project connection and integration, the establishment of strong regional companies, boosting exports through new investment and co-operation and opportunities for joint appearances in third market countries. Business Plus was created by media from six countries – Slovenia, Bosnia and Herzegovina, 22 | PVinternational | November 2015 | No 252

Macedonia, Serbia, Montenegro and Croatia. There are four markets –domestic, regional, EU and global, and there is a need to analyse how to approach each of them. The principal ideas emphasised throughout the Conference were that there is, or should be, a speciﬁc strategy for each speciﬁc market and that companies should not depend solely on one market. Uncertainty is the greatest challenge for the business sector, not only in the country of origin, but also in the region, and thus governments need to focus primarily on the creation of a positive business climate, stressed Fatmir Besimi, Vice-President of the Macedonian government for EU integration. Concerning the political environment within the country and the challenges we are facing, Besimi stated that policies strongly affect the economy. “Economic growth is imperative, as well as boosting trade amongst the countries in the region – doubling it from €100 billion to €200 billion”, noted Besimi.

TIME FOR CHANGE According to Mirko Šarović, Minister of Foreign Trade and Economic Relations of Bosnia Herzegovina, the requirement for strengthening co-operation in the region is a priority, and avoiding purchasing our fruit and vegetables from Egypt rather than, for example, Macedo-

CROATIAN BUSINESS & FINANCE MONTHLY

efanovski, Vitomir Tafra, Robert Petrič, Sead Kočan

Peter Frankl, Marko Lotrič, Gligor Bišev, Živko Mukaetov, Jože Strmole, Jasmina Milanović

OF JOB CREATORS nia, as is the case also with wine. He pointed out that there are many high quality brands in the region that can and should be exported. After 25 years of legislative proposals, it is time governments opted for comprehensive changes. Furthermore, laws concerning the economy need to be proposed by joint business community through Chambers and business associations emphasised Branko Azeski, President of the Chamber of Economy. Regional markets and the economy are prepared for joint products, improved infrastructure and stronger business co-operation. Minčo Jordanov, owner of Makstil, highlighted the fact that everyone is aiming for the EU market, stating that the EU is our most important market with 70% of total exports. Nevertheless, this ﬁgure should show exports within the region, stated Jordanov, recommending stronger business integration within the region, as well as the necessity for the foundation of a joint development fund. “Connections and synergy between business people need to ensure rapid regional development, not only through acquisitions, but also through other models”, noted Jordanov.

MARKET OF THE FUTURE? DEFINITELY SOUTH AMERICA, CLAIMS JASMINA MILANOVIĆ WITH THE SERBIAN ELIXIR GROUP

Mujo Selimović, owner of MIMS Group, stressed the fact that there are corporate initiatives within the region for co-operation on common markets. He reminded of the idea presented several years ago when he made a proposal to regional companies concerning joint appearance on the Libyan market. Everyone had welcomed the idea, yet it has not been implemented thus far. “Companies cannot do much individually. Substantial strength and potential is required to implement any project. I believe co-operation will help companies to develop and achieve more. It takes time”, stated Selimović, who believes we are all faced with a lack of conﬁdence and vision.

ABANDONING NATIONAL ECONOMIES Denis Matijević, owner and President of the Management Board of Agrofructus, believes one of the major problems with acquisitions and takeovers is the fact that owners sell their companies only when they are in trouble. Whilst he is often approached, he has not yet found a company with whom he would work in synergy creating additional value. In his opinion, improving distribution and providing diversity are essential for improving exports. Companies in the region are competitive and there is vast potential for improvement, pointed out Kočo Angjušev, owner of Fero Invest Group. It is also a matter of comparison – with whom one is comparing oneself. The majority of companies in the region rank rather low globally and if you are striving for a major breakthrough you also need to appear on that type of market, stressed Angjušev. His experience has shown that companies in the region

We have become victims of ﬁgures and statistics and are often unaware of a large number of peripheral matters that are vital for doing business. We need to deepen our insights and knowledge on different lifestyles and cultures in other countries.

Zijad Bećirović, Director of International Institute for Middle East and Balkan Studies IFIMES

No 252 | November 2015 | PVinternational | 23

BIZNIS PLUS 15 YEARS OF MACEDONIAN KAPITAL

List of Top 200 Macedonian companies presented The Skopje-based Conference provided the opportunity to mark 15 years of the operating of Macedonian Kapital, a wellknown weekly magazine and business portal. It presented its special edition of the 200 largest and most successful Macedonian companies. The 200 largest Macedonian companies generated €8.13 billion revenue during the fiscal year 2014, which was 8.23% up compared with 2013. Total profits exceeded €220 million, a 40% drop in relation to the previous year. The 200 largest companies in Macedonia employ a total of 74,222 workers The largest number among them – 15 companies with total revenue of €338 million and 4,612 employees – are in the food industry, with automotive spare parts ranking first according to revenue. Six companies, employing 8,044 staff, showed to-

Everyone is aiming at the EU market, stating that the EU is our most important market with 70% of total exports. Nevertheless, this ﬁgure could show exports within the region. Connections and synergy between business people need to ensure rapid regional development, not only through acquisitions, but also through other models.

Minčo Jordanov, owner of Makstil

TOP 10 Macedonian companies nies Rank

Name

Industry

Income (EUR)

Johnson Meti

automotive components

936.326.445

EVN

energetics

394.718.766

OKTA

oil

359.825.074

Makpetrol

oil

333.604.149

Elem

energetics

240.930.700

Feni industri

metal processing

215.719.534

Makedonski telekom

telecommunications

132.967.336

Lukoil Makedonija

oil

110.072.093

T-mobile Makedonija

telecommunications

105.071.093

Alkaloid

pharmaceutical

seldom decide to appear jointly on the market and thus he opts for regional market expansion with his own company. Dragan Kovačević, President of the Management Board of Janaf, emphasised the fact that over the last three years, the value of investment by Janaf has been €200 million. According to him, all countries in the region have abandoned the concept of a ‘national economy’ and opted for ‘corporate economy’. He asked Conference participants to name a regional brand that has recently become strong globally and the conclusion was that there are currently no such brands. Mujo Selimović added that there were a large number of strong brands from the previous political system, and that there are currently strong brands, although it is a huge challenge to compete with those commanding customer loyalty. He mentioned problems encountered by business people in Bosnia - Herzegovina, such as customs barriers and expensive transport of goods, due to which domestic products are not competitive on other markets.

EXPORTS AND TRANSPORT ROUTES Exports are fundamental for companies in the region, highlighted Živko Mukaetov, President of the Management Board of Alkaloid Skopje, whose company operates in 35 international markets. “Each market has its specific features. If there is a strategy of product sales and aggressive marketing within the region, we need to search for methods for specific products with high value-added at a global level. We do not sell tea in teabags to the US, as on that market there is a demand for organic teas whose lowest price is $20. Decreasing risk among exporters certainly leads towards diversification and one must not depend only on one

24 | PVinternational | November 2015 | No 252

96.486.582

market, he pointed out. Jože Strmole, member of the Management Board of Livar from Slovenija stressed that over the last five years the company has been boosting sales and investing in further professional development of its employees. They export 52% of their products to Italy and it is their most important market. They have also signed a contract with German railways and yet they are certainly not renouncing the regional market, as there is substantial room for products from their foundry within the region. According to Jasmina Milanović of the Serbian Elixir Group, South American markets have the greatest market potential. The company exports to 16 countries and throughout the last several years its has invested €65 million, which has greatly influenced revenue growth increasing from €100 million to €144 million, which clearly shows the importance of investment. She pointed out the significance of opportunities to meet and become acquainted with companies in the region, as we unfortunately know little about our neighbours. Marko Lotrič is the owner of the Slovenian Lotrič meroslovje (metrology). This family business exports its products throughout Europe, primarily applying metrology products

ALL TYPES OF GOODS WILL EVENTUALLY FIND THEIR WAY. THERE IS THE ISSUE OF PRICING, STATED NEBOJŠA CVETANOVSKI

TOP 10 industrial branches Industry

Amount of companies

Profit (EUR)

automotive components

62.231.481

telecommunications

59.469.328

mining

55.995.652

construction materials

37.739.846

construction industry

37.640.581

energetics

19.134.521

trade

17.781.962

food industry

16.924.798

pharmaceutical

16.102.983

drinks industry

14.668.311

EXPORTS ARE THE KEY CHALLENGE FOR THE COMPANIES IN THE REGION, POINTED OUT ŽIVKO MUKAETOV, PRESIDENT OF THE MANAGEMENT BOARD OF ALKALOID in industries for the surveillance of food, drugs and in the motor industry. Innovation is the key to their success – he stated that every year they develop at least 20 new products.

COMPREHENSIVE APPROACH Sead Kočan, owner of one of the largest Macedonian companies Transmet, considered the issue of the extent and in what way governments in the region should help companies to provide competitive pricing. Regional governments need to agree on conditions for businesses and provide appropriate transport links. Thus the Slovenian government needs to understand that, although they have completed their segment of the transit corridor, they need to give their contribution to Brussels and negotiate with the World Bank, on completion of the corridor through other countries, as it all affects the delivery of products from their economy to the remainder of the region and vice versa, noted Kočan. Nebojša Cvetanovski, President of the Management Board of Intereuropa, believes all types of goods will eventually ﬁnd their way. There

tal revenue of almost €1.2 billion. 12 companies involved in the oil industry, employing 3,011 people, had revenues exceeding €1billion. The 5 most profitable companies showed €198 million in revenue, some 16% of total profits generated by Macedonian companies in 2014, totalling €1.3 billion. Johnson Meti, involved in automotive spare parts production, ranked first in terms of revenue, at €936 million and profits of €56 million. The pharmaceutical company Alkaloid ranked 10th with revenue of €96 million and €10.2 million in profits.

is an issue of pricing. Logistics and transport need to be developed. Product pricing could reduce the cost of transport, he explained. Vitomir Tafra, owner of the Zagreb-based Zrinski Education Group, stated that all successful entrepreneurs are “geniuses if they have managed to survive the conditions in the region, whilst simultaneously developing and progressing”. Gligor Cvetanov, Director of Makprogres, speaking about his own experiences, stressed that those involved in the confectionery industry still believe in opportunities for cooperation with other companies through joint appearances in third markets. At a local level, business people currently do not have experiences in joint appearance in this manner. They compete and the most competitive wins. “We have exported to North Africa through intermediation by Turkish companies, but our experiences have not been satisfactory”, noted Cvetanov. Zijad Bećirović, Director of International Institute for Middle East and Balkan Studies IFIMES, pointed out that we have become victims of ﬁgures and statistics and are frequently unaware of the large number of additional matters that are vital for doing business. We need to deepen our insights and knowledge on different lifestyles and cultures in other countries. Nevertheless, there is vast potential for agro-industry and food production, as there are opportunities for the integration and joint appearance on large international markets. Moreover, tourism has ample potential with a large number of sunny days, excellent wines and food. One must not forget Turkey - that could provide considerable business opportunities for the region.

Companies cannot do much individually. Substantial strength and potential is required to implement any project. I believe cooperation will help companies to develop and achieve more. It takes time, as well as conﬁdence and a vision.

Mujo Selimović, owner of MIMS Group

No 252 | November 2015 | PVinternational | 25

ANNIVERSARY 20 YEARS OF ECONOMIC EVALUATION

PV RESEARCH – NOTHING HAS CHANGED Through continuous research, Privredni vjesnik provides high quality background for macroeconomic research and projections, opening a broad area of interest and attracting a large number of those interested in such research results. 7,571 companies have participated in the research conducted over 20 years by Mirjana Čižmešija

ccording to economic evaluation results for the third quarter of 2015 provided by the Business Research Centre of Privredni vjesnik, Croatian entrepreneurs perceive a revival in business activity. This topic was also the title of an article written by Professor Gorazd Nikić, PhD, founder of Croatian economic evaluation. The article, published in a special supplement by Privredni vjesnik,on 15th January 1996, interpreted the results of the ﬁrst economic survey, conducted for the second quarter of 1995. The ﬁrst evaluation was conducted in the processing industry and in the third quarter of the same year, in retail and construction, with economic evaluations in the services sector being conducted since 2008.

critical for the development of a framework for sampling the first economic evaluation. Of 5,124 companies from the processing industry that submitted their annual financial statements in 1994, only 180 were included in the sample. The sample for the first economic evaluation for construction comprised 50 companies, whilst in the trade sector 112 companies were selected. The response rate was 50%, but saw considerable changes

SPONSORED BY THE CROATIAN CHAMBER OF ECONOMY The Croatian Chamber of Economy, in co-operation with experts from the Munich-based IFO Institute, encouraged and provided the financial resources necessary to conduct this economic evaluation. The IFO Institute was among the initiators of economic evaluation research methods in Europe. An economic evaluation of Croatia is still conducted in accordance with the harmonised EU methodology but includes specific features of the Croatian economy. Consequently, the questionnaires include questions on liquidity and ownership structure that are still considered as being of prime importance. Professor Ivan Šošić, PhD and engineer Vlado Smud played an extremely important role, in addition to Professor Nikšić, in the preparation and conduct of the early economic evaluations. Annual financial statements were considered 26 | PVinternational | November 2015 | No 252

INA D GO

over the years. Thus, during the fourth quarter of 1999, it stood at 74%, which exceeded response rates from evaluations conducted in Europe. Nevertheless, the current response rate is substantially lower, due to the on-going economic depression and the indifference of businessmen in participating in any type of research.

INVALUABLE CO-OPERATION WITH BUSINESS Across the years, 7,571 companies have participated in the research and our succe cess is primarily due to our co-operation w with them. We would like to express our ut utmost gratitude to those companies w who have agreed to share their evaluatio tions and expectations with the Croatian ge general public through these questionna naires, over 70 times: PIK, Končar Distribu bution and Special Transformers, Team an and Vinogradnja. Through on-going research, Privredni vj vjesnik,provides high quality background for macroeconomic research and projections, opening broad areas of interest and attracting a large number of those interested in such research results. The evaluations and expectations provided by businessmen, available to users prior to the official statistical indicators, are included in the plans and projections in business and economy, as well as in scientiﬁc and professional research. Twenty years of economic evaluations are a conﬁrmation of the value of information collected through research. Entrepreneurs are a source of information that they are prepared to share with others. Synergistic effects between participants and organisers are the motivation for further improvement and an incentive to proceed with its on-going research.

POPULAR TOUR LUXURY TRAVEL GUIDE AWARDS 2016

TRULY UNIQUE SECRETS OF GRIČ The night tour of Zagreb Gornji grad is based on fact, legend and romanticized history from a novel written by Marija Jurić Zagorka. Over 500,000 registered users of the portal Luxury Travel Guide globally voted for the night tour by Sanja Plješa pljesa@privredni.hr

he cultural-tourist project Secrets of Grič, popular with the people of Zagreb and its visitors, won the category of Unique Experience of the Year and received international recognition at the Luxury Travel Guide Awards 2016. The awards are given by the Luxury Travel Guide, a travel agency and one of the world’s leading lifestyle portals specialising in travel. Over 500,000 registered users of the portal voted for the project from Zagreb. The nomination process is independent, and the Luxury Travel Guide collected nominations from tourists, companies, readers, hotel visitors, travel agencies and tourism experts from January 2015. The Secrets of Grič project is organised by the company Katapult promocija in co-operation with the Zagreb Tourist Board. This interactive theatre play night tour of Zagreb Gornji grad (Upper Town), is intended for anyone who wants to learn more about the historical and mysterious side of the Croatian capital, began in 2009. Visitors participate in various theatrical sketches based on the events from Zagreb’s past. The tour is based on historical fact and the romanticised history based on the novel written by Marija Jurić Zagorka, as well as other city legends. The night tour Secrets of Grič is special since it is not performed by actors, said Slavica Olujić Klapčić, General Manager of Katapult promocija.

spectacle, the number of participants for each night tour is limited. During the past six years, the Secrets of Grič was experienced by approximately 12,000 participants, and most of this summer’s tour was sold out.

250

around performances of Secrets of Grič during six seasons

NATIONAL GEOGRAPHIC TRAVELLER LISTED THE TOUR ON ITS LIST OF THE BEST NIGHT TOURS IN THE WORLD

LIMITED NUMBER OF PARTICIPANTS PER TOUR During the past six seasons, the Secrets of Grič was performed almost 250 times, and tourist interest is growing. For the third consecutive year, Secrets of Grič won the award for excellence given by Trip Advisor. The National Geographic Traveller listed the tour on its list of the best night tours in the world. To preserve the intimate atmosphere, where participants are under the impression they are surrounded by a mini historic-artistic No 252 | November 2015 | PVinternational | 27

BIOGRAD BOAT SHOW/ RECOGNITION FOR THE BEST MARINAS AND CHARTER COMPANIES

D-MARIN DALMATIA – THE BEST LARGE MARINA The best charter companies have been awarded for the first time and Angeline Tours ranked first

Nautical tourism is one of the most competitive Croatian tourism products

autical tourism has yet again proved one of the most competitive Croatian tourism products due to which the country keep abreast of European and other international nautical destinations. It is an extremely challenging task to keep pace with other acknowledged destinations. Thus it is necessary to constantly focus on updating operating conditions, as well as on promoting Croatia as a nautical destination, and ﬁnally, to improve the quality of services provided; thus emphasised Josip Zaher, Vice-President of the Croatian Chamber of Economy at the 17th Biograd Boat Show sponsored by the Croatian Chamber of Economy in Biograd na Moru, Marina Kornati, one of the three largest marinas on the Adriatic, from 22nd to 26th October. The Croatian Chamber of Economy presented awards for the best marinas and charter companies through the initiative Tourism Flower – Quality for Croatia 2015. Marina of the Year was D-Marin Dalmatia. “We are delighted with the fact that the high level of investment by D-Marin Group has been recognised among professionals. Consequently, we

DUE TO OUR HIGH LEVEL OF INVESTMENT WE RANK AMONG THE BEST CROATIAN MARINAS, POINTED OUT BOŽIDAR DUKA, DIRECTOR OF D-MARINA 28 28 || PVinternational PVinternational || November November 2015 2015 || No No 252 252

are among the best Croatian marinas through our quality, both concerning infrastructure and nautical service provision”, highlighted Božidar Duka, Regional Director of D-Marina. ACI Marina Dubrovnik ranked second, and Olive Island Marina ranked third.

INCENTIVE FOR BETTER WORK Marina D-Marin Dalmatia (Bibinje-Sukošan) received the award in the category of large marinas (over 450 berths), while second and third award were given to Marina Kornati (Biograd na Moru) and ACI Marina Umag. In the category of medium-sized marinas (from 250 to 450 berths), ACI Marina Dubrovnik (Komolac) ranked first, D-Marin Šibenik (Šibenik) ranked second, ACI Marina Opatija (Ičići) third. In the category of small marinas (less than 250 berths) Olive Island Marina (Sutomišćica) ranked first, Marina Vrsar (Vrsar) second and ACI Marina Jezera (Jezera) third. Marina Punat received a special award for its contribution to the development of nautical tourism in Croatia. Angeline Tours was the best charter company of the year. Its director, Luka Šangulin, stated that this award was an incentive to work even more successfully and implement further investment in the future, primarily since this has been the first time awards have been given to charter companies. Navigare Yachting ranked second and Jadranska jedrenja third. OBJ