INTERVIEW → We want to show that things are not better elsewhere, says Efka Heder, SEECEL PAGES 4-7
SUPPORTED BY THE CROATIAN CHAMBER OF ECONOMY
www.privredni.hr
CRO AIRPORTS → Good business results and significant investments into infrastructure PAGES 12-17
INTERVIEW → Our Scum will revolutionise the survival game genre, says Tomislav Pongrac, Gamepires PAGES 28-29
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
October 2016, Year IX, No 262
“LET’S BUY CROATIAN” CAMPAIGN BY THE CROATIAN CHAMBER OF ECONOMY
Burilović: “Let’s Buy Croatian” needs to become a lifestyle A positive attitude towards local products is the best way to show patriotism, noted the President of CCE
M
ore than 211,000 unemployed individuals have been recorded in Croatia. The “Let’s Buy Croatian” initiative is fundamental in order to reduce this number stated the President of the Croatian Chamber of Economy, Luka Burilović, during the opening of a two-day campaign held at the end of September in the central square of Zagreb. Hence, companies, micro-businesses, crafts, familyrun farms, associations, co-operatives and handicraft businesses were given the opportunity to exhibit their products and sell them at affordable prices. “We are all equally responsible for the state of our economy and a positive attitude towards local produce is the best way to show patriotism. I would like to make an appeal to each individual conscience: through the purchase of locally produced we preserve jobs and contribute to a richer Croatia. “Let’s Buy Croatian” needs to become a lifestyle”, emphasised Burilović. CCE has been involved in this campaign for 19 years, aiming to boost production and promote high quality locally grown and/or produced products. This year the campaign was also sup-
ported by an Economic Forum organised by CCE within Zagreb Fair where Mystic Organica, Apitera and Izvor Fairs were held simultaneously, intending to promote a healthy lifestyle. 430 exhibitors from 15 countries participated. The Economic Forum, entitled Domestic production – a key to success, was anchored by Darko Buković, Editor-in-Chief of Privredni vjesnik.
During the Forum Josip Zaher, VicePresident of CCE, also stressed the need to strengthen local production. “If the domestic economy is weak, it can hardly penetrate the open market”, noted Zaher. Issues addressed by Croatian entrepreneurs and craftsmen, as well as those tackled by family-run and organic farms, whose number in Croatia is currently 212,000, were also pointed out during the Forum.
GLOBAL COMPETITIVENESS REPORT
CROATIA ADVANCES THR The improvement achieved by Croatia regarding the position on the list, from 77th to 74th is considered a slight increase in competitiveness compared with other countries included. Moreover, the latest report confirms a realistic assessment of the situation both in Croatian society and economy. The progress currently made is insufficient to secure a higher quality and safer life. Nevertheless, any noticeable progress needs to be considered positive, pointed out Ivica Mudrinić by Boris Odorčić
C
4.15
rating for Croatia
11 position slump
in Croatian innovativeness
7 positions lower
concerning financial market development
roatia ranks 74th in the Global Competitiveness Report 2016-2017 amongst 138 international economies. Compared with last year’s results published by the National Competitiveness Council, as a partner of the World Economic Forum Global Competitiveness Programme, Croatia has advanced by three positions. Switzerland, as first or the most competitive economy at a global level, has retained her leading position, followed by Singapore (also ranked 2nd in 2015) and the US maintaining their 3rd ranking. Holland and Germany have changed positions. In 2015 Holland ranked 5th, (now 4th), with Germany 5th (now 4th). Amongst the countries with whom Croatia is being compared, progress was made by Slovenia, Slovakia, Poland, Bulgaria and Serbia. In 2015, Slovenia ranked 59th, now 56th. Slovakia is now 65, (up from 67), with Poland advancing to 36th. Bulgaria improved her competitiveness (up to 50th position), and Serbia went up to 90th spot. On the other hand, Macedonia, Romania, Greece, Hungary and Montenegro showed falls; Macedonia down to 68th, Romania down to 62nd, Greece to 86th, Hungary to 69th, and Montenegro down to 82nd position. Ivica Mudrinić, President of the National Competitiveness Council, stated that the progress made to 74th place is considered a slight increase in competitiveness compared with other countries included. Moreover, the latest report confirms a realistic assessment of the situation both in Croatian society and the economy. “The progress currently made is insufficient in order to secure a higher quality and safer life. Nevertheless, any noticeable progress needs to be considered positive”, he emphasised. Croatia is keeping abreast with the changes globally. This year’s upgrade is due to good economic indicators or an increase in exports, GDP growth and deficit reduction. Neverthele-
2 | PVinternational | October 2016 | No 262
ss, the areas requiring more intensive reforms can be easily identified, primarily financial market development which has seen a drop by 7 positions in 2016 and innovativeness by 11 positions.
INNOVATION LESSENING
This year’s results show improvement concerning factors of macroeconomic environment (84), higher education and training (49), labour market effectiveness (100), goods market effectiveness (95) and business sophistication (80) but stagnation in the areas of institutions (89), infrastructure (46), health and primary education (66), technological preparedness (47) and market size (78).
THIS YEAR’S PROGRESS UP THE LIST IS DUE TO GOOD ECONOMIC INDICATORS OR AN INCREASE IN EXPORTS, GDP GROWTH AND DEFICIT REDUCTION “Positive trends have been recorded in macroeconomic environment and concerning deficit and public debt management. Furthermore, markets for goods and labour market have grown. Nevertheless, it has to be pointed out that Croatian innovation decreased, implying an unpreparedness for what is normally referred to as the fourth industrial revolution that we are about to face. Consequently, we need to prepare for the forthcoming future as soon as possible”, stressed Mudrinić, pointing out that Croatia needs to absorb the EU funding availa-
REE POSITIONS
ble for research, development and innovativeness immediately. “This funding is intended to provide Croatia with the opportunity to make a significant advancement primarily in this area. There are a large number of Croatian SME’s that are extremely successful and competitive in these fields on the international market, as well as on the most developed markets. We need to focus on this issue. Our advantage is our starting position, which is favourable, since there are many young innovative Croatians gaining awards at international competitions in programming or mathematics. They deserve to be given the opportunity to use their knowledge and innovativeness to enhance development rather than to opt to build their future in another country”, he pointed out.
LOW LEVEL OF EFFECTIVENESS OF PUBLIC ADMINISTRATION
The progress made by Croatia in this report – whose results are based on a survey conducted amongst businessmen in 14,000 companies globally (84 managers participated in the survey in Croatia in spring of 2016), statistical data for 2015 and 2016 from diverse international organisations (World Bank, OECD, IMF, WHO, UNESCO) – is insufficient for Croatia, since it is aiming to attract more investment and create a substantial number of new jobs. “The reforms we have been talking about for over a decade are imperative and fundamental. Furthermore, strategies need to be synchronised and a clear vision of a Croatian future provided. We are expecting the incoming government to addre-
ss these issues seriously”, he stressed, adding that he believes that Croatia has the potential for substantial growth within a period of three to five years, as well as to improve her position significantly, start to attract foreign capital and create new jobs, providing it explores potential to the fullest extent. Krešimir Sever, President of Independent Trade Unions of Croatia, stated that the slight advancement achieved does not show the entire picture or the direction Croatia has taken. Restrictive labour laws have drastically reduced labour rights, added Sever, highlighting also the fact of a considerable increase in the number of unemployed amongst university degree holders. The report revealed the most challenging factors for doing business in Croatia in 2016, according to the views of businessmen, are the low level of effectiveness of public administration, tax rates, political instability, tax regulations and corruption, to name the most significant. In addition, the report showed that the cornerstones of competitiveness such as infrastructure, health, education and market are always crucial for the competitiveness of an economy, yet it also suggests that technological preparedness, business sophistication and innovativeness are latterly becoming increasingly important for the growth of competitiveness and sustainable economic growth. Furthermore, the report shows that a tenyear decline in the openness economies is considered as a risk for growth and development.
Croatia has the potential for substantial growth within a period of three to five years, as well as to improve its position significantly, start to attract foreign capital and create new jobs, providing potential is explored to its fullest extent. Ivica Mudrinić, President of National Competitiveness Council
October 2016 | No 262 | PVinternational | 3
INTERVIEW EFKA HEDER, Director, SEECEL
WE WANT TO SHOW THAT THINGS ARE NOT BETTER ELSEWHERE The mission of the South East European Centre for Entrepreneurial Learning (SEECEL) is for the systematic development and promotion of entrepreneurial learning. It is headquartered in Zagreb where the construction of a new centre worth €30 million will be completed next year. Privredni vjesnik talked with its Director about current activities and future plans by Miro Soldić
T
he South East European Centre for Entrepreneurial Learning (SEECEL) is a non-profit organisation founded in 2009 with support from the government of Croatia, the Croatian Chamber of Economy and the initiative of Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Serbia, Montenegro and Turkey. The mission of SEECEL is the systematic development and the promotion of entrepreneurial learning as a key competence for economic advancement. The Centre is headquartered in Zagreb where the construction of a new centre worth €30 million will be completed next year. The values pursued by SEECEL can already be seen although the construction of the Centre. The construction work is under constant camera surveillance and progress can be monitored transparently, as well as the manner in which
AROUND 70% OF ECONOMIC ENTITIES ARE MICRO-ENTREPRENEURS AND FOCUS ON THEM IS IMPERATIVE public resources are used. Workers at the construction site comprise young engineers provided the opportunity to gain experience for future work. The building has been designed in compliance with the latest environmental and security standards. Following its completion, the centre will employ experts from across Europe. Irrespective of the fact that the centre has been attracting public attention primarily 4 | PVinternational | October 2016 | No 262
due to the new headquarters, it is focusing on extremely successful and widely praised activities concerning educational development. It has to be noted that it has a crucial role in the creation of Pan-European policies of EU institutions due to its valuable experience and findings. Over 50,000 people, of whom over 6,000 Croatian pupils and 500 educational workers, have thus far attended pilot programmes. Participant reactions are extremely positive and in general the team that welcomed Privredni vjesnik during the interview with the Director, Efka Heder, transmits positive energy that inspires optimism concerning the implementation of ambitious plans for the immediate future. What is entrepreneurial learning and what are its fundamental postulates and objectives? Our experts have defined entrepreneurial learning as a concept of education, professional development and training that promotes entrepreneurial thinking. This implies the development of proactive and effective individuals in everyday situations, without the exclusive focus on starting their own business. The specific objective is to create entrepreneurially literate societies and a positive entrepreneurial climate, targeting the whole population and encouraging them to consider business opportunities and perspectives. Around 70% of our business entities have been categorised as micro-entrepreneurs. They need to be focused on and shown that things are not better elsewhere, since it is possible to live and work well in Croatia.
October 2016 | No 262 | PVinternational | 5
INTERVIEW
Enterprising individuals create value and hence enhance our lives. Hence, in order to provide development for this type of individual to the benefit society as a whole, educational methods need to be clearly defined, as well as educational outcomes one is aiming to achieve.
How is entrepreneurial learning different from the general entrepreneurship education? Entrepreneurial learning is a broader concept compared with narrowly focused entrepreneurship education that one normally encounters. We are actually focused on changing the way people think – through a formal educational system we are teaching them basic economics concepts, financial literacy, the basics of project management and everything they require in order to implement their entrepreneurial idea from inception to completion. Our objective is to create proactive individuals with positive attitudes towards entrepreneurship, irrespective of the fact whether they already are entrepreneurs or employees in the public or private sector. Entrepreneurial learning requires significant changes in education and a systematic approach to such changes. On the other hand, the usual entrepreneurship education one normally encounters in Croatia implies a far narrower approach. It is frequently focused on starting up businesses or addressing specific shortcomings in the knowledge of current entrepreneurs, whereas entrepreneurial learning implies a holistic approach. It certainly does not imply that we do not address specific problems concerning the requirements of actual entrepreneurs. On the contrary, we have implemented a vast cross-section of projects intended to alleviate practical problems, examples of which have been provided through a story about 27 women entrepreneurs from the region and other educational and video materials available on our website.
over
50,000 people
attended pilot programmes by SEECEL
around
6,000 500 Croatian pupils and
educational workers
6 | PVinternational | October 2016 | No 262
When are you planning to start with the education of the wider public concerning entrepreneurship? We believe in the principle – future entrepreneurs are currently attending our schools. The sooner we start, the better the final results will be and that has been confirmed also by studies. Children need to be taught the so-called can do mentality from the earliest age - as early as kindergarten stage – yet, Croatian kindergartens are currently still under the authority of local governments and one thus encounters considerable difficulties to implement standardised programmes. Consequently, we have focused on the implementation of instruments of entrepreneurial learning starting from the first level of formal education - that is from the first grades of primary school. The attitude towards entrepreneurship in Croatia is still through the prism of the TV series “Only Fools and Horses” and there are a large number of people who believe that children at an early age are being indoctrinated. This is absolutely unacceptable, since enterprising individuals create value and so enhance our lives. Consequently, in order to provide development for this type of individual to the benefit the entire society, educational methods need to be clearly defined, as well as educational outcomes one is aiming to achieve. Children are actually faced with some general economic principles on a daily basis, yet they are not aware of it. High quality educational staff are imperative in order to provide the required explanations. It is important to highlight that young people are about to face a huge number of changes on the labour market and the older one gets, the less tolerant one becomes and the more frustrated due to such changes.
SEECEL among five finalists selected for Startup Nations award The South East European Centre for Entrepreneurial Learning (SEECEL) and its Director, Efka Heder, has been included among five finalists for the prestigious Startup Nations Award for Groundbreaking Policy Thinking organised by Global Entrepreneurship Network (GEN) covering 160 countries. The award will be conferred on 19th November in Cork, Ireland and it is intended for individuals or organisations that contribute to analytical and innovative approaches to entrepreneurial development globally, and those promoting entrepreneurial thinking. Considering the fact that five finalists originate from five continents, SEECEL will be representing the whole of Europe, rather than just Croatia. “Brilliant minds throughout the world are continuously committed to the creation of an environment We are currently witnessing many instances of this where a large number of older people have been excluded from the labour market following transition. The attitude of unpreparedness for economic changes both at a personal as well as an institutional level needs to be abandoned in order for optimal functioning of society. How do you monitor needs analysis concerning education in small and medium-sized entrepreneurship? In the most concrete way possible - rather than sitting in our offices and theorising about the requirements of entrepreneurs, we are involved in field work and actually asking them about it. Consequently, during our recently conducted research we asked over 2,500 entrepreneurs in eight countries about the challenges they face and the type of education they require. We primarily focused on micro and small-sized entrepreneurs, since research showed significant differences between them and medium-sized businesses concerning their administrative potential and availability of resources. Following such analysis, we found out all the required information and the countries that participated were subsequently able to make interventions where such requirements had not been adequately met. What are the most severe challenges with which Croatian entrepreneurs are currently faced? Following this factor analysis, three types of challenges have been identified – continuous changes in market conditions, challenges concerning new market penetration and employee competencies (with a special focus on acting in accordance with administrative requirements). Continuous changes in market conditions require education about innovation in micro and small-sized businesses. Global trends are
that encourages entrepreneurial growth through policies based on verifiable data”, stated Cristina Fernandez, Director of Policy and Research at GEN, adding that this year’s finalists were selected due to their innovative projects and initiatives that can be replicated throughout the world. During the award ceremony, SEECEL, Croatia and Europe will be represented by Efka Heder, Director of SEECEL, who has over 25 years of work experience in the field of human resource development, with special focus on entrepreneurial learning and knowledge management. “We have been selected as one of the five finalists due to our professionalism, which using sports jargon would read we are playing in the final of the Champions League”, pointed out the Director.
here focused on design thinking and business model innovation and these two types of education require significant support in Croatia. Both areas are actually closely linked, focused on the use of ethnographic research methods, visualisation, prototyping techniques, co-creation and experimentation, aiming to create new competitive advantages of businesses that actually originates from market changes. Challenges concerning new market penetration require a more significant mentor support for individual markets to which a specific product is to be exported. This implies gaining insight into the regulations of a specific country, the search for partners, becoming acquainted with the foreign culture, creation of sales and growth plans and the implementation of controls. Addressing administrative barriers is another extremely interesting challenge. Tax regulations reduce valuable time available to entrepreneurs and hence our colleagues have analysed four tax areas (income tax, profit tax, value-added tax and fiscal) and identified the shortcomings of micro and small-sized businesses in Croatia. Firstly, around 70% of those surveyed have never attended any training courses on tax regulations. There are significant challenges that can be addressed exclusively through the education of entrepreneurs. The research in the long run focuses on the requirement to modernise tax regulations and improve communication between Tax Administration and entrepreneurs in order to avoid directing micro and small-sized entrepreneurs to tax advisers and aiming to make the state assume a larger advisory role. Once this role is assumed, future and actual entrepreneurs would be provided with answers to their tax issues within at most two days. Training courses about tax regulations are required and they need to be clear and available to entrepreneurs who are frequently far from being financial experts.
The attitude of unpreparedness for economic changes both at the personal and at an institutional level needs to be abandoned in order for optimal functioning of society.
October 2016 | No 262 | PVinternational | 7
RETAIL TRADE
MILD LONG-TERM GROWT A SUBSTANTIAL DECLINE According to the latest data provided by the Croatian Bureau of Statistics, real annual growth in retail trade turnover in July increased by 4.5%. It should be stressed that retail trade turnover has shown an upward trend for 23 consecutive months, the longest period of growth since records began by Miro Soldić soldic@privredni.hr
S
ome signs of a mild recovery in the local retail sector have been seen, following a substantial decline after the global economic crisis. This is also evident according to data released by all the relevant institutions such as the CCE, the Croatian Bureau of Statistics and the Financial Agency (Fina), with the Institute of Economics Zagreb and Ivan-Damir Anić, its senior research fellow, conducting an indepth sector analysis on this issue. “In 2015 Croatia saw positive movements both in the economy in general and in retail trade, as well as an increase in the number of entrepreneurs in retail; rising employment and gross salaries were up, whilst foreign direct investment also increased. Notwithstanding these
positive movements, Croatia is currently still lagging behind the EU-28 average concerning financial success”, stressed by the Institute of Economics Zagreb. According to the data provided by Fina, 2015 saw revenue generated by sector entrepreneurs come in at €29 billion, which was €1.25 billion up compared with 2014. On the other hand, latest data released by the Croatian Bureau of Statistics show that real annual growth in retail trade turnover in July increased 4.5%, seen as a continuation of positive economic indicators, in addition to the satisfactory results achieved in tourism and seasonal improvements in the labour market. “According to seasonally and calendar-adjusted indices, retail trade turnover in July recorded monthly growth
of 2%. During the same month, according to the original unadjusted indices, double-digit growth both nominal and real of 15.1% was recorded in retail trade turnover, or 16.7% in relation to the previous month, showing real annual growth of 3.6% (nominally 1.3%)”, according to the latest data.
FORECASTS BY THE INSTITUTE OF ECONOMICS ZAGREB
It has to be stressed that retail trade turnover has been increasing for 23 consecutive months, the longest period of growth since records began. Nevertheless, it also has to be pointed out that last year’s revenue in this sector (€29 billion), irrespective of subsequent positive movements, still lags substantially be-
Top 10 entrepreneurs by the amount of total income in 2015
Retail trade in non-specialized stores with food, beverages and tobacco No.
Retail store name (or retail chain name)
Number of employees
Total revenue
Profit or loss for the period
1. 2.
KONZUM D.D.
12,602
14,940,741
234,604
PLODINE D.D.
3,230
3,879,338
35,388
3.
LIDL HRVATSKA D.O.O. K.D.
4.
KAUFLAND HRVATSKA K.D.
1,610
3,712,555
185,418
2,429
3,221,376
6,739
5.
TOMMY D.O.O.
6.
STUDENAC
2,381
2,265,483
105,024
2,189
1,411,290
60,469
7. 8.
METSS D.O.O
738
462,216
18,160
LONIA D.D.
888
457,837
698
9.
GAVRANOVIĆ D.O.O.
10.
RIBOLA D.O.O.
691
421,316
15,684
422
379,368
15,665
Total top 10
27,180
31,151,519
677,849
Total according to defined criteria
37,890
37,822,395
788,786
Source: Fina
8 | PVinternational | October 2016 | No 262
TH AFTER hind that generated in 2008 (€35.4 billion), suggesting there is still a long way to go before pre-crisis results are achieved. According to forecasts provided by the Institute of Economics Zagreb, 2016 is expected to see GDP growth of 1.5% and a 1.4% increase in household consumption, whereas in 2017 further recovery of both the economy and consumption are expected. “In these circumstances mild real growth of retail trade turnover is expected”, said the Institute of Economics Zagreb, whilst also emphasising that the Croatian economy is still rather weak and potential problems may adversely affect the retail sector. It is important to differentiate between large retail chains at the forefront of the sector, whose operations see positive trends, and small retail stores that have a long way to go before they will see a recovery. Severe problems faced by small
LAST YEAR, REVENUE GENERATED BY ENTREPRENEURS IN RETAIL WAS €29 BILLION, AN INCREASE OF €1.25 BILLION retailers during the last several years included significantly lower productivity as measured by revenue generated per employee, compared with medium-sized and large retailers, as well as a lower level of turnover of retail goods that increases stock prices and thus operating costs. Moreover, small retailers are always faced with low gross margins, unfavourable purchase conditions due to their inability to exploit the benefits of economies of scale, and higher pricing levels considered as a key to declining competitiveness. Their position was additionally aggravated by market concentration that resulted
in the growing importance of a decreasing number of leading players and the internationalisation of the Croatian market through the arrival of large retailers.
SMALL RETAILERS AT A DISADVANTAGE
Robert Fućak, President of Alliance of Small Retailers’ Associations of Croatia, that encompasses 157 members at 220 sales outlets and with over 1,000 employees, also emphasised the importance of addressing these issues. “Croatian politicians frequently highlight the value of their investment in new retail centres and the resulting creation of new jobs. Nevertheless, information on the number of jobs lost as a consequence is normally omitted, as well as on the number of small stores or baker’s shops and coffee roasting plants, accounting and IT businesses that had to close against a backdrop of the new circumstances. It is a closed circuit of losses that is normally not mentioned, since more jobs are eventually lost than created on opening a new retail centre”, explained Fućak, stressing that large retailers are also favoured through the construction of new access roads, alterations to urban spatial plans and the granting of
licences. Fućak believes that long-term economic growth and clustering are fundamental for the recovery of small retailers. “The recovery of the middle class is a priority, since they will consequently return to stores and stop buying only the most affordable goods”, he noted. “The fact that both milk and bread are normally purchased at discounted prices is a clear indicator of the current situation in Croatia. Economic growth, a rise in salaries and job security are imperative for the enhancement of consumer confidence and hence consumers will stop reflecting on how much they spend. Secondly, clustering is fundamental. Independent retailers with one or two outlets are bound to fail sooner or later, unless they start clustering”, he pointed out. To sum up, the retail sector has a long way to go towards recovery, yet as the old proverb says “a journey of a thousand miles begins with the first step”. It appears that the step was taken last year and this year; if the trend continues, further advances can be expected. In due time and provided they establish better cooperation, positive trends will impact on small retailers, the most vulnerable group. October 2016 | No 262 | PVinternational | 9
NEW PRODUCTS ĐURO ĐAKOVIĆ SPECIAL VEHICLES
A €7.2 million contract
T
he company Đuro Đaković Special Vehicles, a company within the Đuro Đaković Group, has recently signed a contract with a French customer for the production of special Zacns tankers. The contract is worth €7.2 million. The tankers will be delivered at the end of the first quarter and during the second quarter of 2017 and mark a continuation of successful co-operation with the French customer. There are 4 Zacns type tankers-axial tank, thermal tankers and those intended for the transportation of emulsions, primarily calcium carbonate under all temperature conditions. The tankers have been designed, produced and equipped in compliance with the latest European standards and a premiere presentation was delivered at InnoTrans, the international exhibition of transport technologies held at the end of September 2016 in Berlin. Through this project, Đuro Đaković Spe-
cial Vehicles joint-stock company justified its own development and production of special design tankers and those for special purposes, in addition to the use
INFRASTRUCTURE CONSTRUCTION
of special materials and new generation technology through which the company has been completing its production processes.
CO-OPERATION IN MOSTAR
Arkada extends capacity The construction company Arkada has extended its capacity for producing stone aggregate and infrastructure construction. Seven new machines have been purchased in order to enhance competitiveness and expansion into the Slovenian market. The value of investment was €1.72 million, of which €0.48 million was non-repayable funding through the European Regional Development Fund. Through the purchase of two new diggers, a new loader and an excavator-loader, a road-roller, a road-grader and an auto-concrete pump, the company is aiming to extend its capacity by 20% on an annualised level, and up to 40% on specific working days. In addition to employing its 63 current workers, the company has recently created 7 new jobs. 10 | PVinternational | October 2016 | No 262
Končar- Engineering signs a contract for €4.3 million The German company PSI AG and Končar - Engineering for Energy and Transport have recently signed a contract in Mostar with the public company Elektroprivreda for the procurement and implementation of a remote-control system for power distribution for €4.3 million. The expected project duration is three years, including the delivery of the automated system for a wide range of power facilities and a telecommunications subsystem for the connection with the central computer system in the new Mostar-based dispatch centre.
BRODOSPLIT DELIVERS SPECIAL NAPCAP CONTAINERS
COMFORT UNDER STRESSFUL CONDITIONS
Following feedback from clients, interior detail was adapted in each new series of containers, aiming to ensure an extremely high standard of living that is not typical of site accommodation, stated Josip Jurišić, spokesman for Brodosplit
A
company within BrodosplitHolding launched the delivery of portable residential containers as contracted with the company NapCap Limited owned by R.W. Chelsea Holdings Ltd headquartered in Cyprus. Brodosplit-Holding signed a contract for this work in 2014 notwithstanding severe competition from several international shipyards. 44 NapCap containers were delivered in 2015, and 28 new containers have also recently been delivered. They are intended for Chelsea Village, a safe accommodation camp, located near the international airport in Mogadishu, Somalia. The camp is in compliance with UN standards, and NapCap containers will provide accommodation for all working in Mogadishu on site operations. NapCap containers are air-conditioned, as well as being immune to any external conditions, such as wind, dust or moisture. Their design enables rapid assembly and disassembly and they can easily be transported anywhere. Moreover, they are intended for life in adverse
Containers have two rooms and are equipped with air-conditioning, an oven, refrigerator, TV set and Internet access, amongst others
conditions, extreme temperature differences, in strong winds, high temperatures and air humidity.
CONSTANT IMPROVEMENT
“Through this delivery, Brodosplit-Holding has shown its competitiveness in the construction of complex and demanding ferrous constructions in terms of three crucial factors: deadlines, quality and price. Following feedback from clients, the interior detail was adapted in each new series of containers, aiming to ensure an extremely high standard of living that is not typical of site accommodation. The work was performed through a partnership and using the technology that provided comfortable and portable containers in order
to live and work in unfavourable and unstable environments”, stressed the Spokesman for Brodosplit, Josip Jurišić. The dimensions are 12m long, 2.1m wide and 2.5m high. They have two rooms and include office premises, an antechamber, toilet facilities and a bedroom and are fully equipped with a sanitary module with shower cabin, boiler, wash-basin and toilet. The residential area includes air-conditioning, a LED TV set, microwave oven, built-in refrigerator, wardrobe, desk, two-seat sofa and double bed, as well as hook-ups for telephone and Internet connection. Furthermore, they are provided with comprehensive electrical installations and their own distribution box and protective fuses.
THROUGH THIS DELIVERY, BRODOSPLITHOLDING HAS SHOWN IT IS COMPETITIVE IN THE CONSTRUCTION OF COMPLEX AND DEMANDING FERROUS CONSTRUCTIONS October 2016 | No 262 | PVinternational | 11
CROATIAN AIRPORTS
ATTRACTIVE INVESTMENTS Airports in Croatia have shown good business results and have been investing into infrastructure. According to unofficial data, July 2016 saw 1.48 million passengers (19% up) compared with July 2015
C 331 million
€
value of investment at Zagreb Airport
0.15 billion investment into the modernisation of Dubrovnik Airport
around € million
35
investment for Mali Lošinj
roatian airports have recorded an increase in passenger traffic and the number of passengers. Moreover, they have invested in capacity expansion and achieve excellent business results, irrespective of occasional problems due to politically influenced hiring and unhealthy interference of political interest groups in their business activity. Nevertheless, the recent wave of tourism has positively affected local airports and they have been identified by pension funds (the largest institutional investors on the Croatian market), as extremely “attractive investments” and have been waiting and preparing for any sign of privatisation. As is normally the case in business, the story is told in an unbiased manner exclusively by numbers. In July 2016, Croatian airports saw a continuation of the rising trend in passenger numbers - 1.48 million (19% up) compared with July of 2015, according to unofficial data provided by the Croatian Civil Aviation Agency. The highest number of passengers in July 2016 was seen at Split Airport – 54,120, 25.4% up in relation to July 2015, followed by Dubrovnik Airport with 380,000 passengers (16.5% growth), whit Zagreb Airport seeing 302,000 passengers (10.6% increase) in relation to July 2015.
RISING NUMBERS TO THE ISLANDS
The greatest increase in passenger numbers (almost 90%) was seen at Brač Airport, but this information appears slightly less impressive when considering the actual number of passengers–2,992. Mali Lošinj is the only local airport that recorded a drop (55%) in the number of passengers in relation to July 2015, yet, as was the case with Brač, although the fluctuations appear dramatic, with relatively small figures –1,652 passengers. The increases recorded in July are a continuation of those recorded in
12 | PVinternational | October 2016 | No 262
by Miro Soldić
June. According to data released by the Croatian Bureau of Statistics, Croatian airports handled slightly over one million of passengers (13.6% up) in June 2016 compared with the same period last year. On the other hand, during the first half of 2016, according to the same data source, Croatian airports recorded almost 3 million passengers, 9.3% up in relation to the same period in 2015.
PASSENGER TRAFFIC AT ZADAR AIRPORT IS EXPECTED TO EXCEED HALF A MILLION According to unofficial data released by the Croatian Civil Aviation Agency, including data for July, during the first seven months of 2016, Croatian airports saw 4.37 million passengers, an increase of 12.4% compared with the same period last year. The highest number of passengers was seen at Zagreb Airport – 1.5 million (+ 6.82%), followed by Split Airport with 1.2 million (+18.2%) and Dubrovnik Airport handling 1.05 million passengers, (+15.7%). As was the case on the monthly basis, the greatest fluctuations, both positive and negative, were recorded on the islands of Brač and Mali Lošinj. By July 2016 the number of passengers at Brač Airport rose 53% compared with the first seven months of 2015, recording 6,328 passengers, and the greatest loss (39%) was recorded on the island of Mali Lošinj, with 3,892 passengers. A drop in passenger numbers during the same period was also recorded at Osijek Airport, by 3.4%, to 16,045 passengers, yet the Management Board of Osijek Airport is not concerned, since a significant increase in
October 2016 | No 262 | PVinternational | 13
CROATIAN AIRPORTS Upgrade for Dubrovnik and Zagreb Airports The large-scale upgrade of Dubrovnik Airport that is currently underway is worth €0.15 billion, of which €127 million will be co-financed by the European Union, making it one of the most important infrastructure projects in the country. The modernisation of Dubrovnik Airport is imperative due to ever-constantly increasing passenger numbers and the fact that current capacities have reached their limits. Considering the fact that 65% of visitors to Dubrovnik opt for air travel, it is obvious that airport reconstruction is fundamental for tourism development. The project is scheduled to be completed by mid2019. By that time the construction of the remaining facilities will be completed, as
well as the reconstruction of the runway for take-off and landing, a traffic lane and coach station, as well as a passenger terminal. The completion of the construction of Zagreb Airport passenger terminal that
passenger numbers is expected on an annualised level.
NEW FLIGHTS TO OSIJEK AIRPORT
Our current priority is to connect Slavonia with cities in Germany and Ireland and enable the operation of these flights throughout the year. Domagoj Marinić, Director of Osijek Airport
“Osijek Airport has seen increasing passenger numbers for several consecutive years. If one considers 2015, with slightly less than 30,000 passengers and including the number of passengers thus far in 2016, one is justified in saying that we are expecting to see slightly over 40,000 passengers by the end of 2016. An increase of around 30% is certainly significant, as well as the fact that flights to Rijeka, Pula, Split and Dubrovnik will be operating throughout the year for the first time, as well as to Zagreb with whom we have operated thus far also during the winter season”, explained Domagoj Marinić, Director of Osijek Airport, adding that the airport has been focusing on the introduction of new flights to international destinations. “The flight to London with Ryanair is very successful; flights are almost always full and that is certainly an incentive for the introduction of additional flights. Our current priority is to connect Slavonia with cities in Germany and Ireland and enable the operation of such flights throughout the year”, he pointed out, adding that they are planning investment in airport infrastructure. “The second phase of reconstruction of passenger termini is scheduled for the end of the year during which, in addition to upgrading the appearance and functionality of passenger buildings, it is important to highlight the construction of an additional gate for both arrivals and departures. This will provide us with the opportunity to simultaneously service both local and
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is scheduled in March 2017 also has to be highlighted. The total value of investment will be €331 million, or €243 million for the design and construction of the new passenger terminal and €88 million for the maintenance of airport infrastructure throughout the 30-year concession period. The new terminal facilities will cover an area of 65,000m2 which will include 6,000m2 of commercial premises. During the first phase, airport capacity will be 5 million passengers who will have 30 check-in desks, as well as three baggage carousels. The baggage will be sorted using a fully automated system, whilst passengers will board and disembark flights directly from the terminal using sky-bridges.
international flights. Furthermore, by the end of 2015 a contract has been signed concerning the construction of an aircraft hangar at Osijek Airport”, explained Marinić. Osijek Airport is not alone in its plans for investment into their capacity. Due to a continuous increase in passenger numbers, Split Airport also needs to invest in its infrastructure and Privredni vjesnik discussed this in detail with Pero Bilas, Assistant Director, Split Airport. “We are planning the reconstruction and upgrade of passenger termini and project documentation has already been provided and a building permit issued. Moreover, the open public procurement procedure is underway for the selection of the main contractor. The project will be financed from our own sources and has a value of €60 million”, explained Bilas. He pointed out that an increase in the number of flights to international destinations is a seasonal phenomenon, and thus far 2016 traffic numbers are 6,556, up by 7.4%.
ZADAR AIRPORT NOT STANDING STILL
Zadar Airport also has seen considerable growth. Since the beginning of the year its passenger numbers have risen to 350,000 (+4.5%) in relation to the same period last year. Following exceptional results achieved in July when it saw growth of 15.1%, the trend continued in August. “During the first two weeks of August our airport handled 50,000 passengers, (+ 7.5%); In June 2016 we handled 69,591 (+1.5%) compared with June 2015. We also saw growth in May 2016 when passenger numbers came in at 62,748, (+5.7%( in relation to the same month 2015”, stressed Nikola Barać,
Excellent results at Pula Airport Pula Airport has yet again proved to be one of the busiest airports for passenger traffic. After July and throughout August the monthly threshold of 100,000 passengers has been exceeded. Pula Airport has thus far handled 115,026 passengers. According to data provided by the Airport, 116,334 passengers were recorded in July. Comparing this year’s results with those achieved in 2015, it is evident that August saw a 28% increase in numbers in relation
to the same period last year when 89,550 were recorded. Furthermore, passenger volume grew constantly during the first eight months of 2016 and, according to statistical data provided by Pula Airport, during that period 349,633 passengers were recorded, up 25% over the same period in 2015. This year’s results are almost on a par with the total number of passengers seen last year at Pula Airport - 359,426.
spokesman at Zadar Airport, who anticipates over half a million passengers this year and hence breaking the record figure of 496,000 passengers from two years ago. 25 airlines are currently flying into Zadar Airport, particularly Ryanair with 13 flights and around 60% of total traffic. This year it introduced a new flight to Berlin, whilst Air Berlin, Luxair and Lot airlines also fly to Zadar starting from this year.
ZAGREB AIRPORT HANDLED THE LARGEST NUMBER OF PASSENGERS, FOLLOWED BY SPLIT AND DUBROVNIK AIRPORTS, ACCORDING TO DATA PROVIDED BY THE CROATIAN CIVIL AVIATION AGENCY Notwithstanding excellent indicators, the Management Board of Zadar Airport is not standing still. They are currently working on a master plan concerning the construction of new infrastructure outside the current airport within the next 20 years. “We currently already have some projects for which we have obtained the required building permits, such as a new power substation as a prerequisite for the construction of solar panels and a new warehouse for a duty-free shop. The granting of building permits for the upgrade of passenger buildings, with the aim of achieving full harmonisation with the regulations in the Schen-
gen Area, as well as for the reconstruction and the extension of Runway 14-32 and the main airport ramp, as well as for the parking area upgrade, is currently underway. Moreover, there are plans concerning the design of a new aircraft hangar intended for the maintenance of larger aircraft”, noted Barać.
SIGNIFICANT PLANS FOR MALI LOŠINJ AND OMIŠALJ
Rijeka Airport on the island of Krk has also seen record high passenger traffic during the summer of 2016. The passenger terminal has finally been reconstructed and, with its highly modern equipment, is currently well-prepared for the Schengen regime of flights. “We have recently hosted our 100,000th passenger and we are anticipating to see 160,000 passengers by the end of the year. The fact that airlines have extended the flight season for the first time this year is also encouraging”, Tomislav Palalić, Director of Rijeka Airport, pointed out with delight. He also pointed out the plans concerning the construction of an additional runway for take-off and landing, aiming to avoid flight cancellations due to the often strong northern wind. Irrespective of slightly less satisfactory results achieved this season, activities are also being planned on the island of Mali Lošinj. There are ambitious plans for the reconstruction and extension of the take-off and landing area, including a runway extension from 900 meters to 1,800 meters and the construction of a new facilities, which will make possible the landing of aircraft with a maximum seating capacity of 180 passengers. Moreover, this will provide the opportunity for charter flight contracting and the entire island will be easily accessible to visitors. The project has been included in the list of strategic investment projects for Croatia and, according to current estimates, the total value of investment will range around €35 million.
We have recently hosted our 100,000th passenger and are anticipating 160,000 passengers by the end of the year. Tomislav Palalić, Director of Rijeka Airport in Omišalj
October 2016 | No 262 | PVinternational | 15
INTERVIEW IVICA CEROVEČKI, MAJORITY SHAREHOLDER, KOTKA
MADE-TO-MEASURE One of a few remaining old textile giants in Croatia, Kotka, has successfully overcome the crisis years that devastated other companies in this sector. The company specialised in made-to-measure men’s fashion and of 170,000 suits produced last year only 2,000 were sold in the locally – the remainder being exported by Ilijana Grgić grgic@privredni.hr
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We are currently co-operating with the most popular European fashion designers such as Pierre Cardin, Dressler, Windsor, Baldessarini, as a result of the investment into production”, pointed out Cerovečki
he textile and clothing industries are faced with merciless competition. It is hard to keep abreast with Chinese competition, as well as from South East - European countries. Nevertheless, Kotka has managed to identify its own market niche. The company is involved in the production of men’s suits and due to its high quality and ongoing innovation, the company is successfully positioned on the West European market. Ivica Cerovečki, the majority shareholder and President of the Supervisory Board, shared his views on the its business success with Privredni vjesnik, pointing out that “the company is moving forwards solely due to the staff”. “Kotka has been operating for 63 years, meeting realistic objectives and in the same premises for 55 years, notwithstanding a wide range of problems it has encountered. We have managed to remain a stable company and I can state we are the best textile company in Croatia, as well as in this part of Europe in terms of made-to-measure suits”, he noted. Kotka used to be involved all areas of fashion - children, men and women, but is now focused exclusively on male fashion – that requires the most expensive production. The value of investment into development during the last 10 years has been €6 million. “The fact that we are currently co-operating with the most reputable European producers such as Pierre Cardin, Dressler, Windsor and Baldessarini is mainly a result of our investment into production”, emphasised Cerovečki. “We export over 90% of our products. We produced 170,000 suits, of which just 2,000 were sold locally in 15 stores located from Osijek to Dubrovnik, and the remainder was exported. Our largest clients are German departmental stores.”
CO-OPERATION WITH THE BEST
The production of 170,000 suits does not mean Kotka has reached its ceiling. Several years 16 | PVinternational | October 2016 | No 262
ago the company used to produce between 200,000 and 220,000 suits. Nevertheless, trends in men’s fashion have changed greatly in the meantime. “We need to keep abreast of trends. Consequently, our experts need to be trained abroad, primarily in Italy, in order to be able to learn from the best in this sector. Moreover, we invite reputable international experts to visit our factory. One is a German expert, Jozef Moser, with a successful 40-year long career and who worked for the well-known German company Loden Fray. He shares his
I CAN STATE WE ARE THE BEST TEXTILE COMPANY IN CROATIA, AS WELL AS IN THIS PART OF EUROPE, SAYS IVICA CEROVEČKI experience and knowledge on how to make a perfect suit with our experts. Kotka currently employs 626 staff and the salaries, although they are as low as throughout the sector, are still amongst the highest
E SUITS in textile industry. The average salary is around €413. Cerovečki admitted that the company is currently facing a lack of qualified labour, which is a common problem for industries in Croatia. “We lack tailors, the textile school in Zabok no longer exists, irrespective of the fact that it used to be excellent and that used to provide us with top quality labour. The Faculty of Textile Technology with whom we co-operate provides extremely talented designers and fashion creators. They are certainly required, albeit not in large numbers. In our sector there is a high demand for engineers, processors, quality and finishing experts. There is also high demand for workers in the production process”, he pointed out, adding that the best employees are, surprisingly, hairdressers. “There is a lack of textile workers but hairdressers have highly agile fingers and a feeling for aesthetics. In addition, they can adapt easily and are soon able to use sewing machines. Unfortunately, we have a high employee turnover, as some twenty employees leave annually – some retire and there is the issue of migration of young families to other EU member states. We have been tackling this issue by providing on-going training for our employees and it has to be said that we have succeeded in dealing with it thus far”, added Cerovečki.
REACHING PERFECTION
One of the secrets of the its business success is most certainly in made-to-measure. “We are all involved and thus far have performed this work exclusively for international clients. Consequently, according to a contract signed with Dressler, 14,000 suits are to be produced each season and a minimum of 10% of this needs to be provided for made-to-measure production. A made-to-measure suit needs to be impeccable, aiming to point out the good sides of the figure and slightly conceal any weaknesses. The quality of the fabric is fundamental and we are able to provide top quality fabric. I have to say that until I was measured, I was unaware that my left arm was three centimetres shorter than my right. When an expert observes you, takes your measurements, gives advice and you end up owning a suit where your physical weakness has been perfectly disguised. I need to stress that we have reached perfection in our made-to-measure production”, stated Cerovečki.
DISCRETION GUARANTEED
Suits that make you feel happy Discretion is one of the fundamental factors concerning made-to-measure clothing; we are not aware of our clients’ identity, noted Ivan Cerovečki. “Our clients are lawyers, businessmen and politicians, as well as those aiming to look presentable, and 100% discretion is guaranteed. Moreover, when a client feels comfortable in their new suit, he is highly likely to return and repurchase. The situation in the textile industry over the past 15 years has been dire and the only large companies that have managed to survive are Varteks, Siscia and Kotka. There is a slightly larger number of small and medium-sized producers, yet unfortunately the number of large companies who would be able to dictate the pace and act as frontrunners for the entire sector is currently insignificant. Due to its highly committed employees and as a result of keeping abreast of market requirements, Kotka has managed to survive and move forward. Against the backdrop of the most severe competition on the European market, it is imperative to be one step ahead of competitors in order to manage to survive. Perfect quality is similarly imperative, 100% on-time delivery, in addition to an incredible amount of flexibility and affordable prices. Nevertheless, we are still operating and are able to pay salaries, dividends and even to invest.
October 2016 | No 262 | PVinternational | 17
EU STRATEGY FOR THE DANUBE REGION
€8 BILLION AVAILABLE Within the 14 countries of the Danube Strategy Region, there are 4.5 million SME’s. The survival of small businesses necessitates a level of support that differs markedly from that required by large companies, pointed out Dragica Karajić, Co-ordinator of Priority Area of Competitiveness of the EU Strategy for the Danube Region by Svetozar Sarkanjac
A Every entrepreneur or company with a specific business idea, is able to easily find a required
meeting of three working groups operating within Priority Area 8 of the EU Strategy for the Danube Region – directly intended for economic development – has recently been held at the Croatian Chamber of Economy, County Chamber Osijek, jointly co-ordinated by the Ministry of Entrepreneurship and Crafts and the Ministry of Economy of the German province of Baden Württemberg. Several working groups operate within Priority Area 8, three of which – Innovation and Technology Transfer, Energy Efficiency and the Environment and Co-Operation of Business Organisations – held working group meetings in Osijek and were attended by highranking representatives of institutes, chambers,
THE FINANCIAL ENVELOPE FOR THE DANUBE STRATEGY IS WORTH €90 MILLION, STATED VICEPRESIDENT OF CCE international partner, with assistance provided by CCE, in order to better promote and eventually co-finance its project through the EU Strategy for the Danube Region. Ivana Erak, Croatian Chamber of Economy, County Chamber Osijek
regional agencies, universities and entrepreneurship centres from Croatia, Bosnia and Herzegovina, Slovenia, Austria, Hungary, Germany, Serbia and other EU member states. The participation of Croatia in joint co-ordination with the Ministry of Economy of Baden-Württemberg in the symposium on Priority Area 8 Support to competitiveness of enterprises and cluster development opens up new opportunities for socio-economic development of Croatia through the implementation of cross-border and transnational projects with the countries in the region. Furthermore, it is an opportunity for a further strengthening of national, regional and local institutional capacities and application of experiences gained and knowledge acquired during Croatian preaccession negotiations. Since the EU Strategy
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for the Danube Region (EUSDR) is primarily a mechanism for co-operation that does not necessitate the creation of a new EU structure or institutions, it is implemented through the Action Plan for the Development of the Danube Region that provides comprehensive information on potential organisations, structures, centres, associations and networks that can be included in the implementation of activities and projects.
JOINT PROJECTS TO PROVIDE FUNDING
Participating in the symposium, Želimir Kramarić, Vice-President of CCE, emphasised that the financial envelope for the Danube Strategy is worth €90 million and he invited businesses to jointly exploit this opportunity. He stated that the Chamber is already working on some projects concerning vocational and dual education. “Moreover, the CCE helps Croatian companies in finding business partners, primarily in Hungary, Austria, the Czech Republic or any other member state within the Danube Strategy Region”, noted Kramarić, pointing out that one of the most important projects of the Chamber is primarily the Centre for Industrial Development linked with innovation and research. The Centre is aiming to strengthen the connection between Croatian companies and science, as well as between universities and institutes concerning the development of new products and services. Mikel Čivljak, Assistant to the outgoing Minister of Entrepreneurship and Crafts, highlighted the importance of the working group that discussed the possibility of co-operation between businesses, considering it as one of the most useful activities of the Osijek-based symposium. “Our businesses at this platform are provided with the opportunity to be in the position to establish co-operation with related and complementary businesses, in order to help them to present their potential to EU markets, as well as beyond them, aiming to reach the required level of competitiveness as quickly as possible, in order to improve their appearance on the global market”, explained Čivljak, pointing out prima-
WHAT IS THE EU STRATEGY FOR THE DANUBE REGION?
Finding a common solution The EU Strategy for the Danube Region was launched in April 2011. EU member states participate (Germany, Austria, Hungary, the Czech Republic, Slovakia, Slovenia, Bulgaria, Romania and Croatia) together with five non-member states (Serbia, Bosnia and Herzegovina, Montenegro, Ukraine and Moldova). The total population of the previously mentioned countries exceeds 115 million and they are involved in the creation of a second macro-region in Europe (the first macro-region is the
rily the importance of Priority Area 8 - Support to competitiveness of enterprises and cluster development as it covers a broader area from co-operation between the stakeholders in the economy, SME’s and research institutes through new technologies and innovative approaches.
TRANSNATIONAL CO-OPERATION DEVELOPMENT “Innovation in companies and technology transfer, as well as aspects of environmental protection, significantly affect competitiveness. Nevertheless, one encounters a wide crosssection of issues when trying to connect companies originating from 14 diverse countries and here chambers of economy have a fundamental role, as most companies are members of respective chambers”, noted Dragica Karajić, from the Ministry of Entrepreneurship and Crafts. “It has to be highlighted that in 14 countries within the Danube Strategy Region there are 4.5 million SME’s. The percentage of SME’s in Croatia is 99.5%, since companies hiring up to 250 employees fall into this category, as opposed to the EU where SME’s account for around 95%. The survival of small businesses requires a type of support that differs considerably from that required by large companies. This is a highly challenging task assumed by institutions such as ours that are aiming to boost competitiveness. We are primarily striving to achieve this through the EU strategy for the Danube Region that enables us to develop transnational co-operation through at least two other member states in the Danube Region. Nevertheless,
Baltic Sea Region). The strategy was launched in order to coordinate EU policies throughout the Danube Strategy Region and is based on the concept that most effective solutions to challenges - irrespective of their being ecological, economic or safety - are to be found jointly. Through equal involvement of neighbouring EU states, the Danube Strategy connects the countries of the Western Balkans, Moldova and the Ukraine with the European Union.
the task of connecting institutions for example from Bosnia and Herzegovina and Romania is certainly highly challenging. Such symposiums provide significant support, and accelerate similar processes. We are all aiming to subsequently connect companies or entrepreneurs in our countries, to launch joint projects in order to absorb huge EU funds whose value is €8 billion available through the INTERREG programme until 2020. Croatia can currently continue the previously implemented programmes of cross-border co-operation through the INTERREG programme. Over the next three years, we have the opportunity to enhance the development of this large European region primarily through the activities performed under the EU Strategy for the Danube Region”, she stressed. Croatian Chamber of Economy, County Chamber Osijek, has been implementing similar activities of cross-border co-operation amongst its members for several years, and the Danube Strategy is providing a new opportunity for such co-operation. “Following the previously established Euro-regional co-operation and the current Danube Chambers of Commerce Association (DCCA), of which we are a member, we see excellent opportunities for our entrepreneurs. Every entrepreneur or company with a specific business idea is able to easily find a required international partner, with assistance provided by CCE, in order to easily promote and eventually co-finance its project through the EU Strategy for the Danube Region”, explained Ivana Erak from Croatian Chamber of Economy, County Chamber Osijek.
We are all aiming to subsequently connect companies or entrepreneurs in our countries,
aiming to launch joint projects to absorb huge EU funding. Dragica Karajić, Ministry of Entrepreneurship and Crafts
September 2016 | No 261 | PVinternational | 19
ANALYSIS: THE PROPERTY MARKET
MARKET HAS STABILISED, PRICES BECOMING MORE REASONABLE During the first six months of this year 1,348 new apartments were sold in Croatia, of which 630 were sold in Zagreb and 718 in the rest of the country. Companies and other legal entities sold 1,090 apartments, and 258 were apartments under the state-subsidised housing construction programme by Ilijana Grgić
1,044 €
average price of a square in Croatia
6% less
of the average price last year
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he average cost per square meter of new apartments sold by businesses and other legal entities in Croatia during the first half of 2016, excluding apartments under the state-subsidised housing construction programme, was €1,044, 6% down compared with the same period last year, according to the latest data published by the Croatian Bureau of Statistics. Thus, the average cost per square meter of new apartments in Zagreb during the first half-year was €1,517, 8.6% down in relation to the same period in 2015, whilst the cost per square meter of new apartments in other Croatian cities reached €1,370, 2.5% down.
first six months of this year 1,348 new apartments were sold in Croatia, of which 630 were in Zagreb and 718 in the rest of the country. Companies and other legal entities sold 1,090 apartments, and 258 were apartments under the state-subsidised housing construction programme.
IN ZAGREB THERE ARE CURRENTLY 1,400 APARTMENTS UNDER CONSTRUCTION
PRICE STABILISATION
1,517 €
the average cost of square meter of new apartments in Zagreb (8.6% less than last year)
When costs per square meter of new apartments under the state-subsidised housing construction programme are also considered, the average cost per square meter of new apartments during the first half of 2016 was €1,357, a decrease of 11% over the same period last year. The average cost per square meter of apartments sold under the state-subsidised housing construction programme over the first six months was €1,034, down by 0.7% compared with the first half of 2015. During the
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“According to the Croatian Bureau of Statistics, prices saw a downward trend since the apartments owned by banks or under mortgage that had been burdening portfolios for a long time as it had not been possible to sell then at market prices, were finally sold and therefore this situation has changed”, noted the owner and the director of the Opereta Property Agency, Boro Vujović, who emphasised that property prices have stabilised and are not
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ANALYSIS: THE PROPERTY MARKET
expected to drop further. They are also not expected to increase significantly in the immediate future, either. “It is clear that construction has been weak following the crisis and therefore the market is showing high demand for quality new building. We are expecting a recovery in the market for new-build
THE MARKET IS DESPERATE FOR NEW APARTMENTS, MAINLY WITH THREE BEDROOMS, POINTED OUT BORO VUJOVIĆ, OWNER OF OPERETA apartments in the immediate future and there are already signs of it. In Zagreb there are currently 1,400 apartments under construction. The market is desperate for new apartments, primarily with three bedrooms. Prices of such properties are high, almost reaching pre-crisis levels. We are anticipating a further price differentiation between old and new
apartments”, noted Vujović. The current situation on the property market is linked with negative developments that affected primarily the construction sector during the recession. During the last 20 years – from the real boom at the beginning of the 2000’s and the golden pre-recession period of 2008 resulting from huge infrastructure investment and construction of residential property – construction has seen a substantial drop. According to an analysis conducted by RBA, gross value added (GVA) in the construction sector plunged by over 45% during the period between 2008 and 2015. Nevertheless, according to high frequency indicators, since the beginning of 2016 these negative trends are reducing. During the first six of 2016, the volume of construction work was up at an annualised rate of 4.1%, primarily due to the construction of buildings which saw an increase of 10.2% at an annualised level. Over the first seven months of this year, the number of building permits granted rose at a double-digit annual rate of almost 22%, yet simultaneously the expected value of work for which the permits had been granted dropped by 9.8% compared with the same period last year.
REALISTIC PRICES, RAPID IMPLEMENTATION
Information from the site, as well as in-
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ternal indicators in Biliškov Nekretnine differ from the statistics provided by the Croatian Bureau of Statistics, showing that in 2015 and 2016 property prices have been stable, showing mild oscillations of up to 2% throughout the year, but with growth of up to 10% in several locations. “The statistical drop in prices may be due to new-build property sold by businesses and hence residential buildings under final phase of sale were included, whilst apartments have been selling at slightly lower prices lately, since we are primarily talking about a slightly inferior floor space usability and a less favourable location within the building”, noted a member of the management Board of Biliškov Nekretnine, Jasna Biliškov Barun, pointing out that according to company experience the cost and sales of property have stabilised and have shown slight upward trends over 2015 and 2016. “Property agents quoting realistic prices, that the market is able to accept and afford, normally soon reach the phase of finalisation. Nevertheless, there are a large number unwilling to adapt their prices to the market and are likely to be selling their property for years without any success. I believe the forthcoming years will see stability and mild growth and larger cities will welcome quality new projects, since there is currently a lack of such projects on the market”, noted
NEWS Jasna Biliškov Barun. According to data released by the Croatian Bureau of Statistics, the number of new apartments sold during the first half of the year has more than doubled compared with the number of apartments sold during the same period in 2015, and a similar increase applies to the usable area in apartments. It has to be noted that the first half year of 2015 saw a small number of newly built apar-
PRICES AT SEVERAL LOCATIONS HAVE INCREASED BY 10%, AS STATED BY BILIŠKOV NEKRETNINE tments sold - only 610, whilst normally around 1,000 new apartments are sold during half a year period. “A drop in the average cost of per square meter of new apartments in addition to the rise in the number of sold new apartments could imply the beginning of slightly more favourable developments in housing construction. During the crisis, only a modest number of new apartments was constructed, mainly at prestigious locations, for a smaller number of clients having a higher purchasing power, which resulted in high costs per square meter. The current trends imply a renewed interest shown by businesses and other legal entities in the construction of residential units affordable across a broad range of clients. This has been confirmed also by the fact that the first seven months of this year saw an increase of 21.1% in building permits for construction of apartments granted, in relation to the same period in 2015, in addition to a 22.7% rise recorded in usable area”, as stressed by the sources at the Croatian Chamber of Economy.
BUYERS DICTATING MARKET CONDITIONS
The data released by the Croatian Bureau of Statistics do not provide a comprehensive overview of the property market, since the sale of new apartments is only a segment of the property market,
as highlighted by the President of the Real Estate Association at the Croatian Chamber of Economy and co-owner of the estate agency Kastel - Dubravko Ranilović, adding that the market for used apartments is currently still predominant in Croatia. During the first six months this year, positive trends were seen in Zagreb and the coastal cities such as Zadar, whilst in continental parts of Croatia such as Slavonski Brod or Osijek property prices are still on a downward trajectory. .“It has to be noted concerning prices that on average we are currently still talking about downwards trends across Croatia. Nevertheless, it has to be stressed that the decrease in prices is rather slight and may be considered as corrections. Consequently, we have currently reached real prices, although there are still considerable differences throughout the market. In Zagreb the cost per square meter of basement apartments in the centre of the city is €700, although the cost per square meter of apartments located in the same building, but on one of the floors, can be even tripled”, emphasised Ranilović. The difference in the cost per square meter is notable across several Croatian counties; in Dubrovnik-Neretva County the average cost per square meter of apartments exceeds €2,000, and there are substantial differences amongst individual cities located within the same county, whilst price differentiation is notable also at a locational level within a specific city. “Prices have become more realistic, following the crisis, and demand, the criteria and costs per square meter are currently dictated by buyers. A large number of factors influence purchasing decisions, such as the quality of the construction work, the micro-location (the vicinity of a school, a kindergarten) or public transport availability. The market has stabilised and the situation has clarified and I believe property has finally been valued realistically”, stated Ranilović. Consequently, a conclusion can be reached that property in a highly valued location attracts buyers at prices that substantially exceed the average, whereas an excess supply of lower quality property still continues to exert pressure on the market and eventually normally results in a statistical decrease in the cost per square meter.
ERICSSON NIKOLA TESLA LTE NETWORK ROLL-OUT ACROSS ARMENIA
Following the signing of a contract between Ericsson Nikola Tesla and Armenian Ucom concerning their LTE network deployment in March 2016, this increased-speed network has recently been delivered to the Armenian capital Yerevan. Consequently, the quality and Internet speed will be improved and the implementation of more advanced apps will be enabled. The deployment of Ericsson ExpertAnalytics comprehensive software suite will, based on real-time analytics, enable Ucom to upgrade user experience, boost customer satisfaction and automatically implement measures required for further improvement.
XELLIA PHARMACEUTICALS INVESTING OVER €4 MILLION
Xellia Pharmaceuticals - Xellia, a pharmaceutical company specialised in research and development and the production of anti-infection drugs for dangerous bacterial and fungal infections, has announced that its Zagreb-based Research and Development Centre of Excellence will be upgraded with over 15 additional scientists and 1,000m2 of laboratories. The value of investment exceeds €4 million and will enable the continuation of intensive work on new solutions. The value of investment implemented since 2011 by Xellia into the Zagreb-based Research and Development Centre of Excellence is in excess of €26.7 million.
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BEST VEGETABLE PROCESSING RESULTS ON RECORD
High demand for ajvar
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ollowing a modernisation of its facility, the Varaždin-based factory owned by Podravka, has seen growth throughout all processing divisions resulting in its plan being 14% up compared with last year. Between 110 tonnes and 130 tonnes of raw material are processed on a daily basis, and the best results on record are expected in ajvar production, as 6,000 tonnes of peppers are expected to be processed. Production of ajvar – a spread made from red peppers and aubergines is highly popular both in Croatia and the region – is currently organised in four shifts, seven days a week, in order to process the large quantity of red peppers that have been planned for ajvar production.
AUGUST DATA
Number of employees in industry stagnating
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he number of employees in industry in Croatia for August of this year was on a par with the number recorded in July, yet it stagnated in relation to data for the end of August 2015, according to data from the Croatian Bureau of Statistics. During the first eight months of this year, the number of persons employed in industry dropped by 0.3% compared with the same period in 2015, whilst labour productivity was up 5.3%. Numbers employed in the processing industry, which employs over 91% of those employed in local industry, rose by 0.1% on a monthly basis and 0.2% on an annualised level, with an increase in labour productivity of 5.6%.
KRŠKO NUCLEAR POWER PLANT
Overhaul worth €20 million
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ince 1st October Krško Nuclear Power Plant has been undergoing the regular maintenance programme worth €20 million. The 28th operating cycle, which started following the overhaul completed in May 2015, was performed faultlessly and, according to measurements taken, the nuclear power plant had no adverse environmental effect. Since the overhaul completed in October 2004, Krško Nuclear Power Plant has been operating on 18-month cycles,
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whilst prior to that it had been operating on a 12-month cycle.
ADACTA AMONG THE TOP 5% BEST MICROSOFT PARTNERS GLOBALLY
IN PRESTIGIOUS COMPANY AGAIN Adacta has earned the President’s Club recognition due to its commitment to the achievement of the highest level of customer satisfaction and through implementation and development of innovative solutions for Dynamics products by Boris Odorčić odorcic@privredni.hr
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dacta, a leading implementer of Microsoft Dynamics business solutions in Croatia, Slovenia and Serbia, has recently won recognition by the prestigious President’s Club for the fourth time and currently ranks among top 5% best Microsoft partners in the world. Adacta has earned the President’s Club recognition due to its commitment to the achievement of the highest level of customer satisfaction and through implementation and development of innovative solutions for Dynamics products. The importance of this success is also obvious when one considers the exclusive company of some of the best international partners with whom Adacta is currently on a par, such as Dell, NEC Corporation, Konica Minolta and Paramount Technologies. Interestingly, Adacta is the only Microsoft partner in this part of Europe that has joined the President’s Club. Krešimir Mlinarić, Director of Adacta, expressed his delight with the fact that only 5% of Microsoft partners have joined the President’s Club globally. “If one considers the fact that Adacta has achieved it four times so far and that it may be easier to meet an objective for the first time rather than remaining on top, then the extent of the company’s success can be best understood”, he explained. It has to be noted that in 2016 Adacta Group has achieved excellent business results. “During the first eight months Adacta Group saw 13% growth and in Croatia even slightly above that”, noted Mlinarić.
COMMITMENT TO CLIENT SUCCESS
Membership of the President’s Club implies easier access to modern Microsoft solutions and technologies and the opportunity to participate in the testing of new solutions. Furthermore, it helps
Ivan Vidaković (Microsoft Croatia), Krešimir Mlinarić (Adacta) and Slobodan Školnik (Emmezeta) to connect with other Microsoft partners, facilitates exchange of experiences and best practices, as well as the acquisition of new skills. Ivan Vidaković, Director of Microsoft Croatia, stressed that every year Microsoft recognises and awards its Microsoft Dynamics partners across the world for their excellence. “Adacta has achieved extraordinary results and commitment to the success of its clients – through its effort, involvement and professionality. We can hence express our utmost satisfaction with the fact that our local partner, the company Adacta, has yet again managed to join the prestigious Microsoft Dynamics President’s Club, due to its achievements during 2015”, he added.
DURING THE FIRST EIGHT MONTHS ADACTA GROUP SAW 13% GROWTH AND IN CROATIA EVEN SLIGHTLY ABOVE THAT, NOTED MLINARIĆ
October 2016 | No 262 | PVinternational | 25
IT COMPANIES IN EASTERN CROATIA SEE VIGOROUS GROWTH
DOUBLE-DIGIT GROWTH OVER FIVE YEARS
The number of software development companies in the Osijek-Baranja area increased by 76%, employees by 70%, and revenue from exports 85% by Svetozar Sarkanjac
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recently published table of statistical indicators of development of companies in IT the sector in the Osijek-Baranja area has caused great surprise amongst those lacking information on this issue. Over a five-year period, the number of companies involved in software production rose by 76%, and the numbers employed 70% up, which is certainly extraordinary, particularly in an area like Slavonija. Nevertheless, extraordinary things are happening. “One of the success stories in Slavonija is the creation of the Osijek Software City association in 2012”,
stated Ana Čobanković and Ivan Jurlina through the official website of the association. 2012 saw five local companies join to launch the project entitled Osijek Software City aiming to increase the attractiveness of programming in Osijek and encourage entrepreneurship in the ICT sector. “Over the last four years the association has launched a large number of projects and activities and of the current association members, 70 are natural persons and 33 legal persons. One of the activities performed is the systematic monitoring of progress achieved by software development companies”, as pointed out on the website.
CRISIS NOT SEEN AS AN OBSTACLE
According to Kornela Miling, Senior Staff Associate at the Croatian Chamber of Economy - Osijek County Chamber, companies involved in the IT sector has been specifically monitored since 2008 and especially following the 2012 foundation of Osijek Software City as an association of what, at the time, were small IT companies. “It was clear at the time that the IT sector was burgeoning rapidly. Irrespective of the fact that it was all occurring after the outbreak of the crisis, the growth indicators for the IT sector were constantly rising. Starting with the num-
TOMISLAV BILIĆ, PRESIDENT OF OSIJEK SOFTWARE CITY
We are creating a highly positive ecosystem Tomislav Bilić is the President of the Osijek Software City association and director of one of the leading Osijek-based IT companies, Inchoo. How do you explain the vigorous growth of IT sector in your area? This sector has seen growth throughout the world and this is the case also here. Nevertheless, our area has shown aboveaverage growth compared with others. I honestly believe that this is the result of coordinated activities by the members of the software development community through the association Osijek Software City. The specific objective of the association is to promote software development through practical work and attract substantial in-
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terest in this activity. Interest leads to selfeducation and professional development which significantly enhances the competitiveness of individuals. The success of our activities is shown through easily measurable indicators. Nett average salaries are still below the sector average at the state level. Why is that? The Osijek-based companies are primarily new and small that have only recently appeared on international markets and face severe competition. At state level, Zagreb-based companies are currently predominant and a large number operate with state-owned companies in which market conditions are questionable. Notwithstan-
ding the fact that our nett salaries are lower, they showed an increase of 11% over a period of four years, whilst the nett average salary increase at state level was 4%. If we manage to maintain this trend, which we are certainly aiming to do, we will exceed the nett average salary at state level in several years. What are your expectations concerning the sector development both in Osijek and in general? My expectations are extremely positive. We have been creating a positive ecosystem with a large number of internationally acclaimed experts. The companies are highly heterogeneous and we are covering a vast range of industries and technologies. The
a negative impact on business development. IT companies have been pointing out the issue of a shortage of educated staff for years, which has been one of the greatest obstacles to faster progress.
PROGRAMMERS IN DEMAND
ber of companies involved, the numbers employed and total revenue generated, the most significant was data on the level of export revenue. In addition, high value added is implied, with simultaneous low investment and relatively low expenditure”, Kornela Miling explained to Privredni vjesnik. According to indicators from 2011 to 2015 the number of software development companies in the region was 76% up, the numbers employed by 70%
(the Croatian average for the same period is also significant compared with other activities, since it increased by 47%). Nett average salaries rose by 11%, and total revenue generated during the same period was 51% up. Export revenue leapt 85 %. Nevertheless, the ineffectiveness of the Croatian educational system which is failing both to meet the real requirements of society and address the challenges of the 21st century, irrespective of a vast array of invitations and appeals, has had
Concerning this important issue, sources at Osijek Software City association stated that economically successful communities respond more effectively to market changes. Over the last 10 to 20 years the demand for programmers has increased substantially, yet the Croatian education system has been lethargic in responding. These relatively new companies do not currently yet have sufficient impetus to make significant changes to the Croatian education system, and as a result are building their own alternative education systems. They are creating a development subculture aiming to motivate individuals towards self-education through material available on the Internet. Although this may appear as fundamental, it is highly effective. Moreover, companies have been trying to create parallel practical programmes, both individually and through their association and in co-operation with specific faculties, in order to provide students with an education that is more difficult to provide through formal programmes.
Year-on-year analysis 2011 – three years into the crisis. Osijek-Baranja County saw 62 registered companies with 247 employees, nett average salary of €613. Exports account for 33% of revenue, whilst the Croatian average was 20%. Total revenue exceeded €9.9 million.
2012 – the creation of the Osijek Software City association. Numbers employed (268) and nett salaries were €663. Exports accounted for 35% of revenue.
2013 – Due to simplified and more affordable methods of company formation, the number of companies increased from 64 to 83, and the number employed from 268 to 311. Nett average salary increased to €665. In addition, both total revenue and exports showed growth.
2014 – after two years of a downward trend in profitability compared with 2011, demand for programmers during my lifetime will be constantly growing. I anticipate the infatuation with technology will come to an end at some time, but not over the next several decades.
profits exceeded €2 million. The number of companies grew from 83 to 96, numbers employed rose to 347, nett salaries increased to €701 and total revenue exceeded €13 million.
2015 – total revenue exceeded €15 million, export revenue accounted for 41%, against the Croatian average of 28%. Profit generated exceeded €2.13 million. 109 companies were involved with 420 employees.
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INTERVIEW TOMISLAV PONGRAC, Creative Director, Gamepires
OUR SCUM WILL REVOLUTIONISE THE SURVIVAL GAME GENRE When compared with video game producers globally, Croatia is well-positioned due to high quality and expertise, but there are substantial shortcomings concerning the level of awareness within the country, noted Pongrac whose company is about to launch a hit - a new survival game Scum by Boris Odorčić
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amepires was founded in 2010 as the gaming label of the company Pandora studio. The development team consists primarily of programmers and designers with long-term experience in the development of video games for PC’s and consoles (Playstation and Xbox), as well
WE HAVE ESTABLISHED EXCELLENT COOPERATION WITH CCE THAT HAS BEEN OF GREAT HELP CONCERNING TRADE FAIRS as the development of advanced technologies required for the development of games and VR (virtual reality) projects. Tomislav Pongrac, Creative Director of Gamepires, stated that the company is exclusively focused on exporting. The video game Gas Guzzlers, developed by the company, that is an arcade driving 28 | PVinternational | October 2016 | No 262
simulation and shooting game, has hundreds of thousands of fans across the world. The game won second prize in the competition for the Best Racing Game at European Games Award in 2012 in Cologne within Gamescom, the largest international digital entertainment trade fair. The company has 12 employees and a dozen external associates with whom it co-operates through project development. Moreover, it currently employs programmers and 3D designers and hence the team is going to expand further in the immediate future. Croatian video game producers are a considered a vital and resilient segment of the ICT industry. Why is this so? Irrespective of the fact that Croatian companies have been involved in video game development for years, the number of such companies has greatly increased during the last several years. New teams with interes ting ideas and games are always appearing. This is due to the creative nature of our business which differs greatly from the development of classical business software. Another aspect is also the relatively low initial investment. One only needs an idea, a computer and some knowledge in order to start a business. It is definitely not easy to develop a fullblooded video game that will be on a par
with internationally popular video games, yet there are simpler paths to take, such as game development for mobile devices or web games. There are also tools such as UE4 and Unity intended to help beginners in game development and it is no longer necessary to provide one’s own tools in order to become involved in game development. The number of companies involved in video game development in Croatia is 20. The Croatian Game Developers Association is a cluster that has brought us all together, similar to other professional associations in the world. Domestic video game producers currently export 99% of their software, which shows that Croatia has been recognised internationally, whose value exceeds that of both the film and music industries. Total revenue generated by video game production in 2009 came in at around €0.5 million, and reached €6.7 million in 2014. Against the backdrop of conditions in Croatian economy, growth has been in excess of 300%, and an annual growth rate of 50%. Concerning overall exports, the share of export revenue has jumped by 430%. What is the attitude of the state towards this business sector? The relationship between the state and the video game industry in Croatia is weak as it has a tendency of extremely
We are primarily players and only secondarily gaming engineers, noted Tomislav Pongrac
slow growth. The state apparatus is cumbersome and it has hardly any insight or sympathy with our activities. There is no special support and it all comes down to support concerning exhibitions of local video game developers at international trade fairs such as Gamescom and similar. Investment in the educational system aiming to provide staff for employment is insignificant. There is currently no direct state support for video game production. We have established excellent co-operation with CCE which has been of great benefit concerning our participation at trade fairs. How competitive are Croatian video game producers compared with their global competitors? What can be offered to the world by Croatian companies? When compared with video game producers throughout the world, Croatia is well-positioned due to its high quality and expertise, yet there are substantial shortcomings concerning the level of awareness within the country. In most other countries, state institutions have recognised and acknowledged the video game industry, but not Croatia. A good example can be provided by Poland where the video game industry has exploded and the President of Poland
gave a symbolic gift to the American President upon his visit to the country of a copy of Witcher 2 video game, which is one of the strongest Polish export brands. Croatian video games and Croatian teams are on a par with their international competitors and it is frequently not unusual to find that video games such as Serious Sam are considerably more popular beyond Croatian borders rather than inside. This clearly shows the level of computer literacy of local institutions and the entire nation. Double taxation in the US is one of the major issues Double taxation is one of the most serious problems faced by video game producers. Considering the fact that the United States provides the largest market for the distribution of video games, and since Steam, as a central platform for the distribution of video games, is located in the US (video game producers do not have any other choice but to distribute them through Steam), it is therefore logical that revenue generated is subject to American tax laws. Consequently, most Croatian producers need to identify the video game publishers that have regulated their relationship with the US concerning double taxation, rather than opt to distribute their products direct.
Are there any plans for further development of Gamepires in this sector or are you planning to become involved in new activities? We are primarily players and only secondarily gaming engineers. This means we are fond of playing diverse types of video games but not limited to any one genre. Notwithstanding the fact that we started out with a racing video game, we are certainly not aiming to limit ourselves exclusively to this genre. The members of our team have been involved in the development of various types of video games and we are striving to continue along this path in the future. Amongst other things, we are currently focused on the Scum project, open world survival game intended to revolutionise the survival game genre throughout the world. The game takes place on a Dalmatian island and it will be decorated with the flora and the fauna typical of that area. The references for the game have been taken from real locations, primarily from the island of BraÄ?, as well as from other places located on the coast. Following the project of virtualisation of Zagreb, which appeared as one of the arenas in our Gas Guzzlers video game, we are continuing with the promotion of Croatia in the world through our future products. October 2016 | No 262 | PVinternational | 29
NEWS 17 INTERNATIONAL GOLD MEDALS, six silver and one bronze for dairy and meat products
HARVEST OF MEDALS FOR VINDIJA
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total of 24 products from Vindija have recently won prestigious international recognition from the German Agricultural Society Deutsche LandwirtschaftsGesellschaft (DLG). Despite severe competition, strict laboratory testing and the evaluation of quality of food products, the German Agricultural Society awarded gold, silver and bronze awards to 13 products from Vindija and 11 from Koka.
The umbrella organisation at European level concerning food and agriculture which tests and evaluates almost 30,000 food products annually, conducting a vast array of testing and performing multiple laboratory analyses, confirmed the excellence of products with the Vindija Quality mark. The products included fresh and breaded chicken and turkey products made from high quality ingredients of verified local origin, eventually resulting in high quality products.
The highest DLG recognition for dairy products was awarded for fresh milk, goat milk, lactosefree milk, and Ovidur and Caprodur cheese and Vivis fresh cream cheese and a dairy dessert– Choco Loco vanilla and chocolate pudding and a chocolate cream pudding. Koka, integrated into the Vindija business system, received 7 gold and 4 silver medals. Gold medals were awarded to processed meat products - Cekin Dimcek – smoked chicken breast and chicken breast, as well as Vindon Deluxe ham and Prestige Classic ham. Also, Cekin chicken wings in a piquant marinade and Cekin breaded chicken croquettes and chicken fritters also received gold medals. Moreover, following the establishment of its leading position on the local food market, Vindija expanded its operations throughout the region and currently most of Vindija’s international operations occur in Serbia, Bosnia and Herzegovina and Macedonia, where the company’s factories, commercial subsidiaries and retail stores are located. The Vindija Group currently consists of 14 companies, 8 of whom are located in Croatia and the remaining 6 across the region. It employs over 4,000 workers generating average an annual revenue of €400 million. Vindija’s product range includes over 1,000 diverse products in 17 brands, of which the best known are ‘Z bregov, Cekin and Vindon. Its commercial centres are located across Croatia and its products are exported to EU member states.
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H
yatt Regency Zadar Maraska Hotel will be the first hotel in Croatia to be managed by Hyatt Hotels Corporation. In addition to the hotel that will be located in the former premises of the Maraska factory and will comprise of 130 luxury rooms and suites, 115 luxury residences will be constructed, as well as a commercial area with exclusive stores, restaurants and catering facilities. The hotel will be classified as five-star. Moreover, the hotel will be provided with one of the most beautiful wellness and spa centres in Croatia, a conference centre, both indoor and outdoor pools and catering facilities, according to senior officials at Dogus Group. The investment, with a total value of €100 million, is planned to be completed by spring of 2019. The total value invested by Dogus Group, including this investment, will be €350 million. Prior to the project with Hyatt Regency Hotels Corporation, the Dogus Group had invested €250 million in several projects. The Group owns three marinas - D-Marin Mandalina in Šibenik, D-Marin Dalmatia in Sukošan and D-Marin Borik in Zadar, as well as the luxury D-Resort Šibenik and the Villa Dubrovnik boutique hotel, and a share of ACI at almost 11%. “This is not the end of our investment in Croatia. We believe Croatia has immense tou-
MARASKA PROJECT PRESENTED
DOGUS GROUP INVOLVING HYATT This is not the end of our investment into Croatia. We believe Croatia has immense tourism, nautical and economic potential, and we will continue investing in several sectors, pointed out Hüsnü Akhan, President, Management Board, Dogus Group by Jozo Vrdoljak vrdoljak@privredni.hr
rism, nautical and economic potential; we will continue investing in several sectors that are in accordance with Group corporate policy”, pointed out Hüsnü Akhan, President, Management Board, Dogus Group
HYATT HOTEL CHAIN
Naci Baserdem, President of Dogus Tourism Group, pointed out that Croatia has considerable potential for the deve-
lopment of luxury tourism, on which Dogus Group primarily focuses. “We believe that our co-operation with Hyatt will strengthen the potential of this region and attract both local and international tourists”, stressed Naci Baserdem. The Regional Director of Dogus Group for Croatia and Montenegro, Burak Baykan, stated that this hotel is intended as a city hotel and the complete project is extremely important for Dogus Group, as well as for Zadar. “We have not shown it earlier, since we were aiming to present the project in its entirety. Construction work is expected to begin at the end of the year”, noted Baykan. Hyatt Regency Zadar Maraska is the first Hyatt Hotel owned by Dogus Group, as well as the first such hotel in Croatia and the fourth in total. Dogus Group already owns Grand Hyatt Istanbul and Park Hyatt Istanbul, and is currently focu-
sed on developing Hyatt House Istanbul Gebzea. Reiterating the fact that that this is the first hotel in Croatia managed by Hyatt, Jacques Morand, regional Vice-President of Hyatt International Hotels and Resorts, added that there are plans concerning the running of hotels in Split, Zagreb and Dubrovnik. “We are aiming to provide visitors with the top quality accommodation and services of which Hyatt Regency is successful and recognisable throughout the world. We are striving to be a good neighbour in the local community and to contribute to the strengthening of tourism in Croatia. This may be the start of a new generation of hotel operators who will not be operating solely in Zadar, but also globally”, stated Morand disclosing the fact that Hyatt has recently signed hotel management agreements in Sofia and Bucharest.
MINISTER KLIMAN:
We are a small country and avoiding mediocrity is imperative The outgoing Minister of Tourism Anton Kliman stated that the owner of Dogus Group was a friend of Croatia due to previous substantial investment. He was delighted with the presentation of Hyatt Regency Zadar Maraska Hotel, pointing out that the Croatian public sector welcomes such investment and will support similar projects in the future. “We are focused on encouraging excellence, since it is the right path to follow. Furthermore, we are striving to enhance the cost-effectiveness of Croatian tourism”, stated Kliman, adding that Croatia saw 83 million overnight stays by 21st September 2016.
October 2016 | No 262 | PVinternational | 31
SMART SOLUTIONS MODULAR DESK
DESKBLOKS – IN HIGH DEMAND The project is in its prototype phase, yet it has already been noticed by investors. The designers claim it is a unique product, the first of its kind globally by Miro Soldić
D Since the desk has been made from oak, its load bearing capacity is immense and a regular Deskbloks assembled from 10 blocks can bear loads five times its own weight. Stjepan Stipo Ćorić
eskbloks is a modular desk currently only in its prototype phase, yet according to market reaction, it is sure to become a great success. Its designers claim it is a unique product, first of its kind globally. The inspiration behind it was the first modular telephone originating from 2013 when its founder, Stjepan Stipo Ćorić, an IT engineer, decided to make a modular computer case. The idea evolved over time to become Deskbloks, a desk comprising modules that could be exchanged, added or upgraded to meet user requirements. As he is involved in IT, he began with the development of a module with included USB ports and speakers and blocks with integrated cells for wireless mobile phone charging. A huge amount of attention was paid to cable organisation, since the original idea was to use the desk with desktop computers and laptops. Deskbloks has addressed the issue of cables in a highly functional manner, by providing the legs and the bottom of the desk with cable ducts which remain invisible, and do not interfere with chairs or other furniture. “The desk has been made from high quality Croatian oak, which is intended for furniture production; being a solid wood, hard and resilient across a range of temperatures and conditions. Due
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to the fact that the desk has been made from oak, its load bearing capacity is immense and a regular Deskbloks assembled from 10 blocks can bear loads five times its own weight”, po-
INTEGRATED USB PORTS AND SPEAKERS, WHILST MODULES ARE PROVIDED WITH WIRELESS MOBILE PHONE CHARGERS inted out Ćorić, adding that the company has currently launched a campaign aiming to raise funds on Indiegogo website. “We are planning to use the funds raised to hire machinery and relocate production where we could fully focus on improvement and preparation of our product for the market. We have also attracted several investors prepared to help us”, emphasised Ćorić, adding that they would become involved in export after relocation, since their target markets are EU member states and thereafter would expand exports globally.