Business Dialogue - December 2015

BUSINESS DIALOGUE

BUSINESS LEADERS’ MEETING POINT

DECEMBER 2015 32

A Good Leader Develops Potential Collaborators WILLIAM A. FISCHER

PROFESSOR AT IMD BUSINESS SCHOOL

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Comprehensive Treatment for Hazardous Waste MIODRAG MITROVIĆ

PRESIDENT OF MITECO KNEŽEVAC

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BUSINESS DIALOGUE

LOCAL NEWS

SECURITY "Serbia is peaceful, secure and stable. Muslims in Serbia may feel secure and those who are planning terror attacks are the ones who should be afraid"— NEBOJSA STEFANOVIC, Serbia's Interior Minister

EUROPEAN UNION

HEINEKEN

Social Housing and School in Obrenovac The construction of a building for social housing at number 5 Đački Bataljona Street and a separate department of the Draževac Primary School in the village of Poljana has started in Obrenovac, thanks to funding from the European Union set aside as part of the Programme of Assistance to flooded areas in Serbia. The residential building has 32 apartments intended for families hit by the flooding of May 2014. Construction work on the

First “Selfie” from Space

Heineken® has shot the first selfie picture from space, under the auspices of the exclusive event entitled “Spyfie”, which was held at the Hoover Dam in the U.S. state of Nevada, in the presence of more than 200 guests. The project was launched in honour of Heineken’s long-time franchise partnership with

cult films featuring the James Bond character. In order to take this revolutionary shot, Heineken formed a partnership with company UrtheCast, innovators in the field of photographing the planet. The shot was taken using a high resolution Deimos-2 camera and the special Iris video camera, which were set up at the International Space Station. “The aim of the ‘Spectre’ campaign is to familiarise people with Bond’s world and we are proud that we managed to do precisely that,” said Hans Erik Tuijt, Director of Sponsorship at Heineken. Heineken has cooperated with franchised James Bond movies since 1997 and “Spectre” marks the seventh film in this partnership.

MEDIA SKILLS

Overcome Your Fear of Public Speaking

site should be completed by the end of May 2016. The EU allocated around €780,000 for the construction and fitting of the building, in addition to €130,000 for construction and equipping of a separate department of the Draževac Primary School in Poljana. The new building, covering 225 sq/m, will be built to cater for 30 pupils and works should be completed during January 2016.

A recent event at the Frankfurt Motor Show, when BMW’s CEO fainted, leads us to wonder whether something like that could happen to us… This unpleasant scene found its way into the media around the world at lightening speed. It is certain that it was not easy for Harald Krueger and company representatives to cope with the news. Instead of the latest BMW models, news about the unpleasant situation that befell the company director was broadcast for days. This is just one example of why it is important to practice all public appearances.

Agency MEDIA SKILLS offers its clients the latest form of training involving university professors of public appearances and diction, prominent television editors and presenters who report for the largest local and international broadcast media companies, CNN, FOX, RTS, with directors, cameramen and stylists. All clients undergo training in front of the camera. To find out more information visit www.mediaskills.rs

UNIQA INSURANCE

Nine years of Success and Responsible Operations This year sees UNIQA Insurance, one of the five most successful insurers in Serbia, mark its 9th anniversary of doing business in Serbia. During nine years of operations in Serbia, the company has invested over €60 million in various domains. In 2014 it also successfully completed the process of acquiring company Basler Insurance, in a deal worth about €9 million. At the same time, as a socially responsible member of the community, UNIQA has supported dozens of humanitarian projects. According to official statistics of the National Bank of Serbia, for the last eight years consecutively UNIQA has been declared the promptest insurer in the payment of claims on motor vehicles. UNIQA is a powerful and recognisable brand that customers recognise as a leader of innovation. As a symbol of its stable, high-quality and innovative business, it was the first insurer to introduce the concept of exclusive agencies.

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SAMSIC

Leader in Providing Services across Europe Samsic is a leader in providing services to businesses across Europe, with 70,000 employees in 360 offices serving 20,000 customers on a daily and generating annual turnover in excess of €1.54 billion. In July 2015, Samsic took over the majority stake in Eko poslovi d.o.o., which has been operating in Serbia since 2010 and is a leader on the Serbian market in industrial cleaning and technical maintenance, with a growth tendency in the security sector. Samsic is divided into two domains: Samsic Facility covers jobs within the working environment (travel services, infrastructure services: maintenance, security, home services, environment, green areas and technical services); and Samsic RH, which encompasses jobs that deal with employment and careers (identifying and hiring staff, mobility, job preparation, temporary work, training, public relations services and external cooperation).

RELATIONS

DID YOU KNOW

“The relations between Serbia and Iran, established 70 years ago, are good but there is room to improve the cooperation.”— MAJA

The Mileševa monastery’s “White Angel” fresco was one of the first scenes presenting Europe to the North America in the first satellite transmission of video signal between two continents in 1963.

GOJKOVIĆ, Serbian Parliament Speaker

SERBIAN CHAMBER OF COMMERCE

Innovative Business Angels Network The strategic SMART INNO project, co-funded by the EU through its IPA Adriatic Cross-border Cooperation Programme, aims to strengthen the research and innovative capacities of SMEs through the overcoming of key weaknesses, such as inaccessibility and limitations on sources of funding, a lack of synergy among SMEs and research & innovation producers, policymakers and investors, matching demand and supply of innovations and providing training services.

The Serbian Chamber of Commerce and Industry, as a partner in the Project Consortium – comprising 18 partners from eight countries of the Adriatic region - actively supports the project and participates in the new business platform, the innovative hub, intended for all innovative companies, with the aim of developing business opportunities and cooperation. Domestic companies from Serbia had the opportunity to learn about the functioning of the SMART INNO innovative business platform during the European Week of Entrepreneurship, held in the offices of the Serbian Chamber of Commerce and Industry from 17th – 19th November 2015.

GENERALI INSURANCE SERBIA

Fund Assets Increase to 7.5 Billion Dinars Nine years after its establishment, the Generali Voluntary Pension Fund increased its assets to 7.5 billion dinars, thereby accounting for more than a quarter of the voluntary pension fund market. This was the first company for the management of voluntary pension funds to ANDREA SIMONCELLI be founded in Serbia, within which there are two funds – Generali Basic and Generali Index. It has a total of over 52,000 members.

Since the launch of operations, Generali Basic voluntary pension fund has realised a positive return of 9.79% per annum, while in 2014 it generated a return of 12.63%. This is the most accomplished positive return at the level of the entire industry “Generali is standing on solid foundations and is ready to compete and win in today’s highly competitive market,” said Andrea Simoncelli, Director of Generali, who is set to take charge of the company’s operations on the Polish market as of 1st January 2016.

Placements & postings appointments@aim.rs

H.E. EZZ EL DIN FAHMY MAHMOUD

New Ambassador of the Arab Republic of Egypt to Serbia Ezz El Din Fahmy Mahmoud graduated from Cairo University’s Faculty of Economics and Political Science in 1979 and joined the Diplomatic Corps the following year. He has held various positions within the Ministry of Foreign Affairs in Cairo and in Egyptian missions abroad, including posts at the embassies in Bonn, Lisbon, Addis Ababa and Bern.

Prior to his arrival in Belgrade, he served as Ambassador of Egypt to the Sultanate of Oman (2005-2009), Ambassador to the People’s Democratic Republic of Algeria (2011-2014) and Assistant Foreign Minister for Parliamentary Affairs (2014-2015). During his career he has been decorated with the Grand Cross for Distinguished Service from the Federal Republic of Germany and the Order of Al-No’man Medal, granted by His Majesty the Sultan of Oman. Ambassador Ezz El Din is a married father of two children.

H.E. MOHAMED BOUGAMRA New Ambassador of Tunisia to Serbia

Mohamed Bougamra (58) graduated from the Diplomatic School of Madrid, Spain, and holds masters’ degrees in English and Spanish. His diplomatic career started in 1983, first as Secretary of Foreign Affairs in the Directorate of Political Affairs for Africa and then, from 1989, as first secretary in Libreville, Gabon. He has served numerous functions in his country’s diplomatic missions to Portugal and the UK. In 2005 he was appointed deputy director of the Directorate for Relations with EU Member States and from 2007 to 2012 he was deputy Head of Mission in Ethiopia. In 2012 he took on the post of Director of Relations with EU Member States and from 2014 he served as Consul General in Paris, France. Ambassador Bougamra speaks Arabic, French, English and Spanish and is a married father of two daughters.

JOHANNES IRSCHIK

new director of the Austrian Cultural Forum Johannes Irschik is a graduate of the University of Vienna (History, British and American studies) and the Diplomatic Academy of Vienna. Prior to joining the Austrian Federal Ministry for Europe, Integration and Foreign Affairs in 2013, Mr Irschik spent several years in science administration, first as Executive Secretary of the International Association of Schools and Institutes of Administration in Brussels, and then as Academic Affairs Officer at the Institute of Science and Technology, Austria. Before arriving in Belgrade, Mr Irschik worked in several departments at the Austrian Federal Ministry for Europe, Integration and Foreign Affairs, most recently in the Department for International Organisations, as well as at the Austrian Embassy in Mexico City.

DR ALEXANDER PICKER

new Executive Board Chairman at Komercijalna Banka The Board of Directors of Komercijalna Banka unanimously elected Dr Alexander Picker as the new chairman of the bank’s executive board.

Dr Alexander Picker is an expert who has amassed twenty-six years of experience in banking. He was born in Salzburg and his banking career began in Vienna in 1989. In recent years he has worked on the boards of banks in Poland and Russia, holding the position of executive chairman in banks in Kazakhstan, Slovenia, Serbia, Bosnia-Herzegovina and Austria. “It gives me great pleasure that in these challenging times, two years before the planned privatisation of Komercijalna Banka, I was appointed to head this bank, which is one of the most respected financial institutions in the region. The goal of the management in the coming period will be to improve performance and enhance the services of the bank, in order for its privatisation to bring the expected success to the shareholders, the largest of which is the State of Serbia,” said Dr Picker.

DRAGAN FILIPOVIĆ

New Country Manager of Generali Serbia Dragan Filipović will be appointed the new Country Manager of Generali Group in Serbia and Montenegro as of 1st January 2016. He will become CEO and President of the Board of Generali Insurance a.d.o. Serbia and President of the Board of Directors of Generali Osiguranje Montenegro a.d. He succeeds Andrea Simoncelli, who will take over the Generali Group’s top management position in Poland.

Filipović graduated from Belgrade University’s Faculty of Economics and began his career at Delta Group in 1994. In March 2011 he became a member of the Executive Board and deputy general manager of Generali Insurance Serbia, as well as sales director of non-life insurance and product development. In addition, he is also a member of the Board of Directors and an Executive Director at Generali Voluntary Pension Fund.

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BUSINESS DIALOGUE

INTERVIEW

A Good Leader Develops

Potential Collaborators THE 28TH PRESIDENTIAL FORUM IEDC BLED SCHOOL OF MANAGEMENT

“The digital revolution brings constant change to our lives. The market will certainly – and soon – come up with some innovation that will replace email,” said Professor William A. Fischer, the main lecturer at the 28th Presidential Forum IEDC – Bled School of Management, and one of the most influential Twitter users in the business world. This year’s Presidential Forum was attended by more than 100 executives from 12 countries.

Also speaking about the refugee crisis was Erhard Busek, former Austrian vice chancellor

"T

he refugee crisis is a crisis of leadership. It would take more “dotanks”, rather than “think-tanks”, more touch with reality and more agility. In this regard, I call on politicians to learn from businessmen. Immediate measures are unfortunately too short-term and insufficient. How many new buses we need to escort refugees to the next state cannot be the right question,” said Erhard Busek, former Austrian vice chancellor and special coordinator of the Stability Pact for Southeast Europe, in his opening speech for the Presidential Forum IEDC – Business School.

Janez Škrabec of the Riko Group pointed out that the essence of leadership is that its essence remains the same despite always facing new challenges: “A good leader leads so that people barely know he exists.

A slightly worse leader is the one people love. An even worse is the one they fear. And the worst is the one they despise.”

“The market will soon reach innovation that will replace email,” said William A. Fischer, the main lecturer at the Presidential Forum and one of the most 32 |

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Additional information and accreditation: Tonja Blatnik, head of corporate communications, IEDC-School of Management, Bled Tel.: +386 (0)4 57 92 543; Email: tonja.blatnik@iedc.si influential Twitter users in the business world, a professor at the IMD business school in Lausanne, Switzerland, a specialist in change management and innovation in China. “Leadership in the future will certainly be ‘digital’, which means faster, more integrative, inclusive, more risky and more

transparent, but on the other hand more familiar and caring.”

The digital revolution, thus, seeks a leader who has balance between knowledge of new trends and technologies, an ability to manage complex situations and analyse large amounts of data (i.e. big data), but also to focus on the

individual. A good leader is and will be one that will enable the development of others. “Feeling for closeness has always been a characteristic of effective leadership and I see absolutely no reason to think that will change”.

Following professor Fischer’s lecture was a roundtable with internationally established business leaders, which include the participations of Ulrik Nehammer, president of Coca-Cola, Germany, Sandi Češko, president of Studio Moderna, Slovenia, Thorsten Köhler, president of YOUR SL GmbH, Germany, and Branislav Vujović, President of New Frontier Group, Austria. They stressed the importance of IT and digital thinking in business, which fundamentally changes the structure of the company – the border between users and suppliers of products and services is becoming more permeable.

Fischer, a researcher of talent and innovation, described the innovative environment and in his conclusion stated that “the best organisations are those in which employees feel like they have all freedoms, while leadership feels like has all control”. ■

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Among our worldwide references are multinational corporations, national water supply companies, local authorities, industry and hotel complexes, but also small and medium-sized enterprises.

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A: Suvoborska 7a, 11000 Belgrade, Serbia W: www.neoplast.rs E: office@neoplast.rs T: (+381 11) 2651 388, 2651 488, 2651 688

REGION

BUSINESS DIALOGUE

“The EU enlargement process, covering the Western Balkans and Turkey, is a powerful tool to strengthen the rule of law and human rights in these countries. It also boosts the economy and promotes regional cooperation.” — JOHANNES HAHN, EU Commissioner

REGIONAL NEWS HUNGARY

EC to ‘Carefully Assess’ Paks Deal

VIKTOR ORBÁN, Hungary’s Prime Minister

The European Commission has launched an indepth investigation to “carefully assess” Hungary’s deal to hire Russian nuclear energy company Rosatom to upgrade the country’s sole nuclear power plant.

The statement by the EC says that “at this stage, the Commission has concerns that this investment may not be on market terms, as Hungary argues.” According to the EC’s statement, in order to be compatible with rules of the EC, an aid measure must “be proportionate to the objectives pursued and address a genuine market failure” and it must “be adequately remunerated”.

Prior to the official announcement by the EC, reports suggested that until the infringement procedure is wound up, the expansion could be suspended.

Later on, Hungary’s Prime Minister Viktor Orbán said that despite an EC investigation the Hungarian government is committed to having Rosatom implement the upgrade of Hungary’s sole nuclear power plant in Paks.

Bulgarian Telecom Carrier Vivacom Sold

Roussev is best known as a one-time adviser to former primeminister Simeon Saxe-Coburg.

He is now the head of the Bulgarian office of VTB Capital, Reuters reported.

Standard Group Gets Regulatory Nod for Bobar Osiguranje Takeover The Insurance Agency of Bosnia’s Serb Republic said end November it has cleared plans by Bijeljina-based company Standard Group to become a majority shareholder in local insurer Bobar Osiguranje.

A spokesperson for the agency told SeeNews that the relevant request submitted earlier by Standard Group has been approved.

News portal Capital.ba reported that Standard Group plans to acquire a stake of 76% in Bobar Osiguranje for 3.8 million marka (€1.9 million). The takeover will be executed by mid-December.

Bobar Osiguranje is part of of the Bobar Group based in Bijeljina, recorded a net loss of 12.2 million marka in 2014, compared to a net profit of 2.4 million marka a year earlier, as operating revenues dropped by 6.9% to 16.1 million marka.

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Mega Image supermarket chain opened six new stores in Bucharest end of November, taking its network to 453 units.

Mega Image has been present in Romania since 1995 and is part of the Delhaize

EU

BOSNIA AND HERZEGOVINA

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Mega Image Opens 6 Stores in One Week

Group. Over the past years it has had an aggressive expansion policy reaching a network of 453 stores at present. Out of this 244 are Shop&Go proximity stores and 206 are Mega Image supermarkets. The company also operates a store that sells exclusively frozen foods (Ab Cool Food), two dedicated to locally produced private labels (Gusturi Romanesti) and an online and drive-thru store (Mega Drive). The retailer is present mostly in Bucharest, but also in cities like Constanta, Ploiesti, Pitesti, Brasov, and Targoviste.

BULGARIA

Bulgarian telecom firm Vivacom, one of the country’s three major carriers, was sold at an auction, with businessman Spas Roussev acquiring control of the company for €330 million euro.

The company was put on sale after a Luxembourg-registered holding company, InterV, defaulted on a €150 million loan to VTB Capital, the investment unit of Russian bank VTB, the reports said.

Roussev was one of three bidders, alongside Greek businessman Panos Germanos, who bid together with Third Point, the vehicle of activist investor Daniel Loeb. A third bidder did not meet the tender requirements.

The winning bid put the value of Vivacom at €750 million.

ROMANIA

EU28 Current Account Surplus €15.9bln The EU28 seasonally adjusted external current account recorded a surplus of €15.9 billion in September 2015, compared with a surplus of €13.8bln in August 2015 and a surplus of €10.9bln in September 2014, according to estimates from Eurostat, the statistical office of the EU.

KOSOVO

NEIGHBOURS

DID YOU KNOW

“Bulgaria and its neighbouring countries Romania, Serbia and Macedonia should propose joint infrastructure projects to attract Chinese investments in the Balkan countries.” — BOIKO BORISSOV, Bulgarian Prime Minister

In 1885, Sarajevo was the first city in Europe and the second city in the world to have a full-time electric tram network running through the city, following San Francisco.

Contour Global to Build €1 billion Power Plant

The power plant will be built by the American company, Contour Global, with the capacity of 450 MW and will only have one unit, reaching net energy production of 450 MW. The construction will be financed by credit and direct investment by the company.

The estimated cost of the project is around €1 billion. Contour Global agreed to invest 30%, meaning that the direct investment will reach €300 million. The company demanded that the Internal Return Rate of

FYR MACEDONIA

EBRD Sign €64mln Agreement on Highway Construction Macedonian Deputy Prime Minister and Finance Minister Zoran Stavreski and Public Enterprise for State Roads (PESR) Acting Manager Director Aleksandar their investment is at 21.5%.

Kosovo Ministry of Economic Development claimed that the agreement is favorable to Kosovo.

Source: GazetaExpress

MONTENEGRO

Sales Agreement of Share Capital of Institute "Dr Simo Miloševic" The Government of Montenegro signed an Agreement on purchase and sale of 56,4806% of share capital of the Institute for Physical Medicine, Rehabilitation and Rheumatology “Dr Simo Milošević AD Igalo” with the International Wellness Group Limited – London. Representatives of the Government, Investment and Development Fund, Health Insurance Fund and Employment Agency signed the agreement on behalf of the seller of the share capital. According to the purchase contract provisions, a deadline for meeting the pre-

vious requirements and closing of transaction is 6 month from the day of signing the agreement, but all the activities are expected to be carried out within a shorter period of time The requirements defined within the previous terms and conditions include: obtaining of all the necessary permits related to laws on environmental protection, signing of the Annex to the existing or signing a new contract with the University of Montenegro on lease of facilities under favorable terms, as well as the permits enabling the company to provide medical services. The bidder is obligated to provide an approval for the concentration at the Agency for Protection of Competition and pay a purchase price for the shares reports the Government.

Source: Balkans news

EDI RAMA, Albanian Prime Minister

ALBANIA

Zero Taxes for Startups The Prime Minister of Albania Edi Rama announced that the government has cut taxes to zero for small businesses whose annual turnover is between 0 – 50.000.000 Albanian LEK (around €36,400). “All businesses that have an annual turnover no more than €36,000 in a fiscal year, will not pay any tax. While any other business that has a turnover between €36,000 and €58,200 will remain subject to VAT. Also, the tax on profit will drop from 7.5% to 5%. Edi Rama promised that the Taxation Authority of Albania will move towards a more modern and friendlier approach, mimicking those that are enforced by modern European countries, reports Digitale.

Stojanov signed a €64 million agreement with the EBRD to construct the StipRadovis highway in 2016, encompassing a 39 km road.

“It is a vital investment cycle in the road infrastructure that in 2016 will be estimated at more than €200 million,” Stavreski said.

The loan has been approved under favorable conditions including a payment period of 15 years, a four year grace period and an interest rate that currently stands at 0.99 percent.

ERBD director for Western Balkans Holger Muent said by modernizing the road infrastructure in Macedonia, the country will become more attractive for foreign investors.

CROATIA

Investment in Istria’s Beaches A significant amount of money is set to be invested in beaches in Croatia’s Istria region… Istria, which is one of Croatia’s most popular tourist destinations, will spend around 1 million euros on its beaches in 2016. According to a report by Glas Istre, Funtana is set to receive the most money – €300,000, followed by Poreč – €250,000 investment, Medulin and Vodnjan – just over €100,000, Pula – just under €100,000, Vrsar – €40,000, and around €30,000 for beaches in Rovinj. The investment will see a number of new beaches developed around Istria, and a number of beaches spruced up, including creating a number of new facilities such as showers, changing areas, pathways and children’s play equipment.

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BUSINESS DIALOGUE

INTERVIEW

Comprehensive Treatment for

Hazardous Waste MIODRAG MITROVIĆ

PRESIDENT OF MITECO KNEŽEVAC

Company Miteco plans to establish a special unit that would, with the support of UNIDO, deal with the comprehensive treatment of areas contaminated with polychlorinated biphenyls (PCBs) and creating a 100% green industrial environment, as has already been done at “Fiat”

M

iteco is a leading company in the removal of PCB hazardous waste, which is contained in numerous active and defunct industrial plants in Serbia, and the creation of comprehensive environmental solutions for the treatment of areas contaminated by this dangerous carcinogenic substance.

■ Through the elimination of hazardous waste, you are participating in the latest round of privatisation in Serbia.

How much progress has been made with the removal of this waste from companies under restructuring and what does it mean for the environment?

- These are state-owned factories that have not been privatised, so the state is obliged to remove the old waste in them. The significance of this job is that it is the first time the government has utilised funds from the budget to begin to eliminate historic pollution. It is planned to remove about 1,600 tonnes of hazardous waste at 12 locations, while it has been shown that these locations contain more than 4,600 tonnes of hazardous waste. The last amounts of this accumulated waste are currently being 36 |

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transported to the plant and the entire work will be completed by 15th December this year, thereby meeting the deadline for its implementation.

■ How ready is Serbia institutionally to resolve issues related to the environment and EU integration?

- Chapter 27 is voluminous, because almost a third of legal norms in the EU relate to the protection of the environment.

We also have additional procedural tasks, such as compiling a post-screening document. It

institutions and a lack of professional and dedicated staff. The delegation of responsibilities to a larger number of institutions that already exist would avoid the kind of conflict of interest that would exist if all responsibilities are concentrated in one body, for example the Ministry of Agriculture and Environmental Protection.

■ The public has welcomed the re-establishment of the Green Fund. Which projects should its budget be used to finance?

In addition to extending the deadline for the elimination of PCBs, the law should introduce incentive elements to prevent the consequences of irresponsible handling of this dangerous carcinogenic substance

is important that in the pre-accession period we look at our problems and the ways in which we can raise the capacity of society and industry. Although we have the capacity in terms of experts and private investors, we are proverbially disorganised, thus the impression is that there is some overlap in the system of

- That fund is normally used for infrastructure projects that protect the environment. In our case, that fund should be out of the budget, as a separate institution, and should include the participation of those liable to pay taxes, as well as users, or works contractors. Another instrument is the introduction of landfill

fees or charges, thereby exerting pressure on landfills to sort and use more municipal waste, and to only dump the remainder. Given the current situation, the fund should be the most important for the removal of accumulated historical pollution.

■ The Law on Waste Management envisages the disposal of devices containing PCBs to be completed no later than 2015. Is it possible to meet this deadline?

- Of course not, and according to the proposed amendments to the Law on Waste Management this deadline should be extended to, for example, 2025. Serbia has significant amounts of equipment with this dangerous substance, which is a carcinogen and a mutagen.

However, the Law does not provide for incentive measures, so I would use this opportunity to appeal to decision-makers to introduce this element into the law.

Also, the aspect of pollution of the country where such devices are used has been totally neglected, while something that is particularly worrying is the malicious discharging of oil with PCBs for the purpose of obtaining a few tonnes of copper as a secondary raw material.

■ You have set the forming of a PCB unit as a long-term goal and submitted a request to the UNIDO office for assistance in so doing. What would the functioning of this unit mean for the process of taking care of these types of POPs chemicals?

- Miteco has spent the last 15 years engaged in the removal of PCB waste from the surrounding region and this year we raised this service to the level of a unified service for the protection of the environment. Bearing in mind that, in addition to removing declared PCB devices, socalled cross-contamination and contaminated land under the machine remains, we have developed a process to remove all kinds of PCB pollution, together with the Nikola Tesla Institute of Electrical Engineering and the Belgrade Faculty of Technology.

With this we applied at UNIDO and we hope that such units will provide a comprehensive solution to the removal of PCBs in Serbia. The basis for this is offered by participation in the NIP (National Implementation Programme), which is funded by the same organisation. According to this programme, it is estimated that there are more than 10,000 tonnes of PCBs in Serbia.

■ At Fiat’s factories you’ve applied a special procedure for the remediation of polluted soil. What did this process involve and does it represent a new kind of service for environmental protection?

- We developed this method together with experts from Fiat and under the control of Swiss company SGS. The process involved the testing of production hall floors and walls, then also the land where such devices were used. After obtaining analytical images, we started designing the programme. It boiled down to

clearing the land and transporting it for so-called direct thermal desorption in the Netherlands. In the end, the location is covered with a bio-membrane and a layer of clay, and then covered with humus soil. By year’s end we will complete the final expert work.

Since I am familiar with the

Serbia”, which is partly financed

by IPA funds. I would point out that this project implies the complete removal of PCBs from the electric utility system. This means the removal of declared devices, the delivery of new devices, decontamination of contaminated transformers and,

The Green Fund should be a separate institution which would include the participation of taxpayers and works contractors, while priority should be given to the removal of accumulated pollution cleaning procedures carried out by other companies, I can freely say that this is the first 100 per cent green industrial production in Serbia.

■ You recently signed a three-year contract with public enterprise “Electric Power Industry of Serbia”. What is the significance of this deal?

- Miteco, as the leader of a consortium, signed a contract with PE “Electric Power Industry of

most importantly, soil testing and removing PCBs from the soil, as well as from the floors of power plants and substations.

I believe that the experience gained in this project will be later used in other industrial and municipal plants.

■ Miteco is one of this year’s winners of the Charter 44 Golden Chain special award.

What compelled you to opt to invest in culture in Belgrade?

- We strive to be a socially responsible company in a variety of ways, from supporting students in solving case studies, to photo contests, to the realisation of sporting events. I believe that every successful company in Serbia should contribute to fostering values, primarily in the field of culture and the environment.

That’s why we decided to help activists engaged in culture and education in Belgrade, who recognised that and granted us this recognition. That made us proud, but also obliged us to continue providing support, because in this way we help familiarise future generations with the true values of Serbian culture.

■ Next year marks 50 years since the establishment of the first purchase stations for recyclables in Kneževac.

What would you highlight in previous work, which plans you want to achieve in 2016?

- The establishment of the first bulk buying stations marked the beginning of waste management in Belgrade, in the settlement of Kneževac. Miteco became the brand that applies the most modern technology that was even implemented in the privatisation of this old, but visionary, company.

We are today a company that applies the model of brownfield investments and has a modern plant for managing waste as a resource. Plans for next year include greater engagement in the rehabilitation of historic pollution through partnerships with relevant ministries, investment in the technical equipment of our plant and the introduction of a new resource management system, which will be based on new software, which will be the responsibility of a team of young professionals who are experts in information and organisational professions. ■ DECEMBER

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BUSINESS DIALOGUE

WORLD NEWS

OPPORTUNITIES “Successful people are always looking for opportunities to help others. Unsuccessful people are always asking, “What’s in it for me?” — BRIAN TRACY, Chairman and CEO of Brian Tracy International

FRANCE

CANADA

Petco to be sold for about $4.6 bln Private equity firm CVC Capital Partners Ltd and the Canada Pension Plan Investment Board said that they would buy U.S. pet supplies retailer Petco Holdings Inc for about $4.6 billion.

The company had solicited offers from private equity firms after its discussions to be bought by rival PetSmart Inc fell through over antitrust concerns, sources familiar with the matter had said.

San Diego-based Petco, which was founded in 1965 as a mail-order company, operates over 1,400 stores in the US, Mexico and Puerto Rico.

UK

Britain Closing its Coal-Fired Power Plants Britain aims to close its coal-fired power plants by 2025 under plans announced yesterday, becoming the first major economy to put a date on shutting coal plants to curb carbon emissions.

Instead, the country will look to nuclear and natural gas-fired power plants to complement intermittent renewable energy, Secretary of State for Energy and Climate Change Amber Rudd said.

Around a third of Britain’s electricity came from coal-fired plants last year but many of the 12 still operating are old and due to close over the next decade under tightening EU environmental standards.

Cognac Producers Targeting US France’s centuries-old cognac houses are raising their bets on the US market with new products and campaigns to broaden the drink’s appeal beyond its African American stronghold.

The African American community accounted for nearly two-thirds of all cognac drunk in the world’s biggest market, say executives and analysts.

Hennessy, Remy Martin, Martell and Courvoisier make 85 per cent of all cognac, and they are competing harder than ever, trying to harness the current boom in “brown spirits” like bourbon and rum.

Producers of the drink, made by distilling white wine and aging it in oak barrels for anywhere from two to dozens of years, now need to reach other groups to help further production growth.

10 ACTION

POINTS FOR BUILDING AND SUSTAINING VALUABLE BRANDS

CHINA

NBA Team Courts Chinese Investors for New Arena Sacramento Kings, a key Californiabased franchise in the US National Basketball Association’s professional league (NBA), is courting Chinese investors for its Golden 1 Centre mixed development plan. The project will have a new basketball arena, luxury retail, hospitality and residences. It will open in October 2016.

“This is the first time that an area combined with surrounding mixeduse development has been offered as a prime EB-5 investment opportunity,” said Ginny Fang, CEO of Golden Gate Global. The EB-5 program, under the US Citizenship and Immigration Service, grants a foreign investor a US visa for making a $1 million investment that creates at least 10 new and permanent jobs for Americans. The US government finances to the tune of more than $200 million. So, Chinese investors can rest assured about the stability and security of the project, she said.

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Having a strong and valuable brand will become even more important in the next 10 years as consumer choice increases. But building and sustaining brand strength and value will become more challenging.

Here are 10 actions for building valuable brands 1. Innovate and delight 2. Be meaningfully different 3. Stand for a purpose 4. Walk the talk 5. Build and maintain trust 6. Renew and improve the brand experience 7. Rely on consumer insights 8. Think holistically 9. Get noticed 10. Keep changing

SUCCESS

DO YOU KNOW

“The only place where success come before work is in the dictionary.”

Today, there are 3.65 billion mobile users with access to the internet via smartphones and tablets

— VIDAL SASSOON, British hairdresser, businessman, and philanthropist RUSSIA

US

Sberbank CEO Calls for Bank's Full Privatization The head of Russia’s largest savings bank Sberbank German Gref called for the privatization of the bank a smaller involvement of the state in the Russian economy.

“The Central Bank could keep 25% during the transitional period. But in principle, nobody opposes a full privatization of Sberbank. In our case private shareholders are large investment funds. In terms of banking, they can better control the management of the company,” said Gref. Gref also said that the involvement of the state in the Russian economy is

too high, and “privatization would make our country much more efficient.”

GERMAN GREF As of April 20, 2015, Russia’s Central Bank is the largest shareholder of Sberbank (50% + 1 share). The share of non-resident legal entities in the capital of the bank is 43.26%, private investors hold 3.91%.

Pfizer to buy Allergan in $160 billion deal Pfizer Inc, the maker of Viagra and Lipitor, has struck a deal to buy Botoxmaker Allergan Plc in a transaction valued at about $160 billion.

UAE

HSBC Cuts 150 Jobs

ITALY

Tod Has Agreed to Buy the Roger Vivier Shoe Italian luxury goods group Tod’s has agreed to buy the prestigious Roger Vivier shoe brand from Tod’s biggest shareholder for €415 million, a price which some analysts said looked expensive.

Tod’s, controlled by Italy’s Della Valle family, currently produces and sells Roger Vivier shoes in return for royalty payments under a licensing agreement due for renewal next year.

Management had previously said it was determined not to lose the rights to the profitable French brand, famous for its buckled shoes and also owned by the Della Valle family, either by buying the business or by renewing the license.

Under the deal Gousson, a company controlled by Tod’s Chairman and Chief Executive Diego della Valle and his brother Andrea, will invest €207.5 million in buying new Tod’s shares at a price of €83.53 each.

As a result, Diego Della Valle’s stake in the group will rise to 60.7 percent from 57.5 percent, the company said.

HSBC Middle East has cut more than 150 jobs from its UAE banking operations as part of its global cost cutting efforts. Sources in the bank said the number of announced job loss this month is about 150 in the UAE, but it could be higher as full cost reduction programme is implemented across all divisions in the country. HSBC Holdings announced in June this year that it plans to shed 50,000 jobs over the next two years by closing retail branches, shrinking its investment bank and selling its Brazilian and Turkish operations as it shifts resources to more promising Asian markets.

The complex deal, the biggest ever in the healthcare sector, will allow Pfizer to shift its legal base to Ireland in a socalled “inversion” that would reduce its tax rate.

Pfizer Chief Executive Ian Read will be CEO of the combined company, while Allergan CEO Brent Saunders will be Chief Operating Officer, the companies said. The tax aspect of the deal has been seen as critical. The U.S. corporate tax rate of 35 percent is among the world’s highest, and compares with Ireland’s rate of 12.5 percent.

SOUTH AFRICA

Food and Beverage Continues to Attract Investment South Africa’s food and beverages industry is holding up better than many others in the economy, as both local and global companies continue to increase investment.

Total income from the food and beverages industry increased by 9.2% to R4bn (€267 million) in September this year compared with September last year, Statistics SA data showed. This was after an 8.2% increase in August.

Beverages and food sales at takeaway and fast-food outlets, and restaurants and coffee shops drove the increase in total income in the industry.

The latest food and beverages survey results point to the resilience of the industry, despite tough economic conditions and a slowdown in the growth of spending by households.