Construction Sector 2018

Leaders Of The Serbian 15

YEARS SUCCESSFULLY DIFFERENT

Construction Sector

2018

INTERVIEW

We Prepare Thoroughly For Each Move

ZORANA MIHAJLOVIĆ PH.D. Deputy Prime Minister and Minister of Construction, Transport and Infrastructure

Serbia is today a country with regulated public finances, which has enabled it to launch and finance an ambitious new cycle of infrastructure works, to work on connecting Serbia with the region and the EU, and thus also strengthening the competitiveness of our economy. That’s a job that will continue in 2018.

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he vision of the Government is for Serbia to be the transit hub of the region and the first-choice country for investors who want to invest in this part of Europe, says Zoran Mihajlović Ph.D., Deputy Prime Minister and Minister of Construction, Transport and Infrastructure. The realisation of this vision is based on continuous improvement of the business environment and investments in the development and modernisation of infrastructure, the current value of which is 16 billion euros, confirms our interlocutor.

• Who are the main creditors of these huge works and, in your opinion, how effectively are those funds used?

- Infrastructure projects in Serbia are financed from all available international and domestic

sources. International sources include loans from international financial institutions (EBRD, EIB, World Bank), financing from EU funds, as well as projects with bilateral financing, such as, among others, projects that Serbia implements with the People’s Republic of China, the Russian Federation, Azerbaijan and the Federal Republic of Germany for projects with KfW. Some projects are financed entirely from the national budget, as was the case with the construction of the Ljubovija-Bratunac Bridge and the Srpska kuća-Levosoje road section.

In contrast to the period four years ago, when I took over the department and found loans that were not being used and the budget burdened with the payment of millions of penalties for not withdrawing funds, today there isn’t a single project left waiting. Thanks to a complete change in the way projects are run, in the last three years almost 200 kilometres of the highway have been opened to traffic and more than 200 kilometres of railway lines have been modernised.

• How much capacity does Serbia have to further borrow for the building of large infrastructure projects?

- Successful implementation of the macroeconomic and financial stabilisation programme, as well as growth achieved in GDP, placed Serbia in a position to initiate and finance an ambitious new cycle of infrastructure construction without disturbing the country’s financial stability.

An important difference compared to the previous period is the termination of the bad practise of contracting projects without taking into account the level of preparation of project documentation, expropriation and other prerequisites for the commencement of works. Having learned from the negative experiences of some former governments, our priority was to accelerate the completion of stalled projects and ensure that new projects don’t wait for the start of works.

We stick to this rule even today, when we are preparing new major projects that will start in 2018, including the launch of construction of the first sections of the “highway of peace”, from Niš to Merdare and from Niš to Pločnik, and the modernisation and reconstruction of the Niš-Dimitrovgrad railroad, with the construction of bypass lines around Niš, for

which we signed a contract with the European Investment Bank at the end of January.

• Given the current pace of construction on Corridor 10, how is Serbia positioned in relation to the rival European corridor that traverses Romania and Bulgaria?

- Serbia has only slowly started reducing the many decades of backlog in infrastructure construction over the past three years. After 30 years, in 2018 we are finally completing the largest infrastructure project – road transport Corridor 10. With the completion of this traffic route, Serbia will have an unbroken stretch of highway in full profile from its north and west to its eastern and southern borders. This is a result of the intensifying of construction

road-based Corridor 10, which some previous governments spoke about and promised a lot on, but didn’t work on sufficiently, railway modernisation wasn’t even mentioned, and let’s not even mentioning the fact that, prior to 2014, the years passed without a single kilometre of railway being modernised. In the past three years, railway modernisation and reform have become one of the priorities of the Government, and the first results of that are already visible.

Over the course of three years, 215 kilometres of rail tracks have been reconstructed on Corridor 10 and Corridor 11. We have begun work on the modernisation and reconstruction of the Belgrade-Budapest rail line, with which Serbia officially became part of the new 21st century Silk Road, within the framework of

In contrast to the period four years ago, when I took over the department and found loans that were not being used and the budget burdened with the payment of millions of penalties for not withdrawing funds, today there isn’t a single project left waiting in the past three years, during which nearly 200 kilometres of new highways were built in Serbia, which had an immediate impact on increasing transit traffic. In 2017, we had 17 million more vehicles on our highways than in 2014, while public company “Roads of Serbia” had 22.6 per cent higher revenues for road tolls in 2017 than a year earlier. This clearly indicates that transit traffic is slowly returning to its shortest route, through Serbia. Corridor 10 is the most important road for Serbia, which technically meets the highest standards of the EU, and along which we want to have even more cars, which is why we last year installed the most modern chargers for electric cars and introduced free wireless internet in rest areas.

• What are your expectations of the modernisation of railways? How much potential do they have for transporting cargo?

- Railway modernisation is one of the key conditions for Serbia to take advantage of its geographical position and become a transport hub in this part of Europe, especially when it comes to cargo transportation. Unlike the

China’s global ‘One Belt, One Road’ initiative.

In the past three years, 48 new trains were purchased that transport along our tracks, and thanks to which an increase in the number of rail passengers has been recorded for the first time after many years. One important project in the period ahead is construction of an intermodal terminal in Batajnica, which will have a direct link with road-rail Corridor 10 via the Belgrade bypass.

• When is it realistic to expect Serbia to be able to complete its part of the Belgrade-Budapest rail line and what kind of impact do you expect from its modernisation in terms of passenger and freight transport revenue?

- The Belgrade-Budapest Railway is the first track for speeds of up to 200 km/h and is situated along the rail route of Corridor 10, which is the most important rail corridor not only for Serbia, but throughout this part of Europe, as part of the basic Trans-European Transport Network (TEN-T). In the long run, it’s important for Serbia to participate in this project and be part of the new transport routes linking Asia APRIL

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and Europe. This rail line will connect the TEN-T and the Express Eurasian Railway, via Istanbul, and is also a continuation of the maritime and land-based new Silk Road from the Port of Piraeus towards Central Europe. The fact that Serbia is one of the key transit points on this route creates the opportunity not only to increase the volume of goods transportation, but also to build new logistics and industrial zones and attract investment in the area along the main transport arteries.

Works were launched on the section from Stara Pazova to Novi Sad in September last year, while works on the Belgrade-Stara Pazova section started at the end of November 2017. According to the envisaged dynamics, we expect works on this rail line to be completed by the end of 2021.

The journey time from Belgrade to Budapest is currently around eight hours, but upon the completion of the construction that travel time will be reduced to around three hours. By increasing the speed and shortening the route between Belgrade and Budapest, rail carriers will be able to plan new commercial offers for passengers that include final destinations in Vienna, Bratislava and Prague. When it comes to transporting goods, with the improving of the technical parameters of the rail line we expect a drastic increase in the volume of goods transport, not only through the individual use of rail transport, but also in combination with other modes of transport through the development of combined transport. Likewise, when it comes to containerised rail transport, new increased flows of goods are expected from the direction of China, to the Greek Port of Piraeus, via Macedonia to Serbia and onwards to central and eastern parts of Europe.

• Are you still considering the “Cargo 10” project, which doesn’t require major investment and has generated great interest among almost all countries in the region, including Germany, Austria, Greece, Turkey etc.?

- An important prerequisite for economic growth is good connectivity at the regional 8 |

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level, which provides high-quality transport services. In addition to improving transport services through the improvement of infrastructure, we are also working on so-called soft measures that don’t require large financial resources, and that together have a significant positive impact on the quality of transport services, attracting new transport flows. A

attract new flows from the rival Corridor IV. The countries lying along the route of this corridor, over the course of October and November 2017, signed a Letter of Intent addressed to the European Commission as an application to establish a corridor in accordance with EU regulations. The European Commission is currently preparing a decision to establish a corridor, and its adoption is expected soon.

Following the adoption of the European Commission’s decision, it is planned for the corridor to be fully functional within two years. Through the establishment of this corridor, stronger and more efficient cooperation is expected between infrastructure managers and railway operators, so it can be said that this corridor is the successor of the “Cargo 10” initiative.

• What kinds of experiences in the development of eGovernment can be derived from the introduction and application of electronic building permits?

- Four years ago, investors waited an average of nearly a year for a building permit, and often four, five or six years, and many didn’t believe it was possible to introduce e-permits in Serbia, let alone for them to take on a life of their own.

Railway modernisation is one of the key conditions for Serbia to take advantage of its geographical position and become a transport hub in this part of Europe, especially when it comes to cargo transportation specific example is the recent establishment of the direct “Sava Express” train between the two regional transport hubs of Belgrade and Ljubljana, which will carry significant freight flows from Turkish and Greek ports, which transit through Serbia and via Austria to be transported further to Western Europe.

Another important activity being carried out with the aim of improving transport is the creation of a new rail freight corridor, called ‘Alpine-Western Balkans’ and running through five countries: Austria, Slovenia, Croatia, Serbia and Bulgaria, all the way to the Bulgarian-Turkish border. This corridor represents the natural flow of goods from Turkey to Western Europe, and its goal is to speed up the flow of goods and

Permits are today issued in an average of five days, and we have 23,000 construction sites throughout Serbia, compared to around 500 in 2014. Considering that Serbia is today ranked 10th in the world in the issuing of building permits according to the World Bank, and that NALED declared this reform “the reform of the decade”, e-permits represent an example for all other reforms being implemented in Serbia. With a view to the model for the introduction of epermits, the Ministry commenced reform of the land registry-cadastre, with which the number of procedures when registering real estate property will be reduced from six to one, and which is also crucial to Serbia’s further progress on the World Bank’s Doing Business Index. ■

CORPORATE DANKA SELIĆ, BELGRADE FAIR CEO

Building Trade Fair Is Building Us

We will justify our leadership position in this part of the world with wide-ranging and representative exhibition programmes, technical and technological innovations, educational and informative national exhibitions, special projects, presentations, expert meetings, lectures and promotional activities

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his year’s 44th International Building Trade Fair will bring together at least 550 Serbian and 30 foreign exhibitors, tens of thousands of visitors and businesspeople from all construction sectors - from planning, designing and construction, to materials, construction machinery, equipment and tools.

• Nowadays, Serbia is hardly lagging behind in the construction industry at all, and the Building Trade Fair plays an important role in sharing experiences and strengthening communication with the world. How many domestic and foreign exhibitors do you expect this year?

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- According to the interest shown so far and the pace and dynamics of registration, the lower limit of our expectations exceeds 550 exhibitors, at least a third of which will be foreign exhibitors coming from 30 countries. We also expect about 40,000 visitors, including an increasing number of business visitors with companies. We should also mention the stone trade fair, StoneExpo Serbia, as a separate thematic unit and the largest international fair event in the field of natural stone and its industry. More than 20 countries in the region and worldwide have announced their participation in this expo.

I have to emphasise that we have strong support in all of this from the Ministry of

in terms of their own experience.

In this context, for the time being the number of exhibitors is secondary compared to the diversities, productive innovation

We expect the arrival of companies operating in the field of construction, real estate agencies and architectural offices with investment projects in which both local and regional builders would find their place

Construction, Transport and Infrastructure of the Republic of Serbia, which has joined us in building successful communication with the economy over the years.

According to numerous business parameters - from attendance, via the representation of innovative technologies or materials, all the way to demonstrating the business potentials of the entire industrial sector - the Building Trade Fair has for decades been a reliable indicator of what, and to what extent, we should as organisers make suggestions through the trade fair concept to key factors in the construction industry, but also what we should pass on to others during the trade fair,

and attractiveness of exhibitors, as well as their supremacy in trend-setting and rules of conduct.

• The upcoming trade fair is one of the most visited fair events, traditionally bringing together the most eminent domestic and foreign exhibitors from the construction industry. Which products do you think will attract the greatest attention of visitors?

- Given that the trade fair is conceived as a multisectoral and multidisciplinary exhibition offering something for everyone, attracting attention and, above all, satisfying specific interests of individual visitors, the most ac-

curate answer to this question is that every single thing will attract visitors’ attention.

Nevertheless, as organisers, we have exerted additional efforts to highlight the growing number of exhibitors in the field of construction machinery, which will, due to increased interest, occupy two halls of the Belgrade Fair and a large part of the open space, as well as the content and designing innovative concepts of small exhibitors of construction machinery, equipment and tools. After several years of stagnation, a better exposure of brick and tile producers is now expected. We anticipate a rich selection of various roof coverings and announce an extremely high quality and diverse offer of heating equipment, all in accordance with increasingly demanding energy, environmental and financial standards.

As found by our market analyses and user recommendations, this year we’ll offer visitors two new product groups: “Real EstateInvestment” and “Architecture-Urbanism”.

• New technologies, especially in the field of digitisation, have deeply penetrated the construction industry. Will this trend be visible at this year’s fair?

- New technologies are certainly implied APRIL

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year after year, with more enthusiasm and increased expectations, and the fact that the number of business visitors is growing constantly and exhibitors are becoming increasingly diverse.

• Have you organised supporting fair events, such as panel debates, expert lectures, training courses and presentations? If so, which would you recommend to visitors?

- The supporting professional programme is, so to speak, the middle name of this fair, and is often quite measurable compared to the exhibiting part. There is almost no exhibiting sector that is not covered by related logistical support of various forms - from roundtables to presentations, from expert lectures to demos, casual educational forms or even games. The complete programme is finalised some time before the fair, and it would be wrong to favour some parts of the fair and specifically recommend them.

• Belgrade Fair is an important institution with a rich tradition and region-wide influence. To what extent, for instance, does the and completely included in the requirement for innovation and progress of any kind, whether that applies to entirely new building materials or building technologies, familiar existing materials or technologies which, via professional intervention, seem to be more accessible to a wider range of users, redesigned or commercialised in a new way through this trade fair. This is especially applicable to IT, digital and communication technologies, and all kinds of innovative, specialised, applied software that has not been an exception in the construction industry for a longer period, but rather a logical necessity.

• This year’s 44th International Building Trade Fair is primarily a gathering place for businesspeople from all construction sectors, from planning, designing and construction, to materials, construction machinery, equipment and tools. Do you 12 |

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Due to high demand, construction machinery will occupy two halls of Belgrade Fair and a major part of the open space, with the focus on the content and designing of innovative concepts by exhibitors of small construction machinery, equipment and tools have any information about the direct and indirect level of impact of this trade fair on contracted works?

- One of the features of the fair industry, especially in this form of fair, is that most business effects are seen, disclosed or recognised only after the closing of the Fair’s gates. Some of these effects fall into the domain of business secrets or legitimate hiding from the competition. We can see that our business initiatives are respectable and effective on an international scale from the fact that business partners return

Fair boost the number of overnight stays in Belgrade during the year?

- The company did not count on this effect until last year’s scientific research on the impact of the Belgrade Fair on the economies of Belgrade and Serbia. For example, in 2016, the events of Belgrade Fair alone attracted to Belgrade and its hotels nearly 50,000 foreign and 20,000 local guests, who collectively spent around a billion dinars.

And that is only a small part of it, while a significant part of that overall benefit certainly belongs to the Building Trade Fair. ■

CORPORATE OGNJEN KISIN, EXECUTIVE DIRECTOR OF KONSTRUKTOR GROUP

We’re Building For Future Generations The 'Konstruktor Group' carefully nurtures its leading position on the Serbian market in the field of designing and constructing production and logistics facilities under the ‘turnkey’ system, as well as its status as a reliable works contractor for business facilities and residential complexes

more than 50 engineers of all profiles, as well as 500 indirect employees on all construction sites. In the meantime, we’ve established five other members of the Konstruktor Group – ‘Konstruktor Metal’, ‘Konstruktor Distribution’, ‘Konstruktor Equipment’, ‘Konstruktor Real Estate’ and ‘Konstruktor Logistics Park’.

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ur motto is that there is no alternative to quality, professionalism, dedication and honest work. This is how we act towards ourselves, while we also develop such an approach with all of our business partners, primarily investors, but also subcontractors, suppliers and other associates • ‘Konstruktor’ is an example of a healthy domestic business, which, through hard and efficient work, has become one of the leading construction companies in this region. When and how did you start?

-We started 15 years ago, with the establishment of the first company, ‘Konstruktor Consulting’ in a single room, with three employees, while today we have more than 100 direct employees,

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• In the past 15 years, you’ve built more than 200 different buildings, or more than half a million square metres. Which project to date was the biggest challenge for ‘Konstruktor Group’?

- Every constructed facility had its own specific difficulty, and they were all a challenge.

However, if I must single out the greatest, that would be Grundfos in Inđija, the biggest investment in 2012, and Lidl’s administrative building in Stara Pazova, which we built last year. These are high quality facilities built for reputable investors under short deadlines.

Although Grundfos had as much as 27,000 square metres, the works were carried out in a record time of nine months, while Lidl, on the other hand, represents the most complex

business building in the region, built according to the highest quality standards. Both buildings were contracted under the ‘turn-key’ system.

• Which facilities is ‘Konstruktor Group’ working on today and what are the further directions of the company’s development?

- Operatively speaking, at this moment there are active construction sites at the logistics centre of company ‘Proteam’ in Dobanovci, the pedestrian walkway connecting Kalemegdan and the Port of Belgrade, a ‘Stop Shop’ retail park in Vrsac, the fourth facility that we’re building for ‘Immofinance’, a Lidl retail outlet in Vršac and the ‘Green Avenue’ residential complex in Zemun, while there are also the steel constructions of the ‘Gebi’ silo park in Bačka Topola, the ‘CRH Popovac’ steel construction for clinker transport and the steel structure of the indoor swimming pool in Trebinje.

I would emphasise that from the very beginning our motto has been that there is no alternative to quality, professionalism, dedication and honest work. Naturally, maintaining

a fair attitude towards the state, settling all obligations and taxes in full and on time, as well as various forms of socially responsible behaviour, are implied with us. These principles that we set at the beginning will remain a constant throughout all changes that will inevitably happen at ‘Konstruktor’.

• It is known that Konstruktor takes care of every dinar of its investors, i.e. “it saves for investors”. How does that reflect on quality and deadlines?

- It is very important to state that the savings we make for investors are in no way at the expense of quality. Our savings come from staff logistics and knowhow, on the one hand, and the infrastructure of ‘Konstruktor Group’, on the other. When I say staff logistics, I’m referring to technical optimisation led by a good design team, while the concept of infrastructure is related to our own production, which stems from the fact that ‘Konstruktor Group’ has six members that cover various segments of operations and construction.

are the prospects of engineers in Serbia?

- Our company has been cooperating well with local universities for years; students spend a lot of time with us on construction sites and we are very pleased to share our knowhow with them. On the basis of that I can say that young engineers and future engineers are very talented and have good foundational knowledge.

Their future work and prospects depend on the market situation and the situation in the country. Currently, in this wave of construction, there are many reasons for optimism.

contractor, which ‘Konstruktor’ certainly is. Construction companies in Serbia are mostly either designers or contractors, which places the investor in the thankless position of being an arbitrator in the case that there is any form of disharmony during project implementation. If an investor hires a single company like ‘Konstruktor’, then it has one partner who is responsible for the entire process.

• There are investors for which you have built as many as seven facilities. How do you fend off the competition, which is also good, so that investors often return to you?

- We always strive to have a better offer, shorter

The best reference for a construction company is when it is reengaged by an investor that it has already worked for, especially when it comes to major works and large, reputable and demanding investors deadlines and quality without compromise. In our operations to date we have gained a very good reputation and that’s why investors return to us multiple times. I consider that continuity in working with professional investors, with investors who are well aware of what they want and who have experience in the construction process, is one of the main drivers of our company and one of the recognisable elements of our identity. This eases our work when it comes to our part of obligations.

• One of the founders of ‘Konstruktor Group’ is Professor Srđan Kisin, a long-serving professor of the Technical Faculty in Novi Sad. What

• One of the characteristics of ‘Konstruktor’ is the it conducts design and construction works according to the ‘turnkey’ system.

What precisely does that mean?

- The key competence of ‘Konstruktor’ is its complete application of the “design and build” concept, which is the concept of designing and constructing everything from project launch to completion, in accordance with the requirements of the investor who engaged us. This concept has only recently started being applied in our country, while the requirement is for the company in question to be very strong, both in term of design and as a works

• You have built many different facilities and bridges, but also a steel structure as a platform for the installation of the mosaic of the largest Orthodox temple in this region, Saint Sava Temple in Belgrade. What can you tell us about this project?

- ‘Konstruktor Group’ expresses satisfaction with the fact that it was engaged for this project. This was a challenging project due to the work being carried out at a height of 60 metres, as well as the very sensitive surroundings in terms of the interior of a temple. Likewise, I can also highlight work on the pedestrian walkway linking Kalemegdan and the riverside port. We work with special satisfaction on projects that have a specific importance, and which bring us a kind of personal satisfaction, because we will leave behind something truly worthwhile for coming generations of Belgraders and for all citizens of our country, but also for tourists. ■ APRIL

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CORPORATE MS DIJANA LJUBIŠA, CEO of Alubond Europe d.o.o. & Globeclad d.o.o.

“Made In Serbia” Fire Rated A2 ACP

Alubond Europe in Serbia, with a capacity of two million square-metres, is focusing on expanding a European market of 40 countries, with Russia and former Soviet Union countries why these façades have achieved such wideranging application. Most commonly used for façade cladding, Alubond also has broad applications for interior décor, because it comes in the most diverse colour shades and patterns, and is easily modified. It is not only shades of grey. It is much, much more! We can make your vision a reality!

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façade is the face and identity of a building and is what gives local architecture and visual identity its universal signature. For a façade to “work” properly and protect the building, it should resist rain, snow, wind, extreme temperatures and natural disasters, and should also be fire retardant.

• “Alubond Europe” is a manufacturer of aluminium composite panels made with aluminium, anodised aluminium and zinc. What is the use and appliance of your products in today’s modern architecture and construction?

- Our product range of Alubond USA aluminium composite panels fulfils all of these requirements. At our Alubond Europe factory in Banatski Karlovac, we are producing ACP with PE core and ACP with Fire rated Bs1d0 core. Our panels are available in a wide range of colours, shades, different finishes and patterns, which emphasise the overall aesthetic experience.

They also come in different thicknesses, lengths and widths. We aim to fulfil any customisation request in the best possible way! The specificity of the production and materials used to make the Alubond ACP allows the covering of flat, curved, rounded, horizontal, vertical and other surfaces, which is one of the leading reasons 16 |

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• In which way do Alubond panels contribute to more efficient (faster and cheaper) construction?

• Extreme lightness → less substructure material → cost effective • Easy material manipulation and assembly → no need for installation experts; basically anyone can do it!

range of clients throughout Europe and the countries of the former Soviet Union. We are hiring new people, continuously improving working conditions and constantly investing in employee development and growth. With satisfied employees, you can achieve anything!

“Take care of your employees and they will take care of your business. It’s as simple as that.” We have two upcoming novelties that we are very proud of! Under the name Globeclad d.o.o., our sister company, we are opening a new factory for coating aluminium coils. As this issue of CorD goes to print, we will hopefully have our first test production! This new factory will definitely improve the complete production process of our aluminium composite brand – Alubond U.S.A. We will be able to provide

The specificity of the production and materials used for making Alubond allows the covering of flat, curved, rounded, horizontal, vertical and other surfaces, which is one of the leading reasons why these façades have achieved such wide-ranging application • Extreme rigidity and hardness with highly durable colours → extremely durable façade; you won’t need to replace anything for decades • Excellent sound and thermal insulation → lower utilities costs • Easy maintenance → maintained with common household cleansers • Reduced waste as a result of pre-work optimisation → full utilisation of the entire panel • Good value for money • What are your further plans with Alubond Europe?

- We are currently exporting the most to European and Balkan markets. When it comes to sales, we are working on expanding our

existing clients with shorter delivery terms, smaller minimum quantities and meet their need for colour requirements much faster! With this we will expand our palette of products and extend our client variety to the construction, production and processing industries. The second big short-term plan (knock on wood) for these markets is the installation of an A2 fire rated production line at the beginning of 2019. This will make us the first factory in the region to produce the magnificent Fire Rated A2 panel, with a non-combustible, fire retardant, self-extinguishing core! Hopefully, when we meet again before next year’s Belgrade Construction Fair, we will be presenting the “Made in Serbia” Fire rated A2 ACP to you! ■

Nemanjina 130, Banatski Karlovac 26320, Serbia Tel: +381(0)13 652 852; +381(0)13 652 852 E-mail: info@alubondeurope.com www.alubondeurope.com

CORPORATE MELANIJA PAVLOVIĆ, GENERAL MANAGER, BAUMIT SERBIA

Freedom Of Design

Baumit is one of the leading European brands for sustainable plaster, render and external wall insulation for the construction industry

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ounded in Austria in 1988, Baumit is now present in over 30 countries worldwide.

From external wall insulation systems to façade renders, paints and healthy living indoor plasters, Baumit gives you the freedom of design. Our extensive range of innovative products offer the perfect combination of thermal insulation systems and façade coatings suitable for any project, whether it be a new build or a renovation project, for private residences all the way to large scale developments and commercial projects.

Baumit is a European pioneer in external wall insulation systems, with almost forty years’ experience in Germany, Austria and many central and eastern European countries, supplying over twenty million square metres annually. Baumit’s reference list includes such prestige projects as Schönbrunn Palace in Vienna, the Reichstag building in Berlin, the Doge’s Palace in Venice, the Kremlin in Moscow and Neuschwanstein Castle in Bavaria.

EXTERNAL THERMAL INSULATION SYSTEM BY BAUMIT Thermal insulation of the building envelope (shell) is intended to avoid any waste of energy and to create pleasant environment for building users. Baumit systems are designed to meet any requirements set for application, ranging from small and old houses to new and high buildings.

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EXTERNAL WALL INSULATION CONTRIBUTION A building’s external thermal insulation composite system (ETICS) is an issue of increasing importance in the modern era of climate change and growing energy costs. In new builds it can create saving on manufacturing costs and reduce future energy costs. The positive results of an external thermal insulation system on quality of life also shouldn’t be overlooked.

All these are important reasons why Baumit makes a valuable contribution to the environment and the population with it new products and systems.

EXTERNAL THERMAL INSULATION COMPOSITE SYSTEMS: • Reduce heating and cooling costs • Improve living comfort • Offer additional soundproofing • Improve building appearance • Reduce CO2 emissions and protect the environment • Increase property value

ExternalThermal Insulation Composite Systems with Rendering). Moreover, all Baumit system products are certified according to relevant EN standards.

With vast experience in Europe, in Germany alone Baumit supplies over three million square metres annually, while all Baumit products fulfil quality standard EN ISO 9001 and correspond to all valid national and EU requirements.

The Baumit EWI (External Wall Insulation) System is a fully integrated system offering the widest design choice available to customers.

The system includes all required insulation, adhesives, base coats, reinforcing meshes, primers and finished coats, window sills, beads and accessories.

Baumit has been operating in Serbia since 2002, with headquarters in Belgrade. At the beginning of 2006, Baumit launched production at its own Serbian factory in Arandjelovac, where part of the production programme is being produced. Baumit also joined Slovenian company Kema in 2013, so these two brands, Baumit and Kema, offer a wide and innova-

Baumit is the No.1 Façade brand in Austria and Germany.

Doing business in Serbia is very important to Baumit as a company and its intention is to become one of the top fife façade brands in Serbia in the next five years 20 million m² of Baumit external thermal insulation systems are applied every year. The final energy savings are about 4.5 billion kWh or 450 million liters of heating oil corresponding to a billion tons of CO2 emissions a year.

BAUMIT EPS ETICS, with recognised certifications Baumit possesses the European Technical Certification (ETA) for all its systems, in accordance with internationally accepted specification ETAG 004 (Guidelines for Technical Approval of

tive systems of products. Façades, mortars, screens, adhesives for ceramic tiles and marble, industrial and epoxy floors, special products and interior decoration products represent are only a small part of the entire product portfolio.

Baumit products meet all the requirements of the domestic and European markets. The quality management system is applied at Baumit Serbia, with all measures for achieving and maintaining the consistent quality of all manufactured and sold products, in accordance with EN ISO 9001. ■

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CORPORATE PETAR MILJKOVIĆ, DIRECTOR OF “ZORKA KERAMIKA”

Bringing The World Ceramic Industry Trends Our plans and vision include a period of five, ten years in which, besides regional leadership, we would like to expand our services and cooperation with architects and interior designers, and ensure the availability of technological innovations in the world of ceramics at the regional market 20 |

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fter 40 years of production “Zorka Keramika” has become the largest Serbian producer of ceramic tiles with main characteristics including high quality, attractive design, wide range of products, healthy raw materials and natural and ecological materials.

• In 2017, “Zorka Keramika” celebrated 40 years of production operations. Where do you see your company today?

- We celebrated the anniversary as the largest Serbian tile manufacturer, which we are very proud of. Our success and excellent business results are based on modern technology, investments in production and, certainly, contribution of the employees. We work together on a daily basis to ensure that every segment of production, sales and communications with distributors and end customers is in the spirit of values we are recognized for. The success of “Zorka Keramika” is the success of all employees.

• You are successfully following all world trends. What is currently trendy? What kind of design, colors and prints?

- In cooperation with partners from Italy and Spain, we are currently working on creating new collections that respond to the demands of our clients looking for modern homes and business premises. For years, designers have been inspired by natural materials, and the new technology makes it possible to create even more realistic imitations of

selection is so wide, and the quality equal and undeniable. That’s why, we have made for our website visitors as well as our old and new customers, “RealitiRemod“, a revolutionary application for virtual reality of ceramic tile applications that can be used on all Android and iOS devices. It allows you to capture a photo of your living space and virtually replace the floors and walls with “Zorka” ceramic tiles. You can use your mobile phone or tablet to successfully visualize designer’s ideas that would appear in

• You have the leading role and best offer of ceramic tiles in most countries in the region. Do you plan to conquer new markets?

- Last year we had a significant sales growth

Knowledge, motivation and dedication create the basis of the values of our company. We do business in the spirit of communion and in a good atmosphere, with a constant tendency towards innovation in Croatia and Macedonia, Hungary, the Czech Republic and Slovakia, and for this year we plan to increase exports to Austria, Switzerland, Germany and Italy. We are proud of a large number of top facilities in Russia, Kazakhstan and Dubai equipped with our ceramic tiles.

Although we pay special attention to foreign markets, we do not neglect the demands of our customers in Serbia. On the contrary!

Customers in Serbia always have the same quality and offer as foreign customers, and thanks to the dynamic growth and development of the economy, our quality and design are standing out in all major projects being implemented.

wood, concrete, marble, stone and textiles.

Using digital printing we move boundaries when it comes to floor and wall design, while at the same time the technology allows for the creation of larger formats used in the field of façade coating and thermal insulation. This will represent a truly tremendous step in comparison to the current offer and we are excited that this year we will be the first company in the region offering the tiles made with new technology and the façade coating system.

• Visitors to the salons selling your tiles, due to the large offer, find it difficult to choose only one design. Is it easier for visitors to your website which is really a world-class?

- I agree it is not easy to choose when the

your own living space. This is a useful tool both for renovation and design of new interiors. I hope we’ve facilitated our customers’ choice with the use of this application.

• What are your strategic goals?

- We always look in future and we thus plan all our business moves so that both our customers and employees are satisfied. This is achieved through the quality of delivered products, continuous expansion of the offer, meeting the demands and expectations of our customers, continuous investment in the development and improvement of technical equipment, as well as in the professional training of our employees and the increase of their creativity and initiative. We put a lot of effort in consistent product control and process management to ensure compliance and eliminate risks to human health and safety. We also organize our business in a way to protect the environment maximally and conserve resources and energy, with our special attention paid to preventive actions. ■ APRIL

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CORPORATE

DRAGAN GAVRILOVIĆ, GENERAL MANAGER, SIKA SRBIJA D.O.O.

Sika - Symbol Of Innovation

Since the opening of Sika d.o.o. in Serbia in 2002, this company has been constantly growing in terms of production and turnover, because the demands for new technologies and new solutions on the modern market, and particularly in specific industrial areas, are constantly growing

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odern construction and standards increasingly take into account the overall benefit that can be achievedthrough the total value of a building, total quality, total expected lifespan of the building, total achieved energy efficiency and a range of other parameters.

• SIKA brought new materials, technologies, standards and procedures to the Serbian market, thereby changing the face of the construction industry. What were the most sought-after products 15-16 years ago, and which are the best-selling today?

- Since its establishment in 1910, Sika has been one of the symbols of innovative power and commitment . Eventhough the relevant parties on the Serbian construction market, those who have been engaged on the projects beyond the borders of our country, when the local construction industry was a respectable giant in the world, have been familiar with and have been applying new Sika products and technologies, still the wider mass application of Sika’s

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system solutions on the local costruction market is related to the period of establishment of Sika d.o.o. in Serbia in 2002.

The continuous improvement of technologies and changes are noticeable even in the relatively short period of fifteen years that Sika has been operating directly in Serbia, because the demands of the modern market, particularly in specific industrial areas, are constantly growing.

Only the new technologies and solutions could give the right answers to some of the new, high market demands.

Apart from responding to innovated needs and market demands, companies like Sika invest enormous efforts and resources in order to find new technologies that bring benefits to all stakeholders in project implementation, right up to the end users, due to their quality, installation method and speed, optimal cost performance and other features.

In the past five years alone, Sika has patented more than 400 technological innovations, and its network of 20 global technology centres around the world, with dozens of local R&D centres, work continuously to develop new technologies.

When it comes to specific groups of products, it is noticeable that there

are more in use solvent-free products or those with reduced solvent content (industrial protective coatings and industrial flooring , anticorrosion protection, fire protection coatings, paints, varnishes), hybrids and products with a combined chemical composition (epoxypolyurethane composite, epoxy-cement base, polyurethane-cement base etc.).

Some advanced technologies, which few people believed would find any application in construction just a few years ago, are today irreplaceable on most of the projects.

Finding new technologies and solutions is directly related to environmental protection and the use of renewable energy sources, to which Sika is fully committed.

• Your customers, whether they’re private individuals or construction companies, can find everything they need in one place, in accordance with your motto “From rooftofloor”.

What else do you offer them?

- Implementing the Target Market (TM) concept, as one of the basic postulates of Sika Strategy 2020, we strive to offer our partners and clients as many system solutions as possible that can be applied in all construction positions during project implementation – from concrete admixtures(TM Concrete), through waterproofing of the foundation

to end users increasingly opt for slightly higher construction costs if that is required for the application of new technologies.

As I have stated, the laws of the market very quickly and uncompromisingly regulate justification of the application of new technologies.

slab(TM Waterproofing), final floor coverings (TM Flooring), elastic bonding and sealing (TM Sealing and Bonding), refurbishment and construction strentghening(TM Refurbishment), roof waterproofing (TM Roofing), facades (TM Industry, TM Sealing & Bonding) ...

We offer complete system solutions in

that manifest themselves through different regulations, the application of different standards, various micro and macroeconomic principles and labour costs, seem to condition the justification of application of new technologies.

Narrowly speaking, the application of

Finding new technologies and solutions is directly related to environmental protection and the use of renewable energy sources, to which Sika is fully committed almost all application fields, while in recent years we are making special efforts to increase our presence in interior finishing works. In addition to introducing an entire series of new products for use in finishing works in construction, we are making equal efforts to make our products more accessible to all customers, including the smallest individual consumers and customers.

We gain tremendous assistance and support in such efforts through cooperation with our valued distributors, which we improve year on year, resulting in significant growth in turnover.

new technologies can in some cases also have impact on costs increase of construction itselfin some local markets or environments, but in a broader sense, the overall benefit that will be achieved will justify the application of most new technologies.

Modern construction and standards increasingly take into account the overall benefit that can be achieved through the total value of a building, total quality, total expected lifespan of the building, total achieved energy efficiency and a range of other parameters.

In such cases, investors who are aware of the total benefits that are ultimately transferred

• When it comes to the quality and availability of your products in civil engineering and real estate construction, you don’t have many competitors on the Serbian market, and you’re also increasingly present in the automotive and transportation sectors. How do you explain that, and what else can we expect from you?

- Sika generates more than 20 per cent of its turnover in the field of industry, of which a significant part relates to the automotive industry and transport sector. Our team at TM Industry is more than active in the area it is responsible for and is ready to meet all demands and needs of the market. We expect the future growth and strengthening of industry in Serbia to lead to growth of already significant participation of TM Industry in the company’s overall operations.

I often hear that there’s no competition in the areas where Sika is present in Serbia.

Such a statement simply doesn’t correspond to the facts, as today all relevant and recognised global suppliers and brands are present in Serbia, in all the areas in which Sika is also active. In this sense, it should be taken into consideration that Sika is a global leader with the largest market share in many market segments.Participation of Sika Srbija in the respective areas in Serbia is often higher than Sika’s already high participation in other areas. The key success factor is primarily related to the high quality of our team in Sika Srbija, which is our highest value. ■

• Many years of scientific research and testing have been invested in new technologies and materials. Do they raise or lower the costs of construction?

- Every new technology must confirm and justify in practise its introduction and existence, which is regulated most clearly, quickly and easily by the laws of the market. The special characteristics of different markets APRIL

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CONSTRUCTION

By

J UA N RO D R I G U E Z

Top Construction Trends In 2018

Builders and contractors want to keep up with the latest construction industry trends so that they can stay ahead of the competition. Here are a few trends that could impact on how you conduct business in 2018

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very construction project is expected to increase their participation through green design, sustainable products and aiming towards the LEED certification. This trend, which started some years ago, will continue to rise and every year must be more important to builders and contractors.

Recycling, reusing and rethinking our approach to common daily activities is a must for builders. Remember this is also an opportunity to advertise or showcase your business. More legislation and laws 24 |

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should increase the green building trend for the upcoming years, especially in 2018.

MODULAR BUILDINGS It seems like in the last few years modular buildings, houses and even pack-yourown-home has been gaining more followers and fans in the real estate and construction industry. The world is changing and as you can see younger professionals and millennials are always constantly to change things around and move from one place to another. The demand for homes and build-

ings is increasing, but not necessarily in the unoccupied metro areas, we are talking about remote places, suburbs and more in harmony with nature.

Modular homes offer the advantages of being developed off-site reducing the impact to the original landscape, being more efficient, reducing the risk of incidents and providing a faster way of developing residential areas.

Modular construction offers you the ability to start working off-site while all the permits are being secured and under

a controlled scenario. They are cheaper to build, as the crew already know what to do and how to assemble it, and build times are shorter. Some builders are offering the option of getting your house on a semi with the option to move it around from city to city as you move to different places.

Modular buildings are also on the list due to significant safety and time advantages. In New York, we have the 461 Dean, a 32-story building that is one of the world’s tallest modular buildings.

DRONES Drones or Unmanned Aerial Vehicles are here to stay and have been one of the hottest trends for the last two or three years. Drones can access remote locations, are equipped with cameras, can collect data, complete safety inspections, capture project progress and so much more. Surveyors use them to create 3d mapping or images that later can be used to depict an area. Drones are one of

the most important construction industry trends in 2018 and there is so much more to come. Remember, to make sure you are in compliance with FAA rules and regulations.

BUILDING INFORMATION MODELING (BIM) There is one single tool that can increase effectiveness and collaboration like no other tool: BIM. BIM is now part of the regular

scope of work for many RFPs and government agencies that like to know beforehand the issues and construction projects that they will face. BIM not only increases collaboration, it reduces construction costs, and promotes a safer building process that will result in faster construction and minimize safety incidents.

BIM will soon be part of construction

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and careful planning is another important thing to do. Rent-a-worker might soon be a trend, so be on the lookout to keep your business going.

DESIGN-BUILD AND COLLABORATION With schedules being so tight, builders and contractors are always looking to cut down time and propose aggressive schedules that are sometimes not realistic. However, 2018 might be a great year for you to embrace the design-build process or use IPD as tools that will solve your schedule delays and help you plan better. These tools are not new, but they are amongst the construction industry trends for 2018 as owners will ask for earlier completion dates to maximize their business operations. Collaboration and communication are key aspects of these two options, so make sure the communication plan is shared with all key players.

COST, FUNDING AND FINANCES More than 10 years ago, construction and companies were doing business everywhere and building codes, much faster than what you would think, and since BIM is now a 6D approach, it is being used for almost all type of construction projects. If you are not BIM-ready, try to get a sub-contractor that can become your BIM expert.

INTERNET OF THINGS (IOT) Smartphones, GPS, Cloud, SaaS — everything is about the internet and data moving across the web. Seems like contractors and builders need to be connected to keep up with fast-moving construction industry trends. However, being active online is not about adding or following more things. It is about how we can increase productivity with the tools we already have. Collaboration, sharing, photos, docs, data, logistics, inventory, time tracking, vehicle remote and tool detection are among the things builders use the most, and that technology will only get smarter.

Using VR gadgets you can simulate a project, showcasing it for your customers, before a tool is delivered to the site. Everything is now connected online, and our projects have been digitalized in such a way 26 |

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Collaboration, sharing, photos, docs, data, logistics, inventory, time tracking, vehicle remote and tool detection are among the things builders use the most, and that technology will only get smarter

that paper is almost no longer needed. More powerful smartphones, tablets and other mobile devices will improve communication.

LABOR AND GOVERNMENT IMPLICATIONS Skilled labor shortages have been quite a problem recently with the amount of construction going on. Finding skilled workers is really a challenging situation that could get worse once the immigration changes go into effect, affecting many projects nationwide and requiring a different thought process to get skilled labor during the next years. Builders need to focus on developing existing talent, equip them with the right knowledge and tools to succeed. Training and development must be part of every construction company,

and risk for us in the construction business was minimal. Lending institutions and finance manager were more receptive and willing to accept risks than now, but the game has changed. The construction trend for 2018 is to look for P3s or Private-Public Partnerships as a way to obtain financing approval and complete projects that otherwise would be impossible. Material costs are high and they are not expected to come down, so your supply team must be aware and act fast to secure good prices with your vendors. A smart and effective purchasing team is key to lowering costs for your projects and builders are bundling work with other contractors to obtain better pricing in materials. Be sure to keep your costs down during 2018 as prices will likely go up. â–

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