PV International 0157

Entrepreneurs’ Day It takes will to make unpopular moves which might benefit the state in the long-term

Ernest Tolj, Eurocable Group Supervisory Board President From greenfield investment to the most sophisticated electrical cables

100th anniversary of Kraš Factory in Zagreb started operating in 1911 as the first industrial chocolate producer in South East Europe

BUSINESS FORUM

INTERVIEW

CENTENARY EVENT

PAGES 2-3

PAGE 4

PAGE 8 2010

Croatian Business & Finance Weekly Established in 1953 Monday / 13th June / 2011 Year IV / No 0157 www.privredni.hr

S U P P O R T E D

B Y

T H E

pvinternational pv international C R O A T I A N

C H A M B E R

O F

E C O N O M Y

THE TURNING POINT OF ACCESSION TALKS

Six years that changed Croatia After the decision of the European Commission according to which the negotiations are closed Croatia has become a more attractive country for investment Lada Stipić-Niseteo fter almost six years Croatia is on the verge of joining the European Union. The European Commission finished its work and sent its proposal for closing the remaining four chapters to the member countries. Croatia finalised the first part of the marathon, convincing the EC and perhaps other members also, that the two most difficult preconditions, the reform of the legislative system and anticorruption, are now an irreversible process. The EC evaluated the changes had reached a critical mass, as Štefan Füle said and that the next logical move was to recommend the closure of negotiations. According to the Commissioner, a positive atmosphere surrounds the capitals, and they are all ready to confirm the EC’s recommendation, close the remaining chapters and declare the accession date. The only uncertainty remains - will the countries in this race for the finish line of the six-year long marathon prove to be fast enough to meet the deadlines during the Hungarian presidency, ending this month, allowing the EU summit to declare

A

the closure of the chapters on June 23 and 24.

Negotiations as a catalyst Füle stated that six years had changed Croatia, “transposing it to a democracy based on the letter of the law, society is stronger and more dynamic”. This is not only due to the negotiations. They helped to speed up the process “acting as a catalyst of reforms” and “proving that the preparations for accession are difficult – it is painful to organise your house, but it is worth the effort and Croatia proved this”. With the FrenchGerman papers in their hands the European Commission obtained the framework of control and is

counting on all the members to agree. Up to literally the final day before accession, the Commission will monitor progress. Every six months it will draft a report on the two most difficult chapters, Judiciary and Market Competition and expert delegations will frequently visit Croatia. It was admitted that the shipyard restructuring is ‘mission impossible’ during the recession and some room has been left for this issue. Multilateral monitoring starts from the progress analysis this autumn, and the legal framework will be provided by the Stabilisation and Association Agreement. The EC reassures these are not new issues compared with this round of ac-

cession, for example the criteria for the opening and closing of the chapters, stricter conditions specific to Croatia (return of refugees or co-operation with the criminal court for ex-Yugoslavia). The monitoring system was present in previous accessions, excluding the Judiciary and track record, evidence that the required legal and political changes have been transferred to practice. In order to keep members calm, Chapter 35 contains safety measures in case of any problems, not so much for Croatia, but in order to create a template for future accession as in the case of the Turkish “question”.

The monitoring system presumes sending warning letters if things go in the opposite direction, “although I do not have any reason to doubt Croatia”, said Füle; and the legal basis draws measures from the content of the joint acquis communautaire and so the EU has an elegant justification for doing this in such a manner.

Be as it may, the direct positive consequences of the decision will split in two directions. Croatia will become more attractive for investment, and the region, now on hold, will receive a significant impetus to continue the process.

2

Privredni vjesnik Year IV No 0157

ŽELJKO ERKAPIĆ, AGRICULTURAL MACHINERY CLUSTER DIRECTOR

A cluster is not a short-term proposition but a long-term investment

he main objective of clusters is to enhance competitiveness against the fierce competition from global players. Small and medium sized companies which are not resilient or identifiable enough must strengthen their negotiating position and market visibility by clustering. Nevertheless, clustering is not merely restricted to small and medium-sized companies, it features also big players and global companies in order to be more adequately prepared for the increasingly fierce market competition and guarantee their survival.

Whilst there are several definitions of a cluster, its content is of critical importance. According to some data, there are some sixty clusters in Croatia. Many are called clusters, whilst being horizontally, vertically or diagonally connected.

It implies there must be an interconnection with science as well as with homogenous companies. The focal point of clusters is heterogeneousness and connection with

T

IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription

innovation, development and science; if this is achieved, then it is a cluster in the fundamental meaning of the word. Nevertheless, cluster members must be aware of the fact that they cannot and will not find solutions to their problems solely through membership.

A cluster is not a short-term proposition but a long-term investment.

A cluster should and has to assist in restructuring and innovation, in market positioning of a company in order to become better prepared for globalisation which will ensue following Croatian accession to the EU. Aware of the importance of science in global development, the Agricultural Machinery Cluster has signed contracts with the Osijek Faculty of Economics and Technological Development Centre and is also anticipating that the Zagreb Faculty of Agriculture will join them. The focal point is that we must ensure our participation in structural funds and projects implied in full membership in the EU. The cluster was set up at the end of 2007 and by 2009 we managed to connect and form a network of all members. This is how the Agricultural Machinery Cluster with 8 founding members and 15 associated members originated.

We have been focusing intensely on a market internationalisation project since the beginning of 2010, witnessing the first results at the end of April this year illustrated in the conclusion of six contracts for exports of cluster members’ products to Morocco with a value of €3 million.

FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr

IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr

EDITOR IN CHIEF Darko Buković +385 1 5600003 bukovic@privredni.hr

TRANSLATION Lučana Banek lucanab@gmail.com Mirjana Cibulka mirjana.cibulka@gmail.com

EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr

INTERNATIONAL OPERATIONS Ray Fletcher fletcher@privredni.hr

( below 8%

unemployment rate in 4 years

Entrepreneurs’ Day

Reforms will

It takes will to make unpopular moves which might ben Igor Vukić roatian entrepreneurs did everything possible to fight off the crisis. We made many difficult moves, and needed to change in order to survive.

Now others need to do the same, especially the current and future government that will not have the usual 100 days to examine conditions. Actions need to be quick, since reforms will not happen on their own. It takes will to make unpopular moves which will benefit the state in the long-term. Entrepreneurs support speedier reforms, since the burden they are carrying is becoming intolerable.

This was the message of Ivan Ergović, president of the Croatian Employers’ Association at the last week’s Entrepreneurs’ Day. The traditional event of the CEA was held this year under the slogan Employers at a Turning Point.

As the main structural problems, Ergović pointed out the rigid labour laws, ineffective and massive public administration, excessively high tax burdens and other entrepreneurial costs. Ergović also added that a ‘magical solution’ for solving the problem of such a model is not the European Union. The problems of Croatian entrepreneurs will intensify after accession, and they will be even more exposed to tough international competition.

C

Strict fiscal discipline is required With the aim of changing the present model, the CEA offered a programme For the Development of Croatia 2011-2015, capital and jobs “hand in hand“. They believe its implementation would generate an economic boost of 4%. The unemployment rate would drop by 8%; there would

be 1.6 million employed at the end of the period, 200,000 more than presently. According to the CEA director, Davor Majetić, Croatia requires strict fiscal discipline on the level of the macroeconomic framework. This would require nominal freezing of state expenditure in 2011 and 2012, and a real freezing of expenditure; more precisely, growth equal to the rate of inflation from 2013 to 2015.

The gradual transition to a budget surplus will enable better credit rating and cheaper credit for the state and all market players. This would also reduce tax burdens on labour and capital, according to the CEA. Only then would it be possible to decrease intensive progression towards salary taxation, which makes Croatia noncompetitive at present in terms of high salaries for highly skilled

www.privredni.hr Business & Finance Weekly

3

( 4%

economic growth to 2015

( 42 days payment deadline

not happen on their own efit the state in the long-term form SME’s and simpler procedures for private investment in the energy sector.

work, especially regarding the high-tech sector. On behalf of the CEA Majetić pointed out real salaries might drop only by the amount of growth in labour productivity. Additional increases in the standard are possible only by means of labour tax relief. Due to the smallness of the market Croatian entrepreneurs must be more directed towards exports.

In addition to state subsidies, they also require the extension of VAT payments, from 30 to 60 days and customs payments from 10 to 30 days.

The market should also be relieved by the reform of the massive system of public and state companies, which needs to be restructured, whilst the privatisation process must continue at all levels. Transparent financial and operative goals need to be set

and monitored similarly to those of developed countries. The number of employees in public and state companies should be

It may not be a surprise that during this election year, mostly politicians participated at the Round Table of the Entrepreneur’s Day resized from the present 12.5% to below 10% out of a total number of employees, according to the CEA. In addition to a continuous reduction of non-tax duties, the entrepreneurs ask from the CBRD to strengthen its position as an export bank, subsidies

CEA proposals acceptable Prime Minister Jadranka Kosor evaluated the CEA’s proposals as acceptable and reminded that the government had already implemented some of these measures, which are already starting to show results. She pointed out that €55.9 million intended for encouraging entrepreneurship had already been secured despite the decrease and freezing of budget expenditure for this year.

Around €91.8 million has been invested into equipment in economic zones, where the value of donated property exceeds €0.14 billion. Non-tax duties were cut to 25%, which no previous government had done. Payment deadlines of public companies were shortened from 72 days in 2010 to 42 days in 2011. Entrepreneurs are also being supported by the re-programme of the tax debt for which 50 settlements have already been issued, and around 700 entrepreneurs with a total debt of €0.14 billion expressed their interest. The Prime Minister also pointed to optimistic figures regarding export growth. Total Croatian exports of €921 million in April were the highest monthly result over the past three years. Trade turnover also increased by 3.7%, as well as work productivity (by 2.2%).

Owing also to the economic movements during this part of the year, the number of unemployed dropped below 300,000.

The President of Croatia, Ivo Josipović, also supports the entrepreneurs’ demands. He warned them that when creating profit and in investment, they must not disregard the rules of

socially responsible business.

He agreed that speedier reforms of the public administration and state institutions are required and that in the procedures of rationalisation and mergers of certain state bodies often only the institutional nameplates change, whilst the content and costs remain the same.

It may not be a surprise that during this election year, mostly politicians participated at the Round Table of the Entrepreneur’s Day. Politicians will be politicians and they promised much. On behalf of the SDP (Social Democratic Party), Gordan Maras promised entrepreneurs that if they win the election they would pay back €0.68 billion by cutting down on work expenses by 8%, of which half would go to entrepreneurs and the other half to the pension system. Maras would also extend the payment deadline of VAT to 45 days and customs to 30 days. According to the Minister of Economy, Đuro Popijač, the latter would be in breach of EU practice, but the HDZ (Croatian Democratic Union) would, however, consider the extension of VAT payments when the structure of the budget income changes. Popijač severely criticised those who claimed Croatia did not produce or export anything. For the president of HSS (Croatian Peasant Party), the biggest problem remains the €2.19 billion deficit in the pension system, whereas Dragan Kovačević from HNS (Croatian People’s Party) warned this figure included €0.96 billion which did not belong there. Josip Budimir from HSLS (Croatian Social Liberal Party) suggested firstly that privileged pensions should cease to be paid from the first pension pillar.

4

INTERVIEW

Privredni vjesnik Year IV No 0157

( €25 million ( 100 workers invested in new factory

to be employed in new plant

ERNEST TOLJ, EUROCABLE GROUP SUPERVISORY BOARD PRESIDENT

From greenfield investment to the most sophisticated electrical cables With the production capacity of the new plant, we could create €0.14 billion revenue and have 250 employees by the end of 2011 countries. The Croatian market is one of our smallest markets, whilst the majority of our revenue, almost 90%, is created from exports. We operate mainly in Austria, Germany and France.

Jozo Vrdoljak urocable Group, producer of electrical cables and accessories has recently opened its new factory. The production capacity of the new factory has doubled its existing capacity and will ensure a total revenue over €0.14 billion, with 80% being exported to some twenty countries, as well as creating 100 new jobs. Privredni vjesnik talked to Ernest Tolj, Eurocable Group Supervisory Board President, about this investment, future plans of the company and the situation on the electrical cable market.

E

How would you describe Eurocable Group business activity and its ownership structure?

The Tolj family has 70% ownership, whilst 30% is owned by the European Bank for Reconstruction and Development. The E.B.R.D share in the ownership structure was planned, since it provided the funds for a new investment into a new production plant and a new factory was recently opened. The investment is valued at €25 million. The EBRD share of the project was €15.5 million, whilst the remaining €9.5 million was financed by Eurocable Group own funds. The project is a classic greenfield investment, encompassing the purchase of land, the construction of facilities with special infrastructure as well as the purchase of sophisticated production equipment and accessories and the in-

stallation of all the mechanisms that enable sustainable development. The new factory will create 100 new jobs. With the production capacity of the new plant, we could create €0.14 billion in revenue and have 250 employees by the end of 2011.

What is the importance of the new factory?

It is a very significant investment.

We constructed a new manufacturing plant and installed state-ofthe art technology from German and Austrian producers. It will certainly be the most profitable and the most ideal electric cable factory in Europe. We are going to produce the most sophisticated

Market changes are unanticipated and dynamic as copper prices are expressed in dollars and we export to European markets cables used by wind power plants to connect to commercial network, as well as for solar power plants. These are specially protected and specially reinforced cables, state-of-the-art technology.

In which countries do you operate?

Eurocable Group operates in 16

What is the current situation on the electric cable and wire market?

It is extremely dynamic since copper as the basic raw material has a high price level, at record prices so far. It is interesting to point out that we have been witnessing this situation in the market for about a year. In addition, market changes are unanticipated and dynamic as copper prices are expressed in dollars and we export to European markets. This accounts for several problems, indirectly impacting on our business activity. The whole situation is additionally complicated by the fact that on our prime markets, such as in Austria, Germany and France, in countries that have managed to recover from the crisis, the construction sector has not yet seen any significant recovery.

What is the situation on other markets?

We have big long term plans for the Russian and Ukrainian markets. These markets were stable even throughout the crisis and achieved their natural growth of some 5% to 6%. The major market ‘concussions’ were witnessed in Croatia and on European markets.

www.privredni.hr Business & Finance Weekly

5

20 years of Zel-Cos

Packaged IT solutions One-stop-shop the most appropriate solution for rapid company computerisation – all that is needed is to define the needs level that can be achieved by an IT company with this largest and reputable software producer globally.

Boris Odorčić he creation of an IT system is one of the critical steps in the business activity of any company. Zel-Cos is one of the first companies to have identified this in Croatia and this year marks its 20th anniversary. The company is specialised in IT development and maintenance, design, performance, installation and maintenance of complex and comprehensive IT solutions, as well as technical support and IT equipment servicing.

“Zel-Cos has become a leading IT company in this segment over the last two decades. It employs 25 staff who are provided with continuous professional development and are thus acquiring certification and diplomas for their intense technical knowledge and expertise, which is an imperative for quality and professional IT equipment servicing and IT system maintenance competitiveness”, stated Dubravko Puhelek, Zel-Cos Director.

T

Co-operation with institutions The list of Zel-Cos customers comprises ministries, institutes, agencies, banks, educational and health

institutions and many well-known local and foreign companies. It provides a one stop shop for them – from design, through equipment procurement and infrastructure creation to technical support. In addition, it has a special offer for start-ups: service provider procurement, comprehensive IT adaptation to meet their needs as well as many other offers. “Using the assistance of modern technology and implementing solutions proposed

by Zel-Cos after a deep insight and analysis of their situation, companies promote their effectiveness and efficiency as well as the level of business data safety, whilst ensuring a continuous information flow for their employees and fa-

cilitate their co-operation on various projects”, pointed out Puhelek.

In addition to IT development and maintenance, the company is an authorised laptop service centre for Lenovo, HP, Samsung, Acer and Viewsonic. It is also an authorised desktop service centre for Acer and HP, IBM provider, Viewsonic monitors, Acer and Fujitsu and an authorised printer service centre for HP, Epson and Samsung.

As an IBM partner, Zel-Cos was granted exclusive rights to Lenovo servicing, and is the first and only Lenovo service centre currently. In addition, the company is a Microsoft Gold Certified Partner for network technologies and IT systems, which is the highest partnership

Personalised service model The company provides a one-stopshop service, offering their customers comprehensive IT development in three personalised models, according to their needs. “Onestop-shop is the most appropriate solution for rapid company computerisation - all a customer needs to do is define business needs.

They are subsequently advised by our team of experts and make a decision on the choice of service model”, explained the company spokesman. At that point, Zel-Cos deals with procurement, software and equipment delivery, network cables, implementation and optimisation of provider infrastructure. All package users are provided with free IT consulting services and the development of solutions adapted to their business needs. In addition, they are advised of the advantages, such as more favourable opportunities and more affordable prices of IT software and equipment, their priority position in solving work-related problems as well as privileged service.

Investment

Unemployment

€4 million investment

Only temporary work

A contract has recently been signed with Tetra pak, only three months after Meggle took over Mlekara Mladost in Kragujevac, Serbia, initiating the investment anticipated over the takeover. The value of the investment is €2 million, with funds being used for milk processing line and UHT milk filling line equipment, primarily for long life milk. In addition, Meggle is anticipating further investment in the Mladost dairy plant

by October of €2 million for the reconstruction of infrastructure and production plants and to provide new warehouse facilities. This investment implies a huge technical and technological advancement as well as enlargement of current dairy facilities.

At the takeover ceremony in March, Van Der Ploeg, MEGGLE AG Director, announced significant investment into the dairy in 2011. In accordance with these anticipations, the reconstruction of the dairy is underway, with the current investment indicating merely the commencement of the enlargement of the existing facilities of the dairy, according to Sanja Šijanec, Human Resources Development Department and PR Head in Meggle.

It is important to point out that the investment will account for packaging innovation on the Serbian market - new packaging the practical square packaging. This form of packaging will provide local consumers with simplicity of UHT products. (S.S.)

According to the latest survey conducted amongst employees by the Croatian Employment Agency in co-operation with the Croatian Chamber of Economy, Croatia Employers’ Association and the Croatian Chamber of Trades and Crafts, 976 employees or 50.9% intend to employ 13,169 workers this year, mostly for a fixed period (73.8%).

Private companies lack workers the most (78.9%). Even 34% of the employers questioned (652) stated they intend to increase the number of workers based on their present anticipations.

However, 404 employers or 21.1% announced cut backs of employees. Of 1,918 of the questioned employers, 862 or 44.9%

did not answer this question, either because they do not expect any changes in the number of employees or they are unable to predict the market situation which, of course, reflects on their business, according to the survey conducted by the CEA. It is anticipated the trade sector will hire the greatest number of workers. The most severe cut-backs are expected in the construction and the processing industry. Employers listed reorganisation of production and work processes, production downturn and market loss as the main reasons behind the cut-backs. The potentially redundant groups refer to elderly workers (25.5%) and workers with lower-level skills (19.1%). (J.F.)

6

Privredni vjesnik Year IV No 0157

CROATIAN FOREIGN CURRENCY MARKET Currency

AUD CAD JPY CHF GBP USD EUR Source: HNB

EUR

Kuna exchange mid-rate

7.46

5,441752 5,25622 6,388796 6,080252 8,346061 5,121892 7,415475

5.125

7.6.

8.6.

9.6.

10.6.

CHF

6.10

7.45

5.115

6.09

7.44

5.105

6.08

7.43

5.095

6.07

7.42

5.085

6.06

7.41 6.6.

WEEK JUNE 11, 2011

::: news

USD

5.075 6.6.

7.6.

8.6.

9.6.

10.6.

6.05 6.6.

7.6.

8.6.

9.6.

10.6.

AWARDS FOR POSITIVE BUSINESS RESULTS

Nexe issued bonds for €120 million Nexe group has successfully performed the largest corporate bond issuance on the Croatian capital market with a value of €120 million. The 30 month bonds carry a coupon of 7.825%. The general agent of the issuance was Auctor.

The bonds have been purchased by banks, pension funds, investment funds, insurance companies and other institutional investors.

Telegra refinancing of Dalekovod The Dalekovod Board has agreed to an increase in equity from €37.02 million to €39.27 million, through 164,753 new shares at €33.56 per share. All new shares will be paid by the company Telegra, a producer of intelligent systems for traffic network management and traffic regulation on motorways and tunnels.

Tourists spent $829 million through Visa Foreign tourists spent $829.1 million through Visa in Croatia in 2010, according to data from Visa.

Germany was the leading market for Croatian tourism in 2010, with $80.7 million of tourist spending, 10.1% up over 2009. Italian tourists were in third position with $75.8 million, whilst tourists from Great Britain reached second position with $78.4 million.

Imex bank: €1.66 million profits Imex bank recorded profits of €1.66 million in the first five months in 2011, 9.43% up over the same period last year. Total assets soared 26.77% and stood at €0.24 billion. Deposits also recorded a significant increase of 25.65% over the same period in 2010 and stood at €0.19 billion. Personal savings share of total deposits was 33.52% up.

Hotel Dubrovnik the best of the best In conjunction with the Fina Forum dedicated to investment Zlatna bilanca was awarded to top performers in individual sectors Krešimir Sočković otel Dubrovnik in Zagreb was the top winner at the awards ceremony Zlatna bilanca for 2010.

This award is presented by the Financial Agency (Fina) to the most successful entrepreneurs in individual sectors, and the selection includes the companies that submitted their financial reports for the previous year. Of 96,758 entrepreneur tax payers, 2,976 small, medium and large enterprises, that achieved business results and fulfilled other criteria to enter the top 11, entered this year’s selection, excluding banks and insurance companies.

H

Prices will continue to rise The crisis showed that economic

growth is no longer possible on the basis of state consumption and high state investment, pointed out the Finance Minister, Martina Dalić. This model led to the growth of foreign debt and the budget deficit up to the level which disabled state intervention when it was needed the most. Therefore, the state had to respond to the crisis by saving in order to secure stability and access to the financial markets, pointed out the Minister. She announced that state policy would remain the rational management of public finances and strict financial discipline. This year, economic growth should amount to 1.3% and 2.4% next year, according to Sandra Švaljek, director of the Economic Institute. Consumer prices should increase by 2.7%

and by 2.9% in 2012, she added.

She pointed out that new sectors had begun to boost the Croatian economy. Income from construction and related activities plummeted, whilst growth was registered in unexpected sectors (the production of machinery, devices, textile and clothing, agriculture and fisheries).

Sandra Švaljek warned that during the implementation of the programme for economic recovery, labour legislation had not been changed, public expenditure had not been consolidated strongly enough, the PIN had not been fully applied, state-owned companies had not been privatised, territorial reorganisation had not been prepared and health reform had failed to achieve greater financial impact.

www.privredni.hr Business & Finance Weekly

WE PRESENT

OPG BOŠNJAK, NOVA GRADIŠKA

7

SIM-TAM EKSPRES, ZAGREB

Fast delivery solution to many problems In addition to the delivery of business documents and products employees also deliver to the Tax Administration, Financial Agency and the Institute for Pension and Health Insurance.

Food tastes better with beer A one hour long presentation on corn brandy preparation, komadara, similar in flavour to whiskey. he family farm Bošnjak from has been producing local beer for about ten years. It has state-of-the-art equipment for the preparation and filtration of beer malt, fermentation and beer maturing tanks and a beer refrigerating facility to preserve fresh beer. The beer produced by OPG Bošnjak differs from most other varieties of local beers as it is not filtered, giving a rich and slightly sharp taste, with a distinct barley flavour. It is produced mainly for the needs of the family farm and the local beer tasting room and is served with a wide range of local

T

food specialties. Beer and corn brandy are also worth mentioning, as well as a special type of bread with a cabbage leaf and lard spread. All this is accompanied by local beer as beer promotion is the OPG Bošnjak trademark.

The production of beer is their identifiable tourist product, from tasting, through its preparation, to courses, to the local beer festival and other similar related events.

Special deliveries OPG Bošnjak produces beer mainly for its own needs, although its beer may be purchased in barrels for events, such as wedding ceremonies, birthday parties or church fairs (kirvaj), with beer and other necessary equipment delivered to the customer address. Beer can be appropriate for special occasions (Christmas or weddings), enveloped in attractive packaging or as a souvenir. A short course in beer preparation is held twice monthly, with an introduction to the raw materials and beer extraction techniques, which lasts about 8 hours. (D.Ž.)

ou need someone to register or unregister your workers at the Pension Insurance Institute or the Health Insurance Institute or perhaps visit the Tax Administration, Financial Agency, pick up your mobile phone to deliver sameday invitations, flowers, a package or a contract to your business partners. All this and many others can be done within 90 minutes by the delivery company Simtam Ekspres from Zagreb. It is a family-owned company established last year by two brothers and their father. They decided to establish the company after long-year experience in postal and courier services. This service has been present in Zagreb for many years now, and the competition is fierce. However, we realised that with competitive prices and primarily quality and flexible service based on the client-specific requirements, we could take a share of the market, said the owner and director of the company, Marko Đuretić.

Y

Co-operation with around 50 companies They currently co-operate with

around 50 companies from various economic sectors, registering a continuous growth in business income. Depending on the needs, deliveries are made by motorcycle, car or light transport. “Our services are used by many companies, lawyers and public notaries, printers, design studios, marketing and tourist agencies, dentists, dental technicians, medical laboratories or flower shops.

Actually, all people whose business depends on urgent and professional distribution of their business documentation, products or work material,” points out Đuretić. The use of the service is quite simple.

By dialling the number of the company, the client contacts a dispatcher, arranges the pickup, delivery, deadline, payment method (cash or transfer order) and other possible delivery conditions. Then the dispatcher hires a courier and the appropriate vehicle and sends him the address to pick up the delivery. Depending on client requirements, the delivery can be performed within 90 minutes from receiving the order. (J.F.)

8

Privredni vjesnik Year IV No 0157

100th anniversary of Kraš

From Vienna Royal Court to world markets Factory in Zagreb started operating in 1911 as the first industrial chocolate producer in South East Europe carstvo, Domačica, Napolitanke wafers, Kiki and Bronhi sweets and other well known products.

raš d.d., the largest and most reputable Croatian confectionery producer, is celebrating its 100th anniversary. The history of Kraš began in 1911 with the foundation of a chocolate and sweets factory ‘Union’ in Zagreb. From its beginnings, the company became a purveyor of chocolate to the Imperial and Royal Court of Austria-Hungary. In 1923 the company Bizjak began the production of crisp bread, biscuits

K

Its deep history based on top product quality is highly respected and has been awarded with the loyalty of many generations of consumers and wafers. The company shortly became reputable for its local biscuits in the wider region due to its owner’s capabilities.

The company Josip Kraš originated from the merger of Union, Bizjak and other smaller confectioners.

New generations of experts Shortly after its foundation, Kraš became the largest confectionery producer in South

East Europe. It expansion was due to the three types of its confectionery products: cocoa products, biscuits and wafers and sugar confectionery. Each new generation of Kraš experts applied new knowledge in confectionery manufacturing, based on the original confectionery recipes and therefore the Kraš product range was systematically broadened and the leading position in the region firmly maintained.

In 1992, the socially owned company was converted into a public limited company.

Since that time, Kraš has continued to grow as a modern and market-oriented company whose products are available and well recognised in world markets. Its deep history based

on top product quality is highly respected and has been awarded with the loyalty of many generations of consumers. Kraš is best represented by its products such as Bajadera, Griotte dessert, Dorina chocolate bar, Životinjsko

Big exporter Annual company output exceeds 33,000 tonnes of confectionery products, with almost half being exported to markets globally. Development plans are focused on strong exports and the strengthening of its leading position on regional markets, where Kraš is already operating through its own subsidiaries, and Mira, the largest biscuit and wafer company in Prijedor. Kraš has recently become a majority owner of Karolina d.o.o. Osijek.

On the occasion of its 100th anniversary, Kraš gathered its business partners and employees in the eco park Bratina. (PV)

The construction aspect of the investment has a value of €8.22 million, whilst with equipping and documentation it stands at €11.78 million. Commissioning and operational start-up is anticipated in June 2012.

100,000 passengers up over the same period last year. It is a record number of transported passengers in the first five months of a year since the inception of commercial flying in 1991.

Croatia Airlines transported 445,625 international traffic passengers, 20% up over last year, whilst 176,201 passengers were served by domestic flights, up 13%. Seasonal flights in June have so far recorded 66% capacity reservations and 67% capacity for June.

T-HT competing for Kosovo telecom T-HT has met all the requirements for prequalification in the process of Post and Kosovo Telecommunications and is now a pre-qualified candidate. PTK provides services of mobile and fixed telephony as well as post office services via its brands Kosovo Telekom, Vala and Pošta Kosova.

The sale of the telecommunication segment is anticipated when the Kosovo government has sold its 75% share in PTK.

::: news Končar – D&ST constructing a new plant Končar – Distribution and special transformers (D&ST) has signed a contract with Brodomerkur from Split and Končar – Engineering for Energy and Transportation for the construction of high voltage laboratories for the testing of medium-sized transformers and the expansion of production, warehousing facilities and office space with accompanying equipment.

The highest number of passengers Croatia Airlines transported a total of 634,867 passengers between the beginning of January and the end of May this year, which is 18% or almost