Why Does Croatia Need the Electrical Industry?

The electrical industry will be one of the cornerstones of Croatia’s industrial development in the coming years, it was concluded at the discussion ‘Why Does Croatia Need the Electrical Industry?’, organized by the Trade Union of Metalworkers of Croatia – Industrial Union (SMH-IS) and the Friedrich Ebert Foundation.

– The strategic orientation of the Government towards building energy and transport infrastructure is largely related to the electrical industry – said Minister of Economy Ivan Vrdoljak, but also warned that this industrial sector needs to avoid the fate of construction, which, after the completion of major public investments in road construction, remained overcapacitated and with a lack of work.

Therefore, alongside the participation of the domestic electrical industry in achieving public capital investments, it is important to simultaneously raise its competitiveness so that it can more easily step into foreign markets, Vrdoljak believes.

Namely, as he stated, the total revenues of the electrical industry amount to around two billion kuna annually, with exports at 980 million kuna, and this is, not ‘at home’, the basis for long-term sustainability.

According to him, the current 12,800 employees in the electrical industry (according to the national classification of activities) is too few for the state to rely on this sector as one of the foundations of development, so he expects new employment opportunities.

He announces that the place of the electrical industry will be clearly defined in the industrial development strategy from 2014 to 2020, which is currently being developed, and it should go to public discussion by the end of summer.

The CEO of Končar Elektroindustrija, Darinko Bago, sees great potential for Končar in the future given the growing need for electrical equipment and other products related to electricity, alongside increased global urbanization and the electrification of road traffic.

Končar, according to him, plans to invest nearly one billion kuna in development over the next five years.

He notes that a strong export breakthrough is difficult without engagement in the domestic market where the company can demonstrate its own and its suppliers’ qualities, as well as without favorable financing lines.

The president of SMH-IS, Vedran Dragičević, believes that it is time to consolidate the domestic electrical industry and gather around established brands so that they can act together in the EU market and other markets, while the CEO of Elke, Vatroslav Sablić, says that his company is fully prepared as it has been in the European arena for years.

– We have been exposed to an open battle for years, which has hardened and prepared us, so we are not afraid of what will happen after July 1 – says Sablić.

Today’s round table could not pass without a discussion about RIZ Odašiljači, whose financial director, Milić Bijelić, stated that the company is burdened by non-transparent ownership and requested assistance from Minister Vrdoljak. He replied that RIZ should continue its operations, and it will show whether the company is worthy of the ESOP program and that property-legal relations will be resolved outside of ESOP.