The production of pyrotechnics in China is too expensive for us, so we are moving it to Serbia

After approximately five years of preparation, the construction of an amusement park has begun, which will cost the investor Mirnovec pyrotechnics 15 million euros in the first phase. Although it may initially seem like an unusual investment for a company that ranks among the top 20 in the world in pyrotechnics, director and owner Franjo Koletić explained to Lider why this is, in fact, a logical business expansion, as well as why he invested in a factory in Serbia, and how much the state has helped him in business…

The pioneering venture in Biograd is expected to open by May 1 of next year at the latest, featuring 25 attractions and three thematic units, with an emphasis, of course, on pyrotechnics.

• How did you come up with the idea of an amusement park considering that it is not the first association with pyrotechnics? – These are related stories; both are part of the entertainment industry, meaning both of us create entertainment for people, with us doing it through fireworks, while in the park, people enjoy themselves in various ways, riding on rides or enjoying various shows and performances. The story is the same; we sell entertainment.

• You are among the top 20 in the world in pyrotechnics. Is this the peak, or do you have other ambitions? – I would say we have reached the peak in pyrotechnics, at least in our regions, although we are ‘shooting’ all over the world. We have become co-owners of a company from Serbia that produces pyrotechnics, involving six of our companies. This will be the largest company for the production of firework boxes in Europe. We decided on this because we are facing more and more problems with the Chinese, with transportation, due to terrorism, etc. Today, for a thousand dollars, you can get a container from China, while we pay around 12 thousand.

• But is the quality lower? Or…? – Well, not really; the Chinese also produce solid goods, but now in Serbia, we have cheaper labor than in China. They no longer work ‘for a handful of rice’; now they have salaries slightly below the Croatian average, from 400 to 500 dollars; in Serbia, a worker costs between 200 and 300 dollars. Generally, China has become more expensive; goods used to be more than half cheaper than today, and the transportation of hazardous goods has increased three to four times. China is getting more expensive; this is a deliberate policy of local politicians. They opened up with cheap labor enough to catch technology and investors, and once they became an economic power, they are no longer so cheap. Companies that operated there are therefore seeing diminishing profits.

You can read the entire conversation in the new issue of Lider.