When the damage caused by the coronavirus pandemic to the Croatian economy is summed up one day, the southern part of Croatia could pay the highest price. Namely, in addition to the collapse of the tourist season in four Dalmatian counties – Zadar, Šibenik-Knin, Split-Dalmatia, and Dubrovnik-Neretva – companies unrelated to tourism have also halted operations. For example, AD Plastik, a manufacturer of parts for the automotive industry and a major exporter, has suspended production, the production facility of Premisa, the second-largest ice cream producer in Croatia, has been closed, and Capax, a company servicing luxury megayachts, is operating at half capacity.
Deadlines for project completion are uncertain as they cannot procure parts from imports, they are losing clients, and their liquidity is questionable… Those who are working, like Luka Ploče, have had to invest additional money in employee protection. Nevertheless, all company leaders who responded to the journalists’ inquiry praised the measures of the Croatian government to support the economy, but not the local community, as some have so far done nothing to ease the business conditions for the economy that fills their local budget.
The CEO of AD Plastik Marinko Došen emphasizes that due to the halting of production by their customers, the largest global car manufacturers, they were forced to temporarily stop most of the production at all locations.
– We are fully focused and determined to preserve the vitality of the company in order to meet the demands of customers and the interests of all our stakeholders. We are actively implementing all necessary measures to continue operations and are in daily communication with customers and suppliers, and we are ready to resume production as soon as our customers request the first deliveries – says Došen, who praises the effort and quick response of the Croatian government in these not at all simple circumstances.
– We are currently satisfied with the measures, but the biggest challenge in this situation for the economy, and then for the Government, is the inability to assess the duration of the crisis. The consequences will certainly be significant, and we can only hope that it will not last too long – says Došen.
The director of Cromaris Goran Markulin avoided answering questions about how the coronavirus crisis has affected the company, but supports every effort that contributes to maintaining the economy, especially the part that helps domestic companies and producers survive and stay on the market.
– In this sense, the effort of the Ministry of Agriculture in helping the Croatian countryside and us in the fishery sector is invaluable – emphasizes Markulin.
There are also immune ones
For Makarska Premisa, a company that sells 97 percent of its products to hotels, restaurants, and bars, all orders, both domestic and for export, have been canceled, business has fallen by one hundred percent, which is why the Management has suspended operations. Premisa’s commercial director Zoran Premeru emphasizes that only accounting is being done, and that from home.
– In March, we had one delivery for Sweden, but the other countries we export to have canceled orders. When it comes to imports, if we do not produce, we do not need to import raw materials either, but we must take and pay for the ordered goods for which we had to pay an advance because some foreign suppliers do not understand the new situation. This will be very difficult to handle both financially and logistically – says Premeru, emphasizing that the local government has not yet adopted any measures to help the economy, but also that he is pleasantly surprised by the timely measures of the Croatian government thanks to which they did not have to lay off employees, nor did they reduce employee salaries.
Luka Ploče is currently immune to the coronavirus crisis and, according to Hrvoje Livaja, the CEO, no changes are expected.
– According to our estimates, operations will continue without major disruptions – says Livaja, adding that special procedures have been introduced for working with ships coming from the most affected countries, primarily from Italy and China, and recently applied to every ship.
For example, ship ladders, decks, and cargo are disinfected, contact with crew members is minimized or eliminated, all employees on the ship wear protective suits, masks for mouth and nose, protective glasses, and gloves. Upon disembarking from the ship, disposable equipment is thrown into a special waste bin, and the rest is disinfected. The same procedure is applied to trucks, and work is organized in a new way.
