[Business Scene] Cardboard Manufacturers from Zabok Grew by 32 Percent Last Year, Awaiting New Machine Delivery Until Next Year

Despite the extremely significant consequences of the crisis caused by the corona pandemic, Valoviti papir Dunapack has achieved sales and revenue growth over the past two years, and new workforce has been employed. This is a company from Zabok that is part of Prinzhorn Holding Group based in Vienna, one of the leading European manufacturers of cardboard and cardboard packaging present in 16 countries in Central and Eastern Europe.

In 2020, revenue amounted to 279.7 million kuna, and profit was 21.9 million kuna. Last year, however, revenue reached 370 million kuna, and profit amounted to 28.8 million kuna.

In addition to growth, additional workforce has been employed at the Zabok plant in the previous period, and they have not stopped investing despite market difficulties. The company completed its last investment cycle in 2020, expanding the production facility and launching a new processing machine for box production with the capability of printing in seven colors, with a total value of 11 million euros.

At the beginning of the same year, they started using SAP, which allows for daily recording of all business variables, enabling timely reactions and making appropriate decisions in any segment of their business.

– During 2021, we continued to modernize production machines through automation and robotization, thus facilitating work for our people in production, increasing labor productivity, and providing even faster supply to meet our customers’ needs. The total value of investments amounted to 1.5 million euros.

This year, we planned new investments amounting to five million euros, of which further modernization of existing machines should be highlighted, as well as the procurement of a new gluing machine, the delivery of which is expected at the beginning of 2023, which is a direct indicator of disruptions in the supply chain and long delivery times for machines and parts. On the other hand, this tells us how important timely long-term planning and new investments are in today’s business conditions – says director Zvonimir Čuljak.

He believes that this year will also be challenging and difficult because, he says, according to available information, a continuation of rising prices of raw materials and supplies is expected, and consequently, an increase in operating costs.

The company has 245 employees, with a starting salary for production employees of 6,000 kuna net. In addition to a free hot meal and transportation costs, each worker also receives a maximum annual non-taxable amount of 3,000 kuna net in occasional bonuses.

– The company management decides each year, depending on the achieved financial results, on the payment of an annual bonus to each employee of guaranteed 4,300 kuna gross, with the possibility that this amount may be higher. Specifically, for 2021, the paid amount of the annual bonus was 6,500 kuna gross per employee.

Also, for each newborn child, we pay workers 7,500 kuna net, and for each child up to the age of 15, they receive a gift worth 600 kuna net. In the upcoming period, we will continue to monitor earnings in the environment and accordingly adjust the mentioned amounts. The satisfaction of our employees is of utmost importance to us, as without them our company cannot operate long-term and continuously develop – says Čuljak.

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