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[Business Scene] The Quality of Generational Transition is Key for the Future of Međimurje

After describing the business scene in Čakovec, it is time to look at the rest of Međimurje County. We decided to start the inventory of the area squeezed between the Drava, Mura, and Slovenia – from the highest peak, from which there is surely the best view. However, nothing from Mohokos and its 344.4 meters above sea level provides a view of Međimurje. This point in the village of Pleškovec, in the municipality of Sveti Juraj na Bregu, is immersed in the surrounding hills dotted with vineyards where grapes are grown for the highest quality Međimurje wines. There is no large industry there, but there are small interesting projects. We will write about some of them in the continuation of the series.

Generational transition or the sale of 'family silver' is a current and perhaps the most important issue for a number of large entrepreneurs in that area. Bernarda Cecelja, owner of the companies Bernarda and Bernarda nova, does not plan to retire yet, even though she is 70 years old. As she told Lider, work is all she knows; perhaps due to so much dedicated work, her family has suffered a bit, she adds, but she leaves her only son a well-organized company that has potential for development in other segments of the economy, such as tourism.

Unlike her, Stjepan Hrešć sold his business with beds and mattresses to the Swedish Hilding Anders, which changed the company name but retained the Hespo brand. Last year, a record revenue of 359 million kuna was achieved, although the company has never operated in the black. In just the last ten years, it has accumulated losses of nearly 200 million kuna.

Hrešć is also credited for the arrival of the American multinational Leggett & Platt in Prelog. The Americans were interested in the innovative way of producing wire cores for mattresses, so they contacted Hespo and its sister company Heplast and purchased the production facility for wire cores for mattresses (from Hespo) and the research and development department and the machine production facility (from Heplast). Later, Leggett & Platt established a subsidiary L&P Technologies in Prelog. The first American investment in Croatian industry developed into the largest single company in Međimurje (only the Čakovečki mlinovi group is larger).

Another industrial flagship from Prelog, Šestan-Busch, only felt the consequences of the pandemic last year. Revenues fell by 17 percent, but this year shows positive trends. That there will be work suggests that, according to the 50 percent co-owner and director Alojzije Šestan, personal protective equipment, CBRN (chemical-biological-radiological-nuclear protection) materials, and everything that contributes to collective security are filling warehouses across the EU. Therefore, they plan to strengthen the program aimed at civil protection.

The other largest companies are also located in the eastern part of the county, in Prelog (Heplast pipe), Donji Kraljevac (Tehnix, Toni, and Novi Feromont), and Kotoriba (Muraplast). Among the fastest-growing is the leading producer of polyethylene films, bags, and packaging, Muraplast from Kotoriba, which grew by 44 percent last year, and in ten years of steady development, tripled its revenue to 526 million kuna.

Director Davor Ujlaki explains that such growth last year was both planned and a result of a closed three-year investment cycle. The plastic manufacturers from Kotoriba entered the production of paper packaging back in 2015, and that was a hit; today, paper accounts for one-third of production.

– We followed European trends and the state of the market and assumed that this would happen, not only because of ecology. Plastic bags were controversial because their primary raw material is oil, which Europe does not have. The paper bag is a completely European product; it can be made exclusively from European and Russian wood, and most machines are produced in Europe – explains Ujlaki the new dimension of the story about bags and illustrates it with data from Muraplast, where in 2014, plastic bags accounted for 60 percent of production, and today they are only ten percent.

The company is co-owned by director Anđelko Trojko and Ivan Ujlaki. Ujlaki has handed over the director’s position to his son Davor and has stepped back to the head of the Supervisory Board, where his partner’s son Nikola Trojko is also a member. Such a partnership should function in the future as well.

The successful boiler manufacturer from Macinec, in the municipality of Nedelišće, Centrometal, is also led by the second generation, brothers Davor and Tihomir Zidarić. The models of business continuation between Hrešć, Trojko, and Ujlaki, as well as the Zidarić family, are certainly on the minds of many Međimurje entrepreneurial 'old-timers' who started serious business at the beginning of Croatian capitalism, more than 30 years ago. Among the entrepreneurs on the brink of generational transition or already undergoing it are certainly Đuro Horvat (Tehnix), Anton Marodi (Toni), Alojzije Šestan (Šestan-Busch), Bernarda Cecelja (Bernarda), Ivan Gašparić (Autokuća Gašparić)… In a similar category are the Čakovec companies, including the largest, Čakovečki mlinovi, as well as the Promming family of Novinščak, Euro-unit Ivana Senčara, and Đurkin Zlatka Đurkina… Therefore, it can be said that generational transition is key for the future of Međimurje business.

► You can read the complete report on the business scene in Međimurje in the new digital and printed edition of Lider.

Tomorrow: Eko Međimurje provides accommodation for welders and metalworkers from other regions