The family company Šestan-Busch is one of those that felt the consequences of the pandemic, which is why there was a decline in business revenue last year compared to 2020. The reason lies not only in the rising prices of raw materials and overall transportation but also in reduced military and police budgets, as it was more important for states in that situation to allocate money for vaccines and other pandemic-related products.
The revenue of the company owned by the Croatian Šestan family and the German Busch family, led by Alojzije Šestan, fell by 17 percent last year (from 77.9 million kuna to 64.7 million), while profits were more than halved (five million kuna instead of 11.2 million). However, this year shows that the company is quickly returning to its previous business paths. Work has continued based on contracts already achieved last year, for example, for the French gendarmerie, which has given the company, says Šestan, a good entry into business in 2022. The war in Ukraine has changed a lot in the market.
– For us, in a slightly positive sense. Some spectacular quantities were not possible for delivery, considering that immediate delivery of resources was requested, which was not possible. However, it is evident that the world and the EU are reorienting towards defense and security, and the wheel of demand in this segment has shifted positively again. In terms of investment, the company has invested in the expansion of a new production hall this year and last year, which is being prepared for the expansion of the product portfolio towards the niche of civil protection products. Also, after intensive research work, two new products in the civil security segment will require full commercialization and introduction into the industrial production process – says Šestan.
For research and development in recent years, approximately 15 million kuna has been invested to gradually enter the civil security segment. They have paid for certain activities in the development of a new multifunctional protective helmet and polyethylene helmets, and part of that has been returned to them through the use of ESI funds. In addition, they have invested significantly in the protective mask project, which they started immediately after the outbreak of the pandemic, resulting in a prepared prototype of the zero series of a new tactical protective half-mask that can respond to various types of threats, including CBRN (chemical-biological-radiological-nuclear). That is why they needed a new hall, into which an additional five million kuna was invested.
That there will be work for this company from Prelog is also suggested by the fact that, according to Šestan, warehouses of personal protective equipment, CBRN resources, and everything that contributes to collective security are being filled across the EU.
– A document called Strategic Compass has been adopted at the EU level, which strongly focuses on and insists on the issue of defense and security. The formation of certain rapid response forces at the EU level, which will also need to be equipped, is announced. The mechanisms of the European Peace Facility are very active and fully implemented. NATO programs and tenders through the NSPA model are constantly appearing for various resources. The war in Ukraine and the visible enormous security risks and threats there have fully revealed weaknesses in the defense and security system at the EU level, as well as in Croatia. All of this has ultimately led to a shift in the market and increased demand for military equipment and defense resources. This is a positive thing for our society, which will soon offer a full portfolio of personal protective products. From helmets for the military, police, and civil protection, to new tactical protective half-masks that can also be applied for civilians – says Šestan.
