By investing 70 million euros in the expansion of Aluflexpack’s facility in Drniš, which is in the final phase of investment, Aluflexpack Group, headquartered in Switzerland, has positioned itself alongside only a few companies in the world that produce flexible aluminum packaging. The CEO of Aluflexpack Group Johannes Steurer states that this investment has opened numerous new opportunities and expanded the existing product portfolio, but that they will not stop there.
What will the expansion of the facility in Drniš bring to the region and to the Croatian economy?
– The expansion of the facility in Drniš already has significant benefits, not only for Aluflexpack but also for the entire Drniš area and the Croatian economy. Such a large investment requires a large number of suppliers and contractors, from construction and procurement of machinery, sophisticated maintenance systems, engineers who manage them, to machine builders and the facility itself, and we have utilized the services of local and Croatian suppliers whenever and wherever possible. Aluflexpack Novi is one of the three largest employers in the entire Adriatic region and the largest employer in the Drniš area, and the construction of the new facility has created conditions for 65 new jobs, with most employees coming from Drniš and the surrounding area. Due to new employment opportunities, residents have started returning from abroad, mostly young people who stay in Drniš because they now have financial stability and a city that is constantly developing. In our daily operations, we promote the Drniš area by supporting activities in the fields of culture, children and youth, and the environment, and among other things, we are proud partners of the theater festival ‘GOOD fest’. Additionally, many of our domestic and foreign customers, suppliers, and other business partners visit our facility, and besides using the services of local hospitality providers, they often return privately, enchanted by the beauty of the Drniš area. On a national level, we are one of the largest exporters. We export as much as 90 percent of our products, and this investment creates conditions for that percentage to increase. In our daily operations, we create opportunities for collaboration with domestic companies, both those from the Drniš area and from all over Croatia, which is very important to us.
Would you have gone for a 70 million euro investment if you had not received part of the non-repayable funds from HAMAG-BICRO?
– With this investment, we have become one of the most vertically integrated companies in the industry, thereby opening numerous new opportunities, such as expanding the existing product portfolio. We have positioned ourselves alongside only a few companies in the world that are engaged in the production of aluminum-based flexible packaging with such a deeply vertically integrated chain. The non-repayable funds from HAMAG-BICRO were a great help in building the new facility in Drniš, but they were not the decisive factor for the realization of the project. We would have entered this investment even without those funds.
How long will it take for this investment to pay off?
– The process has already begun because from now on we can produce much more with shorter delivery times for customers, while simultaneously ensuring an even higher level of quality for all other facilities that use semi-finished products from the Drniš facility. We expect the total return on investment within three to five years.
In the past eleven years, since Aluflexpack Group acquired the Croatian company, you have invested 200 million euros in facilities in Croatia. Have the planned investments been completed with the expansion of the facility in Drniš?
– This investment has been the largest so far, but certainly not the last in Croatia. Our mindset as entrepreneurs and innovators always pushes us forward; we are constantly in search of new technologies, solutions, machines, products… Our investments will definitely not stop because that is the foundation of our business philosophy. Before the new facility in Drniš, we invested in the development of new coating and printing lines in 2017, then in the facility in Umag, where we expanded our product portfolio by investing in a production line for stand-up pouches, and in Zadar, we invested in production automation, etc. We are ambitiously working on continuous investment in new machines in all facilities, equipment, as well as in human resources, i.e., employee education, but also sustainable solutions in production, which is one of the pillars of development for the future.
Which manufacturers in Croatia use your packaging and is demand growing?
– All top Croatian brands use our packaging solutions, including the largest food and pharmaceutical companies, such as Atlantic Group, Fortenova Group, Podravka, Kraš, Pliva, Franck… Given that we have been collaborating for years, our long-standing connection has turned into a partnership, so now we work together on product development, exchange ideas, and create innovations. We are proud of the excellent and very close cooperation we have developed and maintain with our customers. That is precisely why demand is constantly growing, as we continuously monitor customer needs and offer them the best and most modern solutions for their consumers and the entire market.
Read the entire interview in the new printed and digital edition of Lider.
