– Let our companies sign contracts for 2028 – said Gordan Kolak, CEO of Končar – Elektroindustrija at the round table ‘Challenges in 2024 – how to prepare’ as part of Lider’s 15th conference Day of Great Plans held at the Westin hotel in Zagreb.
Kolak stated that the scope of production and placement of Končar’s goods in the European market has significantly expanded. In the last four years, they have doubled their results, and in the first six months, the value of new contracts exceeded 750 million euros, which is double compared to the same period last year.
– This gives us hope that such a trend will continue – said Kolak.
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He emphasized that Europe and a good part of the world are turning to the use of electricity, which is good for Končar. However, he warned about the capacities of the entire European industry, emphasizing that Europe needs to respond to what capacities are necessary for companies’ operations to be sustainable tomorrow. He also warned that a slowdown in growth in Europe should bring us back to reality. Nevertheless, Končar cannot give up on investments, if nothing else, at least due to long-term orders.
– Primarily in capacities and human potential. There have been significant disruptions during the crisis, but in the last few months, we are witnessing a more stable trend and do not expect disruptions in the next period. There will be pressures on profit, but the time ahead is still more predictable – said Kolak. He added that the majority of Končar group’s revenue is generated in the European market, as well as the procurement of raw materials, which provides stability in supply and sales.
Zsuzsanna Ortutay, CEO of INA, reminded that the company started a major investment cycle two years ago, investing 300 – 400 million euros annually.
– INA has learned through a painful lesson that investments must be kept under control. However, we are actually rebuilding the refinery in Rijeka worth 630 million euros, although it is classified as renovation. We are doing everything from scratch, having completed 85 percent of the investment. In addition, we are researching extensively in various fields, meaning we are investing a lot of money in research and development – said Ortutay.
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Fuel supply will be stable
INA has a solar power plant, is competing for a concession for geothermal sources, and Ortutay says they are very excited and eagerly awaiting the results of the tender. Additionally, construction is underway for a biofuel production facility in Sisak, as well as a project for photovoltaic cells and liquid hydrogen. She added that INA has spent significant funds to explore the potential for investing in wind farms, but the company is still unsure if it is worthwhile.
When it comes to energy prices, although they are lower now than last year, they are still historically high – 250 dollars per barrel. She added that capping fuel prices is good for citizens and entrepreneurs in the short term, but it can harm the economy in the long term. As for supply, she claims it is stable and expects it to remain so.
