Kolak: Success in the Domestic Market is the Most Important Foundation for Strengthening Export Competitiveness

Preparations for the most exciting economic day of the year, the traditional Lider event Day of Big Plans, which will be held on September 18 in Zagreb, are in full swing. The importance of such an event for the leaders of the domestic economy is growing as the challenges they face are unfortunately still abundant. Namely, although inflation, which resulted in a sharp rise in material prices, has been somewhat contained, and central banks are announcing cheaper capital, this does not mean that the macroeconomic environment offers ‘smooth sailing’. The manufacturing industry is still recovering from supply chain disruptions, and geopolitical risks in the world that threaten the destabilization of entire regions are even greater than a year ago. Moreover, the labor shortage is no longer acute but a chronic problem for the economy.

In this context, the Lider Day of Big Plans will certainly, as every year, provide interesting insights into the current economic situation and forecasts for the next year from the perspective of the leaders of the most important domestic companies. Among them is Gordan Kolak, CEO of Končar, a company that has strongly profited from the high demand for electrical equipment as part of the green transition in recent years. Končar recorded its fourth consecutive year with record financial achievements at the end of last year, and the stable growth trend continued in the first quarter of this year, in which, for example, a threefold increase in net profit was achieved compared to the same period last year.

Convincing Growth of Contracted Jobs

– Significant advances in all observed areas, from consolidated revenues and net profit to the state of open orders, which reached a historic amount of 1.6 billion euros in the first quarter, represent a solid foundation for Končar to continue its upward trajectory, or a very realistic basis for high expectations from the upcoming period. In this regard, the convincing growth of contracted jobs is crucial for us, as it is the fundamental basis for future revenues. It is also important to highlight that the order book is filling up with promising dynamics, and contracts for the coming years, 2025 and beyond, have reached nearly 800 million euros – emphasizes Kolak. At first glance, it can be concluded that Croatia successfully follows the developmental trends of the green energy transition, and this is a relatively accurate premise regarding existing capacities in the field of renewable energy sources and the number of current open projects. However, Croatia is yet to undergo a comprehensive revitalization of the electrical system, which is inevitable due to the aging infrastructure and undercapacity of the system, and Končar will certainly play a vital role in this, Kolak adds.

– At this moment, we are involved in several capital projects of strategic national importance, from the largest solar power plant in HEP’s portfolio with an installed capacity of 13.5 MW being built in Dugopolje to the delivery and laying of 110 kV submarine cables connecting the islands of Krk, Cres, Lošinj, Brač, Hvar, and Korčula as part of the project Revitalization, construction, digitalization, and modernization of the Croatian transmission electrical network. There are also extremely significant and complex projects for the modernization of the transmission network in the areas of Dalmatia, Lika, Istria, and Slavonia, as well as many other projects. If we add the rail segment, i.e., the electrification of public transport that we are implementing in cooperation with HŽ PP and city transport companies in Zagreb and Osijek, along with planned national projects for building additional infrastructure for renewable energy sources, we are confident that demand in the domestic market will be very present, and we are ready to continue providing significant contributions to the domestic electrical system with our knowledge, experience, and capacities – emphasizes the head of Končar.

When it comes to the comparative advantages of the Croatian industry that it can offer in the market in the context of the green transition, Kolak says that our country can indeed boast numerous companies from various industries that can measure up to much larger global companies in terms of technological development. – Although we are a small economy, we have proven countless times that we possess the necessary knowledge, skills, and innovation, meaning that we certainly know and can achieve high relevance among European manufacturers, based on quality and reliability. Croatia is a country of smart and capable people, and in light of the green energy transition, as well as the global energy crisis we have witnessed in recent years, it is important to realize how crucial the further development of the domestic industry is – assesses Kolak.

Opportunities in High-Quality Niches

In his opinion, producing complex solutions globally is not always the optimal approach and is difficult to achieve when you know that sometimes you are competing with global giants, backed by capital larger than the entire GDP of Croatia. – High-quality niches allow for a degree of adaptability with sustainable returns, through which you achieve further development and innovation. In such niches, we have proven references, which certainly arise from the experience of domestic experts. It is crucial to improve the investment climate and create conditions in which Croatian companies will have more opportunities to prove themselves and create references in the domestic market because ultimately, success in the domestic market represents the most important foundation for strengthening export competitiveness, especially today, in the midst of the green transition – believes Kolak.

In the last 14 years, the Day of Big Plans has become a hallmark of Lider’s conferences. It has gathered around 5,300 participants and 270 speakers, mostly industry leaders, macroeconomic experts, and leaders from political and public life. The conference has gained the status of a political-economic ‘must be’ event. This year, it will confirm its status with a program and selection of speakers, mostly leaders from various industries in Croatia, global macroeconomists, representatives of the public sector, and state institutions. From them, we will learn firsthand what awaits the entrepreneurial scene and the Croatian economy as a whole in 2025, how they are facing existing challenges and preparing for upcoming ones, and what their forecasts and predictions are for the next year.

Do not miss the opportunity to network with the most successful entrepreneurs; register in time to participate in the 16th Day of Big Plans, which will be held on September 18 in the Crystal Hall of the Westin Hotel in Zagreb.