Imagine that a quarter to a third of the Croatian population works in just one successful, modern, and export-oriented domestic company. Although such comparisons are ungrateful, they vividly illustrate the importance of company Rasco for Kalinovac. This place has never been large. It emerged from the old municipality of Đurđevac, and more than three thousand residents were recorded in just one census over 115 years ago. The population of Kalinovac has been steadily declining since then. According to the 2021 census, there are fewer than 1,300 residents living there, but this has not hindered the growth of an innovative company in this small place over the past 35 years, which supplies summer and winter road maintenance equipment to customers in 46 countries and employs around four hundred people.
The beginnings in salt spreading
Of course, the beginnings in Kalinovac were modest; there are no business angels or billionaires sowing money earned in the IT industry morning and night to see something good sprout from it. Two engineers Frane Franičević and Darko Paviša had previously spent about ten years in a craft workshop processing metal, repairing machine tools, and agricultural machinery, and then in 1990 founded Rasco. When they started the business, the workshop was a mere sixty square meters, and there was no thought of automation or robotization.
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– After the start of the Homeland War, we began receiving many inquiries for the production of spare parts for machines used in maintaining channels and roads. These machines were imported, and the problems with imports and foreign currencies caused by the war created an opportunity for some of them to be produced locally. The first major breakthrough was the production of snow plows and salt spreaders. That was the moment we realized we could develop our own products and compete with imported solutions. Winters were harsher back then than they are today, so there was a need for plows, blades, and spreaders – explained Ivan Franičević, son of one of the founders and now the CEO of Rasco.
Only four years after its founding, Rasco produced its first machine – salt spreader RAS 2400 – which was a turning point, a true foundation for Rasco’s future rapid development, as a wave of state investments in road infrastructure followed the war. So, even if it did not participate in construction, it was heavily involved in maintenance.
A turnaround due to exports
Looking back, it is easy to say that this was just one of the first steps. Many would be satisfied with what Rasco’s founders achieved and would have built a production hall, as they did in 1995, focusing on jealously guarding what they had built and maximizing efficiency. The real turnaround occurred in the early 2000s when Rasco began exporting, first to the region, primarily to Slovenia and Bosnia and Herzegovina. The first steps were difficult, but within three years, it was already exporting to Germany, where it competed with the best global brands in that market. The significance of the export breakthrough is best illustrated by the fact that today, between 80 and 85 percent of its revenue comes from 46 countries worldwide. It is concentrated in the European cold belt, with its largest markets being Germany, France, the United Kingdom, Spain, and Scandinavia, but it is also present in Canada, the USA, Asia, and Australia.
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– Our portfolio is divided into two main parts. The first is municipal equipment: machines for winter and summer maintenance, plows, spreaders, and mowers, while the second part consists of vehicles, specifically sweepers, which are a relatively new addition to our range but are growing rapidly. Without exports, we would not be able to survive. Croatia is a small market, and we produce specialized equipment. Simply put, there are not enough domestic customers to justify such production capacities and development – Franičević told us proudly.
It’s no joke
The diversification of the portfolio is understandable as different markets have different needs and requirements. Nordic countries seek robust equipment that can withstand extreme winter conditions, Central Europe needs universal solutions for various seasons, while the Mediterranean focuses on cleaning and maintenance equipment. One of the mentioned sweepers is LYNX H2 5000, the first Croatian commercial hydrogen vehicle. It is still in the prototype phase, so it was not available for testing, but we sat with Franičević in its older and smaller variant with a conventional fossil fuel drive – the LYNX 2000. The sweeper was surely brought to the administrative building by one of Rasco’s employees, and it seemed to us that this small work machine could be operated with ease. It cannot.
– Be careful, this vehicle is going on sale! – Franičević warned us.
Under the hood
Of course, we started it and made a round in the yard of the facility, but we listened to Franičević and were very cautious because, contrary to its deceptive shape and size, it is a machine weighing more than three tons with a total capacity of five tons. Clumsy, but the powerful engine responds quickly to the touch of the pedal, though it accelerates more slowly. For a work machine, the drive is surprisingly quiet and easy to handle, so although training is required for its daily use, due to driving experience and caution, we had no difficulties in driving. We did not test other vehicles just in case, as we believe that an untrained driver would find their operation relatively more difficult. The LYNX 5000 weighs 6.5 tons and has a capacity of 11.5 tons.
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– This is more than just an ordinary road cleaner. It is a sophisticated machine that can suck up a two-and-a-half-liter bottle full of liquid or stones weighing two kilograms. It is robust and reliable, built to last – Franičević boasted.
When they lift the hood, or the control cabin, under which the rotating brushes, nozzles, and vacuum are usually located, the complexity of these seemingly simple sweepers is revealed. A complex network of hydraulic pipes, water supply and drainage, electronic components, and power systems indicates that this is a technically demanding device that, as the head of Rasco says, is exceptionally tailored to the end user. Certain parts, such as the battery or brushes, can be easily removed for repair or replacement, the steering can be positioned left or right, and it also has a handle for easier maneuvering in tight spaces. The drive can be electric, internal combustion, or hydrogen, the transmission is simple and automatic… Every detail is carefully thought out and can be significantly customized to meet the end user’s needs. That is why Rasco is now experimenting with hydrogen propulsion.
From lasers and robotics to mowers
Franičević emphasized that the development of the MUVO vehicle was a turning point as they proved they could develop complex systems that combine mechanics, electronics, and software.
– That was the moment when we transitioned from being a manufacturer of attachments to a manufacturer of complete solutions. Hydrogen is the future, and we must be ready for all possible technologies. Perhaps hydrogen will not be used as much for commercial personal vehicles in the future, but it could be for such work machines. We decided to develop the LYNX H2 5000 with hydrogen propulsion to gain experience and see how hydrogen propulsion could be best utilized in our products. For vehicles, hydrogen is favorable in terms of weight, although you still have a battery along with the fuel cell. Why? Because the fuel cell is a furnace; it is not fast. When you press the gas, you expect an immediate reaction, which is why a battery is also needed – Franičević explained to us.
Electric vehicles in that market, and then hydrogen ones, are not just a prestige but a necessity for adaptation for competitive advantage. Simply put, urban environments are often dedicated to green goals, and electric vehicles are quieter, which is a significant advantage in cities. For Rasco, electrification is thus one of the trump cards in competition with Western European manufacturers.
A walk through Rasco’s production facilities reveals what they produce. Large snow plows for cleaning highways that can simultaneously narrow to the width of a normal road, huge and robust salt spreaders automated to the level that they evenly spread a precisely determined amount on the surface and that the salt on the road is distributed moistened, so it does not scatter, large mowers on cranes adapted for heavy mowing alongside roads. These machines are then mounted on trucks or tractors, depending on their purpose.
And they are manufactured and assembled in our Kalinovac, where in a place of 1,297 residents, steel pallets are laser-cut, bent in automated presses, modeled in CNC milling machines, and robotically welded into elements from which vehicles will be assembled. Every step is tailored to achieve maximum precision and quality, with special attention paid to details – from hydraulic systems to specially formulated corrosion and abrasion-resistant paints. However, challenges do not come only from technical requirements but also from logistics.
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– One of our products was recently delivered to New York. This is just one in a series of deliveries to that city, and each requires careful planning of transport to ensure the product arrives in perfect condition – Franičević explained to us with a smile.
Hydrogen and electric drive
Despite Rasco’s global success, it still encounters prejudices. Foreigners simply do not see Croatia as a country known for engineering solutions. In the West, this is changing according to our interlocutor’s experience, as Croatia is recognized as the homeland of Rimac Automobili, while in the East, Šuker remains the number one brand for recognition. However, Kalinovac is not particularly recognized for engineering solutions even in its own homeland, and this is likely partly due to the modesty of the residents of Podravina, who gain the opportunity for technical work experience in this place.
– More than half of the value of our products is created here in Kalinovac, and most of our employees are local people from the town and surrounding areas. Some have been with us since the beginning, for more than twenty-five years. The most important thing is that our engineers, especially the young ones, have a fantastic opportunity to work on projects such as vehicles, hydrogen drives, electric drives… I believe this is extremely interesting for our people. We collaborate with educational institutions, offer scholarships and internships. At any given moment, we have about sixty interns. Nearby, we have schools with technical education, and they are the main source of new employees – Franičević listed.
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The future looks bright for Rasco. In the last five years, it has shown strong and steady growth, and innovation and experimentation guarantee that it will continue to gain an advantage over competitors. It may seem that the whole story about Rasco is just a happy coincidence, but not everything is about luck. The well-maintained drainage channels alongside tidy roads approaching Kalinovac and generally in the Podravina area testify that a company producing devices for mowing drainage channels and other road maintenance equipment has settled in the very heart of Podravina. Or they testify that more attention is paid to environmental and road maintenance in Podravina than elsewhere in Croatia. If that is the case, then perhaps the story of Rasco is not just a happy coincidence.
