November the 25th, 2022 - The Croatian Modepack company is set to cash in and increase its income on the mere change of the country's currency from the kuna to the euro as of January 2023.
As Darko Bicak/Poslovni Dnevnik writes, with an investment of 63 million kuna in their new plant in Velika Gorica near Zagreb, the Croatian Modepack company has recently rounded off its strategic efforts to double its capacity conceived in the wake of the coronavirus pandemic, when the demand for their range of courier and security packaging on the global market exploded.
As explained by Jure Siric, director and owner of the Croatian Modepack company, the projections were that the investment, which was supported by the European Union (EU) from its funds in the amount of 7.5 million kuna, would amount to 50 million kuna. However, the drastic increase in the prices of raw materials and goods, as well as rising labour force costs, raised the total investment amount by about 15 percent.
"Given the fact that it's a large space, a building of 5,500 square metres and a plot of land spanning 32,000 square metres, further expansion is also possible. 2/3 of the total investment has already been invested in equipping production. This enabled us to increase our production capacity by approximately 100%, which in practice would mean 300 million pieces produced per year. Further planned investments, such as that intended for solar panels, will make us completely self-sufficient in terms of electricity, which is the only energy we use in the production process," Siric revealed.
Although the foreign market is their main focus, this yea, suddenly there was a great demand for their products right here in Croatia as well. The reason is the introduction of the euro, that is, the withdrawal of kuna from circulation as the nation's currency.
"We knew that this represented a big opportunity for us, that there would be a lot of work, but what happened in the last weeks was far beyond that. We prepared well and consulted all potential clients. We estimated that we could achieve a turnover of around one million euros on this. Interest was weak until October, when everything exploded and everyone needed our safe packaging for money transfers - banks, Fina, shops, etc. We're very flexible and, thanks to this new facility in Velika Gorica, we've started with the production of this assortment in three shifts. Our current estimates are that our planned turnover on packaging for the collection of kuna and the distribution of euros across Croatia will increase from one million to at least two million euros," explained Siric.
The Croatian Modepack company has otherwise recorded double-digit growth since its very foundation, and that trend has only continued this year, when they expect about 75 million kuna in revenue, which is about 30 percent more than the 53 million kuna they earned last year. Their plans for the next three years are even more ambitious, by 2025, the plan is to achieve 150 million kuna (20 million euros) in revenue.
The opening ceremony of their new plant, where eight production lines will be installed for the time being, was an opportunity for the Croatian Modepack company to present its modernised logo adapted to the global market, from which they generate more than 90 percent of their revenue.
"This seemed like an excellent timing for this move. Modepack always strives to be up to date even now, after six years, and we wanted to modernise everything together. Through this process, we were guided by the backbone of our business: the product - people - production - the planet. The goal we set when creating a new brand was to strengthen our position on the market through clear and consistent communication. Amazon, H&M, Vans, Adidas, DHL, DPD, Loomis, numerous European financial institutions as well as the Antwerp Diamond Exchange (AWDC) are just some of the many users of the company's courier and security packaging.
Although we've only been present on the market for six years, Modepack is already one of the global leaders in the production of high-quality packaging for the logistic transport of goods, with an emphasis placed on e-commerce and courier deliveries, as well as security packaging for money and valuables. We export to 32 world markets,'' Siric explained, adding that Modepack was created based on the assessment that e-commerce would become a reality very soon, and this happened much earlier than expected. This was especially pronounced during the coronavirus pandemic, when e-commerce grew at triple-digit rates.
"I'm not a complete stranger within this industry because I come from the Weltplast family company, which has been involved in packaging and recycling since back in 1983, and since 2010, I've been in charge of sales for the EU market. However, it's a large company that generally deals with packaging and all of the raw materials for it, and my desire was to step into something new and a bit different. I don't think I made a mistake in doing so,'' said Siric, whose company occupies an increasingly large part of the global market, and currently their main focus is Scandinavia and France, where they were present at a large specialised fair this week.
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