The German carrier is one of the largest providers of passenger transport services in Europe, employing more than 60,000 people and achieving more than 2.2 billion journeys. Is Rijeka's Autotrolej, which has found itself enfeebled by a lack of drivers, forcing it to cut certain routes, in for a stroke of luck?

As Poslovni Dnevnik writes on the 17th of January, 2019, the Croatian subsidiary of the popular German carrier Arriva wants to take over Rijeka's Autotrolej, as has since been confirmed by Arriva Croatia itself, which has already acquired ownership of Autotrans, one of the largest passenger carriers in the segment of passenger transport in the Republic of Croatia.

"We're interested in all forms of cooperation, so taking the entire share of ownership of KD Autotrolej also comes into it, of course, provided that there is a common interest and a healthy economic base," stated Marina Pandurević, Managing Director of Arriva Croatia for Novi list.

This very concise response came after the company was asked about the situation following information about Arriva's taking over of Autotrans and potential interest in taking over or entering into some sort of business partnership with Rijeka's Autotrolej having surfaced.

The large transport company confirmed that they are definitely interested in buying Autotrolej or entering into a sort of partnership with the current co-owners, therefore entering into business with Autotrolej as a logical continuation of their business in the Republic of Croatia, based on the experience of public transport in very many other European cities.

As stated, Arriva is one of Europe's largest passenger transport service providers, employing more than 60,000 people and achieving more than 2.2 billion journeys. The group operates in fourteen European countries offering a wide range of public transport services to suit all needs.

Make sure to stay up to date with the situation with Autotrolej and on public transport in Croatia in general by following our dedicated news, business and lifestyle pages for much more.

As Poslovni Dnevnik writes on the 16th of January, 2019, Osijek's "IT park" business zone story is beginning to develop after a lot of back and forth on the issue, much to the satisfaction of interested parties. The City of Osijek and its numerous IT companies whose business results and success have put Osijek firmly on the map, are leading it to become a focus of the Croatian IT scene.

Glas Slavonije reported that its very last session last year, Osijek's City Council adopted a proposal for a decision on the establishment of the "IT Park" business zone with the aim of attracting investment and opening up new jobs in the IT sector. The value of the investment stands at a massive eighteen million kuna. In the IT park itself, which boasts a total area of ​​2.5 hectares, bigger companies will be able to buy plots of land for the construction of their own buildings, and the City of Osijek will deal with and construct all the necessary infrastructure and business buildings for small IT companies.

In addition to this measure, the City of Osijek has also implemented a program of incentives and breaks for the purchase of plots in this zone, which became valid after being published in the Official Gazette. Osijek's city administration has, once again, prepared a set of "different modules which contain certain measures (incentives and facilitations) aimed at attracting both domestic and foreign investors from the IT sector to long-term investments in the ''IT park'' business zone in Osijek.'' The goal of this measure is very clear, the aim is to create new jobs, reduce unemployment and ensure a high quality environment for the development and operation of the IT sector in Osijek.

Basically, companies will have the right to incentives and numerous forms of breaks if, according to the national classification law, they belong to one of the three priority groups. In the first group, there are, for example, computer programming or computer hardware and software management, in the second group lies production (electrical components, computer and peripheral equipment), in the third group comes processing and computer games.

The reduction in the price of plots of land intended for construction is 10 to 30 percent, depending on the group. If Osijek's new economic facility is built within 24 months of the conclusion of a construction contract, the land price will be reduced by as much as 40 percent. If, in the year preceding the year of the conclusion of the sales contract, a minimum of 1 million kuna is realised, the right to a price reduction of 10 percent will come into force.

Of course, the biggest reduction in the price is related to creating jobs and offering new employment possibilities. An entrepreneur who, from the moment of signing a contract on the establishment a land sale for construction maintains the existing number of employees, earns the right to a 10 percent reduction, if he or she hires up to ten workers, a 30 percent reduction follows, and if he or she hires more than 20 workers, the price reduction will stand at a massive 60 percent.

Make sure to stay up to date with everything you need to know about investment and doing business in Osijek and in Croatia as a whole by following our dedicated business page.

As Lucija Spiljak/Poslovni Dnevnik writes on the 16th of January, 2019, the Republic of Croatia was the third EU member country to ratify the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union in 2017, opening up new opportunities for both Canadian and Croatian entrepreneurs and innovators, as well as promoting and increasing trade and economic development. Owing to that, Croatian exports to Canada doubled in 2018.

In addition to the abolition of customs duties for more than 98 percent of goods, according to data from the Croatian Chamber of Commerce (HGK) and state statistics, in the first nine months of last year, Croatian exports to Canada doubled to almost 80 million dollars.

This encouraging information was stated at Zagreb's Sheraton Hotel when marking the first anniversary of the implementation of the CETA agreement, in which Canada's Geoff Regan participated. The gathering at the Sheraton was organised by the Canadian Embassy and the Canadian-Croatian Business Network (CCBN).

As the President of the Croatian Chamber of Economy Luka Burilović pointed out, tariffs were abolished on some of the most important Croatian exports - food and pharmaceuticals.

"The possibilities are numerous and Croatian companies need to be proactive in taking advantage of all the advantages now offered by the Canadian market," Burilović stated.

The CETA agreement brings some enormous savings to entrepreneurs, and they are estimated at about 600 million euro. In addition to the abolition of tariff items, this agreement is an instrument for growth and a tool to promote European values, thus contributing to the betterment of everyone.

In addition to the Canadians wanting to invest in Croatia, an increase of over 25 percent of visits made by Canadians to the Republic of Croatia was recorded last year.

On the occasion of the gathering and the welcome news about Croatian exports to Canada, Croatian Parliament Speaker Gordan Jandroković also mentioned NATO, whose role was significant in the development of Croatian-Canadian relations because that way, as he stated, Croatia and Canada recognised and respected each other.

"The CETA agreement shows how states can help each other and contribute to their economies," Jandroković pointed out.

Geoff Regan of Canada's House of Representatives, said that Canada wants to increase its trade and investment with EU countries, including Croatia, which, he said, is an important trading and investment partner. He also mentioned that according to unofficial estimates in Canada there are 300,000 people there with Croatian roots, so the Croatian diaspora contributes to the strengthening of economic relations between Canada and Croatia.

"The comprehensive economic and trade agreement between Canada and the European Union is an important tool to help increase trade and investment with EU countries. By ensuring that businesses and people can maximally use the opportunities for increased trade that CETA will help to achieve, Canada and EU countries will establish lasting foundations based on a growing relationship which will contribute to our common progress,'' Regan concluded.

The 27th anniversary of Croatia's international recognition and Croatia's diplomatic recognition from Canada were also marked at the gathering in Zagreb.

Make sure to follow out dedicated business and politics pages for more information on Croatian exports, and much more.

Click here for the original article by Lucija Spiljak for Poslovni Dnevnik

As Marta Duic/Poslovni Dnevnik writes on the 14th of January, 2019, at the end of last year, IMG Zagreb marked thirty years of hard work, this Croatian company is otherwise the only specialised manufacturer and servicer of shut-off armature, and producers of stainless steel products and other materials for the oil, gas, petrochemical, pharmaceutical and food industries in the country.

IMG Zagreb was founded way back in 1988 as a private company specialising in the production and service of pipe fittings, high pressure valves, and various other stainless steel products, as well as other materials for the petrochemical, pharmaceutical and food industries. Initially, they had only two employees, namely Čupić's, father and son, and they had just one machine. Today however, the story is quite different indeed, and their activities are divided into production and service management by the engineering department of this successful Croatian company.

"When we got a second machine, way back in 1992, we also got our first big order from INA for gas pumps and that's what really started the company's rise. Back then, we had three employees and we did our first big job with them, and soon we grew to six and later to nine employees. Thanks to our successful business, we also started doing business with other partners from the oil and petrochemical industries such as Siemens, Plinacro, Underground gas storage (Podzemno skladište plina), Crosco petroleum services, Pliva, Janaf, Petrokemija Kutina...'' stated Joško Čupić, the owner of IMG Zagreb.

By 2010, the number of purchased machines had risen, and the number of employees rose to 28. Today, this Croatian company has 26 machines and employs as many as 42 employees. "Our only true competition are imports, because in Croatia, besides us, there really isn't a single manufacturer of such equipment," noted Čupić. The expertise and the real specialisation of IMG Zagreb is readily recognised by their partners on foreign markets.

IMG Zagreb successfully operates on the markets of the former Yugoslavia, France, Germany, Belarus and over in the USA, where IMG Zagreb has delivered high pressure manometric valves on several occasions, while IMG Zagreb's largest turnover on the foreign market is realised in France.

"In America, we work with Alternate Energy Systems, Inc. for which we've already delivered high pressure manometric valves on several occasions. We have the largest turnover in France owing to our partner Siemens SAS, for which we have delivered goods over the last three years, with a total turnover of 561,000, 00 euro, which averages at around 187,000 euro annually.

''It's a newer fact that because of his business satisfaction with us, that partner recommended us to his partners over in Germany, so we've already received inquiries and are now working on getting work,'' said Čupić, who has the long-term goal of this Croatian company working to strengthen Croatian production in the field of pipe fittings and stainless steel products.

"The improvement of production, production facilities and the recruitment of new employees are all activities that we undertake for the purpose of the final quality and quantity of products, which is aimed at the expansion of the market,'' said Čupić.

Make sure to follow our dedicated business page for more on Croatian companies, products and services, as well as doing business in Croatia and the overall investment and business climate.

Click here for the original article by Marta Duic for Poslovni Dnevnik

The relationship between China and Croatia is continuing to grow ever closer, and bringing the Chinese to the Croatian coast is potentially just an introductory step in their much wider engagement on the development of Rijeka's traffic connections, both operationally and financially.

As Poslovni Dnevnik writes on the 14th of January, 2019, Minister of Maritime Affairs, Transport and Infrastructure, Oleg Butković, will travel to China later this month, where he will discuss, among other things, the opportunity for them to take the concession for a new Rijeka container terminal on the coast with Chinese shipowners and port operators, according a report from Novi list.

Butković will meet with the Chinese traffic minister, representatives of CRBC, who will build Pelješac Bridge, and will also meet with representatives of the naval giant COSCO, as well as several large Chinese shipping and port companies, the potential leasers of the container terminal on that part of the Croatian coast, for which the concession would have to be announced by the middle of this year.

As China and Croatia's bond grows deeper still, the Chinese companies will start with the concession on that particular part of the Croatian coast, the development of a logistics centre and a back terminal in the entrepreneurial Miklavlje zone will probably be offered.

If an interest in making such a move is shown, then the competent Croatian ministry and the Croatian Government will begin seriously contemplating their involvement in far larger infrastructure projects on Rijeka's traffic connections, primarily the construction of a railway line from Rijeka all the way to the Hungarian border, and when looking at much longer-term plans, the possible construction of a large container terminal on the island of Krk, along with a new road-rail bridge.

Make sure to stay up to date with everything you need to know on the growing relationship between China and Croatia and much, much more by following our dedicated business page.

As Bernard Ivezic/Poslovni Dnevnik writes on the 13th of January, 2019, one of the most beautiful and well-preserved old Zagorje buildings, Bračak near Zabok, will officially become a real, ''angelic'' building at the end of January, 2019.

On the 21st of January, the first office of the the World Bank Investment Forum of Business Angels (WBAF) in the European Union will be officially inaugurated at the Bračak palace. Bračak palace, which is 130 years old, will have a new function after playing the role of both a former children's hospital and an energy centre.

Zabok's beautiful palace will be transformed into the first academy for business angels in the Republic of Croatia, which will combine education with the field of elite tourism. Baybars Altuntaş, the president of the WBAF, holds several impressive titles. He is a highly successful Turkish investor, the vice president of the European Business Angels Network (EBAN) and a senior advisor to the elite program on the London Stock Exchange, a program designed to boost investment capacity for small and medium-sized investment companies who are the first to attract the capital of business angels.

"After Croatia, as a small country of only four million people, was able to compete in the World Cup until the finals, and showed that there were ''big'' people, persistent and with big hearts, who have the type of quality needed for the work, I supported the idea of ​​the prefect of Krapina-Zagorje County, Željko Kolar, that in Bračak, a palace boasting a rich history which, with the help of technology and knowledge turned into a very smart building, that WBAF should open its first office in the European Union there,'' stated Altuntaş.

Renata Brkić, High Commissioner for WBAF Croatia says that the first service to be offered at Zabok's Bračak palace will be the international QBAC Qualified Business Angels Certificate (QBAC). "The QBAC program has been run by the WBAF on the London Stock Exchange so far, and in cooperation with the office for Croatia, we've upgraded it with the elite tourism offer and we'll offer it as QBAC Bootcamp Croatia on the global market," said Brkić.

She stated that there is a market for 500,000 business angels for this service. "The first group will start off in May," Brkić said. Željko Kolar, Prefect of Krapina-Zagorje County and the initiator of the opening of WBAF's office in Croatia, says this project confirms the fact that the county is recognised as an open, competitive and business partner sector.

"In the first year, we want to create an entrepreneurial network of business angels not only from Croatia but also from EU countries, to educate investors according to qualified investment courses that we will prepare and identify good business opportunities that can be invested in this area," noted Kolar.

He explained that the county in which the Zabok palace is located, Krapina-Zagorje, is the holder of the WBAF license and that the entrepreneurship centre of Krapina-Zagorje County will be in charge of the operational office for Croatia. Along with Kolar, the management of WBAF's office is also the CEO of HUP (Croatian Employers' Association) Davor Majetić, the assistant director of HZMO, Dražen Mršić, the managing director of Hanfa, Petar-Pierre Matek, as well as Renata Brkić, who states that WBAF is planning to open up a number of offices around the world this year. The first was opened last year in Tanzania.

This is the second in the Republic of Croatia. More offices to follow will be based in Taiwan, Pakistan, Saudi Arabia, Macedonia, and Brazil. "WBAF, with the opening of this office, is providing Croatia with a chance to network in the world of investment,'' added Brkić.

Make sure to stay up to date with more information on doing business in Croatia by following our dedicated business page.

Click here for the original article by Bernard Ivezic for Poslovni Dnevnik

As we reported recently, the Inter-American Investment Corporation will offer Croatian companies a chance to operate on the Latin American market.

As Marija Brnic/Poslovni Dnevnik writes on the 14th of January, 2019, about a year ago, the Croatian Government approved the signing of a contract for Croatia's entrance into the Inter-American Investment Corporation (IIC), which Croatia's ambassador to the USA, Pjer Šimunović, signed back in July 2018 over in Washington, and now, through a parliamentary procedure, the law which this contract confirms has been set in stone.

For Croatian entrepreneurs and Croatian companies, this is a significantly important move because it opens up far more new opportunities in the markets of Latin America and the Caribbean. IIC is a multilateral organisation, part of the Inter-American Bank for Development (IID) group, which finances the private sector and financial institutions in the countries of this region, and Croatia's membership was gained on the basis of succession. There are 48 countries in the IID, of which 26 are Latin-American.

In the IID capital of a massive 170 billion dollars, the United States alone has the highest individual share of 30 percent, while Croatia holds 0.05 percent. Loans, guarantees and other forms of financing can only be used by entrepreneurs from the above mentioned 26 countries, but for Croatian companies, the possibility of participation in tenders for the projects financed by the IID remains very much open. From past practice (IID has existed since 1959 and is the oldest regional development bank) the organisation invests around 11 billion dollars annually into its various projects, and the most common sectors to see investment are infrastructural projects, financial markets, as well as energy and water management.

In procurement procedures for corporate-donor companies such as those from Croatia, business opportunities are mostly open to Croatian companies who deal mainly with infrastructure-related businesses, as well as for consultants, and banks from all member states. Along with the Croatian Ministry of Finance, which is charge of communication with IID and IIC, the Croatian Chamber of Commerce (HGK) will obtain an important role, which will, along with HBOR, inform Croatian companies and entrepreneurs about these welcome new possibilities.

From the Croatian Chamber of Commerce, they state that they had organised education for Croatian companies for several years now, the main goal of which was to get better acquainted with this channel for non-traditional Latin American markets, and after the agreement is signed, Croatian companies and entrepreneurs will be more prepared to take advantage of these opportunities as a more active approach to preparations will take place.

Make sure to stay up to date for more on Croatian companies, products and services, doing business in Croatia, and the overall business and investment climate by giving our dedicated business page a follow.

Click here for the original article by Marija Brnic for Poslovni Dnevnik

As Morski writes on the 13th of January, 2019, Jadranovo near Crikvenica, which continues to record an encouraging and steady rise in both tourist arrivals and overnight stays, needs to give its beach and immediate coastal area a makeover. The inhabitants of Jadranovo, as well as their growing number of guests, require a safe, well-kept beach area that will allow for the further development of tourism in the area.

Therefore, and in addition to Perčin port, Grabrova bay, and more precisely its area located under the beach, will be given that much needed makeover. Behind that, a new square will be constructed, which together with the beach will make up the brand new face of Jakovarska bay. Creating a quality and attractive beach space will create the opportunity for new initiatives to develop, including the placement of tourism facilities and shopping areas on the coast, writes Novi list.

This project was recognised by the Ministry of Tourism and the Deputy Mayor of Crikvenica, Silvia Crnić, who signed the contract for the co-financing of the project in the amount of 640 thousand kuna, in accordance with the program of development of the public tourist infrastructure for 2018.

About 250 meters of Jadranovo's beach area will get a new look as well as some very welcome brand new facilities. There will also be, as previously mentioned, a new square that will fit perfectly into the coastal area and become an integral part of Grabova's new look. The cost of these works stands at fourteen million kuna and such investments will easily be justified by the much faster development of Jadranovo as a destination.

In the area itself, locals think that Grabova's makeover, as well as the doing up of Perčin port, will see Jadranovo truly become a place that lives on the sea and not just by the sea. Although Jadranovo boasts many beautiful beaches, they are mostly hidden away and more difficult for people to access. This project will provide an easily accessible oasis in the very centre of a place that both tourists and locals will fall in love with at first sight.

Make sure to stay up to date with our dedicated lifestyle and business pages for much more.

Click here for the original article by Natasa Car for Novi list

Christmas might be behind us for another year (well, almost another year), but the heartfelt news of Croatian companies in all fields and sectors having paid out huge bonuses to their employees up and down the country is enough to bring the generous spirit of the season right back again.

As Poslovni Dnevnik writes on the 12th of January, 2019, while they couldn't pay themselves a tax free cash sum, Croatian companies and employers made sure to reward their loyal employees a total of 2.4 billion kuna in Christmas bonuses and similar rewards last month, and a further one billion kuna was paid out for their good work performance results, according to the findings of the Croatian tax administration.

When summed up as a whole, the amount of bonuses and other similar cash sums paid out to hard-working employees by Croatian companies reaches a massive figure of 3.4 billion kuna, as has been reported by Večernji list.

The results show that on average, each employee received about 2,500 kuna in untaxed benefits, but as is usually the case with any other average, this does not show the real state of affairs. The tax administration points out that back in December 2018, bonuses amounting to a massive one billion kuna were paid out by as many as 37 thousand Croatian companies for 422 thousand employees scattered across the country.

Work performance bonuses were paid only by the private sector and not by the public sector. Finance Minister Zdravko Marić freed up the payment of tax on the payment of bonuses of up to 5,000 kuna per employee, a measure which was readily taken advantage of by every fourth active private Croatian company.

Make sure to stay up to date with our dedicated business page for much more information on Croatian companies, products and services, doing business in Croatia, and the overall business and investment climate.

As Poslovni Dnevnik writes on the 11th of January, 2019, the most successful company in Agrokor's latest reporting period was Konzum, which has continued to deliver handsome revenue and operating profit despite having faced a very long period of uncertainty and adversity.

The 21st monthly business report was published by sixteen companies from the following business segments within Agrokor - retail and wholesale, food and agriculture, covering the period from the 11th of December, 2018, to the 10th of January, 2019.

Operations in the first eleven months of 2018 saw companies realise as much as 21,508 million kuna in revenue, while operating profit stood at 1,716 million kuna.

The most successful company in the reporting period was Konzum, Agrokor's proverbial shining star, whose EBITDA was higher than the plan by as much as 157.9 million kuna, or more than 60 percent, while revenues exceeded the plan by 111 million kuna or 1.4 percent. Consequently, Konzum is the main carrier of operating profit for Agrokor's retail and wholesale business segment.

The largest contribution to the overall operating result of the formerly ailing Agrokor Group was provided by food companies, whose EBITDA was 67.6 million kuna higher than the plan, and almost all companies realised higher profits than the plans. Companies in the segment of agriculture experienced a fall in revenues and operating profit in relation to the plan, but they compensated for the optimisation of costs and the strengthening of other activities, and in eleven months of 2018, they realised slightly more than 2 billion kuna in revenue, and 172.3 million kuna in operating profit.

As part of the extensive preparations for Agrokor's implementation process, on the last day of 2018, all of the Agrokor Group's mirror companies, which have so far been registered as companies under generic names, have been officially granted new names by the Commercial Court in Zagreb. The new names of companies that will begin operating after the completion of Agrokor's creditor's settlement, consist of their old names and the ''plus'' add-on. For example, after the completion of the implementation process, Konzum will operate under the name Konzum plus, Jamnica under the name Jamnica plus, Zvijezda as Zvijezda plus, Ledo under the name Ledo plus, and so forth.

The old names have been retained within the new names of Agrokor's companies in order to preserve the strong value of these branded companies, which will continue to perform on the market under their current brands even after the implementation of the settlement. At the transition stage, the headquarters of all new companies will be in Zagreb, and after the implementation of the settlement, they will be returned to the cities across various parts of Croatia in which they're currently registered and operating.

Unlike mirror companies like Konzum, the Agrokor d.d. umbrella company will get a brand new name by the end of January, and will no longer use the name "Agrokor", resigning the name to the history books alongside the company's former owner, Ivica Todorić.

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