ZAGREB, June 15, 2019 - Liu Changlai, CEO of the Camel Group, a company that together with Rimac Automobili started building a factory for propulsion systems for electric vehicles, on Friday said that the group would in future intensify its cooperation with Rimac and that by the year's end the jointly built company in the city of Xiangyang will have a capacity of producing 150,000 propulsion systems a year.

Liu Changlai confirmed the news of the intensified cooperation to Hina after a meeting in the Zagreb City Assembly where a memorandum of understanding between the cities of Zagreb and Xiangyang was signed. The CEO was part of a senior delegation from that Chinese city on visit to Zagreb. The founder of Rimac Automobili, Mate Rimac, also attended the meeting.

In 2017 the Camel Group invested 30 million euro in Rimac Automobili and last year Camel and Rimac made a joint investment in Xiangyang for the construction of the local factory where propulsion systems will be manufactured for electric vehicles as well as motors and power inverters.

Liu underscored the strong support that Xiangyang city authorities provided during the construction of the factory which amounted to 10 million euro. The Camel Group invested 20 million euro and Rimac Automobili provided 5 million euro.

Camel's CEO underscored that the company is the biggest manufacturer of batteries for electric vehicles in Asia and added that in future it would intensify its investments in Rimac Automobili.

Part of the factory that has a capacity of manufacturing 25,000 propulsion systems a year, has already been completed.

More news about Rimac Automobili can be found in the Business section.

ZAGREB, June 11, 2019 - Chinese entrepreneurs are interested in constructing a cargo and logistics centre at Osijek Airport and the government is expecting to receive a letter of intent in that regard as well as negotiations with the relevant ministries, it was said during a visit by a Chinese delegation to the biggest eastern Croatian city on Monday.

President of the Chinese Southeast European Business Association (CSEBA), Mario Rendulić, said that the promotion of Osijek Airport has to date stirred great interest among Chinese partners.

In addition to plans to build a cargo centre at the airport, Chinese entrepreneurs are expected to establish a logistics centre too.

Things are moving along and we are pleased about that. They are developing slowly but they are moving forward. We expect a letter of intent to be sent to the government so that we can move on even further, Rendulić said.

Chinese businesswoman Jiang Yu said that she is very interested in this location particularly since it can be combined with the possibilities provided by the Osijek river port and that negotiations are expected now on further details of possible cooperation.

Osijek-Baranja County Prefect Ivan Anušić assesses that the latest visit by a larger Chinese delegation than on 18 April means they are truly interested, adding that further steps are being discussed and advertising a call for bids is within the remit of state government bodies and not at the county level.

I think that we're entering the final phase when talks need to be conducted between interested investors and the relevant ministries. They are interested in the airport, both for passenger and cargo transport which entails the construction of a logistics centre and we have more than 250 hectares of land available, Anušić said.

He believes that due to the airport's close vicinity to the river port, the pan-European Vc motorway and railway corridor as well as the closeness of the border with Hungary and with Serbia and Bosnia and Herzegovina, Osijek is an ideal location which has been recognised by the Chinese entrepreneurs, he added.

The Osijek Airport director, Davor Forgić, informed that last year was a record year as far as passenger transport was concerned with 67,235 passengers catered for, up 55% on the year.

More Osijek Airport news can be found in the Travel section.

ZAGREB, May 24, 2019 - Chinese investors will invest EUR 20 million in Hotel Zagorje in Kumrovec, which used to be a political school in the former Yugoslavia, Chinese businesswoman Yu Jiang, co-owner of the Zhongya Nekretnine company, the only company that submitted a bid for that property in a recent tender, said on Friday.

Yu attended a ceremony in Kumrovec, some 60 kilometres northwest of Zagreb, at which State Assets Minister Goran Marić presented municipal head Robert Šplajt with a decision whereby the recreational area in the municipality's Razvor settlement would be transferred to the ownership of Kumrovec municipality.

The Chinese businesswoman answered questions from the press about her plans for investments in the former political school. She said that according to an initial estimate, around 20 million euro would be invested in the project.

We are interested in developing some types of tourism and I believe that this area is suitable for congress and health tourism, Yu said, adding that cooperation with the tourism sector on the coast was possible but that the plan was to develop year-round tourism in Kumrovec.

Asked how much the fact that former Yugoslav leader Josip Broz Tito was born in Kumrovec would be used for tourism purposes, Yu briefly said that they respected history and that Tito was a very important part of the region's history. We hope to introduce a new style in tourism, increase gross domestic product and help the local community in its development, the Chinese entrepreneur said.

Yu has visited Kumrovec a number of times and said she wants to convert Hotel Zagorje into a real hotel as well as create a memorial park honouring Tito.

Bids for the devastated state-owned Hotel Zagorje, which covers 27,000 square metres, were opened on May 7. The only bid submitted was that of the Zhongya Nekretnine company, worth 14.09 million kuna.

Marić said that the ministry had accepted the bid and forwarded a proposal to the government to sign an agreement with the bidder. Currently, the opinions of the relevant ministries are being awaited, Marić said.

More Kumrovec news can be found in the Politics section.

ZAGREB, May 22, 2019 - After holding talks in Zagreb on Tuesday evening with a delegation of the China Shipbuilding Industry Corporation (CSIC), which on Monday visited Zagreb's Brodarski Institut shipbuilding institute and on Tuesday the Rijeka-based 3. Maj shipyard, Croatian Economy Minister Darko Horvat said that there was potential for cooperation with the Chinese partners.

Addressing the press after the talks, the Croatian minister said that the 14-engineer expert delegation had toured the Zagreb-based institute and the Rijeka shipyard and that they were now going to submit a report to the company's management.

It remains to be seen which decision the management will make, Horvat said, expressing confidence that the Chinese side would soon inform Croatia of its decision, be it positive or negative.

The Chinese delegation on Monday visited all the 14 laboratories of the Zagreb-based institute and there are currently good indications of possible cooperation in some concrete projects, the minister said. "A step forward has been made toward potential future cooperation."

He added that it seemed to him that the Chinese side is ready to for a joint venture with Brodarski Institut.

When asked by the press what the Uljanik shipyard in Pula could expect, the minister admitted that the talks had focused mainly on shipbuilding in China and shipbuilding in Rijeka.

The Chinese delegation has shown satisfaction with the fact that a segment of the Rijeka-based dock has been upgraded and offers possibilities of cooperation, according to him.

He admitted that there were still no strict deadlines for any future steps.

He also made it clear that the government did not expect the Chinese side to be a strategic partner that would pay off the shipyards' debts from the past.

In the meantime, the Pula-based Uljanik shipyard on Tuesday reported on the Zagreb Stock Exchange that due to bankruptcy proceedings being launched in Uljanik d.d. and, hence, the inability to deliver a Ro-Ro ship to the CLdN shipping company, the client has cancelled the contract.

Late in January, the same client cancelled a contract for the construction of another Ro-Ro ship because Uljanik was not in a position to deliver the ship.

Uljanik closed the deal for the construction of 2+2+2 ships for the Luxembourg client in March 2016.

The Commercial Court in Pazin decided on May 17 to open bankruptcy proceedings in the Uljanik shipbuilding group's umbrella company, Uljanik d.d.

More news about the shipbuilding industry can be found in the Business section.

ZAGREB, May 21, 2019 - Economy, Entrepreneurship and Crafts Minister Darko Horvat said on Monday that a delegation of the China Shipbuilding Industry Corporation (CSIC) was visiting the Shipping Institute in Zagreb and that it would be visiting the 3. Maj dock on Tuesday.

Horvat told reporters outside Government House that the Chinese delegation was at the Shipping Institute and that the meeting there could be yet one more good meeting "the delegation had hinted at" the last time it visited Croatia.

The minister said that the delegation would visit the Rijeka-based 3. Maj shipyard tomorrow and would then meet with him on Tuesday evening. "I think that then we will have a little more information about what exactly they have seen and what their feelings are at the moment," said Horvat.

Asked whether the Chinese delegation was interested only in 3. Maj and not the Uljanik shipyard since it had announced only a visit to 3. Maj, Horvat recalled that during its last visit, the Chinese delegation spent a day and a half at Uljanik and only a few hours at 3. Maj.

He said that the visiting delegation was more of a technical nature.

Asked how the Chinese company could become involved in developments regarding the Uljanik shipbuilding group (comprising the Pula-based Uljanik dock and the Rijeka-based 3. Maj) considering that it was not interested in strategic partnership, Horvat said that diversification of production was discussed at the talks conducted during the delegation's last visit and that the Pula and Rijeka docks need not exclusively and necessarily produce only ships.

Asked about a request by the Jan De Nul company for a refund of a down payment for a dredger that is being built at Uljanik, Horvat said that a new proposal had been sent to Luxembourg and that Croatia was not prepared to pay all the interest Jan De Nul had requested as compensation. "We can accept both scenarios - the ship's being completed at the Pula dock or its being towed away. We are negotiating the cost of both options," he said.

Asked whether he still believed that the cost would not be more than 30 million euro as mentioned, Horvat said that about 17 million euro was required to complete the ship. "Any additional risks should not amount to more than 22 million euro, and should we have to pay for towing, the cost will amount to a maximum 30 million that we are willing to pay," he added.

Asked whether it might have been cheaper for the state to have paid workers their wages to complete the ships under construction and thus avoid the enforcement of guarantees, considering that it would pay about 5 billion kuna in all for the shipyards, including interest, Horvat said that over the past 18 months the state had exploited every legitimate method to help workers.

He said that representatives of the Croatian Employment Service would inform workers of the Pula-based Uljanik dock, for which bankruptcy proceedings have been opened, about their rights. "The state is doing all it can within its remit," he said.

Asked about three ships that will be transferred to state ownership and what the state intended to do with them as well as whether they would be completed in Uljanik or some other shipyard, Horvat said that the government was willing to become involved in the completion of those ships only and exclusively as part of the bankruptcy plan and on a market basis.

"If we manage to invest less for their completion than their market value and if we will have a buyer when they are completed, then we can discuss the completion and interim financing by the government. If there is no market basis, then the government won't enter any such process," he said.

Considering that Uljanik's former CEOs were released from investigative custody earlier in the day, reporters wanted to know if the public would ever know "who is guilty," to which Horvat said that he did not wish to comment on the court's decision.

The County Court in Rijeka on Monday ordered the release of six suspects in the Uljanik fraud case from investigative detention.

More news about Croatian shipbuilding industry can be found in the Business section.

Seven companies from Europe, the Middle East and the Far East have expressed interest in the construction of the new container terminal in Rijeka, the Rijeka Port Authority director Denis Vukorepa said, adding that he was not allowed to disclose their names and references, reports Jutarnji List on May 19, 2019.

However, sources close to the government have disclosed that among the interested companies is the Chinese consortium Ningbo Port and CRBC (China Road and Bridge Company), the company that is constructing the Pelješac Bridge and the port of Singapore.

After analysing the documents received, which is expected in the next 15 days, all seven applicants (or perhaps fewer, depending on the quality of their references and project visions) will be invited to send their final bids for a 50-year concession. The estimated value of the concession (excluding VAT) is 20.5 billion kuna.

"These are respectable port terminal operators. We are very pleased because we were hoping for such a response. It turned out that this transport route is very interesting," said Vukorepa. The first stage of the concession process formally concluded on Friday, and the plan is to sign a contract for the Zagreb Deep Sea terminal by the end of September.

The tender is looking for a concessionaire for the performance of construction works and the provision of services, with the obligation of investing about 70 to 80 million euro in the construction of the terminal which is now 400 meters long and was partially built as part of the project with the World Bank and the European Union.

During the recent visit by the Chinese prime minister to Croatia, it was announced that Chinese companies were interested in the concession, but Vukorepa did not want to comment on this information.

The intention is to build the Zagreb Deep Sea terminal in the second phase up to a total length of 680 meters. If the concessionaire is not interested in this, the concession would be reduced to 30 years. The Port Authority is offering to the concessionaire a ten-year exclusivity, meaning that no new capacities for container shipment would be built during that period. The main advantage of the new terminal is that it will be able to receive ultra-large container ships because the sea depth is 20 metres.

The Port Authority says that it is expected that the ports of the northern Adriatic will reach their maximum capacity by the next year, which means that the new terminal will be constructed in just the right moment. It will be able to transport more than 400,000 TEU per year in the first phase, and at least 800,000 to one million TEU per year when it reaches full capacity, foreseen for 2030.

Translated from Jutarnji List (reported by Gordana Grgas).

More Rijeka news can be found in the Lifestyle section.

ZAGREB, May 7, 2019 - The Zhongya Nekretnine real estate company has submitted a bid to the State Assets Ministry of almost 14.1 million kuna for the Hotel Zagorje in Kumrovec, northern Croatia, instead of the almost 12 million kuna asked, and the government is expected to decide on the bids soon, the ministry said on Tuesday.

Bids for the property were to be submitted from March 23 until today and Zhongya Nekretnine's is the only complete and valid bid.

The devastated state-owned Hotel Zagorje is a former Communist Party political school which covers 27,000 square metres. Chinese businesswoman Yu Jiang has visited Kumrovec a number of times and said she wants to convert it into a real hotel as well as create a memorial park honouring former Yugoslav president Josip Broz Tito, who was born there.

Yu is behind the Zhongya Nekretnine company. If the government okays the bid, a contract will be signed with her.

More Kumrovec news can be found in the Lifestyle section.

ZAGREB, May 6, 2019 - A China Shipbuilding Industry Corporation delegation visited the Shipping Institute in Zagreb during last week's visit to Croatia and outlined proposals for it, Economy Minister Darko Horvat said on Monday.

"Talks are under way with one of the world's largest ship manufacturers and possible partners from China. They left Croatia on Wednesday and it's too soon to ask them for relevant information. We'll need a little more patience. Let's wait to see their point of view," Horvat told the press.

He added that aside from the Uljanik and 3. Maj shipyards, the Chinese had also visited the Shipping Institute "and they have certain proposals regarding that company too."

Asked to comment on the demand by the Blokirani association of citizens with frozen bank accounts that the state should help Uljanik's workers, Horvat said that "aid from the state budget is not the government's prospect" and that a strong strategic partner was needed to restructure Uljanik.

Horvat said that last year the state had paid for wages in Uljanik and 3. Maj, and that nearly 1 billion kuna had been spent on that and to service suppliers' claims.

"If we did that, then the government would have to respond identically about every ailing company, and we are aware that there's no such possibility right now," he added.

More news about relations between Croatia and China can be found in the Politics section.

ZAGREB, April 30 (Hina) - A delegation of the China Shipbuilding Industry Corporation (CSIC) talked with members of the management and supervisory boards of the Uljanik shipbuilding group for four hours on Tuesday, showing interest in the technology and special-purpose vessels, a member of Uljanik's supervisory board said after the meeting in the northern coastal town of Pula.

"I am glad to see that there are people who are interested in both shipyards, considering the situation we are in. The talks focused on the past, present and future of the shipyards in Pula and Rijeka, on shipbuilding and technology," Samir Hadžić told the press.

Expressing his satisfaction with the meeting, Hadžić said that the Chinese had primarily shown interest in the technology and special-purpose ships which Uljanik had built until now. He added that they did not discuss money or any kind of interim financing.

Hadžić noted that the Chinese asked for concrete answers, analysing each item, "and when they will make their final decision, only they know."

"We cannot force anyone to make a final decision in a short time. It's a process, but I hope it won't take much time, because the workers in Pula and Rijeka have no more time to wait," he said.

The high-level Chinese delegation was led by CSIC CEO Hu Wenming, and the meeting was also attended by the Croatian Assistant Minister of Economy, Zvonimir Novak.

After Pula, the Chinese delegation travelled to Rijeka to visit the 3. Maj shipyard which together with the Pula-based Uljanik forms the backbone of the Uljanik shipbuilding group.

More news about Uljanik can be found in the Business section.

ZAGREB, April 29, 2019 - A delegation of China Shipbuilding Industry Corporation (CSIC) that was briefed about the situation in the Uljanik and 3. Maj shipyards at a meeting with Croatian Prime Minister Andrej Plenković on Monday, said they would voice their opinion about the docks after touring them.

The chairman of the CSIC Board of Directors, Hu Wenming, said PM Plenkovic presented the situation in the two docks in detail.

"We will tour the shipyards and we will give a serious thought to it" Hu said after the meeting, adding that they realise the two shipyards are an important topic in Croatia.

Hu also said the CSIC delegation also included lawyers and investment bankers.

Croatian Economy Minister Darko Horvat said the talks with the Chinese delegation were very constructive, adding however that details had not been discussed. "We will have an opportunity to discuss details after Wednesday," Horvat told the press when asked about today's talks. Asked if he was optimistic, the minister said he had been optimistic for the past year.

Uljanik Management Board president Emil Bulić said today's meeting was aimed at getting to know potential investors in Croatia. "The prime minister presented the situation thoroughly and in detail. In a way, it was an introduction meeting," Bulić said.

Earlier this month, Plenković announced that executives from a Chinese shipbuilding company will visit two Croatian shipyards to explore possibilities for cooperation.

The announcement came after a high-level Chinese delegation, led by Premier Li Keqiang, visited Croatia earlier in April as part of the summit of 17 Central and Eastern European countries and China in Dubrovnik.

More news about shipyards can be found in the Business section.