August the 5th, 2022 - Knin in inland Dalmatia has unfortunately been left to ''go to the dogs'' in the economic sense, but the arrival of PicoPACK's new entrepreneurial centre and factory could see that neglect overturned.

As Poslovni Dnevnik/Darko Bicak writes, despite being one of the most economically deprived and neglected parts of the entire country, every year at the beginning of August, on the occasion of Victory Day and the Day of Croatian Veterans, the City of Knin comes into the public spotlight. This isn't only in the historical and political sense, but also in an economic one.

According to the data presented by the Financial Agency (Fina) for the year 2021, and according to the processed financial statements, 105 enterprises with 615 employees were operating in the City of Knin, which is a reduction of the number of employees there by 36 or 5.5 percent when compared to 2020.

DIV is the largest employer in Knin

Back in 2021, Knin-based companies achieved 255.4 million kuna in total income, which is an increase of 18 percent when compared to 2020, and total expenses of 242.7 million kuna, marking growth of 21.3 percent.

The share of enterprises based in Knin in the number of enterprises in the wider Sibenik-Knin County back in 2021 stood at 3.9 percent, in terms of the number of employees it stood at 4.9 percent, in terms of total income, three percent, and in terms of net profit - 4.8 percent.

Among companies based in Knin, ranked according to total revenue, the first small enterprise is Sirovina Benz transport with sixteen employees. Last year, the company achieved 41.4 million kuna in total revenue, which is a share of 16.2 percent in the total revenue of all companies headquartered in Knin.

Transport beton Lubina took second place with almost 37 million kuna in revenue and 2.6 million kuna in profit, followed by Production Shopping Centre Krka Knin with 24.8 million kuna and Efficient Powerful Successful with 21.7 million kuna in total revenue. This company, from the wider DIV group's system, is also the largest employer with as many as 164 employees to boast of. The Top 10 companies by revenue also include Logistika, Ljekarne (Pharmacies) Silvija Saric, G.O. Gradjevinar (Builder) Vrbnik, Komunalno Poduzece (Municipal Company), Cistoca i zelenilo and Agro Herc.

By the end of this year, according to all indicators, the economic situation in Knin should be improved because, according to announcements, the factory belonging to the wider PicoPACK Group Austria, a multinational company for the production of packaging with branches in several countries in Europe and Asia, should be opened in that inland Dalmatian city.

As they stated, their team specialises in the development and production of industrial solutions for the packaging of any type of bulk materials in both the food and non-food sector, as well as the packaging of dangerous substances and transport solutions for bagged cargo. As one of the largest suppliers of this type of goods in all of Europe, and being motivated by a significant increase in the costs of transportation from India and China, as well as the inability to ensure timely deliveries, the PicoPACK Group plans to transfer its product production facility from India to Europe.

An additional reason is the impossibility of ensuring adequate product quality in a remote facility in India. If everything goes well, they would install their future production and distribution centre in the Knin Enterprise Centre, which is currently under construction. This represents one of the most significant projects from the Intervention Plan of the city of Knin, with a total value of 33.3 million kuna, which will convert the former Kninjanka factory into an Entrepreneurship Centre, as a key element of the city's entrepreneurial infrastructure.

According to the already prepared Business Plan, PicoPACK Group initially plans to employ around seventy employees, with the fact that by the end of the year, if they succeed in realising their plan, they expect to employ a total of 300 workers in their future Knin-based plant.

The special advantage of the City of Knin for PicoPACK as a location for stationing their central production and distribution centre, lies in the possibility of the relatively quick activation in the newly renovated Entrepreneurial Centre, without the obligation of designing and building a brand new facility, then in the possibility of finding a sufficient number of employees with an adequate qualification structure, and last but by no means least, in the fact that Knin is in geostrategically favourable location with a branched traffic network.

For more, make sure to check out our dedicated business section.

September the 23rd, 2021 - Knin has faced economic issues for a long time now, with many people leaving for either Zagreb, seasonal work on the coast or heading abroad. The Austrian company PicoPack could be set to turn things around for this inland Dalmatian town as it sets up local production.

As Poslovni Dnevnik/Suzana Varosanec writes, an new opportunity is opening up Knin, known for its role during the Homeland War, to do better economically and become a European brand for polypropylene jumbo bags. These bags are applied in a wide variety of sectors, including the agriculture, petrochemical and food processing industries. These are highly sought-after products that are otherwise imported into Croatia, but with this move, the Croatian packaging industry will soon get its first representative in the segment of the production of industrial packaging for bulk products.

The Austrian company PicoPack had the best conditions offered to them in Knin

The Austrian company PicoPack Group, a manufacturer and distributor of industrial packaging, is finalising an agreement regarding its new project, which they have decided to implement right here in Croatia. In order to supply their numerous customers from Europe and the Russian Federation and to invest in production capacity of about 18,000 square metres, the investor chose Knin. The inland Dalmatian town was chosen above all other options.

The holder of the project is the newly established company Velebit ambalaza, in which the Austrian company PicoPack will hold a 51 percent share and the entrepreneur Goran Jerkovic will hold one of 49 percent. Austrian entrepreneur and leader of PicoPack, Manfred Pribyl, confirmed that good offers from other countries, such as Bulgaria, were also considered for the project, but the best conditions and in that sense support for the project, after Jerkovic's engagement, were received from Knin. The new Knin factory could be one of the largest in all of Europe, Pribyl says, adding that the company is expanding its production globally under the influence of the coronavirus pandemic, in response to increased transport costs and longer delivery times.

Production in India, organised sixteen years ago, is now being redirected solely to the African, Australian and American markets, but the model of how they work will be replicated at the Croatian Knin factory. In addition to the workers at the plant, they will additionally have a larger number of them in education within their small educational institution, so they will always have enough workers. Pribyl stated that he will motivate them with net salaries of up to 1,000 euros, but also with the distribution of about 20 percent of profits to workers every six months, which is an unprecedented positive example in recent entrepreneurial practice.

Since back in 2007, nine entrepreneurs have been operating in the Preparandija zone, but Knin is completing the reconstruction of two significant facilities, one of which is the former Kninjanka facility. According to the head of the Knin Administrative Department for EU Programmes and Economy, Josko Nedoklan, the project is worth around 33.34 million kuna, is co-financed by the European Regional Development Fund, and the works on the facility should be completed by April 2022.

For more, check our our dedicated business section.