Slovenia Business Week no. 33, August 16th 2005
Table of Contents:
HEADLINES ............................................................................................................................. 2
D&B Finds Government Strategic Plans Ambitious.............................................................. 2
Logistics Company Acquires Croatian Facility ..................................................................... 2
Helios Expands Operations in Russia .................................................................................... 2
INTERNATIONAL COOPERATION ...................................................................................... 3
Economics Ministry to Take Over Business Diplomacy ....................................................... 3
EUROPEAN UNION ................................................................................................................. 4
Parliamentary Committee Getting Ready for EU Presidency ................................................ 4
STATISTICS/FORECASTS ...................................................................................................... 5
Exports Soar 14.8% Y/Y in June ........................................................................................... 5
Factory-Gate Prices Up 2% Y/Y, Down 0.2% at Monthly Level .......................................... 5
Travel Especially Popular with Young Slovenians ................................................................ 5
Industrial Output Up 1% Year-on-Year ................................................................................. 6
Statistics Show Dwindling Number of Youngsters................................................................ 6
FINANCE................................................................................................................................... 8
Three Slovenian Banks Among World's Top 1000 ................................................................ 8
Dearer Fuel Prices Unavoidable, Experts Say ....................................................................... 8
Ljubljana Stock Exchange ...................................................................................................... 9
Foreign Exchange ................................................................................................................... 9
BRANCH INFORMATION .................................................................................................... 10
Mounting Imports of Chinese Trousers ............................................................................... 10
Long-Awaited Motorway Section Finally Opens ................................................................ 10
Officials Welcome Opening of Trojane Motorway Section ................................................ 10
COMPANIES ........................................................................................................................... 12
Terme Catez Posts Flat Sales and Profits for First Half of 2005 ......................................... 12
Zito Intent on Outsourcing and Centralisation ..................................................................... 12
FAIRS, CONGRESSES ........................................................................................................... 13
Agriculture and Food Fair Promises Everything in Abundance .......................................... 13
SLOVENIA IN BRIEF ............................................................................................................ 14
Droga Kolinska Launches First Wave of Layoffs ................................................................ 14
British Government Donates One Million Pounds to ITF ................................................... 14
Terme Catez Dismisses Supervisory Board Chair and Director .......................................... 14
Foreign Ministry Says It's Monitoring Italian-Croatian Sea Talks ...................................... 14
Zigon Named New Consul General in Cleveland ................................................................ 14
HEADLINES
D&B Finds Government Strategic Plans Ambitious
In its August report, D&B maintains Slovenia's risk rating at DB2c, the highest in Eastern
Europe
The world's leading rating firm has assessed the government Strategy for Slovenia's
Development in its latest report, saying that development strategy targets, such as catching up
with the average development level of the enlarged EU, are highly ambitious.
Nevertheless, Dun&Bradstreet finds smaller goals, such as average real GDP growth of
around 4% in 2006 and 2007, to be attainable and realistic.
In its August report, D&B maintains Slovenia's risk rating at DB2c, the highest in Eastern
Europe. Moreover, the rating still bears a growth mark.
All macroeconomic projections remain the same as the month before, with the rating firm
making a special mention of the increase in exports due to increased demand for Slovenianmade goods and services from France, Italy, the UK and Croatia.
Logistics Company Acquires Croatian Facility
Logistics company Viator&Vektor has acquired a logistics hub in the southern Croatian city
of Sibenik
Logistics company Viator&Vektor has acquired a logistics hub in the southern Croatian city
of Sibenik.
The Ljubljana-based company bought the struggling logistics arm of Tvornica lakih metala
for 224,000 euros, pledging to keep on board 58 employees and to invest 2 million euros in
the next three years.
Viator&Vektor, which is pursuing an aggressive expansion plan on markets of the former
Yugoslavia, hopes to establish a logistics centre for southern Croatia at the acquired location.
The hub will be made up of storage facilities and a forwarding centre, as well as an extensive
parking area for the company's vehicles.
Viator&Vektor has the ambition to become a leading firm offering comprehensive logistics
services in SE Europe and the latest acquisition is aimed at bolstering its presence in Croatia,
the company said.
The acquisition includes 21,065 sq. metres of real estate, as well as 5,290 sq. metres of
vehicle maintenance facilities and 3,238 sq. metres of storage facilities.
Helios Expands Operations in Russia
Chemical group Helios started talks with Russian Odilak and Raduga Sintez about
establishing a new company called Helrus Holding
Chemical group Helios started talks with Russian Odilak and Raduga Sintez about
establishing a new company called Helrus Holding. The newly created company, set to
manufacture colours and protective coatings, will start production sometime next year, STA
has learnt.
Helios will be the majority holder with 51% of shares, with the Russian companies having
equal parts of the remaining 49%. STA has learnt that the project is currently in the
preparatory phase, so more details will be released early in 2006.
Helios reported sales revenues of SIT 40.36bn (EUR 168.3m) and a net profit of SIT 3.46bn
(EUR 14.43m) in 2004. The Helios Group is the market leader in Southeast Europe with
subsidiary companies in eight other countries.
2
INTERNATIONAL COOPERATION
Economics Ministry to Take Over Business Diplomacy
The Economics Ministry will take over the management and appointments at Slovenia's trade
offices abroad in accordance with an agreement with the Foreign Ministry
The Economics Ministry will take over the management and appointments at Slovenia's trade
offices abroad in accordance with an agreement with the Foreign Ministry. The government is
expected to give the green light next week, the Economics Ministry told STA on Friday, 12
August.
The ministry explained that the trade offices constitute an upgrade to the existing network of
trade representatives at embassies and consulates.
The ministry said it will establish new trade offices based on cost-benefit analyses, but it is
unclear yet where they will be.
The Foreign Ministry has proposed that the existing network be first supplemented with one
or two offices in global financial centres where Slovenia does not have diplomatic
representation.
Although the offices will be managed by the Economic Ministry, the consultants will have to
fulfil the formal criteria for diplomats and act in accordance with the foreign affairs act, the
Foreign Ministry explained.
The news about the trade offices comes after years of complaints by businessmen that
business diplomacy is not doing enough, although the services of trade representatives are
invaluable.
3
EUROPEAN UNION
Parliamentary Committee Getting Ready for EU Presidency
According to the chair of the committee, Anton Kokalj, the body is focusing on the
organisation of meetings on the parliamentary level
The parliamentary EU affairs committee has joined government efforts to prepare for
Slovenia's stint as EU president in the first half of 2008. According to the chair of the
committee, Anton Kokalj, the body is focusing on the organisation of meetings on the
parliamentary level.
Kokalj told a press conference in Ljubljana on Friday, 12 August that the committee, like the
government, has launched consultations with EU member states that have recently held the
presidency, including Luxembourg.
According to him, Luxembourg's experience in presiding over the EU should prove to be very
useful for Slovenia. He said one of the main highlights of Luxembourg's presidency was the
close cooperation between the government and parliament.
Moreover, the committee has already reached agreement with Austria on an exchange of
personnel during Austria's presidency in the first half of 2006. Similar agreements are being
sought with Great Britain, Finland, Germany and Portugal, he said.
Kokalj stressed that the OEU will foremost be responsible for preparing the Conference of
Community and European Affairs Committees of Parliaments of the European Union
(COSAC) as part of Slovenia's presidency.
He added that the committee will seek personnel reinforcements in the run-up to and during
Slovenia's presidency. These should come from other parliamentary committees, Kokalj
explained.
4
STATISTICS/FORECASTS
Exports Soar 14.8% Y/Y in June
Slovenia's exports topped EUR 1.277bn in June
Slovenia's exports topped EUR 1.277bn in June, increasing by 14.8% over the year before.
Imports increased by 9.1% in the same period to EUR 1.317bn, according to provisional data
released by the national Statistical Office.
Data for the first six months of the year suggest an increase in exports of 13% to EUR 6.98bn,
with imports up 7.7% to SIT 7.37bn.
The trade gap for the month stood at EUR 38.9m, putting the exports-imports coverage at
97%. In the first six months of 2005, the coverage was 94.7%.
Factory-Gate Prices Up 2% Y/Y, Down 0.2% at Monthly Level
Since the beginning of this year, the prices rose by 0.5%
Factory-gate prices increased by 2% in July compared to the same month last year, but
dropped by 0.2% on June prices. Since the beginning of this year, the prices rose by 0.5%,
according to the data released by the national Statistics Office.
Year-on-year, the most substantial increase in prices was recorded in manufacturing, where
they were up by 2.3%. Prices in mining and quarrying went up by 0.7% and those in
electricity and water supply by 0.5%. Prices in forestry remained flat.
At the monthly level, it was only the electricity and water supply sector that marked up its
prices, by 0.1%. While prices in forestry stayed put, those in mining and manufacturing
dropped by 0.7% and 0.2% respectively.
All types of products were marked down in July compared to June. The prices of intermediate
goods (energy products and raw materials) dropped by 0.1%, while consumer goods were
cheaper by 0.1% and capital goods by 0.4%.
Nevertheless, prices were marked up at the year-on-year comparison. Capital goods were
dearer by 1.8%, while prices of intermediate goods and consumer goods increased by 2.7%
and 1.1% respectively.
Travel Especially Popular with Young Slovenians
Some 398,000 Slovenians or 23.3% of the population aged over fifteen went on a private or
business trip in the first quarter of the year
Some 398,000 Slovenians or 23.3% of the population aged over fifteen went on a private or
business trip in the first quarter of the year, suggests the data published by the national
Statistics Office.
The majority, i.e. 335,000 or 19.6% of the population over fifteen, set off on a private
journey, while 91,000 or 5.3% made a business trip.
The share of tourists on a private trip increased by 2.3 percentage points in the first quarter
over the same period last year, while the number of business journeys dropped by 6.2% yearon-year.
Over a half or 52.9% of tourists travelling privately were away from their home more than
four days.
As many as 26.8% of all tourists on a private trip were aged between 15 and 24, with the
shares decreasing as the age increases.
In terms of their education and profession, 41.6% had higher education, and were high school
pupils or students in most cases.
5
While 50.2% of tourists on a private trip toured Slovenia, 44.6% only roamed abroad, and
5.2% went travelling both at home and abroad.
An average Slovenian tourist on a private journey spent SIT 9,828 (EUR 41) per day, that is
SIT 5,589 (EUR 23.3) in Slovenia and SIT 13,689 (EUR 57.1) abroad.
As many as 87.8% of tourists on a private trip were travelling on their own rather than on a
trip organised by travel agencies.
The great majority of private trips (95.6%) and business trips (92.1%) were made around
Europe.
Industrial Output Up 1% Year-on-Year
The volume of industrial output in June dropped by 1.7% over the month before
The volume of industrial output in June dropped by 1.7% over the month before, but
increased by 1% compared to the same month last year, the National Statistics Office reported
on Wednesday, 10 August.
The office also said that Slovenia's industrial output in the first six months of this year shrank
by 0.3% over the same period last year.
While output in mining and quarrying surged by 17.5% in June over May, volumes in
electricity, gas and water supply increased by 4.6%. The manufacturing sector put out by
0.3% more in June than in May.
June saw a 10.6% increase in the output of energy products and a 3% increase in the output of
intermediate goods. The production of raw materials increased by 1.6%.
Statistics Show Dwindling Number of Youngsters
According to population projections made by the National Statistics Office, the share of
people aged between 15 and 29 will fall below 20% by 2008
The number of young people in Slovenia has been falling steadily for the past 20 years.
According to population projections made by the National Statistics Office, the share of
people aged between 15 and 29 will fall below 20% by 2008.
According to the 2002 census, 432,000 young people lived in Slovenia at the time,
representing 21.5% of the country's population. The number dropped from 458,000 since
1981, the peak year in the last 50 years.
The data, published on Wednesday, 10 August also shows that more than 50% of young
people are enrolled in educational institutions.
The share of 17-year-olds attending school is 95%, while it drops to nearly 50% among 20and 21-year-olds. Among those aged 29, about 20% are still in schooling.
The number of female students attending "gimnazija" or academically-oriented secondary
schools exceeds the number of their male peers by almost 50%. Likewise, there are by one
third more females than males attending higher education institutions.
Female students are also more successful in their studies than their male counterparts. While
about 21,000 males have at least short-term tertiary education, the number for females is over
37,000.
On average, males enter the labour market about a year earlier than females. The youth
employment rate tops 50% at the ages between 23 and 24, while it stands at 85% at the age of
29. Unemployment among people aged between 20 and 29 is among the highest compared to
other age groups.
More than three out of four young people live with their parents. A third of young people,
with families of their own, live in consensual unions.
The housing problem and postponement of births contribute to the fact that 25% of young
families (both spouses/partners are younger than 30) do not have children. Among young
people the share of single parent families is the greatest of all age groups.
6
The birth rate among the young is extremely low. Only one out of five women has given birth
before reaching the age of 29. Birth rate among youngsters up to 21 years is negligible.
7
FINANCE
Three Slovenian Banks Among World's Top 1000
Slovenia's leading bank, Nova Ljubljanska banka (NLB), came in 419th, Gorenjska banka
placed 824th and Nova Kreditna banka Maribor was 906th
Three Slovenian banks rank among the world's top 1000, according to a survey by The
Banker magazine. Slovenia's leading bank, Nova Ljubljanska banka (NLB), came in 419th,
Gorenjska banka placed 824th and Nova Kreditna banka Maribor was 906th.
The survey, published in the July issue of the magazine, shows that global banks have not
only achieved record levels of profits, but also reached their highest levels ever of profitability
in terms of return on capital. The latter rose from previous year's 17.56% to a new record of
19.86%.
The UK and US have the most profitable banking sectors among the world's major
economies. The 294 banks from the EU25 that made it to the world's top 1000 account for
39.6% of the aggregate profits of the banks in the listing.
The analysis placed Citigroup, with a Tier 1 capital of $74.4bn, on top of the magazine's
global banks listing for the seventh year in a row.
The world's top five banks account for 10.4% of aggregate total assets, with Switzerland's
UBS taking top position.
Dearer Fuel Prices Unavoidable, Experts Say
According to Bogomir Kovac and France Krizanic, the government has little room for
maneuver in terms of lowering excise duties, which means that the recent growth of oil prices
will translate into dearer fuel in Slovenia
Two foremost Slovenian economists have told STA that future rises in fuel prices are almost
unavoidable. According to Bogomir Kovac and France Krizanic, the government has little
room for maneuver in terms of lowering excise duties, which means that the recent growth of
oil prices will translate into dearer fuel in Slovenia.
However, both economists underscored that the effect of the high price of oil, which has
exceeded US$ 64 per barrel, is likely to be far less grave than during the 1970s crisis.
The recently volatility on oil markets has been caused by political troubles in the Middle East,
concerns about production potential and a shortage of refining capacity.
Kovac and Krizanic agree that the effects of the rising price of fuel is not expected to have a
huge impact on inflation.
Moreover, Kovac said it was impossible to say that the current high prices of oil are merely a
short-term anomaly.
"This seems to be a long-term trend that is significantly raising the price norms," Kovac said.
He believes that, in the long run, this will promote the development of alternative sources of
energy.
As far as meeting the Maastricht criteria for euro zone entry, Krizanic believes Slovenia
should attempt to lower the inflation bar by arguing that the average rate of all eurozone
members should be made the criterion rather than the average of the three countries with the
lowest inflation rates.
"Slovenia could find itself in trouble if three old EU members decide to limit local
consumption and reduce inflation through a recession," he said.
8
Ljubljana Stock Exchange
The Ljubljana Stock Exchange (LJSE) saw very modest trading last week, with the benchmark
SBI 20 index closing almost level at 4,577.03 points, up a mere 3.33 points (0.07%) on the
week
The Ljubljana Stock Exchange (LJSE) saw very modest trading last week, with the
benchmark SBI 20 index closing almost level at 4,577.03 points, up a mere 3.33 points
(0.07%) on the week.
Investment fund and bond markets were even worse off. While the PIX investment fund lost
2.68 points (0.06%) to 4,283.26 points, the BIO bond index closed down 0.08 points (0.07%)
to 121.61 points.
Volumes amounted to a mere SIT 2.52bn (EUR 10.52m), compared to nearly SIT 10bn (EUR
41.74m) posted the week before. Block deals accounted for SIT 1.28bn (EUR 5.34m) of the
total sum.
The most active blue chip was that of household appliance manufacturer Gorenje, which
generated SIT 222.9m (EUR 0.93m), gaining 0.17% to SIT 5,700 (EUR 23.79).
Drug maker Krka generated SIT 166.8m (EUR 0.70m) in turnover, appreciating by 0.41% to
SIT 81,681 (EUR 340.93).
Petrol retailer Petrol gained 0.15% to SIT 64,193 (EUR 267.94), with a turnover of SIT 76.7m
(EUR 0.32m), while port operator Luka Koper dropped by 0.79% to SIT 7,342 (EUR 30.65),
with a volume worth SIT 55.6m (EUR 0.23m).
Trading in bonds was quite lively. The most popular one was 1st issue Cimos bond,
accounting for SIT 499.4m (EUR 2.08m) in turnover.
Also high in demand were the 7th issue Nova Kreditna banka Maribor bond, the 59th issue
treasury bond and the 2nd issue bond of the state-run Restitution Fund.
The most popular security on the free market was that of the investment fund KD, which
generated SIT 78.2m (EUR 0.33m).
Foreign Exchange
Mean exchange rate of the Bank of Slovenia
Euro (EUR) - SIT 239.58 (-----)
U.S. dollar (USD) - SIT 192.19 (-1.66)
Swiss franc (CHF) - SIT 154.25 (+0.65)
British pound (GBP) - SIT 348.89 (+4.22)
9
BRANCH INFORMATION
Mounting Imports of Chinese Trousers
Slovenia imported some 390,000 pairs of trousers from China in the first seven months of this
year, which is an increase of 10,000 over the same period last year
Slovenia imported some 390,000 pairs of trousers from China in the first seven months of this
year, which is an increase of 10,000 over the same period last year, the Economics Ministry
has said.
As the ministry explained for STA, the comparison between 2004 and 2005 figures is slightly
unreliable since Slovenia stopped recording Chinese products coming from other EU states
upon its entry into the EU in May 2004.
Another imports indicator is the number of import permits. While Slovenia issued 69 permits
for the import of Chinese-made trousers between May and December 2004, 117 such permits
have been issued this year.
The ministry collected the data to send it to the European Commission, as Brussels is
preparing a study on the impact of cheap Chinese textile products on the EU market.
The European Commission already blocked imports of sweaters made in China at the end of
July, after limits on imports were breached a month after a quota system was agreed.
Long-Awaited Motorway Section Finally Opens
The 9.4 km Trojane-Blagovica stretch, considered as the most demanding and expensive
construction project on the national motorway network, will eliminate one of the main
bottlenecks in the country and a source of ongoing despair among drivers
The only missing bit of the 230 km motorway between Maribor and Koper was officially
inaugurated on Friday, 12 August in what PM Janez Jansa has labelled as an historical day for
Slovenia and the whole of Central Europe.
The 9.4 km Trojane-Blagovica stretch, considered as the most demanding and expensive
construction project on the national motorway network, will eliminate one of the main
bottlenecks in the country and a source of ongoing despair among drivers.
Delivering the keynote address, PM Jansa recalled the turbulent history of motorway
construction in the country, as the first plans had been made in the 1960s. However, he said,
the Yugoslav authorities decided to invest in loss-making industry rather than in infrastructure
or services.
Jansa said the project got fresh wind in its sails when Slovenia won independence and the
special petrol tax was introduced to finance motorway construction. He used the opportunity
to thank all his predecessors, all finance and transport ministers, as well as the people of
Trojane, who are still waiting for compensations for damages.
The prime minister moreover stressed that the motorway was a project of several generations,
which was echoed by the director of the Motorway Company (DARS), Jozef Zrimsek. He
said that "the motorway belongs to all of us, it is the common projects of generations of
Slovenians."
Officials Welcome Opening of Trojane Motorway Section
For Transport Minister Janez Bozic, the Trojane-Blagovica section will finally link the four
biggest Slovenian cities (Ljubljana, Maribor, Celje and Koper), but it also provides a strong
link between Central Europe and the Adriatic region
10
National and local officials have hailed the opening of the last missing section of the MariborLjubljana-Koper motorway as a great achievement and a crucial step in the construction of the
national motorway network. However, some local officials also pointed to the downsides.
For Transport Minister Janez Bozic, the Trojane-Blagovica section will finally link the four
biggest Slovenian cities (Ljubljana, Maribor, Celje and Koper), but it also provides a strong
link between Central Europe and the Adriatic region.
According to him, this will provide much needed relief on what is one of the busiest roads in
the country. Travelling over the Trojane hill had often turned into a nightmare, he said, adding
that he will "breathe a sigh of relief" now that the project is completed.
Maribor mayor Boris Sovic was also pleased, but noted bitterly that Maribor will be linked to
Ljubljana with a motorway more than eight years after the construction of the non-stop
motorway to Vienna.
He hopes that the focus will now shift to the northeast of the country, where there are hardly
any motorways. Balanced regional development should also include balanced motorway
development, he said.
The major of Lukovica municipality (which includes Trojane) expects the motorway to bring
new development potential, but he voiced concern over the fate of the restaurant on top of
Trojane hill, a popular food stop famous for huge donuts. Matej Kotnik told STA that 140
jobs could be lost because the motorway will bypass the restaurant. However, the motorway
will also bring much needed relief, as some 22,000 vehicles used the main road through
Trojane every day.
Kotnik moreover noted that the municipality and DARS, the motorway company, are yet to
come to agreement over compensations for the 20 houses that were damaged during the
tunnel construction.
11
COMPANIES
Terme Catez Posts Flat Sales and Profits for First Half of 2005
Terme Catez, the spa group, posted revenues of SIT 3.51bn (EUR 14.65m) for the first half of
the year, up 1.47% over the year before
Terme Catez, the spa group, posted revenues of SIT 3.51bn (EUR 14.65m) for the first half of
the year, up 1.47% over the year before. Net profit remained almost flat at just under SIT
200m (EUR 0.93m).
The number of overnight stays at its hotel facilities edged up only 0.8% to 246,807. Whereas
the number of overnight stays by foreign guests increased by 21.1% to 79,832, the number of
domestic overnight stays slipped by 6.6%, the company said on Tuesday, 9 August.
According to the company, the figures reflect the overall situation in tourism this year and are
largely in line with plans. Moreover, the management argues that performance has been
affected by the construction of a new hotel, which involved the demolition of bungalows and
affected its capacities.
Zito Intent on Outsourcing and Centralisation
Slovenia's leading bread, flour and pasta company has unveiled its plans to move part of its
production to former Yugoslav countries
Slovenia's leading bread, flour and pasta company has unveiled its plans to move part of its
production to former Yugoslav countries. The plans are part of a draft 2006-2008 strategy of
restructuring that Zito's supervisors endorsed on Wednesday, 10 August.
The strategy anticipates the streamlining of bread, flour and confectionery divisions through
centralisation, the Ljubljana-based company says in a press release posted on the website of
the Ljubljana Stock Exchange.
The company plans to make a feasibility study in a bid to move production from the current
location in Ljubljana, which is no longer economical. The management expects that a final
decision based on the study could be taken by early 2006.
Zito management believes that the planned restructuring is vital to setting up sound
foundations that will make the operation of the group as well as its individual companies more
successful.
"Apart from centralisation, the company's other two strategic aims are placing more emphasis
on marketing and targeting the markets of the former Yugoslavia," Zito's chairman Iztok Bricl
said after the supervisory board session.
According to him, the company plans to increase exports form 20% to at least 35% of the
sales within the next five years.
The restructuring plans envisage centralising the milling division at one of the existing
locations between 2006 and 2007.
The baking sector will be centralised at a Zito location on the outskirts of Ljubljana by the end
of 2007, while the Maribor-based company Kruh in pecivo plans to open a new bakery in this
NE Slovenia this autumn.
A part of the production of chewing gum and candies will be moved to the region of the
former Yugoslavia. The company was prompted into the move by lower customs duties
between the countries in the region, as well as lower sugar prices and labour costs.
12
FAIRS, CONGRESSES
Agriculture and Food Fair Promises Everything in Abundance
The 43rd International Agriculture and Food Fair will take place between 27 August and 2
September, featuring 1490 exhibitors from 22 countries
The city of Gornja Radgona will play host to the 43rd International Agriculture and Food
Fair. The traditional event will take place between 27 August and 2 September, featuring
1490 exhibitors from 22 countries.
The fair, covering over 42,000 square metres of exhibition halls and open-air fairgrounds, will
see food and wine-tasting stalls, seed and saplings displays as well as animal and plant care
products.
The open-air area will showcase farm machinery and equipment. Livestock displays will be
the focus of attention with Simmental cattle taking the spotlight. This breed is becoming ever
more important as an export item.
The increasingly popular horse displays will be accompanied by pig and small cattle breeders,
presenting the varieties prevalent in Slovenia together with Austrian farmers presenting their
breeds of pigs.
The fair will also feature a large apiculture exhibition, as well as a small-animals exhibition
with a special stress on the only autochthon Slovenian chicken breed, the "Stajerska kokos".
All major national institutions will be present at the fair, including the Agriculture Ministry,
Agriculture and Forestry Chamber, Chamber of Commerce and Industry of Slovenia and
Chamber of Trade.
The fair will be officially opened by PM Janez Jansa. Agriculture Minister Marija Lukacic,
Mayor of Gornja Radgona Anton Kampus and numerous foreign diplomats and other guests
from Slovenia and abroad have already announced their attendance.
13
SLOVENIA IN BRIEF
Droga Kolinska Launches First Wave of Layoffs
Droga Kolinska, Slovenia's largest food company which was created with the merger of
Droga and Kolinska in May, began giving notices to workers last week as it plans to lay off a
total of 146 employees by the end of the year. The management argues that the lay-offs are
needed for streamlining and restructuring the merged company. Droga Kolinska employs
1,900 workers at the moment and is expected to generate nearly SIT 50bn (EUR 200m) in
revenues a year.
British Government Donates One Million Pounds to ITF
The British government has made a one-million-pound (EUR 1.43m) donation to the
International Trust Fund for Demining (ITF) in what is its third and one of the largest
contributions ever made to the Slovenian-run fund. The donation will be used for demining
projects in Albania, Bosnia-Herzegovina, Serbia-Montenegro and Azerbadijan. This is
according to the agreement that was signed on Monday, 8 August by the British Ambassador
to Slovenia Tim Simmons and ITF president Dorijan Marsic.
Terme Catez Dismisses Supervisory Board Chair and Director
The supervisory board of spa manager Terme Catez has dismissed its chair, Bojan Petan, and
provisional director Goran Brankovic, less than two months after it ousted director general
Borut Mokrovic. While Petan's replacement has not been nominated yet, the supervisors have
picked Mladen Kucis, the director of Terme Catez subsidiary Hotel Otocec, as the next chief
executive.
Foreign Ministry Says It's Monitoring Italian-Croatian Sea Talks
The Foreign Ministry has said that it is closely following developments regarding a CroatianItalian agreement on the demarcation in the Adriatic and will respond to protect Slovenia's
interests if necessary. The ministry said this on Friday, 12 August, in response to the 4 August
decision by the Croatian government to adopt the wording of an agreement on the
demarcation of the continental shelf between Croatia and Italy.
Zigon Named New Consul General in Cleveland
Zvone Zigon has been named the new Slovenian consul general in Cleveland, United States.
He succeeds Marcel Koprol, who stepped down before the expiry of his term to head the
Government Office for European Affairs (SVEZ). A journalist, anthropologist, author and
editor, Zigon was previously a consultant at the Foreign Ministry's Office for Slovenians
Abroad.
14