Forest Based Industry in Serbia

Serbia Investment and
Export Promotion Agency
Forest Based Industry in Serbia
Contents
General Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
About Serbia . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
Investment Incentives . . . . . . . . . . . . . . . . . . . . . .4
Forest Based Industry Trends in Europe . . . . . . . . . .5
Opportunities in Serbia . . . . . . . . . . . . . . . . . . . .5
Forest Ownership and Management . . . . . . . . . . . .6
Forest Composition And Structure . . . . . . . . . . . . . .7
Wood Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Structure of Forest Based Industry . . . . . . . . . . . . .9
Sawmills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
Wood board factories in Serbia . . . . . . . . . . . . .10
Wood and Wooden Products Manufacturing . . . .12
Paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Environmental Protection . . . . . . . . . . . . . . . . . . .16
Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Success Stories
Alira . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Umka A.D. . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Kolzec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
Enterijer Janković . . . . . . . . . . . . . . . . . . . . . . .24
LKV Centar . . . . . . . . . . . . . . . . . . . . . . . . . . .24
Tarket – Sintelon . . . . . . . . . . . . . . . . . . . . . . .24
Bacus Intercomer . . . . . . . . . . . . . . . . . . . . . . .26
Sava A.D. . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
Beomark Trade . . . . . . . . . . . . . . . . . . . . . . . .26
Trifunović Company . . . . . . . . . . . . . . . . . . . . .28
Xinars XL . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
Ambiental Eco . . . . . . . . . . . . . . . . . . . . . . . . .28
Company Contacts . . . . . . . . . . . . . . . . . . . . . . . .30
About SIEPA . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
Official Name Republic of Serbia
Form of State Republic, member State
of the State Union of Serbia and Montenegro
Legal System Based on the Serbian Constitution of 1989
Political Structure President, Unicameral Assembly
with 250 seats
Area 88.361 sq km
Population (in million) 7.498
Geographic Position South East Europe, central part of Balkan
Peninsula; borders Hungary, Bulgaria,
Romania, FYR Macedonia, Albania,
Bosnia and Herzegovina, and Croatia
Official Language Serbian
Main Religion Christian Orthodox
Largest Cities Belgrade (capital): 1.5 million,
Novi Sad: 300.000, Niš: 250.000
Currency Dinar (CSD)
Exchange Rate 1 USD = 63.0545 CSD,
1 EUR = 81.4979 CSD
(as of 29th of April 2005)
GDP (2004) 21.377 billion USD
GDP per Capita (2004) 2.813 USD
Time Zone Central European time zone (GMT + 01:00)
Internet Domain .yu
2
About Serbia
The Republic of Serbia covers a region with a wide range of
landscapes. The climate is mainly continental featuring a
gradual transition between the four seasons of the year,
warm summers and snowy winters. Average monthly
temperatures vary from –0.70C in January to 17.50C in July
and August.
Serbia’s greatest comparative advantage is its geographic
position that represents a natural transportation hub for the
whole of Southeast Europe. Serbia is the link between
Southeastern, Central and Western Europe, as two important
European corridors pass through
the country: Corridor X leading
from Austria passing through
Serbia, branching off to Greece
and Bulgaria; and Corridor VII,
the largest waterway in Europe.
The Danube River, with its 580
kilometers
through
Serbia
represents a natural connection
between Middle East, central
Europe and Western Europe.
Besides river Danube, when river
transportation is concerned,
Serbia offers outstanding potential.
The Tisa River, with the network
of the domestic channel
Danube–Tisa–Danube totaling 600km, has the potential to
become an International Navigable Route. The Sava River,
offers great potential and provides an excellent transportation
route for goods to countries in the region: Slovenia, Croatia,
Bosnia and Herzegovina.
With 7,5 million people, the Serbian market is among the
largest in the SEE region. Additionally, Serbia is in the middle
of the SEE Free Trade Zone which provides duty free access
to a market of 55 million people. Furthermore, Serbia and
Montenegro is the only country outside the CIS that enjoys a
free trade agreement with the Russian Federation, offering
tariff free access to an increasingly attractive market of 150
million people.
Since December 2004, Serbia was granted Autonomous Trade
Measures (ATM) by the EU. ATM allow Serbian goods and
service to be exported to the EU free of import duties. At the
same time Serbia has status of Most Favorable Nation (MFN)
with the USA. This in turns allows Serbian companies to enjoy
various favorable trade conditions when exporting to the US.
Resulting from a high degree of natural diversity, a vast array
of broadleaved and conifer tree
species can be found throughout
the country. The forest area is
spread across the territory of
Serbia and differs by region.
There are two major natural and
geographical areas:
• The Lowlands of Vojvodina, in
the North, characterized by a
mosaic distribution of native
vegetation, meadow–steppe,
woodland–steppe and sand
character. Together with the
wetlands and marsh terrain
along and between the rivers
Danube, Sava, Tisa and Tamiš,
they provide extremely favorable conditions for oak and
poplar.
• High–mountainous areas located in Central Serbia include
the Balkan, Dinaric and Carpathian mountain chains,
provide diverse climatic conditions for broadleaved trees –
especially beech.
According to official statistics, the forests of Central Serbia
and Vojvodina cover 25.17% of the country or 1,949,871
ha. In Central Serbia, 32.21% (1,802,656 ha) of area is
covered with forest; mainly broadleaf species, while in
Vojvodina forests cover about 6.85% or 147 215ha.
3
Investment Incentives
If you invest in fixed assets
Taxpayers investing in fixed assets are entitled to a tax
credit of up to 20% of the value of the investment made in
that year. The tax credit is limited to 50% of estimated tax
in the year of the investment. The unused portion of the tax
credit can be carried forward up to 10 years.
In the year of investment, taxpayers classified as small
companies are entitled to a tax credit of up to 40% of the
value of their investments in fixed assets. In this case, credit is
limited to 70% of assessed tax in the year of the investment.
Certain industries, including agriculture, are entitled to receive
a tax credit of up to 80% of investments made in purchasing
fixed assets with their own financing. The unused portion of
any such credit can be carried forward for up to ten years.
If you employ new workers
Taxpayers who employ new workers are entitled to a tax
credit equal to the gross salary of their new employees plus
related social security contributions.
For your big investments
Taxpayers who invest over CSD 600 million (around 7.4
mill. Euro) in fixed assets and employ at least 100 new
workers are not liable for corporate income tax for up to ten
years, provided that those assets are used for the activities
for which the taxpayer is registered.
Other incentives
Import of equipment and other assets, including construction
materials representing a foreign entity, are investment
exempt from customs duties. The liberalization of property
laws made it possible for foreigners to own real estate.
4
Forest Based Industry Trends in Europe
Changes and improvements in technology have had a
significant impact on the European forest products market and
will continue to do so in the future. Recent technological
innovations include the development of new solid wood
products which are gaining acceptance in the market. Relatively
new products, such as oriented strand boards (OSB) and
medium density fiberboard (MDF), have been in use in Europe
for the past twenty years and it is anticipated that the demand
for these products will increase in the future. At the same
time a whole new range of lower cost engineered wood products
(e.g. high–density fiberboard, laminated veneer lumber,
I–joists, pre–cut lumber, etc.) are gaining acceptance on the
marketplace. These new products will bring about product
substitution of the more traditional products and are predicted
to generally expand the market for wood products.
The necessary skill set for wood processing industry is being
constantly built on: twenty two high schools specialized in
wood processing and the Faculty of Forestry at Belgrade
University educate thousands of young people each year.
Serbian companies have a long standing tradition of cooperation
with foreign buyers. Exceptional human capital available at
very competitive prices with high quality raw materials provides
opportunities on the domestic as well as foreign markets.
Opinions are that new technology in the area of office
automation, internet and computers will make a revolution
in the paper industry. Changes in the way that people
communicate (e.g. e–mails, websites, etc.) will lead to a
change in the demand for types of paper, and an increase is
predicted in paper for advertising, newspapers, etc.
The local market traditionally has a continuous high
demand and is well supplied with wood and wooden
products. With recent developments in the economy, as well
as with more foreign direct investments coming into Serbia,
this market is constantly growing. This can especially be
said for the Serbian furniture market – domestic companies
produce high quality furniture which successfully rivals the
imports. Serbian suppliers are also well known for their
production of wooden seat and furniture parts.
As per the UNECO Timber Committee Report, the general
outlook of the European market for forest based industry in
the next 15 years sees a raise in the consumption of sawn
wood, panels and especially paper.
OPPORTUNITIES
IN
Presently, the forest based industry, along with the rest of
the economy of Serbia, is in the process of transition. This
opens many opportunities for investors especially through
the privatization process. It is expected that the privatization
process in plywood, hardboard and particle board production
plants will be completed soon.
SERBIA
With its highly diverse landscape, from fertile plains to high
mountainous regions, and with mild continental climate,
Serbia is home to a wide range of both coniferous and
deciduous species. This variety of species offers endless
opportunities in forest based industries.
The centuries long experience with forests and wood oriented
products has created a strong base for industry as well as a
skilled and productive workforce with a wealth of experience.
5
Forest Ownership and Management
Some of the main sectors of Serbian economy are those that
utilize natural resources. Forest based industries in Serbia have
always played an important role in the economic development of
Serbia. Regulation of these industries, being so versatile in
nature, is divided between the competencies of two ministries.
As one of the prime natural resources of Serbia, forests are
managed by the Directorate of Forest within the Ministry of
Agriculture, Forestry and Water Management. On the other
hand the timber and wood processing industry, as well as
all industrial policies and economic development, fall under
the competencies of the Ministry of Economy.
Forests in Serbia are both state and privately owned. State
owned forests make a little over 47% and are mostly managed
by Srbijašume (85%). Smaller portions are managed by
Vojvodinašume (7.5%), national parks (6.5%) and educational
and research institutions (1%). Srbijašume and Vojvodinašume
are public enterprises founded by the state to manage state
owned forests, to develop silviculture, maintain and regenerate
forests, manage plantations, reconstruct and reclaim forests and
brushland, produce forest seeds and nursery stock and establish new
forests and forest plantations, etc. The remaining 53% of forest
area is owned and managed by private owners. Privately owned
forests are scattered, fragmented and small in size (on average
approximately 0.5ha). Bigger holdings with more substantial
potential for development are very rare, but produce good quality
hard wood timber used in solid wood furniture manufacturing.
All activities conducted in privately owned forests are done
under the supervision of Srbijašume and Vojvodinašume.
Source: Statistical office of the Republic of Serbia
6
Forest Composition And Structure
Natural conditions and eco–system diversity of Serbia allow
for a wide range of tree species and forests with broadleaves
and mixed broadleaves stands (Quercetum frainneto–cerris).
Broadleaves dominate the forest in Serbia with 86.4% and
the remaining part consists of all kinds of conifers. Mixed
broadleaved and conifers stand with approximately 6.8%
and 3%, respectively. Main tree species of the natural
forests are beech (Fagus moesiaca), followed by oak
(Quercus ssp), and other broadleaves. Natural stand of
conifers are confined to the south and southeastern part of
the country, with main tree species being Pinus nigra, Pinus
silvestris, Picea abies and Abies alba.
Besides natural growth, Serbia pays great attention to
reforestation. Plantations are spread throughout Serbia and
are usually monospecific stands where species depend on the
characteristics of landscape and eco–system. The plantations
located in Central Serbia predominately grow coniferous species,
especially pines (mainly Pinus nigra) and spruce (Picea abies)
and cover two–thirds of all land dedicated for plantations.
Only a third of all plantations are dedicated to growing
broadleaves. Broadleaved plantations are located in northern
parts of Serbia. The flat and fertile soil of Vojvodina, crisscrossed
by rivers, creates the perfect environment for poplar (Euro
American black poplar clone) growth. Approximately 95%
of all plantations found here are poplars. Other species
grown are oak and other hardwood species.
Source: Statistical office of the Republic of Serbia
7
Wood Supply
In order to achieve sustainable development of forests,
enable forest development and root out illegal logging,
lumbering is managed by public enterprises Srbijašume
and Vojvodinašume.
These enterprises determine the quantity of wood required
from domestic sources and the quantities are allotted to
companies/individuals engaged in lumbering. They are
revised and adjusted depending on market requirements
and availability and accessibility of timber.
The annual volume of timber felled for commercial
purposes in Serbia is approximately 3 million cubic
meters, out of which approximately 2 million are
produced in state owned forests by state enterprises
and 827,000 m3 is felled in privately owned forests.
Almost two thirds (70%) of all felled wood is used as fire
–wood while the remaining 30% are mainly saw and
veneer logs.
Beech wood is most often supplied to the Serbian wood
market, with an annual supply of 1.4 million m3. Among
softwood species, poplar is the highest in demand,
especially in northern Serbia where this species are
abundant. Conifers represent a relatively small share of
the total amount supplied and cut. There is a steady
demand for pine and spruce especially for use in
construction and building industry.
Existing plantations account for 6% of total production of
forest assortment in Serbia. The main species is poplar,
which makes up almost 60% of total production, while
the rest comes from coniferous species.
The wood market in Serbia is dominated by round wood
which is most frequently used in forest based industries.
In the past, most of the wood produced came from state
owned enterprises, however, recent data of Srbijašume
and Vojvodinašume indicate that private companies are
becoming more active.
8
Structure of Forest Based Industry
Forest based industry, as an important part of the Serbian
economy, has a relatively high share in GDP (1.24%) and
industrial production (3.63%). This segment of the economy,
based on domestic raw materials, maintained a constant
positive foreign trade balance since the World War II.
Today, there are 2,365 companies engaged in wood
processing. The majority of them produce sawn wood
(1,491) and furniture (402). Most companies are privately
owned (about 96%). There has been little foreign
investment in this sector (only about 2% of all companies
have foreign capital. The industry is dominated by small
enterprises (98%) which predominately deal with sawn
wood production, joinery manufacturing, and production of
packaging and veneer.
SAWMILLS
Sawmills have a long standing tradition in Serbia. The first
sawmills appeared at the very beginning of the 19th
century. Even today Serbia is the 2nd largest producer of
sawn beech wood and 3rd largest producer of sawn
hardwood in the Balkans.
Sawn wood, together with furniture is the most significant
forest product of the wood processing industry in Serbia.
Sawmills make up 63% of total number of wood processing
companies. At the same time, sawn wood accounts for 37.2%
of exports in this sector. Most sawmills are small, located in
rural areas and operate only during the warm season. Large
sawmills, with annual capacities of 3,000 – 5,000 m3, hold
55% of installed capacity for sawn wood production.
Existing raw material base drives sawmill production and
most sawmills produce sawn hardwood. Annual production
of sawn hardwood in Serbia exceeds 300,000 m3, and
70% of this is sawn beech wood. Other significant species
of wood in Serbia are, poplar (11.4%), oak (8.3%)
and ash (2.7%).
9
WOOD
BOARD FACTORIES IN
SERBIA
Particle boards
Particle board is the wood product with the highest demand in
Serbia. It is generated by the market–driven growth in high–quality
furniture production. Serbian furniture producers make more
than 100,000 m3 particle boards annually. Even though large
quantities of utilizable wood waste are available and the demand
generated by the furniture industry for particle boards is very high,
this demand is not met by an increase in domestic production,
but rather by large imports of particle board into Serbia.
Since particle boards are high in demand on the domestic as
well as neighboring markets, this represents a significant and
highly profitable investment opportunity. One of these
opportunities is the particle board factory SPIK Ivanjica. It
was established in the town of Ivanjica, in the heart of the
region with easy access to raw materials. Being that this was
a large company, it was divided into 4 entities which are
presently in the process of privatization.
10
Plywood and Veneer
Over the past 15 years, veneer and plywood production
have been slowly declining for two reasons. First veneer in
Serbia was produced by state owned companies, which are
now being privatized. Secondly, “veneer quality” logs have
generally been exported, rather than processed locally and
then exported as a higher–value product.
Currently, peeled veneer makes up about 90% of the total
veneer production, out of this peeled poplar veneer is the
leading product, while the rest is mainly beech. Other, more
significant veneer presently produced in Serbia is beech,
oak, ash and walnut veneer.
Poplar and beech are primarily used species for the manufacture
of plywood boards which are mainly utilized in furniture and
packaging production. Produced in 3 companies the total
plywood production capacity is 10,000 m3 annually with main
export markets being Italy Germany , Macedonia and Hungary.
Hardboard
In terms of volume, hardboard is the main fiberboard
product in Serbia. The production of hardboard has
fluctuated significantly in the past. After a drastic decline by
61% in 1999, production started to increase in 2000 and
has been on the rise since. Today, hardboard is produced
solely at Kuršumlija A.D. in Southern Serbia.
Solid wood boards
There has been a significant increase in the production
of solid laminated wood board. Produced mainly from
beech these products are ranked with A/B quality and
with annual production of 14,000 m3. Edge–glued panels
for stairs, tables and furniture parts are predominantly
produced.
Although produced at only one location, its capacity is over
40,000 m3 annually. Raw hardboard dominates domestic
hardboard production which has been used in door
manufacturing, while improved hardboard is imported,
mainly from Hungary and Germany.
The expansion of small, privately owned companies,
especially in Central Serbia, has generated a substantial
increase in the export of solid wood boards. Main export
markets are Germany and Italy.
11
WOOD
AND
WOODEN PRODUCTS MANUFACTURING
Joinery
Production of solid wood joinery has a long tradition in Serbia. A large
number of companies (275) produce high quality windows and doors,
and significant quantities have been directly exported to Russia and EU
countries. Door production is dominated by solid oak wood. However
spruce and fir are also common production materials. Domestic
companies use high quality metal accessories for joinery along with
ecological coating and can comply with any other consumer request.
Joinery production is closely linked to the construction industry, matching
its outputs with the demand the construction industry shows. Local
market depths are determined by the construction market demands, thus
an increase in construction unilaterally draws a demand for more joinery.
The Serbian real–estate market is growing and many new buildings
(residential areas, office buildings etc) are being built, increasing the
domestic market demand for joinery. This demand is further increased by
the Serbian construction companies building abroad, which purchase
joinery for these projects from Serbian joinery producers.
This indirect export of Serbian produced joinery is one of the main
reasons for the recent increase in joinery production.
12
Engineered wood products
Throughout the world timber has been traditionally used in
construction. The latest trends and developments in this
area have brought innovative new products to substitute the
traditional ones. Sophisticated and modern construction
provides interesting alternatives for the use of timber,
making timber a competitive building material for even most
demanding projects. In addition to its versatility, timber
production has an additional advantage, as the industry can
supply semi–finished parts, which are easily transported and
quickly assembled. Compared to concrete construction,
engineered wood products are expected to develop
technologically and excel in construction, as wood is a
non–toxic, organic building material with good insulating
qualities and excellent weight–strength ratio.
The production of engineered wood in Serbia is in its
developing stages. The unusual structure of horse training
building in Zobnatica Bačka Topola is renown for its
expression of innovative design. The roof structure is made of
laminated wood. Its form demonstrates elegance and an
insight into the possibilities of designing wooden structures.
Engineered wood products are yet to be promoted and their
application in business is likely to grow over time. The fact
that this market segment is neither dominated nor saturated
by producers represents an attractive investment opportunity.
13
Furniture
Serbian furniture market is a demanding, versatile market
which generates many possibilities for furniture producers.
With the recent developments in the economy, and
increase in foreign investment and foreign company
representation, the home and office furniture markets
have blossomed.
All categories of furniture and furnishings are produced in
Serbia: household furnishings, furniture for offices, shops,
hotels, restaurants, nurseries and schools. A number of
these companies also manufacture interior cabinets and
custom furniture (small furniture units, closets, kitchens).
Most of the production in Serbia is carried out by large
companies (47.05%). Even though they account for 92%
in numbers, small companies produce 28.5% of the total
output value in furniture production.
Medium sized companies make up only 7% of the total
number of furniture producers and produce 24.45% of the
manufactured value of all furniture. These family owned
companies are well known for producing stylish, well
designed furniture and have been successfully exporting
to the EU market for years.
They often team up with construction companies and
provide furniture and furnishings for buildings throughout
Serbia, Russia, Middle East and other markets.
Furniture is generally produced from particle boards. Only
30% of all furniture is produced from solid wood, and
great potential for investment lies in this relatively
unexplored sector.
Good quality raw materials and modern design, teamed
with low operational costs, provide a solid base for
investment in this sector. Demand for high quality solid
wood furniture is ever present locally as well as on
foreign markets.
14
PAPER
Alternating increases and declines in the production of
paper and paperboard were typical in Serbia between 1996
and 2004. There are 11 producers of paper and paperboard
in Serbia. Three major producers are still state owned,
whereas the rest are small private enterprises. Annual
production of pulp, paper and paperboard is about
330,000 metric tons. The pulp production is mainly used
to satisfy domestic needs for paper and just small quantities
are being exported. Out of the overall volume produced,
printing paper is the most dominant product.
Despite existing production potential, the majority of
producers of pulp and paper are only operating at about 40%
of their capacity and Serbia continues to import significant
amounts of paper. Wood pulp production amounts to
approximately 76,000 metric tons per year, while production
capacities are twice as big. Domestic wood pulp production is
mainly used to satisfy the needs of Serbian paper producers
and only a small portion is exported.
The main activity of small companies, besides sawn wood
production and joinery manufacturing, is paper packaging
and related paper products. Existence of a significant
number of companies in this sector is a result of available
raw materials along with relatively small initial investment
needed, as well as the fast turnover of invested capital.
Source: Statistical office of the Republic of Serbia
15
Environmental Protection
Protecting the environment is crucial for the quality of life of
present and future generations. The challenge is to combine
it with continuing economic growth in a way which is
sustainable over the long period of time. Forest based
industries all across the globe rely on sustainable
development and the good management of forests
to further develop this industry.
development in line with EU legislations and policies. In line
with these commitments, the Government of the Republic of
Serbia established the Environmental Protection Agency
(SEPA) to develop, regulate and implement procedures in
the field of environmental protection based on best
practices, as well as develop and maintain the National
information system for environmental protection.
The Ministry of Science and Environmental Protection brings
together researching and economic development in Serbia
as well as coordinate work of Directorate for the
Environmental Protection. With assistance from the EU,
Serbia has drafted a National Environmental Strategy,
streamlining the Serbian legislation and economic
One of the most important steps regarding environmental
protection is the acquiring Forest Management Certification,
in order to ensure sustainable use of the forests in Serbia.
Over time, this will enable companies from this industry to
export more successfully to the markets that require wood
that originates from managed forests.
16
Institutions
Ministry of Agriculture, Forestry and Water Management
www.polj.sr.gov.yu
Ministry of Agriculture, Forestry and Water Management is
responsible for agricultural development and protection, use
and promotion of agricultural areas, forestry and water, flora
and fauna; rural development; the food industry; water
economy and water management (except water distribution);
as well as other activities specified by the law.
Within the Ministry, the Directorate for Forests specifically
deals with forestry policy, improvement and use of forests
and game, execution of measures for protection of forests
and game, control of seeds and seedlings in forestry,
as well as other tasks determined by law.
The Directorate has a normative and regulatory function,
operating through two departments:
• Department for Inspection Coordination
• Department of Forestry and Hunting
Ministry of Economy
www.mpriv.sr.gov.yu
Ministry of Economy’s competencies among other include:
business and financial restructuring of enterprises;
privatization; bankruptcy; structural adjustment of the
economy; creating proposals of economic policy measures
aimed at ensuring growth of overall industrial production
and of specific branches; proposals of investment
incentives; SMEs development; coordination of activities
relating to capital value appraisal; coordination of activities
relating to creation of ownership ties between Serbian
enterprises and strategic foreign investors; drafting of
regulations in the fields of entrepreneurship and
enterprises, privatization and bankruptcy and other
regulations relating to the overall market reform;
impact of economic policy measures on developments
in the overall industrial production.
17
Ministry of Science and Environmental Protection
www.mntr.sr.gov.yu
Serbian Environmental Protection Agency (SEPA)
www.sepa.sr.gov.yu
The main task of the Ministry of Science and Environmental
Protection is to foster the development of science and new
technologies in Serbia, at the same time caring for the
environment trough Directorate for the Environmental
Protection (www.ekoserb.sr.gov.yu).
SEPA has been established as part of the Ministry for
Science and Environmental Protection of Republic of Serbia
and has following objectives:
• Development, regulation and maintenance of the National
information system for the environmental protection
(monitoring the parameters of the state of the
environment, pollutants cadastre, etc.);
• Environmental data acquisition, centralization and processing,
reporting about the state of the environment and policy
implementation in the field of environmental protection;
• Development of the procedures for environmental data
processing and evaluation;
• Management of the information about best available
techniques and practices and their implementation in the
field of environmental protection;
• Cooperation with the European Environmental Agency
(EEA) and European Environment Information and
Observation Network (EIONET), as well as other
objectives defined by law.
It is responsible for overall environmental protection;
protection of the environment from pollution; protection
against ionizing and non–ionizing radiation; noise and
vibration; production, sale and disposal of hazardous
substances, etc, through the concept of effective ecological
support to the economic reforms and development,
privatization and infrastructural projects.
18
Public Enterprise for Forest Management – Srbijašume
www.srbijasume.co.yu
Established by the Forest Law, Srbijašume’s main
responsibility is the management of all state owned forests
in Serbia. With a Head office in Belgrade, Srbijašume has
forest estates throughout Serbia along with Forest
Management Units in the field.
Other Srbijašume responsibilities include:
• Cultivation, protection, conservation and utilization of
forests.
• Raising and utilization of game.
• Engineering, construction and maintenance of forest roads.
• Preparation of management programs and plans.
• Technical operations in private forests.
• Advancement and utilization of public–beneficial functions
of forests.
• Wholesale and retail trade of forest products.
Public Enterprises of National Parks
Public enterprise (PE) National Parks of Serbia was
assembled by the National Parks Law of 1993.
JP “Nacionalni parkovi” (Public Enterprise “National parks"),
covers 5 national parks with a total area of 159,525 ha.
• PE National Park “Fruška gora": 25,393 ha, established
1960 (www.npfruskagora.co.yu);
• PE National Park “Tara": 19,715 ha, established 1981
(www.tara.org.yu);
• PE National Park “Kopaonik": 11,809 ha, established
1981 (www.kopaonik.net);
• PE National Park “Djerdap": 63,608 ha, established
1988 (www.npdjerdap.co.yu);
• PE National Park “Šar – planina": 39,000 ha, established
1993.
The forests in national parks are managed in accordance
with special programs of protection.
19
Institute of Forestry – Belgrade
www.izas.org.yu
The Institute of Forestry was established in 1946 as an
independent scientific research organization. Since 1998 it
operates as a constitutional part of Srbijašume. It is
involved in scientific research and engineering in
horticulture, wildlife management, erosion control, forest
utilization and wood processing.
Institute of Lowland Forestry and Environment in Novi Sad
www.polj.ns.ac.yu
Established in 1958, the Institute of Lowland Forestry and
Environment is the only institution for poplar and willow
growing in Serbia. It is a part of the Faculty of Agriculture of
the University of Novi Sad. The Institute activity is
concerned with the fundamental and applied scientific
research on the improvement of lowland forest tree species
(Poplars, Willows, Pedunculate Oak, Narrow Leaved Ash
and bee keeping plant species). The Institute is a member
of IUFRO. It is also involved in activities of EUFORGEN and
FAO International Poplar Commission.
Institute for Protection of Nature of Serbia
www.natureprotection.org.yu
The Institute was established in 1948 in Belgrade, with a
goal to research, study and monitor nature and environmental
conditions in Serbia. With a modern, integrated and
interdisciplinary approach to nature conservation, sustainable
development and biodiversity protection Institute is organized
within four sectors: protected areas, biodiversity, science
development and education, promotion and communication.
The Institute plays an important role in the environmental
sector. It is responsible for the establishment of protection
systems on national and natural parks and other protected
areas, as well as protection of wild fauna and flora.
20
Chamber of Commerce of Serbia
www.pks.co.yu
The Chamber of Commerce is composed of 15
associations from different branches of industry. The
Association of Forestry, Wood Processing, Cellulose and
Paper Industry is one of its constituent organizations. Most
of the members from the forestry sector are state
organizations, with members from wood processing sector
being mostly private firms.
The Association of Forestry, Wood Processing, Cellulose
and Paper Industry’s main activities are: analyzing the
work of these five groups, following the economic policy
measures and their influence on the work of these groups,
and making suggestions to the relevant ministry (in the
area of customs regulations, protection of minimum prices
of sawn timber, determining the premiums for companies
oriented towards export).
This Association is sub–divided into several groups:
• Group for forestry.
• Group for primary wood processing.
• Group for final wood processing.
• Group for paper and cellulose production.
• Group for export.
Faculty of Forestry
www.rcub.bg.ac.yu/~sfb/
The Faculty of Forestry was established in 1920 as a
division of the University of Agriculture in Belgrade. In
1949 it became an independent faculty of the University of
Belgrade. The Faculty has four specialization courses in:
forestry, wood processing, landscape architecture and
erosion control. The Faculty manages an experimental
station consisting of 6,000 hectares of forest, two sawmills,
a forest nursery and a centre with facilities for meetings,
seminars and other similar functions.
21
Success Stories
ALIRA
For customers who value craftsmanship, quality and
environmental friendly products, Alira offers a fine collection
of toys made from solid wood. Each toy is carefully crafted
and safely designed. Alira produces toys for children of all
ages. Toys are manufactured from untreated, uncoated
wood and packed in environmentally friendly packaging.
Alira’s main export market is Switzerland. All products have
been tested in Swiss laboratories, and have received
certificates that they comply with European toy safety
standards EN–71. The plans are to increase capacity from
8,000 pieces to 16,000 pieces per month, to enlarge
distribution network as well as develop new designs and
products.
The main goal of the company is customer satisfaction with
their products and quality of services provided.
KOLZEC
Company Kolzec is among few European ice cream sticks
producers and the only factory of this kind in Balkans.
Factory is located in Belgrade and employs 80 workers.
This technology requires highly controlled production
process and well designed machinery (with photocells
and automatic cameras).
Manufacturing equipment which Kolzec uses was imported
from Denmark and quality management systems of the
company are in accordance with ISO 9001 standards.
Kolzec manufactures ice–cream sticks in all dimensions
made from beech and poplar with an annual amount of saw
logs reaching 6,000 m3. Main export markets are EU
countries as well as Peru, Argentina and Mexico.
22
UMKA AD
Umka was established in 1939 and remains unique in
Europe. In its long history of cardboard production it has
undergone significant changes in its production. Main
products include white–lined chipboards of GD2 and
GD3 quality, as well as gray board weighting 230 g/m2
and 550 g/m2.
The annual capacity of the cardboard plant is 55,000
metric tons. Cardboard is produced and delivered in sheets
or rolls depending on customer request. The company holds
JUS ISO 9001:2001 and all its products have been health
tested at the Technology Faculty in Novi Sad, in accordance
with the law of the European Commission 94/62/EC. Umka
is currently in the process of updating technology and
improving working skills, and is planning to introduce ISO
14000 as well as to increase its capacity to 100,000
metric tons in the next two years.
23
ENTERIJER JANKOVIĆ
Established in 1992, Enterijer Janković has grown from a
small craftsmanship to an internationally recognized
company, producing interior furnishing and joinery and
employing 300 workers.
LKV CENTAR
Fulfilling the existing market demand for innovated wood
products and using new and innovative technologies LKV
CENTAR has become a leader in engineering,
manufacturing and fitting wooden constructions. Their main
product is light wood trusses which are produced using
strictly controlled technology, developed and patented by
LKV CENTAR. These products have a high versatility of use:
new roof construction, reconstruction of buildings with
damaged roofs, transformation from flat to lean–to roofs,
public and residential buildings, industrial, business,
storages and sport buildings. Other product is glulam,
a fire–safe product with good tensile characteristics,
especially suitable for load bearing structures where visual
appearance is important.
LKV CENTAR is constantly developing and improving its
technology. They also offer training of employees as well as
engineering services regarding LKV software or technical
documentation. Since the demand for wood products in
construction is constantly increasing, LKV CENTAR has
already transferred its technology to several countries
in the region, as well as Russia.
Its exquisite joinery production includes luxury solid–wood
doors, luxury wooden windows, luxury solid–wood–veneer
combination doors, which are produced in series,
as well as per individual request.
In order to be more competitive and insure presence in
reputable world markets, Enterijer Janković introduced
ISO 9001 and ISO 14001. The production as well as the
basic concept of the company is based on two major values:
quality and tradition. The main references are a range of
luxurious hotels and buildings in CIS and EU furnished by
Enterijer Janković.
TARKET – SINTELON
One of the few investments in this sector is the recent joint
venture established between two major European flooring
manufacturers, German Tarkett Sommer and Serbian
Sintelon a.d , for the purpose of expanding their operations
in Eastern Europe. Producing laminated parquet, their
production facilities are based in Bačka Palanka, with
current capacity of 2.2 million square meters annually.
Their main export markets include South East Europe and
Russia and the company employs 200 workers. Future plans
include investment of EUR 5 million to expand production
capacity to 4 million square meters and the employment of
an additional 100 workers by the end of 2008.
24
25
BACUS INTERCOMER
Bacus Intercomer is a joint stock company established in
2002 between Italian company and domestic veneer
manufacturer. Major products are beech and poplar peeled
veneer with annual production ranging from 8,000 to
10,000 m2.
The Factory is situated near Belgrade and main export
markets are the neighboring countries and the EU countries.
Since company has equipment and capacity for plywood
production, management plans are to increase export to
new markets. Plywood boards can be manufactured in
various dimensions and are mainly used as semi product in
furniture and packaging industry.
BEOMARK TRADE
Beomark Trade, established in 1997 is one of the major
producers and exporters of sawn wood products and
elements in Serbia. Their production focus are furniture
elements and flooring from beech and European oak. Log
supplies come from the area of National Park Djerdap in
Donji Milanovac. Beomark’s saw mills, located in Eastern
Serbia, use high–tech cutting technology in their production
processes. In the last two years, improvements in
technology and an increasing volume of products have lead
to investigation of potential new markets. Recently, the
company completed expansion of their production capacity
and facility for drying and steaming wood.
Following market trends of increased use of lumber the
company widely exports to Greece, Germany, Italy, Holland,
Belgium, Egypt, China, Israel, and Cyprus.
26
SAVA A.D.
For over 50 years Sava A.D. has been supplying the
European and other world markets. Having located its
production in Vojvodina, since 1948 it has supplied
Slavonian Oak to consumers world–wide and is now an
internationally recognized brand. With an annual capacity of
160,000 m2 Sava provides solid wood oak and ash parquet
to the EU market.
The company’s goals include maintaining high customer
satisfaction and high quality of services provided.
Production is carried out with Shreder machines, in order to
provide customers with high quality products.
27
TRIFUNOVIĆ COMPANY
Trifunović Company is one of the oldest wood processing
companies in Serbia. During their thirty years of existence,
the road from round log to high quality final product had
begun with production of yacht rudders, thousands of
furniture sets for interior decoration and has developed into
one of the largest chair export company in Serbia.
Export markets are countries of European Union. Interiors
and exteriors of more than 200 business buildings have
been furnished with Trifunovic furniture. Only the highest
quality wood, containing natural pureness and gloss is
selected, both through natural and professional selection.
The natural feature of the material is particularly maintained
by finishing, performed by the top quality Italian coatings
for shading and protection. Upholstery fabrics originate from
the well known European suppliers.
AMBIENTAL ECO
A young company, established in 2002, Ambiental Eco has
already become well known on the domestic market.
Company employs team of architect and engineers who are
able to give various solution for office or residential space.
The use of modern technology in its production processes
combined with experienced, skilled workers create high
quality furniture that customers have become accustomed to.
The company aims to create unique ambiences through its
furniture and interior furnishing, produced from ecologically
friendly natural materials: wood, glass, iron, stone, leather
or fabric made of natural raw materials. Ambiental Eco
factory has been built and equipped in accordance with the
EU regulations, with one aim in mind – to become a leader
of the solid wood furniture producers in Europe, by offering
highest quality production, distinguished design and
competitive prices.
28
XINARS XL
The company is the most up–to–date solid wood furniture
factory in Serbia. It was opened in May, 2003, and
represents final result of close cooperation between two
eminent Cypriot companies, XINARIS and XemiTrade Ltd.,
and the local partner Lak Žica company from Bor.
Factory is situated in Zlot, Bor Municipality, in Eastern
Serbia, on 40,000 m2 land with 6,000 m2 manufacturing
plant, complete with wood drying chambers, storage facilities,
spraying booth and showroom. Technological process covers
all stages of production – from selection, purchasing and
drying the timber, to production of even the most complicated
and novel elements by use of the latest CNC machines to
assembly, varnishing, finishing, storage and packing.
Production range includes chairs, tables and beds, made as
antique furniture reproductions or in modern designs. Main
types of timber used are beech wood, oak, mahogany, cherry,
ash and Siberian pine. Main export destinations of XINARS
XL are EU countres, Scandinavia and Russian Federation.
29
Company Contacts
ALIRA
Ljubanje b.b.
31000 Užice
Phone: +381 64 1371157
Fax: +381 31 572266
e–mail: gmia@ptt.yu
www.iver–group.com/alira.html
Contact: Aleksandar Miljković
Products: wooden toys
BAXVEL
Svetosavska 17
11460 Belgrade
Phone: +381 64 2217800
Fax: +381 11 3247521
e–mail: baxvel@drenik.net
www.baxvel.co.yu
Contact: Vera Popov
Products: wicker sticks furniture
ENTERIJER JANKOVIĆ
Futoški put 85–87
21000 Novi Sad
Phone: +381 21 400401
Fax: +381 21 301545
e–mail: ejankns@ptt.yu
www.enterijer–jankovic.co.yu
Contact: Božo Janković
Products: joinery and interior furnishings
AMBIENTAL ECO
B. Krsmanovića 5
11000 Belgrade
Phone: +381 11 423703
Fax: +381 11 405172
e–mail: ambiental@yubc.net
www.ambiental.co.yu
Contact: Zoran Rakić
Products: solid furniture and furnishings
BEOMARK – TRADE
Svetozara Markovića 1/I–4
11000 Belgrade
Phone: +381 11 3340305
Fax: +381 11 3232909
e–mail: beomark@eunet.yu
www.beomark.com
Contact: Aleksandar Mirosavljević
Products: sawn wood
INTERDRVO
Gajeva 31a
34000 Kragujevac
Phone: +381 34 332115
Fax: +381 34 305285
e–mail: interdrvo@verat.net
www.intersped–kg.co.yu
Contact: Dragan Stojić
Products: solid wood boards
ARTINJAN
Rudjinački put bb
36210 Vrnjačka Banja
Phone: +381 36 665020
Fax: +381 36 611521
e–mail: artinjan@ptt.yu
www.artinjan.co.yu
Contact: Čedomir Artinović
Products: parquet
CSR FAGUS
Somborski put bb
24340 Stara Moravica
Phone: +381 24 741090
Fax: +381 24 741009
e–mail: office@csr–fagus.co.yu
www.csr–fagus.co.yu
Contact: Miroslav Vojnić
Products: solid wood boards
KOLZEC
Trg Nikole Pašća 5/7
11000 Belgrade
Phone: +381 11 3232127
Fax: +381 11 3239504
e–mail: kolzec@eunet.yu
www.kolzec.co.yu
Contact: Radoslav Zečević
Products: ice cream sticks
BACUS INTERCOMER
Pančevački put 56
11000 Belgrade
Phone: +381 11 3318850
Fax: +381 11 3318295
e–mail: bi@yubc.net
Contact: Staniša Mladenović
Products: veneer boards
DUNAV AD
Trg Oslobođenja 9
25260 Apatin
Phone: +381 25 773291
Fax: +381 25 772181
e–mail: addunav@eunet.yu
www.dunav–apatin.co.yu
Contact: Predrag Krneta
Products: kitchen furniture
KOLAREVIĆ
Industrijska zona – Pojate
37210 Čićevac
Phone: +381 37 805 202
Fax: +381 37 805 203
e–mail: kolarevic@ptt.yu
www.kolarevic.co.yu
Contact: Bojan Damjanović
Products: solid wood boards
30
LAGADO
Vojvode Stepe 114
11000 Belgrade
Phone/Fax: +381 11 3976415
e–mail: lagado@verat.net
www.lagado.co.yu
Contact: Aleksandra Nišavić
Products: livingroom furniture
LIKA SISTEM
Zrenjaninski put 114
11211 Belgrade
Phone: +381 64 8206803
Fax: +381 11 3320061
e–mail: drvoprerada@likasistem.co.yu
www.likasistem.co.yu
Contact: Đuro Lukić
Products: sawn wood
LKV–CENTAR
Bledska 2
11000 Belgrade
Phone: +381 11 3809748
Fax: +381 113809750
e–mail: goga@lkvcentar.co.yu
www.lkvcentar.co.yu
Contact: Gordana Kujundzić
Products: engineered wood products
PAPIRPAK
Preljina, p.o.box 65
32102 Čačak
Phone: +381 32 381835
Fax: +381 32 381751
e–mail: papirpak@diva.co.yu
www.diva.co.yu
Contact: Milovan Jovanović
Products: paper products
SAVA AD
Kosovska 5, lokal 7
11000 Belgrade
Phone: +381 11 3167441
Fax: +381 11 3167440
e–mail: adsava@beotel.yu
www.sava.co.yu
Contact: Predrag Filipović
Products: parquet
TOPLICA DRVO
Visokog Stevana 43a
11000 Belgrade
Phone: +381 11 3282192
Fax: +381 11 2186488
e–mail: office@toplicadrvo.com
www.toplicadrvo.co.yu
Contact: Zoran Ilić
Products: solid wood doors and windows
SIMPO LINE
Stefana Prvovenčanog 58
17500 Vranje
Phone: +381 17 414810
Fax: +381 17 414812
e–mail: simpoline@ptt.yu
www.simpo.co.yu
Contact: Ivica Djordjević
Products: engineering and interior
furnishings
TRIFUNOVIĆ
32308 Prnjani
Phone: +381 32 841112
Fax: +381 32 841451
e–mail: stolica@eunet.yu
www.trifunovic.co.yu
Contact: Ranko Trifunović
Products: wooden chairs
TARKETT–SINTELON
Industrijska zona bb
21400 Bačka Palanka
Phone: +381 21 755700
Fax: +381 21 750133
e–mail: veselin.veskovich@tarkett.com
www.tarkett.com
Contact: Veselin Vesković
Products: wooden floors
TINA KNJAŽEVAC
22.decembar 3
19350 Knjazevac
Phone: +381 19 731708
Fax: +381 19 731803
e–mail: adtina@ptt.yu
Contact: Milinko Nikolić
Products: solid wood cradles
UMKA AD
13 Oktobar 1
11260 Umka–Belgrade
Phone: +381 11 3602699
Fax: +381 11 5026995
e–mail: mmilojevic@umka.co.yu
www.umka.co.yu
Contact: Mijodrag Milojević
Products: cardboard
XINARIS XL
Petra Gramića b.b
19215 Bor–Zlot
Phone: +381 11 3472060
Fax: +381 11 3473505
e–mail: zlatko@xinarisxl.com
www.xinarisxl.com
Contact: Zlatko Šaponjić
Products: solid wood furniture
31
Serbia Investment and Export Promotion Agency (SIEPA)
is a government agency established in 2001 to facilitate
and support foreign direct investments and promote
Serbian exports.
The list of services that SIEPA provides to foreign investors:
• analyzing Serbia’s business environment and providing
critical information regarding the process of setting–up a
company in Serbia,
• preparing sector analyses and studies that give a
thorough overview of the state of particular sectors
of the Serbian economy,
• providing help in identification and acquisition of
attractive Greenfield and Brownfield sites,
• assistance in obtaining necessary permits and licenses,
thus speeding up the completion of investment projects,
• helping in finding partners and suppliers among
Serbian companies.
Only by effectively networking with public and private sector
bodies, SIEPA can best respond to the needs of foreign
investors. In particular, SIEPA works in close cooperation
with the following institutions:
• all government ministries and other governmental bodies,
• municipal authorities and local self–government,
• Building Directorate of Serbia and Agency for Building
Land and Construction of Belgrade,
• tax and customs authorities,
• statistical bureaus,
• chambers of commerce,
• National Bank of Serbia,
and all other institutions related to the process of
establishment and successful pursuit of business ventures
in Serbia.
32
Photo: Nemanja Jovanov
Design: Saša Đorđević
Supported by United Nations
Development Programme
Funded by the Government of the
Netherlands
Serbia Investment and
Export Promotion Agency
SIEPA • Vlajkovićeva 3 • 11000 Belgrade • tel.: +381 11 3398 550 • fax: +381 11 3398 814 • office@siepa.sr.gov.yu • www.siepa.sr.gov.yu