In cooperation with Nabava Plus, the Croatian Employers’ Association organized the second in a series of educational events “Smart Purchasing – People, Technology, Changes”, on the topic Purchasing in 2020 – Croatia, EU, World. The central part of the event was a panel discussion on topics related to business in Croatia, the EU and the world. The panel was attended by Peter Milas (Business Operations Manager / Altpro), Denis Miletović (Operational Purchasing Manager / AD Plastik), Daniel Pavlić (PMP/RIS), Nikolina Podoreški (Senior Procurement Business Partner / Nestlé South East European Market) and Mirela Senica (Head of Purchasing for CEE and MEA / IBM and President of HUND) and the moderator was Renata Ivaštinović from Nabava Plus.

“Strategic partnerships and positioning in the specific qualities that we as a company offer are important. We strive to be eco-aware, digitized and to offer value added that others do not offer. Suppliers are also important as partners with whom we need to cooperate and create good interpersonal relationships to understand market needs and create best adaptation strategies accordingly,” said Denis Miletović, Operational Purchasing Manager at AD Plastik.

It was concluded that it is important to continue working on increasing the understanding of the role of purchasing in companies through an open dialogue with customers and management boards and through the creation of a collaborative culture. Technology and new trends, as well as learning from existing good practices, can help create better solutions with regard to purchasing processes and improve existing ones.

Decision on the appointment of Marinko Došen as President of the Management Board for another five-year term was made at today’s meeting of the Supervisory Board, after his current term of office expires.

Based on the successful results and the improvement of the company’s business achieved in the past period, this decision has been made in order to ensure the continuity of the Management Board’s work and the achievement of the company’s long-term business goals.

Marinko Došen was appointed President of the Management Board of AD Plastik on February 6, 2015 and his current term of office began on July 20, 2016 and runs until July 20, 2020.

The appointment of other members of the Management Board will be decided upon before the expiration of the existing term.

AD Plastik Group has sealed new deals worth EUR 46.5 million in the Russian market for various vehicle models. This is a continuation of successful cooperation with the Renault-Nissan-AvtoVAZ Alliance, which is one of the key car manufacturers in the Russian market.

New deals worth EUR 24 million have been sealed with this customer for the new Granta Square model, the successor to the currently best-selling model in the Russian market, Lada Granta. Headliners, chasis protectors, mud flaps and rear skirts will be produced for this vehicle at AD Plastik Togliatti plant and the vehicle itself will be produced at AvtoVAZ plant in Togliatti. Granta Square will be produced in three versions, namely version Sedan, the Sportback compact version and the upgraded off road version Cross. The Granta has been accepted as the most affordable family vehicle in the Russian market, offering the best ratio of comfort, equipment and price. The production of new vehicle models is aimed on constant increase in their quality, thus the emphasis regarding Granta Square has been set on improvements in the acoustics and visual impression of the interior and exterior of the vehicle. This vehicle is one of the most popular in the Russian market and therefore this cooperation is especially important for AD Plastik Group.

After a serious cooperation agreed in July for Renault Logan and Sandero vehicles, a deal on the production of headliners worth EUR 12 million has been additionally sealed for the mentioned models. The start of serial production of the vehicles, regarding which the deal was sealed with the Renault-Nissan-AvtoVAZ Alliance, is planned for the second and third quarters of 2021, with an estimated project duration of eight years.

Successful cooperation has been continued also with the Volkswagen Group in the Russian market, thus new deals worth EUR 10.5 million have been sealed for Volkswagen Tarek and Škoda Karoq vehicles. Trunk side trims will be produced for these vehicle models at AD Plastik Kaluga plant and the start of serial production of the vehicles is planned for the end of 2020 with the estimated duration of seven years.

AD Plastik Group has published the Interim Report by Management for the first six months of 2019, showing that the operating revenue increased by 12.4 percent compared to the same period last year and amounted to HRK 713.7 million. The realized net profit of the Group in the reporting period amounted to HRK 57 million, which is an increase of 1.3 percent compared to the first six months of 2018. The Group’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) also recorded a growth of 3.4 percent and in the observed period it amounted to HRK 103.4 million.

„The serial production of the new Clio 5, one of the best-selling models of the Renault Group, began in June and due to the excellent demand and acceptance of this model in the market, we’ll have a significant increase in the quantities produced and the full implementation of all production activities during the autumn. Twingo, Smart and Clio as well as the start of the serial production of the new Ford Puma which is ahead of us provide us with stability of business in the upcoming period,“ said Marinko Došen, President of the Management Board of AD Plastik Group.

The net financial result was more favorable in the observed period, and the net financial debt increased compared to the end of 2018, although it decreased compared to the first quarter. This is mainly due to the realization of a loan to finance investments in the parent company.

„The announcements of our customers are good, which is confirmed by new deals sealed in the reporting period for the European market worth EUR 57 million. First deals sealed for our Hungarian company since its takeover are among them, which is significant because of the continuity and improvement of cooperation with new customers in the Group’s portfolio. Our revenue shows that we have been constantly growing better than the markets themselves in which we operate and confirms the validity of our business decisions, as the European and Russian markets continue to record a smaller fall in new car sales,“ said Marinko Došen.

AD Plastik Group recently concluded new deals with the Renault-Nissan-AvtoVAZ Alliance for the Russian market with a total value of EUR 71.4 million. More than 80 different exterior components will be produced at the AD Plastik Group plant in Togliatti, which will expand its injection moulding capacities due to new deals.

In addition to the production of exterior components, referring to bumper components, rocker panels, mudguards and under engine covers, an experienced team of Group engineers is also responsible for the development of a large number of positions on which the deal was sealed. In this manner the Group has strengthened its position as a development supplier of the injection-moulded components of the Renault-Nissan-AvtoVAZ Alliance.

New deals refer to the third generation of Logan and Sandero vehicles produced in Russia under the Renault name at the AvtoVAZ Togliatti factory. The new generation of these vehicles will be produced in Romania, Russia, Algeria, Morocco and Colombia under a common global name and appearance. 

Renault Logan and Sandero are a sedan and compact version of the same vehicle, and they are among the twenty best-selling vehicles in the Russian market. Therefore, really high expectations for redesigned models, whose sales are estimated at over 140,000 vehicles annually only in Russia, are not surprising. The start of serial production is planned in the second quarter of 2021, and the estimated duration of the project is eight years.

“The Renault-Nissan-AvtoVAZ Alliance is among the key car manufacturers in Russia with more than 33 percent market share and it is as well one of our biggest customers. By concluding new deal, we have secured the position of the key supplier on this project, but we have also strengthened the important position of the development supplier. New vehicles are being manufactured on a platform that was introduced for the first time on the new Renault Clio 5, and they are expected to reach a maximum of five stars for safety on the Euro NCAP test. The vehicles will be somewhat larger than the existing models, and a strong impact of Renault Duster is evident in the design,” said Sales Director for the Russian market of the AD Plastik Group, Mislav Čelar.

The sixth conference of the Lider’s Club of Exporters was held at the Congress Center Forum in Zagreb, under the slogan „Smart ones know what export is for“. The Export Conference is the most important annual activity of the Lider’s Club of Exporters, a project initiated to sensitize the public, and especially those who make political and economic decisions, on the need for stronger export incentives as a prerequisite for economic and GDP growth.

Opening a conference attended by 150 participants, Lider’s Editor-in-Chief Miodrag Šajatović reminded that export growth is the most important factor of GDP growth. Minister of Economy Darko Horvat noted that GDP has been growing, primarily due to the strong state contribution to the implementation of large investment projects. At the round table with the topic “EU vs. the rest of the world”, which was moderated by the Lider’s deputy editor-in-chief Manuela Tašler, along with the President of the Management Board of AD Plastik Group, director of Šerif Group, Damir Pašić, also participated. In the conversation they tried to get the answer to the question whether less demanding, populous markets outside the EU were a better and more prospect opportunity for exporters. “The main markets for the AD Plastik Group, the automotive component manufacturer, are the European Union and Russia. There are no major differences in conducting business since it is a business whose quality standards are always at the same level. The lack of automotive industry in Croatia is one of the challenges we are facing, and there are a number of situations that make difficulties to our competitiveness in the global market. For example, labor costs are up to 40 percent lower in some other countries where we conduct business,” noted Došen, among other things. He recalled that AD Plastik has invested between HRK 250 and 300 million in development and growth and it has employed 300 new workers.

At the 14th Convention of Croatian Exporters held in Zagreb’s Westin Hotel under the title Role of export in modern economic policy, the Golden Key, award presented to the most successful Croatian exporters, was awarded for the twelfth time. The Golden Key for the best large exporter in 2018 was awarded to AD Plastik. Prime Minister of the Republic of Croatia Andrej Plenković presented the award to the President of the Management Board of AD Plastik Marinko Došen. On this occasion, Marinko Došen thanked on behalf of all the winners of the Golden Key Award.

“This acknowledgment is a confirmation that we have set our plans well and that we have been directing our business in the right direction, but for us it is above all the obligation to be even better in the future. We welcome the measures and initiatives taken by the Government in order to help us exporters facilitate business in an extremely demanding global market. I believe that in the future the Government will be even more decisive in supporting Croatian production and export, which are the cornerstones of the economy. In order to successfully operate in the global markets, we ought to be competitive, and this is possible only with the reduction of the tax and cost burden of business. We also look forward to and support the introduction of the euro, as it will greatly facilitate the business for the exporters,” Došen pointed out.

In addition to AD Plastik, the most successful exporters were awarded in various categories. Thus, the best medium-sized company is Tehnix, the best exporter in the category of small and micro companies is Tremak, while Altpro company has been awarded in the category of the most innovative exporters. Apart from the category of large companies, AD Plastik was nominated in three other categories, namely Best Exporter to Slovenia, Best Exporter to France and in the category Most Innovative Exporter.

According to FINA (Financial Agency) data for 2018, exporters account for less than 15 percent of companies in Croatia, employing 52 percent of total employed people and having more than 70 percent of investments in development.

While presenting the awards, Prime Minister Andrej Plenković pointed out that the activities of exporters should be supported and encouraged, which his Government has been doing by taking numerous measures.

“Two and a half years ago, we set clear goals. We want a healthy growth that is not an increase in debt but a reduction in our public debt, responsible budget policy, budget surplus, better absorption of European funds, responsible policy, structural reforms and attracting foreign investments,” said Andrej Plenković.

In the premises of Split County Chamber, the Investment Forum of Southern Croatia was held. Over the last four years the best entrepreneurs and production investments have been recognized and rewarded through this project. The selection itself of the best large, medium and small production investments, especially those resulting with new employments and export, was presented by Miodrag Šajatović, editor-in-chief of Lider and a member of the expert committee of the project.

Round table on the topic of creating positive investment environment was held as part of investment forum, attended by Marinko Došen, president of the Management Board of AD Plastik, Mira Krneta, Head of Dalmatia District Office of Croatian Bank for Reconstruction and Development, Svjetlan Stanić, president of the Management Board of Stanić Group and Anđelko Katavić, Head of the Administrative Department for Economy, EU Funds and agriculture of the Split-Dalmatia County.

“Tax burdens are certainly one of the areas that could be modified somehow. The burden on business is too big and we have an expensive state so our competitiveness is hampered. On the other hand, any serious investment that may result in export has been destimulated by the exchange rate policy and is therefore not attractive to foreign investors. This can and should be worked on. AD Plastik operates in a highly dynamic industry where it is impossible to operate without constant investments in the competencies and technological modernization of the plants. Despite investments in automation and robotization, along with two fully automated painting lines in Zagreb, we have employed 350 employees over the last four years. The wrong perception is that robotization and automation exclude new employments. On the contrary, new job positions have been opened with a different job description,” Došen pointed out.

As part of the CFO Conference 2019 – Leading Finance to the Future, which has been organized for five years in a row by Deloitte for finance directors, a panel called “Leadership in Exceptional Time” was held, attended by Kristina Laco from Communication Office Colić, Laco and Partners, Tatjana Divjak, life and business coach, Zoran Primorac, table tennis player, Sonja Popović from SAP Croatia, Darko Pappo from DIV Group and Marinko Došen, President of the Management Board of AD Plastik Group.

“Our strategy relies on two principles. The first one is the constant growth and investment in our competences and the second one is risk management. The automotive industry is very specific, especially when we talk about customer and supplier relationships. AD Plastik represents global partners for its customers on the markets we have determined for. In this way, we expand our portfolio and manage risks,” Marinko Došen pointed out.

He explained the readiness and reactions in sudden and unforeseeable situations by the example of a five-year crisis in Russia. “The crisis in Russia was unpredictable because it came after a remarkable growth at rates of 20 percent a year. However, diversification of the market has helped us to share arisen shocks with our partners in the first place and to continue to work and develop on the markets that have not been affected by the crisis,” Došen explained.

He also briefly spoke about the specifics of the automotive industry which is based on long-term contracts. He also commented on the acquisition of the Hungarian company Tisza Automotive which was part of the company’s growth and portfolio expansion strategy. “We have been constantly monitoring and examining market and opportunities, but we have to be ready before we decide to take such a step. Before buying the Hungarian factory, we had seven factories in four countries and a fully-defined model of operation, regardless of the markets in which we conduct business. The industry is well known to us and it is necessary to implement existing and proven standards and business models to a new production site. This is an absolutely adrenaline business and you must have a very good organization and high quality standards to survive,” Došen said.

Investor Day was held at AD Plastik Group’s plant in Jankomir, Zagreb, where business results for 2018 and the first quarter of 2019 were presented, as well as plans and expectations for the current year. All members of the Management Board of AD Plastik Group were answering the questions of interested investors, after which a tour of the painting line was organized.

„We were acquainted with the results in a great measure, but we got answers to some additional questions. Tour of the plant thrilled us most beacuse now it is a little bit clearer to all of us how it actually looks like,“ said one of the present representatives.