The Nova Gorica-based maker of bakery equipment, Gostol-Gopan, opened a factory in Bosnia-Herzegovina to manufacture components for baking and processing industries
The Nova Gorica-based maker of bakery equipment, Gostol-Gopan, opened on Friday, 10 February a factory in Bosnia-Herzegovina to manufacture components for baking and processing industries, the company said.
The EUR 700,000 facility, located in Tuzla, will produce individual elements for baking machinery and initially employ ten workers, soon to be joined by another ten.
The new plant will increase Gostol-Gopan's output capacity by a fifth. The company furthermore plans to turn the factory into a logistics centre for the whole of Central and Eastern Europe.
Gostol-Gopan has been experiencing a 15% increase in sales per year in the past years, with revenues expecting to reach EUR 17m in 2006, said the head of marketing Andreja Sovdat.
To fulfil the surging demand, the company first wanted to introduce double shifts at its Nova Gorica plant, however it failed to get enough qualified workforce to do the job, Sovdat added.
Furthermore, labour is cheaper in Bosnia-Herzegovina, the profits are not taxed in the first five years, language is not an issue and transport connections between Tuzla and Nova Gorica are relatively good, she explained.
Sovdat also said that Gostol-Gopan Vzhod, the company's Russian subsidiary, would begin operating in the first half of 2006. Gostol-Gopan exports 90% of its products abroad, with Russia and the Ukraine the most important export markets.
Source: Slovene Press Agency STA