Balkan companies see ‘near-shoring’ opportunity with global supply woes
By Daria Sito-Sucic
SARAJEVO (Reuters) – As provide chain disruptions brought on by the COVID-19 pandemic, warfare in Ukraine and lockdowns in China hit Western European markets, Balkan firms are hoping to learn from their shut proximity and low labour prices.
Some companies at a Sarajevo enterprise discussion board dedicated to “near-shoring” – partnerships nearer to residence versus in markets 1000’s of miles away – mentioned on Thursday curiosity from their European companions has been on rise up to now yr.
German-owned firm GS-TMT within the central Bosnian city of Travnik is opening a brand new plant to satisfy an elevated demand for his or her mechanical components and electrical bikes from consumers in Germany and Austria.
The expansion of the corporate, which employs 462 employees, fell 16% in 2020 through the coronavirus pandemic however rose 32% final yr and is anticipated to rise one other 42% in 2022, with revenues estimated at over 60 million Bosnian marka ($32.4 million), CEO Snjezana Kopruner advised Reuters.
“A motive for the rise of our revenues is that we took over the manufacturing of a part of items that had been produced in China,” Kopruner mentioned.
A current survey of German employers confirmed they thought of the Western Balkan international locations, together with Albania, Bosnia, Kosovo, Montenegro, North Macedonia and Serbia, as fascinating funding locations resulting from low labour prices and taxes and geographical place, Sophia Kluge of the German-Serbian Chamber of Commerce mentioned.
“The Western Balkans as a European area is as shut as it may be,” Kluge mentioned.
She mentioned German employers, whereas citing infrastructure, governance and political instability as challenges, have additionally burdened so-called “cultural proximity” and their optimistic expertise with employees from the area.
“It was that intestine feeling that was decisive for some to decide on the area for his or her funding,” she mentioned.
Ekrem Turajlic, a director at Bosnia’s largest prescription drugs firm, Bosnalijek, which exports primarily to Russia, the Center East and the Balkans, was additionally optimistic about increasing a community of European consumers.
“We’re seeing positively extra curiosity from European purchasers to show to suppliers who’re nearer than Asia,” Turajlic mentioned.
Martin Grabe of Germany Commerce & Make investments mentioned the Western Balkan international locations had been typically seen as secure however that they needed to clearly select the trail they’ll take and whether or not they’ll work in the direction of integration into the European Union.
(14 = 1.853 Bosnian marka)
(Reporting by Daria Sito-Sucic; Modifying by Alison Williams)
