Figures show that Slovenia’s pharmaceuticals and chemicals manufacturers head the list of the country’s most successful companies. The initial growth based primarily on exploitation of natural raw materials evolved into human capital as the most significant element of success of pharmaceuticals and chemicals industry.

Estimated gross annual labour costs in chemicals & pharmaceuticals industry for 2012

(Total cost per employee in €) 

Innovative spirit and clever technical solutions are the qualities often associated with the Slovenian workforce. In the sector, there are nearly 26,000 employees in over 700 companies. Since it is knowledge-intense sector, skills levels have to be high throughout the sector and 2,500 students in secondary schools for chemistry, pharmacy and biology guarantees qualified entry-level employees. The figures illustrating enrolment in postsecondary education are equally high: nearly 10,500 students are enrolled in undergraduate courses in chemical technology, biology, pharmacy, health care and veterinary science. For continued strength in key markets, fluency in foreign languages is essential. According to international studies, Slovenians are at the European top. Over 90% of population can communicate in at least one world language with the English and German being most widespread and over 70% of population is able to communicate in two or more world languages.

The story does not end with a diploma and a good grasp of foreign languages. Upskilling the existing workforce and attracting new entrants willing to acquire new work-based qualification for the chemicals sector has built a bridge between universities and industry, and helped to develop the new work-based qualification for chemicals sector. The success of the industry leaders is partly built on existing good practice in delivering fit for purpose education, training and development for those already working in the sector as a number of Slovenian companies has shown.

A drug maker with a world-class workforce, Krka, received the 2010 Golden Gazelle award for the fastest growing company in Slovenia. Its headcount increased by more than 300 people, its profit rose and it obtained a host of European marketing authorisations from the European Medicines Agency (EMEA) under centralised, decentralised and mutual recognition procedures.

Detailed information on human resources...

Productivity/value added per employee, 2010

Slovenia’s economic profile is largely conditioned by the country’s turbulent history and rich culture shaped by routes that facilitated commerce between Europe and Asia even before the arrival of the Slavs.

Slovenia has always relied on exports and its chemicals and pharmaceuticals industry still accounts for a hefty portion of the country's export mix with 72% of sales earned in foreign markets. Pharmaceuticals are the backbone of the export mix of the chemicals industry, tyres and inner tubes for vehicles come second followed by plastics. Pharmaceuticals and chemicals consumer products as well as tires from Slovenia are very popular on the markets of the new EU Member States, central and south-eastern Europe and CIS countries.

In terms of international activity, performance and image-building, Krka and Lek are the leading manufacturers of generic drugs in central and eastern Europe (CEE)  and the engine of the sector’s growth. Krka is the third largest exporter in Slovenia and its most important corporate tax payer. Lek was taken-over by Novartis has a majored presence in the CEE region. Both companies are true trans-nationals and have a foothold in many key markets and operate plants in both Slovenia and abroad. Lek, for example, manufactures its products in four different locations in Slovenia, as well as in Poland and Romania. Krka, in addition to its large plants at home, also operates plants in Croatia, Germany, Poland and Russia. Chemicals manufacturers have been working on expanding into the emerging CEE markets of, as well as acquiring enterprises in the territory of former Yugoslavia.

Thanks to its strategic position and strong economic and personal links with the companies in the region, Slovenia is a springboard for foreign companies interested in the emerging markets in the region. The number of international companies setting up their regional hubs in Slovenia is rising attracted by the expertise of local managers, sales force and field engineers and their in-depth knowledge of the regional markets. They speak the language, they are familiar with legislation, they know their way around, and what’s most important there are no cross-cultural barriers for them. 

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Productivity in industry, 2010

Related GDP (PPP) per person employed (in €)