 | industries / chemical and pharmaceutical |
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Lek plant in Lendava Facts & Figures in 2006 Number of companies: 650 Number of employees: 26,687 Revenue (in EUR): 4.35 billion Exports (in EUR): 3.11 billion Key export markets: Albania, Austria, Bosnia & Herzegovina, Croatia, Germany, Ireland, Italy, Macedonia, Montenegro, Poland, Romania, Russian Federation, Serbia, Slovakia, USA … (Source: AJPES, 2007) Key products: Testimonial »Few people have heard of Slovenia on the other side of the Atlantic, and American business partners see image-building activities as an absolute priority in efforts to put Slovenia on investors’ map. General impression is that quality of life is high, people are nice and well educated. The country offers a variety of natural beauties, places worth visiting, and opportunities for sports and recreation. On top of that, cuisine is superb and wines are excellent.« Richard A. Johnson, Managing Director and President of the Board Sava Tires Goodyear Quality Workforce 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. Productivity in Industry (PPP), 2006 Related GDP (PPP) per person employed in industry (in EUR) Source: IMD - World Competitiveness Yearbook, 2007 Innovative spirit and clever technical solutions are the qualities often found in Slovenian workforce. In the sector, there are over 26,000 employees in over 640 companies. Almoust 8,000 students are enrolled in undergraduate courses in chemical technology, pharmacy, medicine and veterinary science. The number of students in secondary schools for chemistry, pharmacy and rubber processing is over 7,900. Estimated gross annual labour costs in chemicals and pharmaceuticals industry for 2008 (Total cost per employee in EUR) Source: Adecco & JAPTI, 2008 For continued strength in key markets, fluency in foreign languages is essential. According to international studies, Slovenians are at the European top with 71% of population able to communicate in at least one world language. English is commonly spoken, followed by German and Italian. Quality Link to Regional Markets A central geopolitical position at the cross-roads of trade and transport routes gives Slovenia a cutting edge and accounts for its historical, cultural and economic profile – the key elements of its national economy. By definition, Slovenia is an export-oriented country, and its chemicals and pharmaceuticals industry is a vital element of the country's export mix with 66% 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 tyres from Slovenia are very popular on the markets of the new EU Member States, south eastern Europe and CIS countries. In terms of international activity, performance and image-building, two pharmaceutical companies are at the forefront Lek from Novartis Group and Krka. Both are true trans-nationals and have a foothold in many key markets. 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 manufactures in Croatia, Poland and Russia. Chemicals companies have been working on expanding into emerging markets of CEE, as well as acquiring enterprises in the territory of former Yugoslavia. Thanks to its position and decades of fostering economic links with its neighbours, Slovenia is in a pole position to serve the 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. Quality Infrastructure Slovenia lies at the intersection of the 5th and 10th Pan-European transport corridors for road and rail transport. Its transport and IT infrastructure is well-branched. The Adriatic port of Koper is the shortest maritime connection for cargo arriving from Asia to landlocked countries of central Europe through the Suez Canal. Slovenia has a long industrial tradition in processing base chemicals in a variety of products. This line of business demands complex processing technologies and substantial investment to keep abreast of competitors. Flexibility and ability to provide customers with the right product on short notice are the qualities that make the difference. Renowned domestic and foreign companies in the chemicals sector specialise in the production of paints, varnishes, coatings, synthetic fibres and other chemical products. Household names are Helios, Color, Jub, Cinkarna, Julon (Gruppo Bonazzi) and Henkel, Sava Tires is the only tyre manufacturer in Slovenia, wholly owned by the Goodyear Tire & Rubber Company. Productivity/value added per employee in 2006 Source: AJPES, 2007 Judged by the scope of their operations and commercial success, pharmaceuticals companies are certainly the jewel in the crown of this particular sector. The top companies are Lek (Sandoz Group) and Krka with the combined 5,000-strong staff enjoying the reputation of leading producers of generic drugs in the region. Leading domestic and foreign-owned companies |
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JAPTI - Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments disclamer |