Fiasco of Croatia’s State-Owned Toilet Paper Business

By , 25 Jan 2016, 14:26 PM Business

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Troubled times for toilet paper in Croatia.

The project of production of toilet paper, in which the state-owned Narodne Novine public company has invested more than 63 million kuna since 2013, has brought very poor results, according to the company itself. However, the management of Narodne Novine did not want to announce the first preliminary business results of Mekkoo, its subsidiary for toilet paper production. In response to reporters’ question, they only stated that "a complete analysis of business results has not yet been completed, but data which is currently available indicate that successful business results have not been achieved", reports on January 25, 2016.

The very decision to launch this kind of production during the period when Narodne Novine itself should undergo restructuring and partial sale of "non-core" activities provoked a lot of scepticism and surprise. Narodne Novine is a public company whose main business is publishing the Official Gazette of the Republic of Croatia, where all public laws and regulations are published before they can take effect.

The implementation of the toilet paper initiative has received criticism even from the State Audit Office, but for now it seems that the project will continue for at least some time. The factory in Krapina was supposed to start with the production of its own brand, but there are no real results. The preparations for launching the new brand are extensive and complex, according to Narodne Novine, seemingly so complex that they have refused to talk about it in detail.

But, after the dismissal of former Chief Executive Officer Ivan Cvirin and two other members of the Board of Directors who did not meet expectations, Mekkoo is now led by new CEO Dario Kos. Narodne Novine assures the public that business plans drafted for Mekkoo envision stabilization and an increase of production and financial revenues. However, the fact is that Narodne Novine expects that there will be changes in its own leadership and operations quite soon, so the unsuccessful toilet paper business will certainly be under additional scrutiny by the new company management.

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  • The roads are wet and slippery in Lika mountain area and in Dalmatia. Rock and land sliding is possible on the DC1 state road through Lika as well as on the DC8 Adriatic road. Traffic is dense in cities and on their detour roads. During the day difficulties can be expected in roadwork areas. Tonight (27 February) 7pm-6am traffic is suspended on the A6 Rijeka-Zagreb motorway between Delnice and Oštrovica junctions in direction Rijeka, detour: DC3/DC501 state roads. In Učka tunnel in Istria one lane is free only every night 10pm-6am till 3/4 March. Drivers are invited to keep distance and to adjust the speed to road conditions. The headlights have to be on during the day as well. One lane is free only/traffic is flowing in reduced lanes on the following motorways:-A1 Zagreb-Split-Ploče at Božići viaduct in direction Split, between Novigrad and Karlovac junctions 42nd-40th km in direction Zagreb, at Rašćane viaduct in direction Dubrovnik; -A3 Bregana-Lipovac between Kutina and Novska junctions 118th-121st km in both directions; -A4 Zagreb-Goričan at Kraljevečki Novaki junction 93rd-94th km in both directions till 13 March; -A4 Zagreb-Goričan in Hrastovec tunnel in both directions 1-11 March; -A6 Rijeka-Zagreb at Svilno viaduct 78th-80th km between Orehovica and Čavle junctions in each direction till 1 June, in Vršek tunnel in direction Zagreb; -Rijeka detour road in the exit lane of Rujevica junction in direction Rupa till 16 March; -A8 in Istria on the section Lupoglav-Učka tunnel. Due to winter driving conditions there is a traffic ban on freight vehicles with trailers and all other vehicles have to use the winter equipment in Lika mountain area on the DC42 at Poljanak. Due to roadworks traffic is suspended: -on the DC1 state road in Lučko and Stupnik (Zagreb); -on the DC8 Adriatic road at Posedarje till 10 April; -on the DC6 state road, section Glina-Dvor border crossing till 15 March, detour: Glina (DC37)-Petrinja-Hrvatska Kostajnica-Dvor; -on the DC34 Valpovo-Josipovac state road; -on the DC206 Valentinovo-Petrovsko state road; -on the DC228 Jurovski Brod-Ozalj-Karlovac state road at Ozalj. Traffic is regulated by traffic signals/one road lane is free only:-on the DC1 state road at Tušilović; -on the DC1 Sinj-Klis Grlo state road at Dicmo; -on the DC8 Adriatic road on the section Kaštel Stari-Kaštel Gomilica, at Podstrana, on the section Zaton Doli-Bistrina, at Srebreno; -on the DC66 Pula-Most Raša state road; -on the DC75 Poreč detour road, section Vrvari-Bijela; -on the DC303 Rovinjsko Selo-Brajkovići-Kurili state road. 15 November 2016-15 April 2017 winter equipment is mandatory on the winter sections of the state roads in Croatia (it includes four winter tyres or four summer tyres with chains ready for use).
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