Fiasco of Croatia’s State-Owned Toilet Paper Business

By , 25 Jan 2016, 14:26 PM Business

Share this:

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 Polovni.hr 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.

Photo of the day

Editorial

Croatia Traffic Info

  • Due to a traffic accident traffic is flowing with difficulties on Zagreb detour road (A3) from Jankomir junction towards Lučko junction. Due to strong wind at Dubrovnik bridge traffic is suspended for: doubledeckers, trailers and motorcycles. Wind is blowing also on the A6 Rijeka-Zagreb motorway from Kikovica to Tuhobić tunnel and on the A1 motorway from Božići viaduct to Sveti Rok tunnel (driving speed limit of 40 km/h). During the day difficulties can be expected in roadwork areas. Until 31 March at 5pm traffic is suspended on Rijeka detour road (A7) at Rujevica junction. Drivers are invited to keep distance and to adjust the speed to road conditions. With the bad weather 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:-A2 Zagreb-Macelj between Zaprešić and Zabok junctions 20th-18th km in both directions; -A3 Bregana-Lipovac between Kutina and Novska junctions 106th-108th km, 118th-121st km in both directions; -A4 Zagreb-Goričan in Hrastovec tunnel in both directions; -A6 Rijeka-Zagreb at Svilno viaduct 78th-80th km between Orehovica and Čavle junctions in each direction till 1 June; -A8 in Istria on the section Lupoglav-Učka tunnel. Roadworks on the A4 Zagreb-Goričan motorway (Zagreb detour road): - till 9 June traffic is suspended in the entrance lane of Kraljevečki Novaki from direction Sesvete and Dugo Selo towards Ivanja Reka junction, there is a local detour; in the roadwork area traffic is flowing in reduced lanes; - till 26 April traffic is suspended in the exit lane of Popovec junction from direction Goričan towards Popovec, detour for direction Vrbovec-Popovec: Sveta Helena junction (A4)-Sveta Helena-DC3 Goričica-Belovar-Žerjavinec-Soblinec-Popovec junction, for direction Goričan (A4)-Sveta Helena: Komin junction (A4)-DC3-Sveti Ivan Zelina-Donja Zelina-Žerjavinec-Soblinec-Popovec. Lepenica rest area (at 57th km) on the A6 Rijeka-Zagreb motorway is closed till 15 June, the previous rest area and petrol station is the one Ravna Gora (at 30th km), the next one Cernik-Čavle (17,8 km away from Lepenica). 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, detour: Glina (DC37)-Petrinja-Hrvatska Kostajnica-Dvor; -on the DC25 Lički Osik-Karlobag state road (at 40th km) 8am-3pm till 24 March. Traffic is regulated by traffic signals/one road lane is free only:-on the DC1 state road at Tušilović and Mostanje; -on the DC1 Sinj-Klis Grlo state road at Dicmo; -on the DC8 Adriatic road at Poličnik, 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 DC62 Veliki Prolog-Metković state road at Most Metković. 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).
    Read more
  • In the outbound freight traffic there are delays at Bregana (the queue is 800 m), Rupa (2 km) and Pasjak. Due to roadworks at Županja and Slavonski Brod border crossings delays can be expected. At Harmica border crossing traffic is allowed for vehicles up to 7,5 tonnes only.
    Read more
  • Ubli-Vela Luka-Hvar-Split catamaran does not operate. Jelsa-Bol-Split catamaran does not stop at Bol and Jelsa ports. Ferries operate according to timetable.
    Read more

Interview of the week

mod send your news

Photo galleries and videos