August the 27th, 2022 - Komiza on the beautiful Dalmatian island of Vis is set to get a brand new five star hotel complex as part of a large 52 million euro investment.

As Poslovni Dnevnik/Marija Crnjak writes, the entry of Marriott's lifestyle brand Autograph into Hotel Bisevo has now been officially signed off. As was announced by the company Modra spilja on the Zagreb Stock Exchange on Thursday, the members of the company's management, following the approval of the general assembly and the supervisory board, have now signed the License Agreement for the Autograph Collection hotel brand, under which the Hotel Bisevo in Komiza on the island of Vis will operate.

As was previously written about, this is part of a huge investment totalling 52 million euros in the construction of a new exclusive hotel in Komiza, in which the company Modra spilja is entering with the majority shareholder, PBZ Croatia osiguranje (insurance) pension funds.

In place of the bulky concrete building of the current two-star Hotel Bisevo, Komiza will be richer for a five-star hotel in the year 2025, which will fully fit into the natural environment provided by Vis, and view of the town, as well as a new promenade by the sea.

The 3LHD architectural studio, the Bruketa&Zinic&Grey agency and the Hotel&Destination Consulting consulting company were all engaged in the realisation of this project alongside the investor.

The Autograph Collection brand otherwise belongs to what is known as the "premium distinctive" group of Marriott hotels, which lies somewhere in the middle between luxury and select hotels, and in terms of content and style, these are unique hotels that emphasise the local culture and history of the locations in which they're constructed, as opposed to dominating the destination and overriding the history of the place.

For more, make sure to check out our dedicated business section.

July the 2nd, 2022 - A massive two million euros has been invested into a beautiful Rab beach which falls within the scope of one of many large hotel complexes - Valamar Padova.

As Poslovni Dnevnik writes, the brand new sandy Rab beach at the Valamar Padova hotel and the The Beat Beach Club have now been officially opened! The value of Imperial Riviera's investment in this project in which the new Rab beach was revamped stands at more than two million euros.

With this investment, Imperial continues to invest in the development of the destination of the island of Rab as a whole and improve the quality of the tourist offer. The number of guests during the height of the summer tourist season had exceeded the beach capacities of the island of Rab, and especially the properly equipped beaches. Way back in 2012, Imperial Riviera initiated a project for the construction, expansion and improvement of the beaches in the Banjol area, which stretches from the Valamar Padova Hotel to the Padova Premium Camping Resort, according to a statement from the City of Rab's administration.

"Today, Imperial Riviera is the fifth largest tourist company in all of Croatia, and we're aware that in the great competition across the tourist market, we must ensure the continuity of investment in the quality of our facilities and content, including the beaches, which are an integral part of our overall offer. Imperial Riviera's strategic commitment within the Valamar Group is to respect the concept of sustainable development in all business segments, from protecting the natural environment to supporting local culture, lifestyle and relations with the local community. This includes taking care of the arrangement and maintenance of the beaches, which are equally enjoyed by the local population as they are by tourists, and which significantly improve the touristic competitiveness of the destination," said Vlado Mis of Imperial Riviera.

The construction and arrangement of the Rab beach in front of the Valamar Padova hotel enabled the employment of twelve new employees. The project included the filling of about 5,000 square metres of the coastal area, the construction of a breakwater, infrastructural and horticultural landscaping, a new promenade, beach facilities, a sanitary facility and equipping it with the most modern beach equipment, including canopies and sunbeds, as well as several attractions for children. With a capacity for about 700 swimmers, the new sandy Rab beach within the Valamar Padova hotel is currently the most modern and most beautifully decorated beach on the entire island.

The newly renovated beach is otherwise managed by Imperial Riviera as a concessionaire, and in addition to guests of the Valamar Padova hotel, the beach is also open to local residents and other tourists staying on the island of Rab.

For more, make sure to check out our dedicated business section.

July the 1st, 2022 - The well known Croatian Bluesun hotel chain which is based in Dalmatia has invested an enormous 45 million euros back into its impressive capacities, renovating approximately 800 rooms.

As Poslovni Dnevnik writes, summer is here and the height of the tourist season is rapidly approaching. As such, Bluesun Hotels & Resorts, one of the leading hotel chains in all of the Republic of Croatia, has invested more than 45 million euros in the renovation of six properties in its portfolio. The investment resulted in the renovation of almost 800 rooms in the Bluesun Hotel Elaphusa, Bluesun Hotel Borak, Bluesun Holiday Village Bonaca in Bol on the island of Brac, Bluesun Hotel Maestral, Bluesun Hotel Soline in Brela and Residence Kastelet in Tucepi.

The Bluesun hotel chain, with more than sixty hotels under its belt, points out that they managed to make the investment in less than half a year, in very challenging times and a during years marked not only by the coronavirus crisis, but also by rising prices owing to inflation and the ongoing horrendous war in Ukraine which broke out earlier this year following Russian invasion.

They also stated that when revamping the Maestral Hotel in Brela, they paid a lot of attention to the preservation of architecture, to the extent that they worked closely with conservators in order to avoid mismatching with the historical and emblematic typical Dalmatian architecture of the area.

All of the investment work, worth more than 45 million euros, was carried out by local construction companies, the Bluesun hotel chain made sure to note, saying they believed it was important to focus on local talent who best understood the environment in which the works are being carried out. Radnik from Krizevci, Kamgrad and Krekic-Avangard worked on the renovation of six of this company's hotels, while the main designer was the company Stabilnost, who also provided their expert supervision of the projects as they were carried out.

"With this investment, we're paying tribute to the people, the local economy, the community, history and the flawless Adriatic coast. We'd like to say a sincere thank you to the partners and our exceptional team who brought us to where we are today. It's amazing what we've achieved,'' said Mubarak Al-Khalifa, CEO.

For more, make sure to check out our dedicated business section.

ZAGREB, 10 June 2022 - A survey by the German-Croatian Chamber of Industry and Commerce (AHK) shows that over 80% of the companies are ready to pick again Croatia as a business and investment destination.

The survey, conducted by the AHK from 25 February to 26 April in 16 central and eastern European countries, shows that the biggest challenges for entrepreneurs are high energy prices and a lack of skilled labour force.

The poll covered a total of 983 companies, including 105 local and foreign companies in Croatia.

Presenting the findings of this year's survey, AHK Chamber president Thomas Sicla said that "a high number of companies, that is 84%, would again choose Croatia as a destination for their investments."

The findings of the survey for 2021 showed that that 74% companies would pick Croatia again as a business and investment destination.

Every other respondent describes Croatia's economic situation as satisfactory

More than a half of the respondents in this year's survey, that is 53% of them, see the economic situation in Croatia as satisfactory, which is a 10% rise compared to the previous survey.

Furthermore, 21% described the situation as good.

One in three respondents says economy has improved

Also a third of those polled believe that the economy in Croatia has improved since last year.

Concerning the perception of the economic developments, in other countries covered by the survey a similar number of respondents as in Croatia find the economic situation to be good.

Nearly 97% of entrepreneurs optimistic

The lion's share of the business people polled in this survey (97%) are optimistic about the prospects for doing business.

More than a half of the respondents believe that there will be improvements in their businesses, and a mere 10% are afraid of deterioration.

As for the short-term repercussions of the war in Ukraine, 80% of the respondents point to growing energy and raw material prices, and 56% point to disruptions in supply chains.

One in five respondents is afraid of losing business partners.

Asked when they expect the normalisation of the situation in the supply chains, 45% say they expect it in 2023, while 20% do not believe that it could be achieved in the foreseeable period.

Croatia's advantages and disadvantages

Croatia's EU membership, adequacy of tertiary education, skilled workers, infrastructure and productivity and motivation of employees are cited as the five advantages of Croatia.

The country's disadvantages and challenges are insufficient struggle against corruption, tax burden, non-transparent public procurement and the public administration.

The performance of the current government was assessed as satisfactory by 35% of the respondents and as bad by nearly 40%. 

For more, check out our business section.

June the 10th, 2022 - A massive 52 million euro project is set to begin the transformation of gorgeous Vis island, bringing it up to a far higher level when it comes to tourism.

As Poslovni Dnevnik/Marija Crnjak writes, with a huge investment of 52 million euros in the construction of a new exclusive hotel in Komiza and bringing Marriott's lifestyle brand Autograph Collection to the Republic of Croatia for the veru first time, the company Modra spilja (with the majority shareholder being PFZ Croatia osiguranje) will initiate the transformation of Vis island.

On the site of the bulky concrete building of the current two-star Hotel Bisevo, Komiza will get a five-star hotel that will fit entirely into the surrounding natural environment and the view of the city, and a promenade by the sea which will soon be walked along by some new guests, the users of Marriott's loyalty club.

In addition to the investor, the architectural studio 3LHD, the Bruketa & Zinic & Gray agency and the company Hotel & Destination Consulting have all been engaged in the realisation of this project, which has been underway for the last year now.

"Our goal on Vis island is to develop a high value-added tourism product, with a globally recognisable hotel brand that guarantees standards recognised around the world, in order to better capitalide on this remote and unique destination. We simply want to take advantage of the distance and harder accessibility of this destination which is ideal for an escape from reality, for wellbeing, and for the recovery of both body and mind from hectic lifestyles.

Autograph is ideal for such a product, because it's a brand in which each hotel is different, it has its own special story that is usually related to local culture or traditions, and the content is related to that,'' explained Mario Radakovic, a member management of the company Modra spilja.

As it is known, the pension fund PBZ CO paid its creditors back in 2019 and ended the bankruptcy proceedings of Modra spilja, after which the company was listed on the Zagreb Stock Exchange, and there was a recapitalisation to maintain liquidity during the coronavirus pandemic and to prepare investments.

Marriott is currently in the process of licensing the Autograph Collection brand, concluding a financial structure with both creditors and investors, and amending the urban development plan for the Komiza settlement (UPU) so that all permits can be obtained.

The preliminary design bears the signature of the Zagreb-based company 3LHD, which presented it to the local community about 10 or so days ago. A completely different concept of hotel will now be built, with almost the same number of rooms, but with a significantly reduced environmental impact and total visibility from the sea.

HDC was in charge of designing the concept, the market positioning, the content and the financial projection of the project, while Bruketa & Zinic & Gray will be in charge of branding and designing the central theme of the hotel.

It's worth noting that the Autograph Collection brand belongs to the so-called "premium distinctive" group of Marriott hotels, which is in the middle in terms of luxury (between luxury and select hotels), and in terms of content and style, they are unique hotels that emphasise local culture and traditions. Under the Autograph Collection brand, there are about a hundred hotels on five continents, most of them in Europe, Central America and down in the Caribbean.

It's already known that a very important segment in the up and coming Komiza hotel will be wellness, which will recreate the famous Blue Cave attraction on the island of Bisevo, with a number of indoor and outdoor pools and facilities surrounded by a rich Mediterranean garden, which is another important component of the project. Otherwise, the hotel will consist of several smaller buildings connected by corridors.

It will reinterpret the urbanism of the town with courtyards in a modern way, and Zagreb's 3LHD has placed all of the infrastructure underground, including the garage. The hotel will have a total of 133 accommodation units. An additional 28 residences are planned to be cascaded above the road and be naturally connected to the existing facilities in Komiza. With several outdoor pools, a large infinity pool with a roof top bar right next to the promenade by the sea, some rooms will have private pools, and the turnkey investment will stand at an enormous 320 thousand euros.

In addition to all of the above in the transformation of Vis island, this large project will be maximally "green", in accordance with the possibilities of this remote location, so that a good part of local materials will be built into it, and solutions will be sought that will be sustainable in the future maintenance of all of the facilities. Radakovic emphasised the great importance of existing good infrastructure on Vis island and the intentions of local authorities to further improve it.

“As a volcanic island, Vis has its own water sources, which is very important for the sustainability of the project, as well as the largest island solar power plant in the entire Adriatic. For our guests, we plan transfers from Split Airport as well as the re-establishment of sea routes to Italy, which will be interesting for the future development of tourism on the island,'' said Radakovic.

The closure of the entire construction of this huge future investment should be completed in the next six months. That in itself is a prerequisite for the start of construction, which could begin in the spring or autumn of 2023, and it is planned to last for 18 to 24 months. Objectively, the new Autograph Collection Vis could be on the market for the 2025 summer tourist season, the investor predicts.

For more, make sure to check out our dedicated business section.

ZAGREB, 22 May 2022 - The company called Phyox, specialised in production of microalgae, substances rich in minerals, vitamins, antioxidants and unsaturated fatty acids, has invested 6.6 million euros in a microalgae production project in the city of Novska, the Večernji List daily reported on Sunday.

The project will enable the commercial production of microalgae for the pharmaceutical industry.

The project has already gone through the stages of laboratory tests and trial production and the production of microalgae for commercial purposes is expected to start soon. 

There are plans to produce 40 tonnes annually.

According to the information on the web site of this company owned by four Croatian and German partners, "Phyox d.d. was created by combining the competences, experience and resources of its founders who after many years of technology development, decided to implement their microalgae production project in Croatia."

"Microalgae (Phytoplankton) are microorganisms that produce oxygen (Oxygenium) through photosynthesis, which is how the name Phyox was created."

Microalgae are with over two billion years of existence considered to be the oldest living cellular organisms on Earth.

The Večernji List daily quoted the company's  senior executives Franjo Orešković and Bernd Hermann as saying that the project was well accepted by the local authorities in Novska, during the mayorship of Marin Piletić.

Therefore, the company decided to set up the project in the industrial zone of Novska, 90 kilometres east of Zagreb.

Phyox is focused on the production of microalgae suitable for use in the food, pharmaceutical and cosmetic industries.

For more, make sure to check out our dedicated business section.

May the 16th, 2022 - The Hungarian Lorinc Meszaros is investing an enormous 375 million kuna into a luxury Icici hotel which will transform this picturesque area and raise the overall tourism standard.

As Poslovni Dnevnik/Marija Crnjak writes, the construction of the luxury hotel Riva’s Hotels & Resorts in Icici has started, a project worth 375 million kuna in which the well known Hungarian investor Lorinc Meszaros is investing, together with the local developer the DDG Group.

This gorgeous new luxury Icici hotel will have a 5 star ranking and will boast 180 rooms and 12 villas. The laege project also includes the construction of an access road, a pedestrian bridge to the nearby sea, and a new rainwater drainage system from Ucka.

“I immediately recognised this location as a potential site for the construction of a hotel, so I called Meszaros for help. It's a 22,000 square metre gross developed project, with an underground garage with five above-ground floors, with an open space near the road arranged for all Icici locals as well as all of our future guests. We plan to arrange some surrounding greenery, and put in fountains and cafes. With this project, Icici will get a taste of luxury tourism and an urban square as a gathering place. We've been struggling with projects for three years, and we now have 24 months until the grand opening,'' said Denis Sikljan, the founder of the DDG Group.

Lorinc Meszaros pointed out that, after the football camp in Osijek, this is their biggest investment in the Republic of Croatia.

“I've always wanted to invest in building a hotel. Thanks to the designers for a beautiful building, but without the local authorities and the help of the mayor, none of this could have happened. Our cooperation with the local community is good, and we're trying to make it even better. With the purchase of Miramar and Riva’s Hotels & Resorts, our investments amount to 100 million euros and what I can promise you is that we won't just be stopping here,'' said the Hungarian entrepreneur and investor at the opening ceremony of the construction site of the up and coming luxury Icici hotel, which was also attended by Opatija Mayor Fernando Kirigin.

“When I ran for mayor of Opatija, my vision was Opatija which boasted elite tourism and value-added products. It was up to us as a local self-government unit to give our full support to this project. The tourist season is just around the corner, we've already reached about 200 thousand overnight stays and I hope that we will be better than we were back during the record year of 2019, which will undoubtedly give investors more confidence in it all,'' said Kirigin.

For more, check out our dedicated business section.

April the 28th, 2022 - The Italian ABS is investing a massive 200 million euros into the once rather problematic Sisak ironworks according to recent Italian media publications.

As Poslovni Dnevnik/Marija Brnic writes, the once somewhat troublesome Croatian steel plant in Sisak will soon get a large cash injection according to Italian media, which have reported that the executive board of the ABS Group, owned by ABS Sisak, approved the company's investment programme worth a total of 400 million euros, and part includes the construction of a new iron rolling mill in Sisak.

The Italian company announced that this is a large and revolutionary project, a kind of milestone in the production of steel, which, with the technological breakthrough will be of great importance in the context of energy transition.

Danieli Digital Melter's new steel melting technology should enable the direct use of renewable energy sources, and according to the announcements, instead of a conventional electric furnace, solar energy will be used by installing 160,000 square metres of solar panels, which will make ABS a leader in green steel production. The Italian metallurgical company, which is owned by the Italian industrial giant, the Danieli Group, revealed that this ambitious project for the Sisak ironworks will be realised over a three year period.

Danieli decided to enter the investment venture of ABS in response to the sharp increase in demand for steel across Europe, and major changes on the global steel market, which began being felt before the war in Ukraine broke out. Following the Russian invasion of neighbouring Ukraine, a complete turnaround and a return of steel production in the EU and the USA took place. Danieli has been encouraging research and development activities for years now, looking more deeply into so-called green steel, through carbon reduction, and even the preparation of the use of hydrogen in production, and over recent years, ABS has invested in the modernisation of its production over one billion euros.

This will not be the first investment in the Sisak ironworks, ie this particular "unit" of ABS, about which the details aren't yet being revealed when it comes to the specific investment in the new rolling mill.

Davor Sosic, President of the Management Board of ABS Sisak, who took over the management a month ago, pointed out that two years ago, a new innovative digital power system, Q-One, worth 10 million euros, was installed at the Sisak ironworks. Sosic explained that this represented a huge step forward for the Sisak ironworks in general, which is a large consumer of energy, and the existing system has caused difficulties and a decline in the electricity network.

It is a prototype, which will be used by ABS in Italy, whose main effect is not to reduce electricity consumption, but primarily to improve overall system efficiency.

The owner of the Sisak ironworks decided to enter this investment in the midst of the coronavirus crisis, when the steel market slowed down worldwide. Sosic also pointed out that 5.6 million euros were invested in the renovation of the continuous iron casting plant, which was completely obsolete, and this year, the electric arc furnace is being replaced, which is an investment worth more than six million euros.

"We're continuously trying to raise the technological level of the plant and our goal is to increase our existing annual production,'' stated Sosic, adding that it is expected that this level will be exceeded with the new rolling mill. It's worth noting that the Italian ABS currently produces about 1.2 million tonnes of steel per year, and it is estimated that it will double this production after the new investment is completed.

This new investment venture in the Sisak ironworks should significantly transform production there, as the plants are now producing semi-finished products. After the construction of the new rolling mill is completed, Sisak's ABS will also sell those finished products, which will be a big step forward in terms of their further business.

The Sisak ironworks is otherwise already achieving constant growth, and operates mainly on foreign markets, from Italy to Turkey and Germany. In the 2019/2020 business year, in the conditions of the global coronavirus pandemic and difficult business for the steel industry on a global level, the total revenues of ABS Sisak were at the level of 114 million kuna, and the following 2020/2021 period, their revenue stood at an impressive 463 million kuna. In the first half of the new business year, more precisely from July to December 2021, which was marked by higher steel prices, their revenues exceeded the entire previous business year, reaching almost half a billion kuna, so it's only natural that ABS Sisak expects to achieve a record result this year.

For more, check out our business section.

ZAGREB, 27 April 2022 - The Italian investment fund Investindustrial is investing a total of €120 million in Rimac Group in several rounds of financing, the high-performance car manufacturer has told Hina.

The money will be used primarily for the further development of the Rimac Technology company and serial production of key components for the electrification of vehicles for global car manufacturers.

The main shareholders in Rimac Group are Mate Rimac (32.64%), Porsche AG (23.5%) and Hyundai Motor Group (10.35%), while all other shareholders hold together 33.76%.

"The shareholding structure is subject to change in the next round of investment," said the group's spokeswoman, Marta Longin.

Investindustrial predicts that every third new vehicle on the road will be powered by electricity by 2025 and every second by 2030.

Mate Rimac started the Rimac Automobili company in 2009 in his garage, and today he employs more than 1,300 people. The company manufactures some parts for Aston Martin, Pininfarina, Hyundai, Kia, Koenigsegg and Porsche, among others, and is well-known for its high-performance sports electric vehicles. It is developing an autonomous vehicle, also known as a robotaxi.

For more, make sure to check out our dedicated business section.

ZAGREB, 22 April (2022) - Adriatic Croatia International (ACI) invested over HRK 24 million in strategic and infrastructure projects in its marinas at Dubrovnik, Trogir, Rab, Milna, Žut and Piškera in the first quarter of 2022, the marina chain operator said on Friday.

The company said its focus in the first quarter of the year was on expanding the marina portfolio and developing further services.

In this period, ACI generated HRK 35 million in operating revenue, which was HRK 2 million more than in the first quarter of 2021. EBITDA was HRK 10.7 million, up from 9.4 million in Q1 2021, while net loss for the period was HRK 5.66 million, which was 1.75 million less than at the same time last year.

ACI said it had invested HRK 44 million in strategic projects last year.

(€1 = HRK 7.5)

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