Presentation on theme: "Relevant sectors in Slovakia Mária ŠÁŠIKOVÁ, BIC Bratislava, EEN Slovakia."— Presentation transcript:
Relevant sectors in Slovakia Mária ŠÁŠIKOVÁ, BIC Bratislava, EEN Slovakia
Textile industry – general overview Tradition Significant development in industrial production of textiles – 1860s Rapid development started at the end of 19th and beginning of 20th century – drapery plants in Trenčín (town of fashion), Čadca, Rajec, cotton spinning mill and thread production in Bratislava Crutial development after 1948 within the framework of industrialization of Slovakia (reconstruction, new factories, modern technology) In 1985 – more than 74 000 employees After 1989 – decline in the rate of production and employment
Extremely high export involvement More than 85 % of the number employed in industry are women in higher age groups The textile and garment industry in Slovakia is characterized by relatively low labor productivity, which is partly reflected in low levels of wages Low wages - the average monthly wage in the large textile enterprises is not at two-thirds of the average of the slovak industry, in the sector of the apparel it is just over half Crucial part of the industry capacity is allocated in the less developed regions of Slovakia
Textile Industry Subsectors: Manufacture of textiles Manufacture of wearing apparel Number of enterprises Source: Statistical Office of the Slovak republic, 2012 2008200920102011 Manufacture of textiles53474251 Manufacture of wearing apparel 14913710896
Textile industry Largest companies of the Slovak Textile industry 2011 CompanyProductsSales 2011 (EUR ´000) Export/Sales 2011 (%) After-tax profit 2011 (EUR ´000) Average number of employees 1. Trim Leader, a.s.textile and leather car seats 73 781N.A.3 811N.A. 2. Belfein Slovakia, a.s., Čadca production of stockings 37 384N.A.109N.A. 3. Tytex Slovakia, s.r.o. Humenné pantie-stockings21 45899,4 %179433 4. Muller Textiles Slovkia, Myslina textiles19 592100 %N.A.94 5. Sperian Protection s.r.o. Slovakia, Partizánske Production of textile goods, textile and leather parts of protective clothing 16 732100 %543326 6. Dipex, s.r.o., Sereďtechnical textiles12 811N.A.446N.A. 7. Texiplast, a.s., Ivanka pri Nitre manufacture of woven geotextiles for civil engineering 11 636N.A.1 463N.A.
Average number of employees Sept. 2012 – 35 143 (Manufacture of textiles, apparel, leather and related products) – 30 % decline in comparison with 1990 Source: : Statistical Office of the Slovak republic, http://portal.statistics.sk/files/Sekcie/sek_500/Priemysel/publikacia/2011/el.publ.01_2012h.pdf
Trends in development Stagnation, the declining share of this sector on GDP Poor labour productivity Decreasing employment Only a few top producers remained (Makyta Púchov, Odeva Lipany, Ozeta Neo, Trenčín). Number of businesses are in crisis, respectively on the verge of bankruptcy Chinese expansion, strong import growth and the pressure of cheaper, especially Asian garments and textiles (China, Thailand, India)
Success story – MAKYTA Púchov Has overcome the transition from socialism to a market- driven economy Makyta has started it´s production in 1944 Pre-war times times – production of uniforms Largest manufacturer of women´s outwear in Slovakia 620 employees (in 2001 company had 3 200 employees) Main customers: Armani, Prada, Versace, Valentino, Max Mara, Lacoste - high quality in small batches
Structure of Makyta production 200920102011 Clothing confection85,4 %96,5 %97,5 % Production of individual protection 0,9 %2 %2,1 % Production of car-seat covers13,4 %2,2 %0 % Other manufactoring0,3 %0,4 %
Suggestions for futher actions Non-price (quality) competition Producing high quality innovative or luxury products Production of technical textiles Exports products to the markets of the EU and third country markets
Leather industry Subsectors: –leather –leather products –shoe industry Long time tradion - Liptovský Mikuláš (Northern Slovakia) – tan dissapered, Bošany (Bošianska Koželužňa, s.r.o.) Shoe industry: Partizánske, Bardejov, Bánovce n. B., Komárno SlovTan Contract Tannery - manufacturing programme covering the entire process from entry of raw hides up to the dispatch of finished leathers Just manufacturing of leather products (K CERO)
Number of enterprises Source: Statistical Office of the Slovak republic, 2012 2008200920102011 Manufacture of leather and related products 61534540
Largest companies of leather, boot-and-shoe industry producing leather products in Slovakia CompanySales 2011 (EUR ´000) Export/Sales 2011 (%) After-tax profit 2011 (EUR ´000) Average number of employees 1. Rieker obuv, s.r.o., Komárno138 12599 %1 721128 2. Ecco Slovakia97 25599,9 %3 7021 008 3. Gabor, s.r.o. Bánovce nad Bebravou 80 51892,5 %3 9331 393 4. Trim Leader, a.s. Košťany nad Turcom 73 781N.A.3 811N.A. 5. SlovTan Contract Tannery, s.r.o. Liptovský Mikuláš 13 772N.A.1 678N.A. 6. Euroobuv, s.r.o. Komárno11 635N.A.2301 078 7. Obuv – Špeciál, s.r.o. Bardejov11 29845,7 %98226 8. Sperian Protection Slovakia, s.r.o., Partizánske 9 04697,4 %411149 9. Howe Slovensko s.r.o.7 077N.A.255N.A.
Trends in development Production increased because of the automotive industry (Eissmann Automotive Slovensko - automotive interior components made of leather and artificial leather for VW, Volvo, Jaguar, Audi), Adtool (Považská Bystrica) – driving wheel, interior components 2010 – post crisis growth – most businesses have not received the level before the crisis Under the pressure of global competition Footwear and leather industry covers the current domestic consumption only slightly- saturated market (imported footwear)
Suggestions for further actions Prospective area is custom-made leather, fur and shoe manufacturing, which will focus on the individual approach to customers and create products according to their specific needs and wishes.
Paper industry Cellulose is produced by the largest firm in this sector in SR - Mondi SCP, a.s., Ružomberok and Bukóza Holding, a.s., Hencovce. The largest processors of waste paper are Metsä Tissue, a.s. Žilina and SHP Harmanec, Convetis, s.r.o. (Štúrovo) 2008200920102011 Manufacture of paper and paper products 45 4442
Paper industry – brief overview The consumption of paper in Slovakia is very high (85 kg p.c.) Yet domestic production is higher than consumption Growing consumption also significantly helps wrapping-paper producers. Paper producers active in Slovakia are mostly export oriented Problem: lack of wood - Slovakia is not using any fast growing plants (import of wood mass from Ukraine, Hungary and Belarus) and growing prices of energies, coniferous wood
Major companies in paper industry CompanySales 2011 (EUR ´000) Average number of employees About 1. Mondi SCP, a.s. Ružomberok502 6141 466The largest pulp and paper producer in Slovakia. 2. Bukocel, a.s. Hencovce192 025799The only Slovak pulp mill. 3. SCA Hygiene Products Slovakia, s.r.o. Gemerská Hôrka 165 0211 133Increasing production in order to overcome a drop in revenues. 4. SHPHarmanec, a.s., Harmanec118 1161 090Products of Harmony brand - handkerchiefs, toilet paper, paper napkins, paper towels 5. Metsa Tissue Slovakia, s.r.o. Žilina 110 250N.A.Previously Tento Žilina, the company invested large amounts into modernization. 6. Grafobal a.s., Skalica57 750759Solid cardboard packages 7. Mondi Packaging Ružomberok47 927N.A.kraft paper 8. Duropack Turpak Obaly, a.s. Martin 28 924218production of corrugated board, packaging 9. Harmanec Kuvert, s.r.o. Brezno15 609123Production of envelopes 10. Convertis, s.r.o. Štúrovo10 498N.A.tissues
Average number of employees Source: Statistical Office of the Slovak republic, http://portal.statistics.sk/files/Sekcie/sek_500/Priemysel/publikacia/2011/el.publ.01_2012h.pdf
Trends in paper industry Total earnings of the paper industry in 2010 decreased as a result of termination of production in Smurfit Kappa Štúrovo. Export revenues decreased also in other companies operating in the Union of pulp and paper industry of SR. Current economic crisis: decline of revenues – decrease of prices but with stable volume of orders Situation reflected also by international companies – e.g. Mondi Business Paper decreased their manufacturing capacities by 14 % and sold certain plants abroad. Smurfit Kappa located in Štúrovo faced significant difficulties and ceased production and dismissed all 350 employees as the result of demand decrease in 2010.
Traditionally held and still holds a strong position (strategic sector) 1990 – process of transformation (strong production base, a well-developed research capacity, very good level of human potential): –Orientation of exports changed –Negative impact - production units did not survive the competition (costs, ecological requirements, quality parameters) –Problems: were related to the lack of financial resources, expensive bank loans and a rise in the price of raw materials which could hardly be reflected in the prices of the final products due to the competition.
Number of enterprises (4 subsectors) 2008200920102011 Manufacture of coke and refined petroleum products 6655 Manufacture of chemicals51615048 Manufacture of basic pharmaceutical products 14 11 Manufacture of rubber products157171166177
New trends at the beginning of millenium the strengthening position of Asian competitors, the growth of the Slovak economy, driven by FDI - employment in the chemical industry has been growing since 2004, mainly thanks to the development and large investments in plastic production the strengthening of the Slovak currency – a negative impact on Slovak exporters globalization tendencies Slovakia's accession to the European Union (TNK in chemical industry)
2007 – new legislation REACH - control and registration for most of the chemical substances used in industry in a volume higher than 1 ton per year. the costs of REACH at cca. 32 million EUR per year 2008-2009: fully influenced by the global economic crisis. refinery production – 30 % sales reductions, limited access to credit bank loans as a direct result of the financial crisis, collapse of many companies as a result of crisis, ineffectiveness of anti-crisis measures. Sales of traditional chemical producers fell by a fifth Sales of plastic products manufacturers in 2009 decreased by 12 % and sales of manufacturers of rubber decreased even by 25 % first half of year 2009 - entry of Slovakia into the euro area
Conslusion Strongest – Chemical industry Asian competition? Support of SMEs - high health and social insurance payments (from 1.1.2013 – very high)
Contact t: 02/ 5441 7515 t: 02/ 5441 7606 e: firstname.lastname@example.org Mária ŠÁŠIKOVÁ BIC Bratislava Enterprise Europe Network Zochova 5 811 03 Bratislava www.BIC.sk www.Enterprise-Europe-Network.sk Thank you !