Milos Ljusic, General Manager of Umka Board Mill – We are investing EUR 40 million in order to double the production

Umka Board Mill has several important goals for 2020 which it will focus on – we will invest in increasing the capacities and further improving the quality of our products. The plan is to invest more than EUR 40 million in the modernization of the production capacities over the next several years, with an aim to double the production. It's important to point out that the planned growth of the capacities is entirely meant for the export – Milos Ljusic, General Manager of Umka Board Mill, says in his interview for eKapija.

eKapija: Umka Board Mill got the CCIS plaque on the occasion of its 80th anniversary, for investments in technological development and green economy and an increase of production and exports. Can you specify what kind of operating results you've achieved?

– Umka Board Mill is characterized by a very dynamic development, as shown by the fact that, at the moment Kappa Star Group took over the factory in 2003, the capacity was 45,000 tons, whereas exports were at 50%, and now those numbers are much higher. Umka now has a capacity of 130,000 tons, of which 82% is meant for exports. So far, we have invested more than EUR 60 million in the factory's production capacities and infrastructure, and we've also realized a growth in the number of markets we export to, of which there are more than 30. I am glad that these data put us among the largest exporters in Serbia.

eKapija: Which markets do you export your products to? According to you, what are the most important requirements – macroeconomic, infrastructural and others – for successful exporting operations of a Serbian company?

– Umka Board Mill exports to over 30 European markets, among which we could mention Poland, the Czech Republic, Romania, Hungary, Russia, Germany and Turkey. The most important requirements for successful operations and global competitiveness are the stability of the exchange rate and a stimulating investment climate for local investors, which should result in higher investments in new technologies, which will enable companies from Serbia to be competitive internationally.

eKapija: Is there are plan to penetrate new exporting markets in the upcoming period and which ones?

– Our aim is to increase our sales in the markets in Europe where we are already present. Furthermore, we also export smaller quantities to Asia, and last year we also started cooperating with clients in South America, which we plan to further increase. We primarily have good cooperation in Europe, which needs to be extended, as it opens room for new investments and new upgrades.

eKapija: With which local companies does Umka Board Mill cooperate the most in sales, logistics...?

– We have a long-standing direct cooperation with renowned companies from Serbia which produce cardboard packaging, and we can highlight Smurfit Kappa Avala Ada Beograd and Bosis Valjevo. In addition to that, in the local market, we our products go through two distributors – CPS and DEUS Sistem from Belgrade, which are leaders in the distribution of paper and cardboard products.

eKapija: Do you expect an overall growth of the paper industry in the world and Serbia due to the progressive eschewing of plastic products? Could this have an impact on the production of cardboard as well, including the price of cardboard packaging?

– The estimate is that the paper industry grows by 1.7% each year on a global level, whereas a growth of 2.1% by 2022 is projected for the European Union. A more noticeable growth as a result of reduced use of plastic is expected in only three to four years. The growth of demand for paper products could lead to a price increase, but it depends on many other factors as well.

eKapija: Do you believe that natural resources can withstand said trends?

– The growth of production of recycled paper and cardboard will certainly have an impact on the preservation of natural resources. It's important to protect our forest potentials by packaging more and more products in recycled cardboard. That's the trend in developed economies, where the awareness of sustainable development is much higher as well.

eKapija: Does your company cooperate or have a joint business strategy with the Irish Smurfit Kappa Group, which which KappaStar Group previously reached an agreement on the sale of 75% of Fabrika Hartija Beograd and Avala Ada?

– We cooperate well with Smurfit Kappa, which is a European leader in the production of transport packaging, and we are looking to maintain this trend year after year, but also to increase it. Smurfit Kappa and KappaStar do not have a joint business strategy, as they are two fully independent companies.

M. Radonjic

Fabrika kartona Umka a.d. Umka

Predstavništvo Kappa Star Limited Beograd

Igepa Deus d.o.o.

CENTAR ZA PRIVREDNO SAVETOVANJE Beograd

Bosis d.o.o. Valjevo

Smurfit kappa doo Beograd

Miloš Ljušić

Smurfit Kappa

Smurfit Kappa Fabrika hartije Beograd

Smurfit Kappa Avala Ada

paper industry

cardboard industry

cardboard factory

board mill

Umka Board Mill

cardboard packaging

packaging