Hong Kong's firemen wear boots made in Pirot - Tigar Corporation invests in waste tyres recycling plant and new chemical factory

Tigar Corporation has put in operation a new unit for production of the goods of recycled rubber, of which construction and equipping cost EUR 1.5m. The unit will operate within factory Tigar - Tehnička Guma and, according to the words of CEO Goran Jovanović, the factory's annual capacity will be 10,000 tons of recycled rubber, while about 2,000 tons will be produced this year.

- By taking over Danish manufacturer Bilgutex, Tigar has also taken over its technology and equipment, as well as the gamma of famous and certified products, which will ensure annual sales income of EUR 1m - it was said at yesterday's (April 28, 2010) press conference in Pirot.

- The first tow truck was dispatched in March and we plan to dispatch about 10 tow trucks to Scandinavia every month - said Jelena Petković, the Executive Director for Corporate Management at Tigar Corporation.

Some of the products made of recycled rubber are bases for kids and sports playgrounds, fence posts for parking lots, stands for portable traffic signs, athletic tracks, etc.

This is the first such unit in Serbia and Tigar plans to invest additional EUR 20m prior to 2012 in a waste tyres recycling plant, new factory of chemical products and development of servicing and retail network.

Waste tyres recycling plant

Construction of a plant for recycling tyres will start this year, while the production will commence in January 2011. About EUR 6m will be invested in construction and equipping of the plant.

- We will finish the selection of equipment in May and start the funding. Part of the money will be provided from our own resources, while the rest should be borrowed from an international finance organization, with which we are currently negotiating. We will also apply for the money from eco-funds in Brussels where certain funds have already been set aside for Serbia. We are going to Brussels in May and we will learn in October if we are going to get the money. In any case, it is a backup solution - said Jelena Petković and added that 20 people would get jobs in the new factory.

As she explained, once the recycling of tyres starts, the production process will be completed. The factories in Pirot will be using 40% of the recycled matter, while the rest will be exported.

- Development of the factory will run parallel to the development of the system for collecting old tyres - said Petković and added that the transfer points for old tyres will be in Temerin and Šimanovci.

Factory of chemical products

By recently taking over the property of company Dragoš in bankruptcy, Tigar enabled formation of a compact and well-organized industrial complex. The company's strategy is to modernize all factories and the plan is that the construction of a new factory of chemical products starts in 2010.

Modernization of retail network

Tigar Trade comprises Stop&Drive service network, retail facilities where all Tigar's products can be bought, as well as tyres and complementary range of products for automobiles, and four specialized footwear stores Bottega.

- Development of retail-service network started in 2005 and it should be finished in 2011. By that time, we should have 30 Stop&Drive facilities, 15 specialized stores Bottega and about 10 shops of general character - said Petković.

Financial management

Jelena Petković said that the company's sales income in the first quarter of 2010 amounted to about RSD 768m, 24% more than in 2009.

Petković said at the press conference that the situation in the global market was improving and that she expected the company to create about RSD 5bn worth of sales income in 2010.

As she explained, factories Obuća (Footwear) and Tehnička Guma (Technical Rubber) are expected to double their sales incomes this year.

Tigar Corporation's Executive Director for Corporate Management estimated that year 2009 had been extremely difficult and that the company had felt the crisis.

She added that, in spite of that, Obuća factory had exported goods worth EUR 8m, while the value of total realization had reached EUR 11m, 30% more than in 2008.

- Tehnička Guma factory, which was put in operation in the new location in November 2009, was out of work for ten months, while the factory of chemical products achieved 12% better results in 2009 than in 2008 - said Petković.

She added that Tigar had registered RSD 1.9bn worth of turnover in 2009, while its income from the sale of goods abroad amounted to RSD 1.2bn.

- Our business incomes in 2009 were at the level of RSD 3.75bn, which is approximately the same as in 2008 - she said and added that the main reason for such results was the fact that two factories were out of function.

Tigar's shares in the package of free shares

The Share Fund and the Pension Fund of Serbia own 34% of total capital on the level of the corporation.

- We have no official information on what the state intends to do with that capital. We can only make some assumptions based on what happens around us. There is a possibility that Tigar's shares will be included in the privatization fund and distributed to the citizens of Serbia - said she.

The idea that the production of pneumatics be left completely and that the focus be placed on rubber footwear has proved good because Tigar is today one of the largest manufacturers in Europe. Over 80% of products from this portfolio are exported to the market of the European Union, 11% are sold in the region, 1% in Russia, while 5% of products are sent to the USA and Canada.

People in the Pirot-based factory say that the Japanese are very interested in stylish peasant shoes (opanak), while the firemen in Hong Kong wear the boots made by Tigar.

- The whole truck loaded with firefighter boots has been dispatched to Hong Kong. That is the third shipment for the fire brigade in that city. The tender for distribution of boots for the fire department in the Moscow area has been canceled and it will be repeated in May, so that we expect to dispatch significant amount of footwear to the Russian Federation as well.

Tigar's new collection of fashion rubber footwear Maniera for the season autumn/winter 2010/2011 drew a great attention during its premiere presentation at the footwear expo in Dusseldorf. That was the first appearance of Tigar's fashion rubber footwear in the EU market.

Tigar kitchen

Tigar's business service for food production daily prepares about 5,000 meals for the needs of Tigar Tyres and Tigar Corporation, as well as for external clients.

- I hope that you will soon be able to find the ready-made food made in Pirot on the shelves of supermarkets in Belgrade - said Jelena Petković.

Michelin and Tigar

French company Michelin is the 100% owner of Pirot-based automobile tyres factory Tigar Tyres. By selling that factory, Tigar Corporation left the production of car tyres completely.

There are two companies in Pirot - Tigar Tyres and Tigar Corporation, and both of them employ over 2,000 people each. When we asked the people in that town if it was better to work for the local people or the French, this is what they said:

- Each company has its good sides. The French corporation applies the system of "best practice" to their operations and a big global brand stands behind it, while working at Tigar represents a bit of a challenge.

Tigar's name

- The name for the factory was suggested by former co-owner Jovan Cekić back in 1935. The name of the craft workshop was supposed to symbolically represent the features of rubber products - strength, elasticity and endurance - Dragan Nikolić, the Chairman of the Administrative Board of Tigar Corporation, explained and added that "it is good to have tiger as a friend in a modern jungle".

M.K.