Your Business Partner 2005-2006

www.sloveniapartner.com Slovenia • Area: 20,256 km2 • Population: 1, 997,004 (June 2004); 83% ethnic Slovene (2002 Census) • Capital: , 267,563 inhabitants • Other major towns: Maribor (111,673), Kranj (52,689), Celje (48,616), Koper (49,090), Novo Mesto (41,434) and Nova Gorica (36,043) • Slovenia is subdivided into 12 statistical regions. • GDP growth in 2004: 4.6% • Average annual GDP growth 1995-2004: 3.9% • GDP per capita in purchasing power standards (PPS) in 2004: 17,400 Euro (78% of EU-25 average) • Member of the EU and NATO since 2004 • Political system: democratic republic; Slovenia’s highest legislative body is its 90-member parliament. HUNGARY AUSTRIA Murska Sobota Slovenj Gradec Maribor Jesenice Ptuj Velenje Kranj Celje General Information ITALY Ljubljana Nova Gorica • Local time: Central European Time (CET) Novo Mesto CROATIA Postojna • International dialling code for Slovenia: +386 • International calls from Slovenia: “00” prefix Koper - followed by the country code • International symbols for Slovenia: SI, SVN, SLO • Slovenian Internet domain suffix: .si • Internet users: 43% of the Slovenian population aged 16-74 uses the Internet. 93% of businesses with more than ten employees have Internet access (source: National Statistical Office, 2004) • Internet hosts: 45,491 (source: CIA World Factbook, 2004) • Mobile phone ownership: 88% of the population aged 10-75 (source: RIS) • National Holidays January 1 & 2, February 8, Easter Sunday & Easter Dating from the 1848 “Spring of Nations”, the flag of Monday, April 27, May 1 & 2, June 25, August 15, the Republic of Slovenia is based on that of the Duchy October 31, November 1, December 25, of (Kranjska), and consists of a horizontal December 26 white-blue-red tricolour with the national coat-of-arms • Currency: Slovenian Tolar (SIT) in its upper left field. • Average Tolar/Euro exchange rate in 2004: The coat-of-arms, a heraldic composite, bears an image 238.86 SIT per 1 EUR of Mount (“three-heads”) on a blue background; • Slovenia entered ERM2 on 28th June 2004 at a the two undulating blue lines below it signify rivers and parity rate at 239.64 SIT per 1 EUR. the sea, while the three six-pointed golden stars above • Anticipated adoption of the Euro: 1st January 2007 are from the arms of the Counts of Celje, indigenous rulers of much of Slovene territory between the 12th and 15th centuries. Contents

Slovenia –Resourceful and Dynamic 4

Favourable Business Climate 6

An Open Trade-Oriented Economy 8

Direct Investment 9

Top Class Products 10 Bled, Photo: J. Skok, STB Key Partners 12

Information Technology 13

Chemicals, Pharmaceuticals and Biotechnology 14

Automotive Sector 15

Construction and Civil Engineering 16

Logistics and Transport 17

Energy 18

Industrial Design and a Spirit of Innovation 19

Financial Services 20 Velika Planina, the Kamnik Alps, Photo: B. Kladnik, STB

Commitment to the Environment 21

A Holiday Away From It All… 22

Piran with Portorož Bay, Photo: J. Skok, STB 3 Slovenia is a mosaic of constituent elements that together embody this Slovenia – nation “on the sunny side of the Alps”. It is a country:

Resourceful • at the juncture of the East and West as well as North and South – at the very crossroads of Europe – where influences from the Mediterranean, and Dynamic Dinaric, Alpine and Pannonian worlds meet, mingle and merge; • in the very heart of Central Europe, where Europe’s Slavic, Latin and Germanic cultures have encountered one another, and where throughout the centuries peoples have drawn from and contributed to one-another’s knowledge, science and art; A country in the heart • across which one can drive in a mere three or four hours, and, in the of Europe tranquillity of unspoiled nature, leave the urban rush far behind; • where in a single day one can go skiing on high Alpine slopes, wander through primeval virgin forests, and swim in the warm waters of the Adriatic.

Slovenia's identity is not expressed merely through its history, nor by its language – the first written testament to which is the Freising Manuscript Many famous sons that dates back to the first millennium – culture or century-long road to independence. Indeed, this country exhibits a disparate individuality, and despite its small size many great figures from history were born and raised on its territory.

Of these, mention should be made of Jožef Stefan (1835-1893), one of the most distinguished physicists of the nineteenth century. Among other things, Stefan originated a law that the total radiation from a black body is proportional to the fourth power of its absolute temperature, known as the Stefan-Boltzmann law.

The mathematics professor and artillery officer Jurij (Georg) Vega (1754- 1802) is best remembered for his tables of logarithms and trigonometric functions. In addition to calculating seven-figure logarithms, Vega also calculated π to 140 decimal places, a feat which was not surpassed for over 50 years.

In the 1880s, the work of Jože Plečnik (1872-1957) rapidly became a revelation in European architectural circles. Besides the extraordinarily high quality of his work, Plečnik was also acclaimed for his original and innovative style. His most renowned works are in Prague (reconstruction of the Hradcany Castle complex, and design for the Church of the Sacred Heart), Vienna (the Zacherl apartment block in the city centre, and the Church of the Holy Spirit in Ottakring) as well as his native Ljubljana (the Tromostovje and Prešeren's monument, Photo: M. Kranjec “Tromostovje” – , the National and University Library, Ljubljana market place, and the reconstruction of Križanke Monastery).

One of Europe’s leading psychoanalysts and dialectical materialist philosophers, Slavoj Žižek (1949-) is, amongst other things, engaged with the issues of fetishism, phantasm, as well as the dialectics of the mysterious relationship between phantasm and pleasure.

Branko Djurić (1962-) a Slovenian director, writer and actor of Bosnian descent, starred in the 2001 film No Man’s Land, a Slovenian-Bosnian co- production that received an Oscar for best foreign language film.

Maribor, Photo: A. Fevžer, STB

4 Slovenia, the country at the crossroads of many historical migrations and trading routes, is a rich treasury of ancient artefacts. Amongst numerous precious archaeological finds are a number of global significance, such as A rich heritage the 45,000 year-old Moustarian Bone Flute, the earliest preserved musical instrument in the world, which was discovered in the Divje Babe Cave near Idrija in northwestern Slovenia, and the Vače Situla, a 5th century BC Celtic urn discovered in central Slovenia. Such priceless relics, together with a wealth of other artefacts of historical importance, are exhibited in over 200 museums and other collections throughout the country.

Architectural heritage is both rich and diverse. The vedute of Slovenia’s Know-how and towns and villages have evolved over centuries. In addition to Roman innovation are the key remains, there are churches, monasteries and castles with Romanesque and Gothic elements, while the seminal medieval boroughs were in to continued prosperity turn complemented by Renaissance mansions, the rich splendour of the Baroque, as well as elements of classicism and secessionist styles.

Influenced by a number of mainstream European architectural trends, Slovenia’s landscape is in a great many ways distinguished by the idiosyncrasies and particularities fostered by local creativity, the countenance of which changes from one locality to the next. In the littoral region and the Vipava Valley such indigenous style is most manifested in the details of stonework elements, whereas along the Soča River it is the tiled roofs which replaced the erstwhile thatch that remains of particular interest. The old granaries and famous Slovenian kozolec corn-racks, together with ornamented village wells are also noteworthy.

The longstanding tradition of crafts and small-scale manufacture – which were the precursor of this nation’s industries – is foremostly expressed in glassware (Rogaška), Idrija lacework, the cast-iron products that emanated Rogaška glassware and Idrija lacework, from Carniola’s earliest foundries, earthenware from Prekmurje, as well as Photo: D. Arzenšek, CCIS honey biscuits, festive cakes and decorated breads from every corner of the land.

This country faces the future with a firm belief that its indigenous know- how, innovativeness and dynamism – in conjunction with the Slovenian way of life – shall further contribute to the great wealth of world culture and commerce.

The Tolminka stream, Photo: J. Skok, STB

Izola, Photo: J. Skok, STB

5 Slovenia continues to work to further accomplish its vision of a successful, Favourable internationally competitive, flexible and dynamic economy; the vision of a country of educated and motivated people who contribute to overall Business growth and, by way of this, to prosperity and social harmony. According to the 2002 census, more than 13% of the country’s population has tertiary Climate education and Slovenian universities enrol some 25,000 students every year. In 2004 the number of persons in employment amounted to over 900,000, some 55.3% of the total population.

Main Economic Indicators GDP (billion GDP (billion Euro) GDP per PPS capita (in Euro) GDP annual growth Exports (in growth terms) real Imports (in growth terms) real Inflation rate Unemploy- rate ment (ILO) 2003 24.9 16,400 2.7% 3.1% 6.7% 5.6% 6.7% An internationally 2004 26.2 17,400 4.2% 12.5% 13.2% 3.6% 6.3% 2005 competitive, flexible and - 18,400 4.2% 8.3% 7.2% 2.6% 6.2% (estimate) dynamic economy Sources: National Statistical Office, Eurostat, CCIS-SKEP estimates and forecasts

GDP Structure – Main Sectors

Services 60.5 % Agriculture 2.5 % Construction 6 % Industry 31 % Reaching 78% of the EU-25 GDP in PPS with a stable GDP growth of 4.2% in 2004

Source: National Statistical Office, CCIS-SKEP calculation

The 4.2% growth in GDP achieved in 2004 was the highest for five years in the row. Currently, Slovenia’s GDP per capita in purchasing power standards is 78% of the EU-25 average, and thus economic development surpasses all of the EU’s new member states with the exception of Cyprus.

Students in front of the Faculty of Natural Sciences and Engineering, one of 23 faculties and 3 academies of the , Photo: M. Kranjec 6 GDP per Capita in Purchasing Power Standards for Selected EU States, 2004 EU-25 average = 100

Austria Germany Italy Greece Slovenia Portugal Czech Republic Hungary Slovakia 0 20 40 60 80 100 120 140

Source: Eurostat, June 2005

On the 185-country risk-ranking list published by the Euromoney magazine, Slovenia was ranked 28th in spring of 2005, and thus it was considered the least risky of all new EU member states. Slovenia is considered among the most risk free of all the new EU member states Country Risk – World Ranking of EU New Member States

Country Rank Rank March 2004 March 2005 Slovenia 29 28 Malta 30 29 Cyprus 32 32 Czech Republic 39 35 Hungary 36 38 Scientific and research Estonia 43 40 endeavours are of Poland 47 45 increasing importance Slovakia 48 46 Lithuania 54 48 Latvia 56 53 Source: Euromoney, March 2005

Slovenia appropriates approximately 1.54% of its GDP to scientific and research endeavours, 60% of financial resources for such emanate from the business sector. Also, 55% of all those engaged in research work are employed in the business sector.

The concentration of various activities in one place triggered the development of a business centre - BTC City Ljubljana, Photo: BTC d.d. 7 Slovenia’s exports account for some 60% of total GDP, by way of which An Open this country has earned a reputation as an open, competitive economy. Due to extensive foreign demand, Slovenia’s 2004 exports of goods and Trade-Oriented services increased by 12.5¸% in real terms (and goods alone by 12.8%), whereas growth rates of 8.3% and 7.5% are anticipated for 2005 and 2006 Economy respectively.

In 2004 the export of services was up by 10.9% in real terms, which can for the most part be contributed to the transport and tourism sectors, which respectively accounted for 29% and 47% of total invisible exports.

The twenty-five states of the EU are Slovenia’s most important trading partners, and together account for 66% of total exports and 82% of all imports. Exports to France, Belgium, Austria and Italy increased the most during 2004, while trade with the new EU member states continued to flourish, particularly as regards exports to the Czech Republic and Poland. Among non-EU countries, Slovenia’s most important trading partners are the republics of former Yugoslavia (accounting for about 20% of total Exports account for exports), as well as Russia and the United States. some 60% of Slovenia's GDP Slovenia’s Major Trading Partners in 2004

Exports Imports (% of total) (% of total) EU-25 66.1 82.2 Non-EU states 33.9 17.8 Germany 21.3 19.9 Italy 12.9 18.6 Croatia 9.3 3.7 Austria 7.4 12.9 France 6.4 8.1 Bosnia-Herzegovina 3.9 1.1 Serbia and Montenegro 3.6 0.8 Russia 3.3 2.2 USA 3.1 1.2 Poland 2.7 1.3 Source: National Statistical Office, May 2005

Major Exports and Imports - by Product Group, 2004

Exports (% of total) 1. Motor vehicles 8.1 2. Pharmaceuticals 6.3 3. Furniture 4.8 4. Steel and steel products 3.8 5. Motor vehicles parts and accessories 2.8

Imports (% of total) 1. Steel and steel products 6.6 2. Motor cars 5.6 3. Petroleum oils 5.3 4. Motor vehicles parts and accessories 3.3 5. Pharmaceuticals 2.2 Source: National Statistical Office, CCIS- SKEP estimates and forecasts Motor vehicle transport by rail, Photo: M. Kranjec

8 Due to the quality of its labour force, infrastructure, the proximity of regional markets, as well as lifestyle, Slovenia has a great deal to offer the Direct foreign investor. FDI is also desirable from the perspective of enhancing the economy, fostering the creation of new jobs, the bilateral transfer of Investment knowledge and technology, and concordant development.

Inflows from foreign direct investment in Slovenia totalled 421.6 million euros in 2004, which was only surpassed by the 1.6 billion euro inflow in 2002, much of which pertained to the privatisation of NLB, Slovenia’s largest bank, and the acquisition of Lek by Novartis. At the same time, outward investment by Slovenian enterprises has been constantly increasing, and with 413.7 million euros in 2003 Slovenia was a net investor, further integrating the country in international markets and commerce.

Major Foreign Investors in Slovenia

Manufacturing Sandoz Group (Novartis), Danfoss, Bosch, Siemens, Gruppo Bonazzi, Meyr Melnhof, Brigl and Bergmeister, EGO, Slovenia has a lot to Pfleiderer, Henkel, Goodyear, Safilo Group, Renault, Johnson offer foreign investors Controls, Securidev, Lafarge Perlmooser, Hella, Sun Roller, Mannes Mann Rexroth, TCG Unitech, Schefenacker, Vogt Retailing Leclerc, Spar, Rutar, ÖMV, MOL Financial Societe Generale, Bank Austria CA, SanPaolo IMI, Hypo-Alpe- services Adria Bank, KBC, Raiffeisen Bank Other services Ernst&Young, DHL, Deloitte, KPMG, PricewaterhouseCoopers, AC Nielsen, GfK, Western Wireless International, Debitel, Mobilkom, IBM, Microsoft, Oracle Source: TIPO, 2005

The major portion of Slovenia’s investments abroad has been made into the expansion of production capacities – with the manufacture of chemical products and synthetic fibres taking first place together with retail trade, followed by the manufacture of foodstuffs, beverages, textiles, machinery and electrical appliances.

Volume of Slovenian Outward Investment by Country, as of 31st December 2004

Total value of investments (in millions of Euros) Croatia 672.2 Serbia and Montenegro 277.3 Netherlands 251.5 Car production line, Photo: Revoz d.d. Bosnia-Herzegovina 216.8 Poland 131.9 Germany 104.3 Macedonia 85.2 Austria 81.5 Russian Federation 76.1 Source: , 2005

Major Slovenian Investors Abroad

Manufacturing ETI, Gorenje, Helios, Iskraemeco, Iskratel, Kolektor, Krka, Lek, Prevent, Sava, Istrabenz Group Services Mercator, Merkur, Petrol, Terme Čatež, HIT Casinos, Krka-Rus production and distribution centre, at Istra near Intereuropa, Triglav Insurance Company Moscow, Photo: Krka d.d. Source: CCIS, 2005 9 Great many Slovenian trademarks are renowned the world over. And it Top Class might well be a coincidence, but the fact remains that many of this nation’s premium manufactures are closely related to recreational sports – mainly Products winter ones, but also for those whose interests are far from earthbound…

A great many professional competitors, as well as amateurs, descend snow-covered slopes on Elan skis ( www.elanskis.com ), first made world famous thanks to the Swede Ingemar Stenmark, who was undoubtedly one of the greatest skiers ever. Today the company is well known for its carving Slovenian trademarks - technology, the fruit of Elan’s indigenous R&D endeavours. renowned the world over

Alpina ( www.alpina.si ), a leading manufacturer of cross-country boots, supplies footwear to many national and biathlon teams. Alpina ski boots are worn by some of the most distinguished competitors, including the Norwegian several-times world and Olympic champion, Ole Einar Bjoerndalen.

Slovenia also plays a role in one of the world’s most technologically demanding fields – aircraft manufacture. Pipistrel ( www.pipistrel.si ) manufactures high-quality microlight and ultralight aircraft under its own trademark, and belongs among the most acclaimed and reputable manufacturers in its field.

By way of their design work as well as craft, Slovenian companies also feature in the world of nautical engineering. Did you know that Bavaria and Dofour sailboats are the products of Slovenian designers? Seaway ( www.seaway.si ) is one of the few European companies to specialise in the design and development of yachts and motorboats. Over recent years, Seaway designed craft have been built in 24 shipyards in 14 countries. And what one designs, another can build; indeed some 12,000 vessels have been built under licence. Elan Marine ( www.elan-marine.com ) has been involved in yacht manufacture since 1949, and there is ever-increasing demand for their sail- and motor-boats. Indeed, the proud owners of the Elan vessels are to be found in marinas right around the globe. Shipman 63, Photo: Seaway d.o.o.

Passion, thrill and fun with Elan. Photo: Elan d.d.

10 The are also a nation of travellers. One may hit the road to distant lands with a Slovenian motor home or touring caravan, and one of the leading European manufacturers in this field is Adria Mobil Research and ( www.adria-mobil.si ). development leading the way

In addition to vehicle manufacture, Slovenia’s automotive sector boasts a world leader in the manufacture of exhaust systems for racing motorcycles – Akrapovič ( www.akrapovic-ai.si ) – which is also one of the fastest growing enterprises in the country.

Simple & Logical is the trademark of washing machines and a range of household appliances – which also embraces intelligent refrigerators connected to the Internet – manufactured by Gorenje ( www.gorenje.si ). With their emphasis on design these appliances can’t be anything but first-class.

Development projects are also focused on the creation of new products that gain recognition internationally, and from there make the step to becoming pre-eminent on world markets. BIA Separations ( www.biaseparations.com ), which has registered numerous new patents in the field of biotechnology, and MO-GY ( med.over.net/mo-gy ), with its new method for the early detection of breast cancer, are just two of an ever-growing number of such enterprises.

Ultralight aircraft Sinus 9, Photo: Pipistrel d.o.o.

Alpina Be3 downhill ski boots for children, design: Jure Miklavc, Jan Jagodič, Photo: D. Arrigler

Evolution road & offroad exhaust systems, Photo: Akrapovič d.o.o.

11 If you are looking for a business partner in Slovenia, www.sloveniapartner.com Key Partners may hold the key. In addition to providing a variety of useful information on the country and its economy, the site also encompasses databases aimed at facilitating your penetration of the Slovenian market. The following may be of special interest:

• SLOEXPORT www.gzs.si/sloexport – This database of Slovenian exporters provides easy and quick access to up-to-date detailed presentations of enterprises.

• BORZA www.borza.org – Looking for Slovenian business partners? You are invited to enter offers and requests, as well as seek partners via a B2B database.

Looking for a business partner? • INVESTSLOVENIA www.investslovenia.org – All you need to know about Visit Slovenia as a location for an investment project. www.sloveniapartner.com

Expert personnel from the CCIS and TIPO can get you in touch with any goods or service provider – should you be interested in products, services, joint ventures, technology transfer or new green-field investment.

The CCIS ( www.gzs.si; [email protected] ) and TIPO ( www.investslovenia.org; [email protected] ) act as your initial partners in Slovenia, the key that can help you unlock the door to success. They can also provide you with information on visits of Slovenian businessmen and trade missions to your country, and at the same time assist you in making contacts and establishing your business in Slovenia.

www.sloveniapartner.com

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PANTONE 541 C

PANTONE 376 C

20% K Slovenian IT companies excel in innovation and superior technical solutions in both telecommunications and information technology. Such Information is not merely a reference to individual projects but to enterprises that are playing a leading role in the development of technologies and solutions on Technology the world stage, and, by way of this, these firms are of key significance in the design of strategies and the contemporary trends in info-technology.

Innovation and superior The network and data storage solutions developed by the Slovenian technological solutions enterprises are applied by companies the world over, including such prestigious names as Alcatel, Hewlett-Packard, Unisys, Cisco and British Telecom, and thus they feature as crucial world-leading elements in the respective market niches. The aforementioned component solutions, as well as the related services, are particularly strong within the territories of the Southeast Europe.

Network and data The IT-related fields in which the Slovenian enterprises rank among the world’s leading solution providers encompass: storage solutions designed in Slovenia are • the design and implementation of communications networks; applied by companies • e-banking; the world over • data backup software; • IT service provision; • logistics.

Slovenia’s two major hardware providers:

• AGB Lab d.o.o. ( www.agblab.com ) • InSilica d.o.o. ( www.insilica.si )

Leading enterprises in the field of telecommunications:

• Iskra Transmission d.d. ( www.iskratr.si ) • Iskratel d.o.o. ( www.iskratel.si ) • Mobitel d.d. ( www.mobitel.si ) • Si.Mobil d.d. ( www.simobil.si ) • Telekom Slovenije d.d. ( www.telekom.si ) Access control and time&attendance terminals, Photo: Špica International d.o.o. Slovenia’s leading IT solution providers include:

• Actual I.T. d.o.o. ( www.actual-it.si ) • Halcom d.o.o. ( www.halcom.si ) • HERMES SoftLab d.d. ( www.hermes-softlab.com ) • S&T Hermes Plus d.d. ( www.snt.si ) • SRC.SI d.o.o. ( www.src.si ) • Špica International d.o.o. ( www.spica.com )

The major exporters in this sector have such companies as Microsoft, IBM, HP and Oracle among their clients. eOffice - an overall solution for small and medium-sized companies, Photo: SRC.SI d.o.o.

13 Large companies in the field of pharmaceuticals and chemicals have placed Chemicals, Slovenia among the leading countries in this sector in Central Europe, and their steps are followed by a host of small audacious enterprises –including Pharmaceuticals BIA Separations, Educell, Celica, BIA – working in such specialist fields as bio chips, biochemistry, molecular biology, genetic engineering and and industrial biotechnology. Biotechnology

The introduction of the postgraduate nanosciences and nanotechnologies programme at the pre-eminent Jozef Stefan Institute in Ljubljana, shall further foster the development in this field.

The legacy of successful R&D, together with the construction of a number of new production and distribution capacities, single out Slovenia as one of the largest providers of pharmaceuticals in the region. Slovenia’s two One of the largest largest companies, Krka and Lek, export nearly 90% of their production, and have several facilities, plants and research centres abroad. Following providers in Central its acquisition by Novartis, Lek has been a member of the Sandoz Group of Europe companies since 2002.

As to their achievements in R&D, the leading enterprises of Slovenia’s chemicals industry – Helios, Belinka and Sava – successfully compete on a number of European markets. In 2004 this sector had an aggregate income of 2.29 billion euros, 68% of which was generated on foreign markets.

Leading companies and organisations:

• Belinka d.d. ( www.belinka.si ) • BIA Separations d.o.o. ( www.biaseparations.com ) • Cinkarna Celje d.d. ( www.cinkarna.si ) • Helios Domžale d.d. ( www.helios.si ) • Jožef Stefan Institute ( www.ijs.si ) • Krka d.d. Novo Mesto ( www.krka.si ) Wood coatings, Photo: Belinka d.d. • Lek d.d. ( www.lek.si ) • Sava d.d. ( www.sava.si )

Chromatography, Photo: J. Jančar, BIA Separations d.o.o.

14 The automotive sector plays a significant role in the national economy. Despite the ongoing relocation of production facilities to more distant Automotive markets, the further development of this sector in Europe is also antici- pated. Slovenian enterprises are ever more innovation-oriented, a fact Sector vindicated by the Polycentric Technological Centre (PTC) project which embraces nine companies and three research institutes and invests into R&D activities as well as new production technologies.

Some information pertinent to Slovenia’s automotive industry:

• Renault, which has had manufacturing capacities in Slovenia since 1972, is planning a major expansion of production. At the same time, the assembly of the new X-44 model shall be exclusively at the Renault Revoz plant in Novo Mesto. • Slovenia annually manufactures vehicle components to the value of cca. 1.2 billion euros, of which it exports a total 940 million euros worth, a figure that corresponds to approximately eight percent of the nation's Intesive and reliable goods exports. network of suppliers • Exports of buses and other commercial vehicles amount to some 30 for global car million euros per annum. • Exports of special tools, machinery and devices for the automotive manufacturers sector and its pertaining supply industries exceed 100 million euros a year. • Vehicles, automotive components as well as tools and equipment for the automotive and related sectors together account for nearly 19% of Slovenia’s goods exports, and in excess of 15% of total exports.

Automotive Cluster of Slovenia – ACS ( www.acs-giz.si ) encompasses vehicle and component manufacturers that together engender annual revenues in the region of 950 million euros, 800 million euros of which are generated on foreign markets. The ACS fosters and promotes research and development activities that shall, in turn, lead to more advanced products and systems, and thus create value enhancement.

Alternators and starter motors, Photo: Iskra Avtoelektrika d.d. Leading companies:

• Adria Mobil d.o.o. ( www.adria-mobil.si ) • Akrapovič d.o.o. ( www.akrapovic-ai.si ) • Cimos d.d. ( www.cimos.si ) • Hidria d.o.o. ( www.hidria.si ) • Iskra Avtoelektrika d.d. ( www.iskra-ae.com ) • Kolektor Group d.o.o. ( www.kolektor.si ) • Prevent Global d.d. ( www.prevent.si ) • Revoz d.d. ( www.revoz.si ) • TCG Unitech Lth-ol d.o.o. ( www.unitech.at ) • TPV d.d. ( www.tpv.si ) • Unior d.d. ( www.unior.si ) Commutators, Photo: Kolektor Group d.o.o.

15 This sector is anticipated to grow further, particularly as a result of the Construction efforts now being made into intensifying penetration to the markets of Southeastern and Eastern Europe. As to the domestic market, rather and Civil substantial investments are still expected in such fields as housing, tourism, energy and ecological amelioration, as well as transport infra- Engineering structure, with particular emphasis on the national railway network.

Qualified for the most The investment project that exerts most significant impact on Slovenia’s demanding projects in construction sector remains the ongoing motorway construction pro- gramme, which was initiated in 1994. By the end of 2004, 348 km of new the field motorways, expressways and other roads were in service, and construction of a total of 660 km of new highways is anticipated by 2013.

Co-ordinated by the Construction Cluster of Slovenia ( www.sgg.si ) and in co-operation with all interested players in this sector, together with other companies and organisations engaged in field-related research & development, activities related to the preparation of the ECTP and the SGTP – respectively, the European and Slovenian construction technology platforms – are now well underway. These two platforms shall also serve as the basis for R&D projects in the construction sector over the coming 25 years.

Trimo d.d’s project engineering for the new Airbus Deutschland production facility in Hamburg, Photo: Trimo d.d. Leading companies:

• Primorje d.d. ( www.primorje.si ) • SCT d.d. ( www.sct.si ) • SGP Pomgrad d.d. ( www.sgp-pomgrad.si ) • Trimo d.d. ( www.trimo.si ) • Vegrad d.d. ( www.vegrad.si )

Construction of the Šentvid Tunnel, Photo: SCT d.d.

With its 1065-metre length, a surface of 28,173 m2 and a maximum pier height of 95 m, the Črni Kal Viaduct is Slovenia’s longest motorway bridge and its tallest structure, Photo: SCT d.d. 16 In the field of logistics and transport, Slovenia has every intention to further promote and foster research work and the introduction of innovative, more Logistics and environment-friendly services, by way of which the transport sector shall make its contribution to fulfilment of the provisions of the Kyoto Protocol. Transport In addition, much effort has been invested into the creation of an adequate legislative framework, together with other provisions and standards that will ensure the implementation of best practise as well as multi- and bi- lateral agreements. All of this shall provide efficient operational control as well as allow Slovenian providers of logistics services to meet international requirements and thus successfully penetrate and compete in foreign markets.

Slovenia is located at the intersection of the fifth and tenth pan European transport corridors. Although this country is by no means densely populated, the magnitude of its motorway network is above the European average, while the provides the shortest maritime transit route between the Central European hinterland and the countries of the Integral logistics services Mediterranean, as well as the crucial markets of the Middle and Far East. with trans-national and global perspectives

As has been the case with other companies across Europe, Slovenian enterprises shall in future become more specialised in the provision of particular transport services, as well as engage in international strategic partnerships. Macroeconomic priorities at the national level encompass the provision of transport services and the concentration on the generation of a higher value added, by way of which new jobs shall be created, which shall consequently increase the employment rate.

The further development of the market economy, and evermore-fierce competition, also require the optimisation of storage and warehousing facilities with respect to information technology and logistics operations. Such shall be achieved through the implementation of new private capital investment schemes in order to create new as well as modernise existing cargo terminals at Slovenia’s sea- and air-ports. In addition, steps have been taken to promote competition in the provision of integral logistics services with trans-national and global perspectives, as well as co- operation between industry and carriers in the management of supply chains. The newly established Faculty of Logistics in Celje is yet another Ljubljana Airport, Photo: Aerodrom Ljubljana d.d. move forward in the development of this particular field.

Leading companies:

• Aeorodrom Ljubljana d.d. ( www.lju-airport.si ) • BTC d.d.( www.btc.si ) • Eurotek Trebnje d.o.o. ( www.eurotek.si ) • Holding Slovenske železnice d.o.o. / ( www.slo-zeleznice.si )

• Intereuropa d.d. ( www.intereuropa.si ) The Port of Koper is a multi-purpose port, equipped and • Luka Koper d.d. / Port of Koper ( www.luka-kp.si ) prepared for handling and warehousing all types of goods, Photo: Luka Koper d.d. • Skupina Viator & Vektor d.d. ( www.viator-vektor.com ) 17 Slovenia’s largest energy companies are currently spending over 200 Energy million euros per annum on enhancing generation and distribution capacities and pertaining infrastructure; and this trend is on the increase. Such investment is absolutely indispensable in order to ensure a reliable high-quality supply which fully meets evermore stringent environmental requirements.

Energy Management

Slovenian power generation and related engineering and distribution enterprises have been following international trends and have thus adopted a number of strategies – including supply from a diversity of sources, waste management, generation from renewable resources, consultancy as to the efficient use of energy, demand-side management (energy delivery and performance contracting) operations etc. – in order to achieve the aforementioned objectives. Indigenous provision of a reliable high-quality energy supply Renewable Energy Sources (RES)

The international frame as to the use of RES is set out by the requirements of the Kyoto Protocol. The promotion of power generated from the renewable sources and the efficient use of energy are the priority objectives established at the state level in order to reduce the greenhouse gas emissions between 2008 and 2012 by at least eight percent on the 1996 level. In addition, Slovenia’s national energy programme anticipates a 12% increase in power generated from RES by 2010. This is to be achieved by the following: 25% of heating requirements should be covered by energy from renewable sources, while the percentage of electrical power generated from RES should increase from 32% in 2001, to 33.6% by 2010. Additionally, the consumption of biofuels in the transport sector has also witnessed a constant increase.

Leading companies:

• ELES d.o.o. ( www.eles.si ) • Geoplin d.o.o. Ljubljana ( www.geoplin.si ) • Istrabenz d.d. ( www.istrabenz.si ) • NEK d.o.o. ( www.nek.si ) • Petrol d.d. ( www.petrol.si )

Liquefied petroleum gas storage tanks at the Bohova filling plant (Plinarna Maribor), Photo: Istrabenz d.d.

18 Despite the long tradition of industrial design promotion – achievements are reviewed by Slovenia’s international Biennial of Industrial Design, the Industrial Information and Documentation Centre for Design at the CCIS, as well as the Mesec Oblikovanja (Month of Design) event, held annually since 2003 Design and – most Slovenian enterprises continue to pay too little attention to a well- considered and executed design management, or the role of design in the a Spirit of development of products, services and processes. Innovation

This said, however, there are companies that are major exceptions to this general rule. Based on decades of ongoing professional work by its design centre, Gorenje ( www.gorenje.com ) has been granted a number of international awards for the excellence of its products. Most of this nation’s How can design facilitate sports goods manufacturers have long been fully aware that the best way to success is through design and innovation, while this select group of entry onto world internationally honoured firms has also been joined by the Slovenian markets? footwear manufacturer Alpina ( www.alpina.si ). Does design add value?

At the 2004 Month of Design, the Zgodba o Uspehu (Story of Success) Why is innovation a award was granted to Intra Lighting ( www.intra.si ), a company that places strategy? absolute emphasis on design and has thus been very successful on foreign markets. How can a trademark build identity?

International Awards

• Seaway Group – 2002 Yacht Design Award • Gorenje – 1996 Icograda Excellence Award (Simple & Logical washing machine); 2002 ICSID Industrial Design Excellence Award (Touch the Future); 2005 Red Dot Design Award, Design Zentrum Nordrhein Westfalen (washing and drying machine) • Alpina – 2002 Gold Medal - BIO 18 (Alpina XC Racing CL footwear)

Gwig light fitting, Asobi design, Photo: Intra Lighting d.o.o.

Distinctive design by Gorenje resulted in two prestigious Red Dot Design Awards in 2005, Photo: Gorenje d.d.

19 Slovenia offers a full range of banking, financial and other such inter- Financial mediary services that can support unlimited business operations through- out the world. Many of these are provided by leading European banking Services groups with capital interests in Slovenia’s financial sector. By way of this fact, and in addition to vast experience in both local and regional markets, this country’s banking and financial expertise can be considered second to none.

Slovenia is also a leading regional insurance centre, and as regards the value of premium per capita it is ranked seventh among the sixty most promising insurance markets in the world. Furthermore, the provision of fund management services has witnessed constant growth and development over the past decade. The market capitalisation of securities traded at the Ljubljana Stock Exchange accounts for half of total GDP, while the portion of foreign portfolio investors active in this market has been increasing. A full range of banking, financial and other such intermediary services Foreign financial institutions are free to establish their own operations in this country, and from here they can also monitor and service other countries in the region. The Slovenian financial and civil engineering markets are well developed thus implementing even the largest and most complex of infrastructure projects is not a problem.

Leading companies:

• KD Group d.d. ( www.kd-group.si ) • Ljubljanska borza d.d. / Ljubljana Stock Exchange ( www.ljse.si ) • NLB d.d. ( www.nlb.si ) • Slovenska izvozna družba d.d. / Slovene Export Corporation ( www.sid.si ) • Zavarovalnica Triglav d.d. / Triglav Insurance Company ( www.zav-triglav.si )

Ljubljana Stock Exchange, Photo: D. Arzenšek, CCIS

20 Responsibility towards the environment is something that enterprises are ever more incorporating into their business objectives and strategies; it Commitment is also a field in which Europe is leading the way. For its part, Slovenia is also committed to environmental protection and pays particular attention to the to the involvement of the community in environment-related concerns, as well as to informing, educating and increasing public awareness as to the Environment pertinent issues. This is also a task undertaken through the ratification of the Aarhus Convention, which itself recognises the human right to a healthy environment. New regulations are particularly aimed at the prevention of pollution at source, reduction in the use of energy, raw materials and natural resources, as well as integral management of the various impacts that commercial operations inflict upon the natural ecology. All of these activities are intended to engender new attitudes, enhanced responsiveness as well as the introduction of improved economically viable solutions to the problems that humankind is being faced with.

The demands of the environment today require ever-new measures, Increasing attention to technology and services, as well as specialist knowledge and skills. Thus the actual number of activities, which are either directly or indirectly environmental protection involved in environmental protection, is rapidly growing. The development of such operations is a reflection and expression of changes in the approach towards environmental issues, which encompass everything from cleaner modes of production to end-of-pipe technologies.

Those companies which provide products or services in one or more environment-preservation related spheres can register in the CCIS special e-catalogue ( www.gzs.si/katalogi ) which already encompasses over 450 such enterprises.

The Slovenian Environmental Cluster ( www.giz-eg.si ) joins together 15 companies which employ some 2,000 people and have an aggregate turnover of 104 million euros. The Cluster is particularly engaged in the protection of water and air quality as well as the recycling of waste, whereas its main objective is to ensure the transfer of academic knowledge from research institutes into the commercial sector.

The new main sewerage treatment works in Ljubljana, Photo: SCT d.d.

21 A Holiday Winter Fun Slovenia’s winter sports resorts – such as Kranjska Gora in the Julian Alps Away From It and Rogla on the Pohorje Massif – are very appealing to both downhill and cross-country skiers as well as snowboarders, while those in need of All… a little tuition can join various ski courses. In summer these same resorts become a favourite destination for cyclists, walkers and climbers.

Azure Waters

The Slovenian Adriatic coast is a great base for sailing, surfing and scuba- diving trips, whereas the wild waters of the Soča (Isonzo) and other rivers provide excitement and a challenge to the kayaker and rafter. The country’s clean lakes and rivers – the characters of which differ greatly from one part of the country to another – attract many sports fishermen. Medicinal thermal and mineral springs, particularly characteristic to northeastern Slovenia, are also the setting for popular spas and health resorts. Most of the country’s larger lakes, including the largest one – Bohinj – and most famous – Bled – are located in Alpine Slovenia and the vicinity of the Triglav National Park, which is the largest area of protected territory in the country.

Above Ground and Underground

There are equestrian clubs all over Slovenia, the most famous of which

Skiing on Krvavec, Photo: A. Fevžer, STB is the Lipica stud farm, home of the famous white Lipizzaner horses. At the same time, the mountain and other hiking trails criss-crossing the land are also fairly ubiquitous, while almost the whole of Slovenia is fabulous cycling country: one can take a short trip or embark upon a more demanding specially marked mountain route. And then there’s the Karst region, which has lent its name to areas of such terrain the world over. Here you can find thousands of caves, potholes and abysses, and about a tenth of them are open to the public. The most popular and world renowned are at Postojna, though many visitors are also fascinated by the beauty of the Škocjan Caves which are a UNESCO world heritage site.

Rafting on the Soča, Photo: J. Skok, STB

Cycle racing in the Alps, Photo: A. Fevžer, Government Public Relations and Media Office

22 Keep Fit and Healthy

Slovenian tourist resorts and in particular the spas – such as Čatež, Rogaška Slatina, and Dolenjske Toplice – offer a wide variety of treatments as well as amenities for numerous sports, recreation, and social activities. Exercise and fitness facilities, together with the increasingly popular wellness centres, have become part of the regular offer of Slovenian hotels and health resorts.

Riding the Wind

In search of a rush of adrenalin? Ever thought of paragliding? A vast array of para- and hang-gliding clubs, ballooning associations, aerial sports centres and aerodromes – such as Lesce near Lake Bled – offer all sorts of possibilities to the intrepid. Bernardin Resort and Conference Centre, Photo: U. Trnkoczy, STB

A Hole in One

One of the increasingly popular ways to actively spend free time – both by Slovenes as well as their foreign visitors – is golf, which came to this land less than seventy years ago when the first golf course was laid out near Bled. Today Slovenia can boast eight 18-hole courses: Bled, Lipica, Volčji Potok Arboretum, Mokrice, Ptuj, Moravske Toplice, Podčetrtek and Slovenske Konjice.

Terme Palace, Portorož, Photo: B. Kladnik, STB

Great Food and Fine Wine

A whole universe of culinary delights awaits one in Slovenia’s traditional inns and restaurants, and many of these are also available in this country’s hotels as well as the many farms that cater for visitors. National dishes of note encompass such delicacies as štruklji, gibanica roulades with their rich assortment of fillings, potica, and the famous pršut (prosciutto) ham naturally cured by the bora wind. And accompanying all these great dishes and delicacies are excellent wines from Slovenia’s three distinct winegrowing regions (Podravje, Posavje, Primorje).

Golf at Bled, Photo: A. Fevžer, STB

Slovenian specialities, Photo: B. Kladnik, STB

23 Chamber of Commerce and Industry of Slovenia Slovenian Trade & Investment Promotion Agency Dimičeva 13, SI-1504 Ljubljana Kotnikova 28, SI-1000 Ljubljana Tel.: +386 1 5898 000 Tel.: +386 1 478 3557 Fax: +386 1 5898 100, 5898 200 Fax: +386 1 478 3599 E-mail: [email protected] E-mail: [email protected] www.gzs.si www.investslovenia.org

Published by: Chamber of Commerce and Industry of Slovenia, Slovenian Trade & Investment Promotion Agency

Co-Editors: Igor Drakulič, Tajda Pelicon, Sonja Klemenčič

English Edition: Melian Translations

Design and Layout: CCIS

Cover Photos: SCT d.d.; Archives of Cankarjev Dom, STB; A. Fevžer, STB; PhotoDisc

Printed by: Present d.o.o.

Published and printed in Slovenia, October 2005

The authenticity of the statistical information provided herein is the responsibility of the attributed source.

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