Ljubljana related

11 Apr 2020, 09:47 AM

STA, 10 April 2020 - Ljubljanske Mlekarne, Slovenia's largest dairy, has dispatched the first shipment of its iconic Planica ice cream to China, part of a total of 43 tonnes planned to be exported there this year.

The shipment of almost 35,000 one-litre boxes of Planica tropical and chocolate flavours, sent on its way from the Koper port on Thursday, is expected to reach its destination within five weeks.

Named after the alpine valley that is home to Slovenia's ski jumping centre, the ice cream has been manufactured by Ljubljanske Mlekarne since 1974.

Initially coming only as a family pack combining three colour chocolate, vanilla and strawberry flavours into one, the brand has since been expanded to come in various shapes, sizes and flavours.

"At a time of global disruption to business due to the coronavirus pandemic, we are the more enthusiastic about the deals such as this one," the Ljubljana-based dairy said.

The company deems the breakthrough the more important due to the excess supply of milk throughout Europe as a result of the fallout from the pandemic.

The dairy said its milk sales in China were doing well with the customers there associating Slovenian dairy products with high quality.

Ljubljanske Mlekarne buys more than 500,000 litres of milk from Slovenian dairy farms every day, which represents a third of Slovenian raw milk production.

Slovenia produces 30% more milk than it consumes.

25 Feb 2020, 11:06 AM

STA, 25 February 2020 - A company in Chinese ownership that used to lease the Maribor Airport plans to file a damage suit against the state after it terminated the lease in early 2019, whereupon the airport management was turned over to a state-owned consulting and engineering company.

The company, Aerodrom Maribor, said in a press release Tuesday it will demand EUR 2.1 million in damages, the equivalent of the lease payments for the duration of the agreement, plus costs and lost profits.

The lawsuit will claim that the state dragged its feet on the adoption of a zoning plan that would have allowed the Edvard Rusjan Maribor airport to extend the runway.

Aerodrom Maribor will claim that after the company terminated the lease, the state engaged in violations of the law by continuing to use real estate at the airport that remains in the ownership of Aerodrom Maribor.

Consequently, they will demand the erasure from the land register of an easement on the property that they say the state entered into the records based on a contract that never took effect.

Aerodrom Maribor also accuses the state of continuing to deceive potential investors by stating in a recent call for public-private partnership that a zoning law was in the making.

"It appears the state continues with its contentious conduct - by misleadingly attracting new investors willing to invest in the Maribor Airport in the conviction that the state will fulfil its promises," the company said.

After the lease was terminated, the management of the airport was entrusted to the state-owned firm DRI, which also hired all workers.

The move was designed as a stop-gap measure to keep the airport open until a new operator is found so as to prevent a scenario under which it would have to return EU funds: in accordance with the commitments accompanying a EUR 6 million injection of EU funds, the airport must stay open at least until mid-November 2021.

The termination of the lease ended a testy relationship between the state and a lessee that promised investments in excess of EUR 600 million and passenger numbers reaching two million by 2028, figures widely seen as unrealistic considering the location of the airport and nearby rivals Graz and Zagreb.

The company however maintains that its plans had been viable, assuming the state would keep its promises.

Outgoing Infrastructure Minister Alenka Bratušek responded to the development today by arguing the first assessments indicated the plaintiff had absolutely no chance of success.

She stressed that Aerodrom Maribor stopped paying rent almost immediately after she became minister and that it was Aerodrom Maribor that cancelled the lease.

"The ministry had honoured all the terms set down in the contract," Bratušek added, while saying that a kind of promise that the zoning plan would be changed by March 2018, issued in writing by the then Infrastructure Ministry State Secretary Jure Leben, was not binding on the state.

"The relevant institutions will be the ones to judge if this letter entails any commitments for the state," the minister said, while arguing that the Infrastructure Ministry was in fact not authorised for making such zoning changes.

Maribor airport remains virtually abandoned: without a single scheduled flight, it is confined to occasional charter flights and small sports aircraft.

It recorded only 2,700 passengers in 2018, the latest year for which figures are available.

13 Feb 2020, 13:59 PM

STA, 13 February 2020 - Slovenia will send over 1.2 million face masks to China to help it contain the coronavirus outbreak. The shipment is due to be dispatched to Wuhan, the epicentre of the outbreak, this week, the government said on Thursday.

The face masks are a donation of the Slovenian branch of Kylin Prime Group (KPG), a Chinese-controlled company that has amassed a majority stake in the savings and loans bank Hranilnica Lon and is currently blocked by regulators from exercising its voting rights.

The company had donated the masks in response to a Foreign Ministry request for donations and the masks will be shipped out of Vienna as part of an EU shipment of emergency aid to China. Slovenia will cover up to EUR 20,000 in transportation costs.

Stanislav Lotrič, deputy head of the Administration for Civil Protection and Disaster Relief, told the press as the aid was being dispatched that there had been no problems with collecting the aid in Slovenia.

He however suggested that globally it was becoming hard to meet the demand for masks, which could prove a problem.

The masks were sent to Vienna, from where they are expected to be flown to Wuhan in an EU Civil Protection Mechanism aircraft together with donations from Austria, Hungary and Czechia by Monday at the latest.

The government has also approved a EUR 60,000 emergency donation to the World Health Organisation (WHO) to fight the coronavirus outbreak.

04 Feb 2020, 15:36 PM

STA, 4 February 2020 - The Slovenian national postal operator has stopped accepting mail for China until further notice after its partner air carriers suspended flights to the country in the wake of the coronavirus outbreak.

Until further notice, Pošta Slovenije will no longer accept letters and packages destined for China. Deliveries already on their way to China are expected to arrive with a delay, the company said.

An exception to the suspension of the service applies to UPS packages, but the senders are advised to check first whether delivery to the intended addresses is possible.

Most recent information is that deliveries cannot be accepted in Wuhan, the city and the region at the centre of the novelty coronavirus outbreak.

Fraport Slovenija, the company operating Ljubljana airport, has said that some exporters have had difficulties dispatching their deliveries because of suspension of air links with China.

Speaking with the STA, the company could not say what quantities had been affected.

"There have been many more air mail bags from China this year, which is delayed mail from last year due to overbooked capacities for Europe. The real picture will not be clear until next month."

Meanwhile, Pošta Slovenije is looking for substitute transport channels so as to be able to resume service and allow users to post all types of mail.

"The customers will be notified as soon as the possibility of mail acceptance is resorted," the postal company said in a press release on Tuesday.

Koper port says coronavirus to affect business, no measures adopted yet

STA, 4 February 2020 - Luka Koper, the operator of Slovenia's sole commercial port, has told the STA that the coronavirus situation is expected to affect transshipment volumes. Container cargo and vehicles are likely to be impacted the most, Luka Koper said, while explaining it had not yet received any instructions concerning potential health measures.

"The epidemic in China has gravely impacted production there and crippled services, including in logistics, which will sooner or later also be felt in Koper," the operator said.

While it is too early to say anything concrete, Luka Koper pointed out that some global logistics companies have already closed their distribution centres in China and that some shipowners are announcing the cancellation of certain scheduled lines.

"For the time being this does not involve the northern Adriatic or Koper but it is clear that the situation will affect transshipment volumes. Container cargo and vehicles are likely to be impacted the most," it announced.

As regards measures to contain the virus, Luka Koper explained that the monitoring of ships in Slovenia, including of the health situation of crews, is in the domain of the Slovenian Maritime Administration.

It is the duty of the captain of a ship to report any health conditions before entering the port and the report is forwarded by the Maritime Administration to the National Institute of Public Health.

The institute is also responsible for issuing instructions regarding any measures to the port, but Luka Koper said it had not received any so far.

01 Feb 2020, 11:10 AM

STA, 31 January 2020 - Representatives of the Slovenian companies that have offices or facilities in China told the STA on Friday they had no problems because of the coronavirus yet but they do fear the negative consequences that might follow after the New Year holidays in China are over. Fifteen Slovenian companies operate in China, according to Sloexport data.

Tool maker group Unior, which employs some 460 people in China, told the STA its facility was closed for the holidays at the moment and was expected to open again on 10 February.

The company does not feel any consequences of the epidemic yet and was maintaining business contacts via e-mail and WeChat.

Similarly, pharma company Krka, which operates in Ningbu, has suspended trips to China, as business partners there prolonged their New Year holidays.

Work in all of its business units was running smoothly because they had made enough stock before the holidays.

In the future, business contacts will be made via conference calls and e-mails.

Electronics group Iskra has a store with three employees in Hong Kong, which is operating without disturbances despite the fact that a part of its suppliers comes from China.

"We expect one- to two-week delay on the Chinese side," Iskra representatives told the STA, adding that problems would start if production halt would expand or be extended.

Andrej Boštjančič, the head of Softnet, a specialist in advanced communication technologies and services, which has four employees at its office in Shanghai, thinks the economic impact of the virus would be massive. "Production, transport will definitely be affected."

Today the Hong Kong postal operator announced it was temporarily halting a part of its postal service, he said. "It will all depend on how long all this will last," he said.

Its office will also be closed until 10 February and then they will do business via e-mail and phone.

Le-Tehnika's two companies in Suzhou, some 100 kilometres from Shanghai, employing a dozen people, producing phones and selling the company's Slovenian-made products, are also still closed for the holidays.

CEO Drago Lemut expects some delays in the supply of some materials.

The Chinese-owned household appliances maker Gorenje has not been affected by the epidemics but it did introduce some preventive measures. All employees who return from China will have to stay home for 14 days before coming to work again, the company said.

23 Jan 2020, 16:30 PM

This week is Chinese New Year, so what better time to read about the growth of Chinese tourism in Southeastern Europe? Dragon Trail has an interesting article titled “The Southeastern Europe Chinese Tourism Boom”, by Sienna Parulis-Cook. It looks at recent trends in travel from the Middle Kingdom to this part of the world, and the states of the former Yugoslavia in particular.

my green travel slovenia china.JPG

"My Green Travel" -Slovenia has a Chinese website

It notes that the region has seen some of the world’s highest growth rates for Chinese tourism in recent years, with Montenegro more than doubling its tourism numbers in the first nine months of 2019, while in the first half of the year Slovenia saw 46,032 arrivals and 71,571 overnight stays by Chinese tourists, up by 22.5% and 37.6%, respectively. To put those numbers in context, the entire Chinese outbound tourism market grew by just 12% in 2019.

Two of the most viewed Chinese language videos on Slovenia on YouTube

Why such growth? One reason is the ease of visa-free entry in Serbia and Bosnia-Herzegovina, and the fact that both Croatia and Montenegro allow entry to anyone holding a Schengen visa, while Slovenia is already within the free movement zone. Another is the growing business connections between the region and China, most notably via the Belt & Road Initiative to link Eurasia and Africa, with Southeastern Europe being a key route to Northern Europe.

Related: Where Did the Visitors to Slovenia Come from in August 2019?Where Did the Visitors to Slovenia Come from in August 2019?

A third is the growing sophistication of Chinese travellers. While those coming to Slovenia are likely still travelling in groups, they’ve probably already been to the AAA must-see sights and cities in Europe – with Paris now receiving some one million Chinese tourists a year. Lesser known destination are thus the new frontier, and with such travellers are said to be less interested in shopping for top brands in luxury stores than in having experiences in terms of culture and outdoors. And as Ana Špik, who works for the Slovenian Tourist Board, notes, Slovenia is increasingly popular for Chinese pre- and post-wedding photography, so it’s also attracting more couples.

The whole article contains a lot more of interest, on Slovenia and the wider region, and can be read here.

15 Dec 2019, 09:36 AM

STA, 14 December - Chinese Foreign Minister Wang Yi urged protecting multilateralism against unilateralism as he and his Slovenian counterpart Miro Cerar discussed bilateral relations, EU-China cooperation, and the 17+1 initiative, which brings together 17 Central and East European countries plus China.

Making a case for multilateralism at a time of major global changes, Wang stressed that both countries must continue to defend multilateralism and build open economy.

"We must adopt concrete measures to reject unilateralism and avert power politics in a bid to protect the international system with the UN at its centre, the international order backed by international law, and a multilateral trade system with the WTO as its basis," he said at a press conference in Ljubljana on Saturday.

Wang stressed that despite having different culture and history or being different in size, China and Slovenia respected the basic rules of international relations.

"This is the basis for our mutual trust, which benefits both countries," said Wang, who believes China-Slovenia relations are becoming increasingly mature and stable.

Cerar noted China was a superpower, a permanent UN Security Council member and an indispensable strategic partner of the EU's, but indicated the two sides did not always share the same positions. But he said China was a key partner of the EU's in fulfiling commitments from the Paris Agreement on climate change.

"We have different stances or standards in the EU and China, but we need to discuss it with respect and openly, but most of all we must seek common areas of cooperation, enhance constructive relations and respect each other," he said.

Cerar stressed political and economic cooperation had been growing, making China Slovenia's most important trading partner in Asia and the 13th most important one overall.

Since 2013, trade in goods increased by some 15% a year to reach EUR 1.3 billion in 2018, with several Slovenian firms opening their offices in China and China's investment increasing in Slovenia.

He also noted that 2020 would be a year of enhanced dialogue between the EU and China, with two EU-China summits planned alongside a 17+1 initiative summit.

Cerar also announced Slovenia and China would further strengthen cooperation next year in view of Slovenia's EU presidency in the second half of 2021.

Wang announced the 17+1 summit, to be held in Beijing in April, would focus on mutual connectivity, green development, innovation and openness.

It is Slovenia's wish to take the lead in the 17+1's coordinating mechanism for winter sports, an area where it has developed good cooperation with China.

The Belt and Road Initiative (BRI) is another area of cooperation, with Slovenia promoting its port of Koper as "one of the best points for good from Asia ... to reach Central and East Europe", stressed Cerar.

Wang would meanwhile also like to see more cooperation within the BRI in science, technology, advanced production, pharmaceutical industry, healthcare and winter sports, while he belives infrastructure, such as railways and ports, should be better connected.

"Let's hope for the Beijing summit to create better synergies between the 17+1 forum, the BRI, the EU's strategy to connect Europe and Asia, and the Three Seas initiative as well as development strategies of Central and East European countries," he said.

Cerar announced he would visit China with a business delegation next year, while a China-Slovenia Day of Science and Investment would be organised here.

Wang, who is en route to the Europe-Asia meeting in Spain, which will be also attended by Carer, also met President Borut Pahor.

The pair discussed topical issues in the international community and urged enhancing the good relations between the EU and China, Pahor's office said in a release.

Pahor also took the opportunity to invite Chinese President Xi Jinping to visit Slovenia.

Wang also met Prime Minister Marjan Šarec and Speaker Dejan Židan before completing his visit, the first to Slovenia by a Chinese foreign minister since 2008.

All our stories on China and Slovenia are here

14 Dec 2019, 09:11 AM

STA, 14 December 2019 - Chinese Foreign Minister Wang Yi is visiting Slovenia on Saturday for talks with his Slovenian counterpart Miro Cerar and other senior officials. Wang and Cerar will discuss the two countries' political and economic relations and aim to come up with new cooperation opportunities in various areas.

This will be first visit by a Chinese foreign policy chief since 2008, according to the Slovenian Foreign Ministry.

The official visit is designed to strengthen political dialogue as well as discuss global issues and cooperation within forums such as EU-China cooperation, the Asia-Europe Meeting (ASEM) forum and the 17+1 initiative, which brings together China and Central and Eastern European countries.

Cerar is expected to attend the ASEM meeting in Madrid on Sunday and Monday. Foreign ministers from 30 European and 21 Asian countries are to discuss strengthening multilateralism, global and regional issues as well as bolstering sustainable connectivity between the two continents.

While in Slovenia, the Chinese foreign minister will also meet President Borut Pahor, Speaker Dejan Židan and Prime Minister Marjan Šarec.

China is Slovenia's key trading partner in Asia and ranks 13th among Slovenian major trading partners.

In the first nine months of 2019, trade in goods between China and Slovenia exceeded EUR 1 billion, with Slovenia importing EUR 887 million and exporting EUR 191 million worth of goods.

Moreover, after seven years of cooperation based on the 17+1 initiative, Slovenia is seeing positive business results. The two countries also cooperates as part of the Belt and Road Initiative.

All our stories on China and Slovenia can be found here

02 Dec 2019, 08:22 AM

STA, 29 November 2019 - The Velenje-based household appliances maker Gorenje, owned by the Chinese conglomerate Hisense, will finish 2019 in the red but hopes to return to profit next year. According to chief executive Lan Lin, this will require a change of mindset, and it will determine whether a TV production facility will be built in Velenje.

Gorenje last year posted a group net loss of EUR 37.7 million, and chief managing director Lin, who is also the chairman of Hisense International, expects it to be in the red at the end of this year as well.

While refusing to reveal any figures, he said Gorenje's business was worst at the beginning of the year but was improving recently due to measures to improve efficiency.

"The first quarter was very bad. In March, things started changing, and a turnaround occurred in May, then July and August were worse because of collective leave, and we were profitable again in September and October," he said.

According to Lin, Gorenje is doing well in Eastern Europe, while in western Europe, especially in Germany, it is considered a low-end brand. "We wish to change that next year. We must raise quality, and our key goal is to raise the prices Gorenje is getting on the market by at least 10%."

Revenue is expected to rise by 5.5% this year and by at least 10% next year.

Western Europe will be crucial, and Gorenje will also start selling in its network Hisense's products such as TV sets, smartphones, air conditioning and refrigerators on European markets and the Commonwealth of Independent States.

Meanwhile, Hisense will start marketing Gorenje and its Asko brand in the Hisense's sales network across Europe and overseas.

A major boost to the group's revenue is expected to be provided by the Chinese market, where Gorenje and Asko are well received. The premium brands Asko and Atag are on sale in more than 200 partner stores.

Lin expects the group to return to profit next year. "We are counting on some EUR 15 million in profit," he said, adding that the group's problems had been detected and would be tackled "step by step".

One of the measures will be to rejig the workforce, with Lin noting that "every 100 production workers support 40 people in sales, marketing, legal and finance ... while the average in our industry is 20."

According to Lin, Gorenje's profitability is crucial for all future investments. Next year some EUR 45 million should be invested in the development of new products, tools and production lines. "If we don't do that, our products will no longer be competitive in five or ten years."

The group's efficiency is also to be boosted through the separation of production in Velenje from administration, which is to relocate to Ljubljana as Hisense Gorenje Europe. "We must become leaner and integrate into Hisense."

Lin thinks Ljubljana will be a better location for attracting talent from all over Europe and is also more appropriate for meetings.

Gorenje also to plans to build a new TV manufacturing plant in Velenje that would employ 1,000 workers but this will depend on the business results, Lin warned.

The plans for the factory are ready but shareholders have put the project on hold because they want efficiency improvements first, he explained. "If all goes according to plan we will definitely realise this project."

Lin thinks the government will provide a financial incentive for the project but said it would not be substantial and noted that companies should not rely too much on government support.

He also revealed that through Asko, talks were under way for the takeover of German TV manufacturer Loewe and that the outcome of the talks should be known in the next few days.

If the takeover is carried out, the TVs would be produced in Velenje.

Asked why Gorenje is reducing its labour force if a new factory is planned, Lin said they were laying off people whom they did not need at the moment.

He would like the work for 100 people to be conducted by 80 people in the future, and they would receive extra pay for the extra workload, while the rest would work at the TV factory.

The Gorenje management is also in regular contact with trade unions, he said, adding that it had proposed a new round of talks only a few days ago. The open issues include a pay raise and the payment of a Christmas bonus.

The group plans to continue selling non-core assets, including some profitable companies, he said.

Hisense remains one of the main UEFA sponsors and next year Gorenje will be promoted at the European Football Championship in what will be its first promotion at such a level, Lin said.

All our stories on Gorenje are here

18 Nov 2019, 12:40 PM

STA, 18 November 2019 - Slovenia and Taiwan do not have diplomatic ties, but this does not mean they cannot strengthen cooperation, Vanessa Shih of the Taipei Economic and Culture Office in Austria, has told the STA in an interview. The 23-million nation provides great business opportunities for Slovenian companies, she believes.

Shih expressed regret that she has only limited access to Slovenian authorities. She has had some contact with Slovenian government representatives but not complete access to ministries and government offices and believes that the Chinese embassy in Ljubljana is the likely reason for this situation.

Vanessa_Shih.jpg

Vanessa Shih. Source: Wikipedia, Voice of America, public domain

China insists that Taiwan is one of its provinces and that sooner or later a unification would take place; it has not ruled out the use of force if necessary. Taipei has been losing its battle for allies with Beijing and now has diplomatic contact with only 15 countries.

Shih said that relations between Slovenia and Taiwan, which share the same values and have a similar political system, are focused above all on cooperation in economy, education, culture and tourism.

Merchandise trade is rather modest, amounting to just over US$200 million last year, with imports from Taiwan accounting for US$170 million or 0.4% of Slovenia's imports.

Slovenia exported US$36 million to Taiwan last year, which accounted for less than 0.02% of Taiwan's total imports.

"We can see that the figures are still very low, which means that there is a lot of potential in economic cooperation," she said.

Direct investments by Taiwanese companies in Slovenia are very limited as well; Shih believes that the reason for limited investments and trade of goods lies in poor mutual understanding and poor direct exchange of information.

She expressed regret that Slovenia, unlike most European countries, does not have a representative office in Taiwan.

Slovenia and Taiwan do not have a double taxation agreement either, even though Taiwan has signed such agreements with 16 EU members, said Shih, adding that lack of incentives was a problem in promotion of Taiwanese investments in Slovenia.

Cooperation between Slovenia and Taiwan is at a much higher level when it comes to education. Universities in both countries have signed a number of memoranda of understanding.

"Our office in Vienna provides grants for studying and researching in Taiwan," said Shih, adding that an increasing number of Slovenians are studying in Taiwan.

She also pointed out that the number of Taiwanese tourists in Slovenia was increasing, including due to the abolishment of visas for Taiwanese citizens in the Schengen zone.

If a Slovenian wants to travel to Taiwan for a longer period of time, they must apply for a visa at the Taiwanese representation, not at the Chinese embassy, she said, adding that this was proof that Taiwan is a sovereign country.

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