On 22nd October 2012, the representatives of FIPA visited the company Kavat in Travnik, where they met with the Director Smajil SABIC, and introduced him with the objectives and activities of FIPA in 2012.
The company Kavat Travnik is established in 2009 and is engaged in the production of children's leather shoes. It is 100% export-oriented, their products are not available at the local market due to the price competition.
The company has 117 employees and is owned by the Swedish Shoe Factory AB, based in Sweden. The factory in Travnik carries out all activities, and as a final product, footwear is exported at the market of Austria, Russia and Scandinavia.
According to Mr Sabic, in running business they don’t have problems. He is satisfied with the business environment in Bosnia and Herzegovina.
The main reason for investing in B&H and for moving operations from Estonia to B&H were cheap and skilled labour force. The priority steps in the future are the construction of a new factory on 4000 m2 and the land acquisition of the former giant Borac Travnik at about 10000 m2.
They plan to invest an additional 5 million BAM and to hire another 300 workers due to positive business results.
Mr Sabic hopes to have the support of the local government and the Prime Minister to planned investments taking into account the high investment and creation of many new jobs in Travnik which has a long tradition in the textile industry.