It is operating in the wood and metal industries and has 120 employees. Theirs products are exported to the markets of Italy, Germany, Brazil, Israel, Russia and Serbia. They have so far invested around 3 million EUR in theirs facilities and capacity expansion in BiH.

In 2014, they will start a new project with partners related to vineyards and employ new workers. In an interview for the FIPA Agency, Mr Dropulja talks about their reasons for investing in BiH, the faced obstacles in the business, and about cooperation with competent institutions of BiH.

What are the reasons according to your opinion, why investors come in BiH?

Our opinion is that the reasons for which investors are entering the market of Bosnia and Herzegovina are those spheres where they can easier start a business than abroad, good tax policy for investors due to low income tax, qualified workforce, but hard-working people are the greatest strength of Bosnia and Herzegovina

Considering that you have invested in the wood sector of BiH , can you tell us what are the benefits for which you have decided to invest here compared to the neighbouring countries ?

The main reason why we have invested in BiH is the fact that we are originally from BiH. Benefits for investments such as low income taxes, cheap workforce compared to EU, proximity to the EU market are advantages for foreign investors who are not originally from BiH. However, I would mention the fact that we are doing here of the heart. I'll mention you the project that we intend to implement with a partner in Zepce, and it refers to the launch of the vineyard. This project will be launched only because people like Zepce.

Barriers to investment

When it comes to the wood industry in Bosnia and Herzegovina, we are trying to do in the circumstances as more as possible. This area is necessary to be protected and regulated by the relevant regulations on forests. In ​​Zenica-Doboj Canton in which we operate, the Law on Forest was submitted to the procedure which we appreciate very important.

What can you tell us about your collaboration with relevant institutions?

We have a fair cooperation with the Municipality and Canton. When it comes to subsidies for the business, we have not so far received them. Last year we applied at the Ministry of Economy of Zenica-Doboj Canton in order to expand facilities of Arkada company and to improve the production process. Our plans were rated good, but we did not go through the procedure of the Development Bank of FBiH. Regardless of the fact that we employ higher number of people and that we have significant turnover, we didn’t get incentive.

You mentioned the unstable supply of raw materials, but everybody says BiH has great potential in the wood sector

BiH has great potential for the development of the wood sector, but for the success of companies operating in this area is necessary to adopt regulations that cover everything from raw-forest, to the final product. In this way we will ensure responsibility towards the protection, restoration and rational use of natural resources. But things are going up, with the support of the private sector we start investing in biomass (renewable energy). With the help of the public administration, which is becoming a service of economy we make progress. Bosnia and Herzegovina is a country with a lot of potential that has not been used and we have seen there our opportunity that we try to take advantage of, and in full cooperation with the municipality, canton and state.