2011-16-09 - Somewhat difficult supply of timber to one of Croatia's largest wood-processing companies was the hot issue the government had to tackle last month. According to the media, the Prime Minister did not travel to exotic Brijuni Islands to meet with the world-renowned American actress Angelina Jolie, since the government decided that the normalization of raw material supply to the company Spacva was more important. The company in question bares great importance for the economy of East Slavonia, in view of the fact that Spacva generates EUR 30 mil. profit, employs over 700 workers in Vinkovci and Bjelovar, but fails to resolve the supply of raw material by means of a contract, paying for timber in advance to state-owned company Croatian Forests ltd. for some time now. Spacva distributes approximately 5.5 mil. m3 of raw
material in Croatia, in addition to 1.8 mil. m3 of timber delivered to local sawmills. The problem escalated immediately after summer holidays, when the company suddenly ran out of the necessary supply of raw material, which could have had a terrible impact on fulfilling their obligations towards foreign buyers, who make up for 80% of its production. Union representative Ivan Bozicevic announced the possibility of laying some of the workers off, despite the need for additional workers, given the amount of orders. Nonetheless,
getting the government involved in the issue allowed for an agreement on the delivery of raw material under same conditions that apply to other Croatian wood-processing companies to be made. At the beginning of the year, following the decision made by the government, Spacva was included in the process of reprogramming of outstanding debts towards Croatian Forests ltd. According to the management, Spacva has been fulfilling its obligations on time, and has provided all required financial guarantees for the supply of raw material manifold. In addition, the management underlines the fact that during the two-year financial and economic crisis, which had a great impact on foreign and domestic wood-processing industry, Spacva managed to fulfill its obligations and pay salaries on a regular basis.