Kosovaplast

By Gezim Kasapolli

SLUG: “Kosovaplast” enterprise in Hani i Elezit near the Macedonian border is the largest producer of Styrofoam in Kosovo. It was privatized in the second round of privatization last year, but what makes this enterprise different? Kosovaplast’s workers used their life savings to buy this former Socially Owned Enterprise. UN Radio in Kosovo returns to the company one year after privatization.

Hello and welcome. You are listening to UN Radio in Kosovo

“Kosovaplast” in Hani i Elezit near the Macedonian border is the largest producer of Styrofoam in Kosovo. It was one of the companies privatized in Kosovo’s second round of privatization, last year.

Unlike other former Socially Owned Enterprises that have been sold to foreign investors, Kosovoplast workers now own the company. Combining their life savings with a secured bank loan, 30 or so workers raised over 1.5 million euros to secure the eventual winning bid.

Track 12. Atmos: announcing the winning bid

Gafur Luri, the current chief of production and a shareholder in Kosovaplast spoke to UN Radio in Kosovo when the winners of the second round of privatization were announced, one year ago.

Actuality 1, track 11 00:04 - : we won, and we are very happy since we knew how to run this factory and we will run it same way in the future.”

Track 14 Atmos: sound of the machines working

But, how is the situation in “Kosovaplast” today, one year after the privatization?

Although they won the tender in September 2003 the work in “Kosovaplast” was postponed for 6-months because of the hand-over process – this meant workers of Kosovaplast had to wait to hear whether the plant equipment they invested in would be returned or whether the price of the machines included in their bidding price. This had a major impact on our development plans says Zylbehar Hasallari, director of Kosovaplast. As well, he says they were not able to cope with the interest rate on the bank loan they received.

Actuality 2. track 4. 00:03 - Kosovaplast does not have big plans, but we have a plan that we are trying to achieve in the next three years. Unfortunately, maybe even we as a society were not ready for privatization, starting from the banks, the government and other authorities since it is impossible for us to cope with a three-year loan with an 11% interest rate.

Track 14 Atmos: Sound of the workers

As a result of these financial problems, shareholders voted to lower the salaries and reduce the number of workers. Out of a total of 96 workers, 7 were fired says Chief of Production Gafur Luri, adding – Kosovaplast’s shareholders are complaining their future is reliant on governmental forces rather than the production itself.

Actuality 3. track 6. 00:11 - As for our past plans, we still have not achieved them because there is a lack of legislation. With this I want to say that domestic products are not protected. This factory has many workers and we feel very sorry when somebody has to be fired considering the economic situation in Kosovo.

The lack of protection for domestic products is one of the most debated matters for Kosovo’s production sector. Sources from within the agricultural and production sectors told UN Radio in Kosovo that they have to pay 7 kinds of taxes, which is not the case in other neighboring countries.

And how does Kosovaplast’s product fare in the marketplace? According to official assessments, the equipment used in Kosovaplast is industry standard, and their products are among the best in the region. But, considering the severely depressed economy in Kosovo, this is sometimes a handicap rather then an advantage, says Gafur.

Actuality 4. track 7. 00:04 - We have lost a number of clients because here we only produce high quality products whereas other products that come to Kosovo and the ones produced in four other factories in Kosovo are not of the same quality and therefore are cheaper.

“Kemi” is a Pristina based company that has dealt with construction material since 1993. Kemi works regularly with Kosovaplast, and it’s director, Ismajl Deshishku says that the safety guarantees that Kosovaplast offers are a priority for his costumers.

Actuality 5. track 9 . 00:03 – 00:29 We cooperate with other companies and we keep their goods but people mostly want products from Kosovaplast. The main reason is the quality, and the fact that they have the best technology from 2003, and we are satisfied with them and so are the costumers.

Kosovaplast covers 70% of Kosovo’s Styrofoam market but their production capacity is much greater. Kosovaplast director, Zylbehar Hasallari says the outlook for this worker own business is good.

Actuality 6. track 2. 00:02 - We can say that we had various difficulties in the last 6 months since part of our funds came from the bank and during that time, in which we had this unsolved status with our equipment, we paid very high interest rates and for the time being we are experiencing financial problems. However, we are very satisfied since most of the workers are still working at full capacity, to produce as much as the Kosovo market can absorb.

Kosovaplast shareholders say they intend to maintain the quality standards of the company despite the financial difficulties they are facing.

And this concludes today’s edition on UN Radio in Kosovo. Stay tune as we follow the developments in the 4^th wave of privatization process in Kosovo.