Amortizatoreve was established in 1965. Could you tell us a little bit more about its historical background and its current structure?
The factory was established about 40 years ago and it was a pioneer in the metal industry, to be more precise in the automobile industry. We specialized from the very beginning in producing shock absorbers of different types and for different purposes. First we started producing native shock absorbers it developed so fast that we needed to partner with a vehicle-producing factory. In 1973 we signed a contract with the well known company "Armstrong" from Great Britain which helped us to improve our technology and products by producing hydraulic, two vent shock-absorbers licensed by "Armstrong." From the day we started producing the system has been updated and improved; for example with the involvement of gas under pressure it is now called Gas-Matic, these are not used in cars or sport cars but for the trucks and buses.
Our development has always been very dynamic in this factory, and in 1974-1975 we signed a contract with the German Company called "Susta" and in this way we prospered and started producing different kinds of shock absorbers. So as you can see, we began by producing native hydraulic constructions, and in 1973 we prospered with several contracts that made us an international player, like for example the contract with "Armstrong" with the two-vent system and the Makerson system.
How has the company managed to survive? In 1999 the company was producing 3 million units, whilst in comparison with the last two years you were only able to produce 300,000 units, how did you manage to stay afloat financially?
In 1978, we signed a contract with the world known company "Peugeot", and we started producing four types of shock absorbers according to their technology and French standards. In the years 1989-90 we produced 3 million 3 hundred thousand shock absorbers every year. We employed 1,517 workers, in 1989 I was expelled from my job when the Serbian oppression started, one year after almost all Albanians in Kosovo were left without jobs, the next ten years were followed by a terrible recession. In 1999, we returned to work and we are still here after three years. Considering what was happening we didn't collapse, we now produce less than then 10% of our capacities; some groups within the factory produce 30%, some under 1%, but the average is around 10% and this is considered to be a very small amount. I hope that you know what are social enterprises? Factories with positive laws were made in1989-90, which includes resolution 1244, which means that the social enterprises now belong to the workers. However, this is not accepted by UNMIK and based on my information a new regulation will come out very soon regarding the privatisation of social enterprises. We were completely ignored for so long, and we often had the impression that there is a special strategy, which does not consider social enterprises for any support or for development.
What is the current status of the company and can you tell us about the ownership structure?
Amortizatoreve is a Socially Owned Enterprise, which means that it completely belongs to the workers. What we really need now is an influx of Foreign Direct Investment. We have prepared a business plan together with the French firm "Soferico" in order to have credit from the European Agency for Reconstruction. At present the company is in need of 2,144,244 Euros to become modernized and profitable.
What is your assessment of the current investment climate in Kosovo? What is your opinion about the legal framework that surrounds it?
From our position as a social enterprise, so far we have been self financed; we have had three contracts with foreign partners, who believed in us and in our people and in our current technology, and helped us develop activities and teamwork, and they are ready to invest here. This is still internal information, which we are looking to develop. I believe that this will be included in the project for the Stability Pact for Southeast Europe, where we might offer our services to bank investors, with conditions that are given to countries after crisis, which will be very encouraging. We don't want humanitarian help but there are two objections included in the United Nations 1244 resolution: security and economical development. With the arrival of the new SRSG, Mr. Steiner, the priorities were changed; now the first thing is economical development and then security.
| The people responsible for accomplishing these aims must also consider the fact that the international community is investing billions in order to accomplish the development of Kosovo. KFOR, UNMIK along with the European Agency for Reconstruction, and now hopefully the newly elected Parliament and Government of Kosovo are all working towards making something of this. Until now, the investment plan was very unpractical at first we did not have regulations regarding investment, in the meantime one regulation that was adopted did not have any regulations in order to make those investments viable or secured. These last years have been an emergency; so all investments were directed to hospitals, schools and roads. In these conditions, investors for the economical development did not have the reliable basis that is needed for investors to trust the system, such as a secure legal framework, and institutions, which would guarantee that those laws would function. In these conditions we still managed to sign three contracts with foreign partners. Firstly, with the American company "Jepa" LTD, the second being "Austrotech" from Austria with which we established an institute for the management and engineering of enterprises. The third contract was with a company called "IAG", which is also an Austrian company for the production of pallets used in the automobile industry. From IAG we were presented to Mercedes, Magna, and Saab, as a reliable company, which could produce special pallets for the automobile industry, this was our first test and it seems like we have passed it well. We sent samples and they ordered 50 pieces from our pilot production last month. We also supplied 20 others to a company from Prizren. Our partner from Germany appreciates our work and says that we have done a very good job, and that we have good chances for improving our co-operation, despite the taxes and customs which have no meaning, and which do not allow us to work effectively.
How do you think your company can contribute to improving the investment climate in Kosovo, and attract foreign investors?
We, as a company, cannot ignore the environment; UNMIK and the European Agency for Reconstruction must lead this development. We will also have to consider more action from our government. This is the most difficult task, however we maintain the same vision. As for the environment we must permanently apply pressure to the legislators to insure that the business community and economic and legislative pillars such as the government and the ministries all support the enterprises that have a real chance to survive in the present circumstances. Of course, we must also develop the basic programs for attracting FDI. One that is particularly interesting is the project for permanent training in industrial professions, and in this direction we will train ourselves for different challenges
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Could you tell us about yourself and what you consider to be your greatest achievement and also your greatest challenge ahead?
We exported some shock absorbers to Iran last year; we also exported shock absorbers for Slovenia and into other neighbouring countries. We are one of the few factories in Kosovo that is exporting. So, the market and the technology, which we already have, give us the possibility to produce sophisticated shock absorbers. On the other hand, we have had other difficulties that make this potential impossible to be developed and realized, for example that the international community could not support us with credit and less taxes or tax holidays, electricity costs are very high and they are not secured. Our Post and Telecom services are the most expensive in Europe, and we are discriminated against by UNMIK and KFOR who use 60% of our buildings and facilities; until now we have paid all the services and customs. So these are the challenges that we face. I am not personally under pressure, although I am very worried with this reality. We used all possible means to sign contracts with many partners. We convinced them that we can be both reliable in completing deadlines and quality requirements, and we believe and hope that Kosova will have good days, and we will leave a very decent and prosperous factory to our future generations.
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