South-East European Industrial Market 1/2024

THE INDUSTRIAL PRODUCTS & SERVICES MAGAZINE FOR THE SOUTH-EAST EUROPEAN COUNTRIES MARCH ISSN 1312-0670 Visit the SEEIM web site: issue1/2024 Turkiye's machine tool market ..

south-east european INDUSTRIAL MARKET 2 South-East European Industrial Market is a bimonthly industrial products & services magazine for the South-East European countries Bulgaria, Croatia, Greece, Northern Macedonia, Romania, Slovenia, Serbia, Montenegro, Turkiye, Albania. It is distributed free of charge among the working specialists in the industrial sectors in the region, and the engineering, manufacturing and trade companies in South-Eastern Europe. Editorial Department Dilyana Yordanova - Lead Editor % (+359 2) 818 3823 Lyuben Georgiev % (+359 2) 818 3808 Pepa Petrunova % (+359 2) 818 3822 Advertising & Communications Petya Naydenova % (+359 2) 818 3810 Gergana Nikolova % (+359) 888 595 928 Elena Dimitrova % (+359 2) 818 3815 Maria Koyadzhikova % (+359) 889 256 232 Secretary Maria Apostolova % (+359 2) 818 3811 ISSN 1312-0670 TLL Media Ltd. © All rights reserved.The artwork, layout design, the articles and all the graphical and text materials used - images, photos, texts, etc., are copyrighted and protected by the law. Unauthorized and unpermitted use is illegal and a copyright infringement. The Publisher shall not be held liable for the contents of the advertisements, advertising layouts and banners, video advertising publications, advertorials and company articles. Copyrights of all mentioned trademarks, registrated trademarkes, etc. belong to their owners.  IN THIS ISSUE: Publishing House 104, Acad. Ivan Geshov Blvd., entr. A, office 9, 1612 Sofia, Bulgaria % (+359 2) 818 3838 e-mail: ® 4 Automotive industry in Slovenia 8 Food production in Greece 13 Turkiye’s machine tool market 17 Romania’s solar power sector 20 Adriatic Metals opens silver mine in Bosnia and Herzegovina 20 STARCO invests in digital and green technologies in Croatia steel wheel factory 21 Nestle opens new plant in Serbia 21 EIB Global to provide EUR 36 million for construction of wind farm in Bosnia and Herzegovina 22 Metal Show & TIB 2024 to focus on decarbonisation of metal processing 22 Green Energy Expo & Romenvirotec to showcase the latest in renewable energy and environmental protection 23 Sixth edition of Innoform to take place in April 23 Rubber Eurasia to host 200 exhibitors in Istanbul

south-east european INDUSTRIAL MARKET 3 PAID ARTICLE How to set up an IoT network to get associated data from the sensor to the Cloud? – part I Thomas Steen Halkier – CEO of NeoCortec, and Zoltan Kiss – Head of R&D at Endrich Bauelemente Vertriebs In this paper we are going to discuss the different possibilities to collect sensor data and get them into the Cloud using the E-IoT ecosystem. One way for data transfer is using smart sensors directly connected to the Internet, but there are many cases where a local wireless network of sensors with a single Internet gateway is a better and a more economical solution. We will discuss these options illustrated by the E-IoT ecosystem, which offers cellular LPWAN connectivity for direct sensor-database communication and has recently been using NeoCortec’s revolutionary NeoMesh protocol for having an ad-hoc, real low power, sub-GHz mesh WLAN to collect data locally and gateway it to the Internet from a single access point. What is the E-IoT ecosystem? Industry 4.0 expects machines and equipment to be connected, to exchange and use data collected by sensors. MCU based electronics take care of controlling the sensors, even offering the possibility to edge-compute the data and transfer it to a database for analysis or visualization. The ecosystem, that makes it all possible, is called IoT or Internet of Things. It contains hardware elements and software services such as databases and visualization tools. Endrich’s own E-IoT system is one of the possible choices, offering all that from one hand. Several IoT nodes, smart sensors, gateway devices as well as Cloud services are there for our partners to start their IoT development. Endrich works in three major areas, where the first one is about converting conventional devices into smart. For that purpose, a RISC-V based general IoT Single Board Computer has been developed under open hardware and software structure; all technical data is freely available for the engineers on the market. The device is made as an engineering evaluation board to establish connection and carry out tests with the whole E-IoT platform. This can be a basis of more specific product development, and the slogan of the project is “We make your device smart”. The second area is to also involve other SBCs available in the market such as Arduino or Raspberry Pi, where Endrich offers extension shields to convert these MCU boards to full IoT endpoints by adding sensors and communication possibilities, so we simply “Make your SBC IoT ready”. To also guarantee a better environment for people, Endrich calls IoT for help in environmental parameter monitoring under the motto “We care about the environment”. What sensor network architecture can be used to best serve the above tasks? There are two major directions that IoT solution engineers may choose: having a smart sensor with own connection to the WAN (point-to-point or sensor-to-cloud solution) or using a local network of sensors and have a dedicated access point for this LAN to gateway the data to WAN. The E-IoT platform started with direct sensor-to-cloud communication, our classical sensor nodes had integrated LPWAN access using NB-IoT, and LTE-M modems. We can use this as a powerful solution in cases when the sensors are in close proximity, such as in machines. The EIoT family offers a great selection of proofs of concept to derivate into customer specific products. One of the most compact and versatile devices is the Mini E-IoT board with integrated LPWA modem, sensors, an external sensor interface and a wireless recharging circuit for the accumulator. There are however cases when these devices offer limited services. Especially when you need a more frequent communication from many detection devices in a few tens or hundreds of meters distance from each other, the pointto-point solution is both too expensive and not sustainable from battery-lifetime point of view. In this case it is smarter to use a real low-power wireless communication protocol running on a mesh sensor network, offering a reliable, cheap, and sustainable way of collecting the data from the environment. A single gateway offers an exit to the WAN. From technical point of view best cases to use a point-topoint solution appear, when the number of sensors is limited in number, they are close together, the frequency of data sending is relatively low and can be supported even by a battery for a long time, or when mains power is available to supply the node. In all other cases it is better to use the multipoint-to-point solution. From economical point of view there are advantages of the point-to-point solution in case of single nodes. Of course, there is an additional telecommunication cost for using the cellular network, but due to the low data volume and the relatively rare connection, a prepaid IoT SIM card offers a significantly lower cost compared to legacy GSM services. What kind of local network is suitable for smart sensors? The ideal networking architecture is a mesh topology to be able to cover a large area compared to the distance of neighbor nodes. As the network should be operating on a battery, we cannot afford to have highly draining network coordinators and segment routers. Ideally all nodes should take care of their own sensors and the routing of neighbors’ data over the mesh. The higher the distance between neighboring nodes and the higher the number of nodes in the network, the higher the covered area will be. This is helped by using sub-gigahertz radio communication, which also offers more reliable solution in harsh industrial environments due to the better (indoor) penetration. The networks should be easily extendable, and an ad-hoc installation should be self-explanatory. Reliability and data security are key factors in any kind of connected sensor systems, so the desired wireless solution needs to be cable-like reliable and the used security measures must offer a way to keep out eavesdropping and attacks. Finally, the used technology should be affordable, royalty-free and approvals (FCC, CE-RED) should be possible to get easily. For this reason, the developers of Endrich’s E-IoT ecosystem have chosen NeoMesh to be the right protocol running on the local smart sensor network. To be continued in the next issue.

south-east european INDUSTRIAL MARKET 4 Slovenia’s automotive industry is a flexible network of highly specialized niche players. Innovative SMEs are developing systems and components ranging from power drives for electric and hybrid cars to exhaust systems used in GP motorcycles and sport cars. The industry includes everything from component suppliers to end-product manufacturers, including trailers, motorhomes, small cars, and even sport supercars. With several leading players in areas like electric motors and mechatronics, the Slovenian automotive industry can provide sophisticated components and unique solutions like hightorque in-wheel electric drive systems and AI based real traffic simulation solutions. The turnover generated by the automotive sector represents 10% of Slovenia’s total GDP. The sector accounts for about 20% of the exports of goods. More than 40 000 Slovenians work in the automotive industry (directly and indirectly, 16 600 in some 276 companies), accounting for 4,5% of all jobs in Slovenia. Slovenia has highly qualified people for the competitive and sustainable automotive industry. The automotive industry is one of the most promising parts of the Slovenian economy. Its contribution to added value, innovation and investments in R&D is above average. It gives more than 25% award-winning innovations in Slovenia every year. Slovenian exporters, suppliers to the automotive industry, meet all international standards and are competent suppliers in the global market with key customers in Germany, where the Slovenian Automotive industry in Slovenia car industry exports 40% of its production. Other export markets are France, Italy, Austria, Turkiye, the United Kingdom and the United States. The only car manufacturer in Slovenia is Revoz, which is owned by Groupe Renault with about 1400 employees. Advantages Slovenia’s unique automotive network includes over 100 Tier 1 and Tier 2 suppliers and is involved in the development and design processes of major European car brands. The automotive industry in Slovenia is backed up by local partners from a wide array of industries. Tooling, robotics, the measurement devices industry, composite material developers, coating makers, software and AI developers provide solutions closely adapted to the needs of their automotive partners. The industry and its suppliers form an important link in the cross-border value chain. As such it creates significant value-added to European vehicle production. Its impact is global, as its products are exported to over 120 countries all over the world. Slovenia is located close to major car producers in Germany, Italy, Austria and in Central Europe. Its excellent geographical position on the intersection of two pan-European TEN-T corridors is backed up by a well-developed logistics infrastructure; Koper is a major port in the Northern Adriatic. These elements provide for easy integration in supply chains, offering fast delivery, high efficiency, low cost and – finally – lower carbon emissions. The Slovenian automotive industry is highly efficient, utilizing modern processes and technologies that often follow industry 4.0 principles. Slovenia is one of 20 countries with the highest robot density in the world. Quality management methods have widely been adopted in the late 20th century. Leading companies Revoz is one of the biggest Slovenian companies, the only car manufacturer in the country and has been its number exporter for several years. Revoz carries out its mission within a global automotive alliance, joining Renault, Nissan and Mitsubishi. In addition to Renault models Twingo and Clio, the Revoz plant produces also the electric vehicle Twingo Electric.

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south-east european INDUSTRIAL MARKET 6 Adria Mobil has been designing and manufacturing Adria brand recreational vehicles – caravans, motorhomes, campervans and mobile homes – since 1965. The company is based in Novo Mesto, and sells 99% of its total turnover to western European markets. Adria motorhomes are commonly based on Fiat and Mercedes vehicles. The company has a 6,5% market share on the European market and ranks sixth among the most successful European producers in the basic programme, caravans and motorhomes. Mahle Electric Drives Slovenija has its headquarters in Sempeter pri Gorici, and business premises intended mostly for R&D activities in Ljubljana and Maribor. The company was established in 1960 and is with almost 2000 employees ranked among the biggest Slovenian exporters and employers in the region. It joined Mahle Group after the takeover in 2014 and later became part of the Mechatronics Division. Carthago manufactures motorhomes and its head office is based in Odranci. The company employs 807 people. The latest financial highlights indicate a net sales revenue drop of 18,8% in 2022. Its total assets grew by 12,98% over the same period. In, 2022, the company’s net profit margin decreased by 0,02%. Odelo Slovenija was established in 2004. It is mainly engaged in the development and manufacturing of lighting equipment for the automotive industry. The company’s product range includes automobile rear lights, headlamps, foglamps and little lamps. The customer base of Odelo Slovenija includes motor vehicle producers and traders, retail chains and individual clients in Slovenia and abroad. Akrapovic is a manufacturer of premium exhaust systems for motorcycles and performance cars. It is renowned around the globe as an innovative high-tech company that uses advanced technology and high-quality materials in exhaustsystem design. The company’s state-of-the-art factories in Slovenia also include an in-house titanium foundry and metallurgical laboratory. Akrapovic has over 1800 employees and sells its products in over eighty countries. TPV Automotive is a development supplier operating in the global automotive industry. The company develops and manufactures products that have a significant impact on vehicle dynamics, safety, ecology and driving comfort, as well as implements new technical solutions for electric vehicles. TPV Automotive’s engineering services are purchased by globally recognized customers in the automotive industry – tier 1 suppliers and OEMs for their premium brands such as BMW, Mercedes Benz, Volvo, Rolls Royce, Jaguar, Land Rover, Renault. Adient manufactures and markets automotive interior trim products. The company’s core products are car seats for Renault cars Twingo, Clio and Daimler Smart. Its daily production rate is about 950 car seats delivered to the assembly line of Revoz. E-mobility Slovenia promotes e-mobility in several ways. The government encourages the purchase of evehicles through the Eco Fund, which offers grants to individuals and legal entities. EUR 5 million were allocated for e-mobility in 2019. The Eco Fund also offers grants to municipalities for the installation of e-charging stations. Compared to 2019 the number of passenger cars on hybrid drive increased by 38% to about 9400 at the end of 2020, which is 0, 8% of all registered passenger cars. The number of passenger cars on electric drive increased by 84% to 3670 at the end of 2020, which is 0,3% of all registered passenger cars. Currently there are 630 public charging stations available in Slovenia. The country has set out an ambitious plan to support faster e-vehicle entry into the Slovenian market, with the goal of achieving at least 17% of all passenger cars or 200 000 electric or hybrid vehicles by 2030. Different Slovenian institutes and companies are involved in the development process of components for electric vehicles. The Slovenian National Institute of Chemistry is engaged in research and development of modern battery materials. They are leading two European projects on the development of lithium-sulphur batteries that have at least twice the energy density of lithium-ion batteries. Considerable attention is paid to the development of batteries made of materials the basis of which is not lithium. Sodium, for example, can successfully replace lithium. Hidria, that ranks among the leading European manufacturers of electrical and electronic equipment for motor vehicles, also contributes to the green mobility segment with state-of-the-art sustainable solutions for future cars (laminations for electric and hybrid cars, among others).

south-east european INDUSTRIAL MARKET 7 PAID ARTICLE 99,99999% availability of critical applications? PACS Solutions has the right solution Critical applications in business and industry need fault-tolerant computing solutions that ensure maximum availability. In such scenarios, PACS Solutions relies on the revolutionary ztC Endurance platform from its key international partner Stratus Technologies, which meets the requirements of any workload, environment, or budget. Digital transformation of computing infrastructure This next-generation intelligent solution features advanced predictive fault tolerance and proactive monitoring capabilities and delivers a record 99,99999% application availability across on-premise systems, data centers and edge networks. The fruit of constant technology evolution in the segment, the ztC Endurance computing platform ensures the uninterrupted operation of systems, in addition to offering impeccable data integrity and optimal reliability of operations. Advantages: • Built-in fault tolerance; • Protection against data loss and unwanted downtime; • Remote monitoring capabilities; • Workload consolidation; • Simplified maintenance; • Serviceability at the IT and/or OT level; • Advanced cyber security; • Modular concept, redundant hardware architecture; • Standard industrial components; • Automated layer for maximum application availability; • Patented software for proactive condition monitoring; • Predictive fault correction, etc. 3 models - for every application and budget • Stratus ztC Endurance 3100: affordable performance for stable fixed and stand-alone applications in remote offices, branches or workshops; • Stratus ztC Endurance 5100: high flexibility for rapidly expanding or evolving applications in regional offices and data centers or remote plants; • Stratus ztC Endurance 7100: high performance for applications with large data volumes or intensive transaction flows in large-scale remote headquarters and enterprise data centers.

south-east european INDUSTRIAL MARKET 8 Food processing is a key sector in Greece, accounting for 10% of employment. The food industry accounts for 28% of all manufacturing enterprises in the country. In 2020, the sector generated a turnover of approximately USD 15 billion. The subsectors with the highest revenues are meat products, milk and dairy products, cereal-based products, confectionary, and beverages. Key market drivers include the gradually (preCovid) improving economic climate in Greece; consumers’ higher spending on packaged food in 2019; an increasing interest in healthy and functional foods; an aging population; and a trend to follow the Mediterranean diet – mostly in order to reduce expenses and receive the best price possible. Food processing also holds the biggest share in terms of gross value added (24,6%), while it ranks second in value of production (24,3%) and turnover (25,2%). The subsectors with the highest revenues are meat products; milk and dairy products, cereal-based products, confectionary, and beverages. The Greek food and drink industry is diverse, Food production in Greece with a variety of sectors ranging from dairy production to fruit and vegetable processing and drinks. The top 5 sectors (dairy products, bakery products, drinks and beverages, fruits and vegetables, and meat products) represent three-quarters of total turnover and more than 70% of the total number of employees and companies. Compared to other manufacturing sectors, the Greek food and drink industry is a key job provider and a relatively stable employer. The food sector is dominated by small companies: both in food (95%) and drinks (87%). The vast majority of enterprises are small, employing no more than nine people. By contrast, in terms of turnover, large companies (employing more than 250 people) account for large shares of their respective sector, 36% in food and 57% in drinks, respectively. Greece imports significantly more food and beverages than it exports and is reliant on imports to meet the demands of Greek consumers for food products. Greek food and beverage exports continue to grow despite slowing world trade, underscoring the continued demand for quality Greek food products and consumer preference for the heart-healthy Mediterranean diet. After almost a decade of double digit growth, Greece’s export boom slowed down last year with many of the country’s main markets close to or entering recession. But the latest data from the Hellenic Statistical Authority shows Greek food and beverage exports continuing to explode on world markets – in some cases more than doubling in the first seven months of 2023. Among them: olive oil exports, which were up more than 100% in value terms to around EUR 1 billion last year; and exports of fresh fruits, which last year surpassed EUR 600 million in value and which represented an increase of more than 20%. Aquaculture and fishing Aquaculture and fishing are important food sectors in Greece and are closely associated with the country’s extensive island chains and territorial waters. About two-thirds of Greek seafood is produced from aquaculture and the remaining third from commercial fishing. Greece is one of the leaders in aquaculture production of Mediterranean species at the European and international level. Greek aquaculture produces 100 000 tons of fish a year in more than 300 facilities around the country. As a leading producer of Mediterranean fish, the aquaculture industry has seen a spurt of foreign investment and consolidation in recent years, and is a top exporter in the food and beverage sector. Great care is taken in the Greek aquaculture industry to produce fish responsibly and in line with European Union regulations, for the best consumer experience. The main varieties produced are sea bream and sea bass, native to the Aegean and prized for their lovely flavor and smooth texture. Other varieties include meagre, a very tender fish high in Omega-3 fatty acids, pagrus major, and amberjack. Dairy industry Greece’s dairy market and industry have been struggling to deal with major inflation im-

south-east european INDUSTRIAL MARKET 9 pacting the sector, with an annual year-on-year increase of 23,1% in March 2023 for dairy and eggs, with 25,2% in February, according to the Hellenic Statistical Authority (ELSTAT). Greek farmers and dairy producers are still struggling with rising energy, animal feed and packaging costs. The cost of animal feed, which represents 85% of livestock breeders’ costs, increased by 100% in 2022, compared to 2021, according to the Hellenic Livestock Association. Greece’s government had been helping livestock producers and farmers cope by offering animal feed subsidies in 2023. However these handouts were considered too small to make a real difference. This has depressed demand as well as production. Based on data from the Hellenic Agricultural Organisation (ELGO-Dimitra), the primary advisor to the ministry of rural development and food, in November 2022, a year-on-year decrease of 4,26% in quantities of cow’s milk and 5,4% in goat’s milk was recorded, even though producer prices had jumped. The General Federation of Consumers of Greece (INKA) notes that that cow milk can cost up to EUR 2 per litre today, whilst the price for the same product in 2020 was EUR 0,84 per litre. The price of feta cheese, the widely consumed traditional Greek white cheese, has also risen – it started from EUR 7,10 per kg in 2021 and escalated to EUR 12,50 per kilo in 2023. Feta cheese export sales bring EUR 630 million per year into the country. Each year Greece

south-east european INDUSTRIAL MARKET 10 SEE NEWS EBRD guarantees to support solar plant in Bulgaria Under its risk-sharing framework, the European Bank for Reconstruction and Development (EBRD) will guarantee up to EUR 25 million for a loan provided by UniCredit Bulbank to the Tsenovo solar plant in Bulgaria. The proceeds of the loan will enable the construction and operation of the large-scale solar plant in northeastern Bulgaria, and the addition to the national electricity system of 112,5 MW of new solar generation capacity. Tsenovo solar plant is sponsored by Enery Development, a Vienna-based renewable energy infrastructure company with 273 MW of operational renewable energy plants across Central and Eastern Europe. Enery is supported by the Three Seas Initiative Investment Fund. The transaction allows Bulgaria to progress towards its ambitious renewable energy targets, which include the country commitment to phasing out coal-fired generation by 2038. Muehlbauer Group constructs new production facility in Serbia With a groundbreaking ceremony, representatives of Muehlbauer Group officially announced the construction of a new, modern facility in Stara Pazova, Serbia, where the production of innovative machines for battery and fuel cell manufacturing, as well as complete production lines, will be established. The President of the Republic of Serbia, Aleksandar Vucic, emphasized that the new project is a significant investment from the German technological giant, and Muehlbauer will develop new technology in Serbia that no one else in the world has. Muehlbauer Group has been present in Serbia since 2008. The Technology Park in Stara Pazova is one of the most modern technology centers in Serbia, currently employing around 200 experts from various fields. Photo: Muehlbauer produces up to 140 000 tones, 90 000 of which are exported abroad. However, the consumption of feta seems lower, because some Greek businesses sell at higher prices in order to profit. The picture is similar in other segments. According to IRI, a Greek market research company, yogurt sales by value increased by 5,2% in 2022, while sales volumes fell 6%. The overall price of yogurt in 2022 was EUR 4,46 per kg in comparison with EUR 3,99 in 2021. Milk sales rose 5,5% by value in 2022, with sales volumes down 6,4%, while the segment consolidated, with 10% fewer producers by the end of 2022, compared to 2021, said ELGO-Dimitra. Looking ahead, after these two years of dairy price increases, some companies have started to drop the price of selected products. To tackle alleged profiteering in the food and energy sectors, the government of Greece approved a reduction of unfair profiteering phenomena regulation during the first Covid-19 lockdown in 2020, and capped the gross profit margin of companies until June 2023 at levels earned during September 2021, with sanctions and fines of up to EUR 1 million for companies that do not obey the law. Also, in November 2022 the government worked with supermarket chains to hold down prices on 51 essential items under a so-called “household basket” scheme, which covered fresh and evaporated milk, feta and other cheese products, cream, powdered milk and yogurt. Another initiative designed to help the industry and consumers is a plan released by the ministry of tourism to promote agro-tourism by opening dairy factories in Greece to tourists. According to the ministry, more than EUR 17 million from the EU Recovery and Resilience Fund for Greece, will be spent on the promotion of agrotourism and culinary tourism in Greece between 2022 and 2025. Moreover, looking across food production, Greece’s EU Common Agricultural Policy (CAP 2023-27) strategic plan, worth EUR 13,4 billion was approved by the European Commission in November 2022. Olives and olive oil Olive oil has been an important part of everyday life in Greece since ancient times. Up to 60% of the country’s land is covered with 130 to 150 million olive trees, with the main olive growing regions being the Peloponnese peninsula and the island of Crete. There are over 2800 olive oil mills located across the country: this comes to one mill for every 47 square kilometres. Greece is among the top three olive oil producing countries. Over the past five years, Greece has produced between 174 000 and 429 000 tonnes of olive oil annually. Between 75 and 82% of the total production is categorised as high quality extra virgin olive oil, a very high percentage compared to other olive oil producing countries. For the 2022/23 crop year, Greece was the only European country that has seen an increase in production. This was estimated at 340 000 tonnes, a 55% increase from the previous crop year. This put Greece in the position of second largest producer after Spain. Production figures in both Spain and Italy have dramatically dropped due to drought conditions and high summer temperatures. Table olives and olive oil dominate Greece’s agricultural exports. Greece is among the three of the world’s top exporters of olive oil, with one

south-east european INDUSTRIAL MARKET 11 third of its total production exported each year. This represents between 126 000 tonnes and 200 000 tonnes a year. There are many different olive varieties cultivated in Greece for olive oil or as table olives, while some varieties produce both. The highly prized Koroneiki variety is king when it comes to Greek olive varieties, with 60% of olive oil produced from this variety. Other common varieties include Manaki, Kalamata (also called Kalamon), Athinolia, Tsounati, Chalkidiki (also called Halkidiki), Amfissa, Konservolia, and Megaritiki, to name only a few. Top companies According to the latest data from the Association of Greek Food Industries, the domestic food and beverage industry consists of 1225 companies. At the top of the list, based on turnover, is Coca-Cola 3E, which had sales of EUR 573,6 million in 2022, a 22% increase compared to 2021. The company mainly engages in trading raw materials and finished products from other companies within the group, especially The Coca-Cola Co. It also pays support fees to the group’s companies. In terms of Greek business interests, the largest player is the Hellenic Dairies Group. The group, which manages the brands Olympus, Tyras, Rodopi, Kliafa, Doubia, and AGNO, had sales of EUR 493 million in 2022, up from EUR 427 million in 2021. Of the total group sales, 55% were exports. In recent years, the group’s consistent goal has been further expansion in both the Romanian and wider Balkan markets, which was evident through its recent acquisition of the United Milk Company by Delta in Bulgaria. Additionally, the company holds a particularly strong position in Romania, where it initially invested EUR 55 million to establish a factory in 2011, making it a strategically important market for the group in recent years. Another multinational player with a significant presence in Greece is Nestle Hellas, with some of the most well-known consumer goods such as Loumidis Papagalos, Crunch, Maggi, Fitness, Clusters, Cheerios, Korpi, Perrier, S. Pellegrino, and many more. The company’s turnover in 2022 reached EUR 379,04 million, compared to EUR 354.40 million in 2021, marking a percentage increase of 7%. However, due to the impact of the war in Ukraine, sales expenses and the cost of goods sold increased significantly (by 14% and 22% respectively). This was reflected in the gross profit, which saw a 13% decrease. Specifically, from EUR 148,82 million, representing 42% of turnover, it decreased to EUR 129,31 million, representing 34% of turnover. Among the traditional forces in the Greek market is another dairy company, Delta. In 2021 the company’s performance was positive as its sales increased by approximately 1,6%, reaching EUR 279,57 million. However, the significantly rising trends in energy prices and raw materials burdened operating costs, resulting in pre-tax, depreciation, and financial result profits of EUR 16,7 million in 2021, compared to EUR 24,5 million in 2020. The Delta Group reported posttax profits of EUR 2,9 million, compared to losses of EUR 0,8 million in the previous year. With its dynamic century-long presence in the food industry, the Papadopoulos biscuit company (E.I. Papadopoulos S.A.) continues to innovate and adapt to today’s standards. In 2022, the company achieved sales of EUR 216,16 million (EUR 185.04 million in 2021), marking an increase of 16,8%. Pre-tax profits amounted to EUR 11,86 million (EUR 15,84 million in 2021), a decrease of 25,1%. In addition to the name and reputation it has built in Greece, the company has a strong export presence, as its products are exported to 67 countries. Among the major players in the food and beverage sector in the domestic market is PepsiCo Hellas, another multinational beverage company. In 2022, it reported a turnover of EUR 201,17 million, showing an upward trend with a growth

south-east european INDUSTRIAL MARKET 12 SEE NEWS Metso to deliver cooling elements for Aurubis Bulgaria flash smelting furnace rebuild Aurubis Bulgaria has awarded Metso a contract for a copper flash smelting furnace rebuild project located in the Zlatitsa-Pirdop Valley in Bulgaria. The value of the contract exceeds EUR 10 million, and it is booked in the Minerals segment’s first-quarter 2024 order intake. The Outotec flash smelting furnace and related technologies were implemented at the Bulgarian primary copper smelter already in 1987; since then, various upgrades and improvements have been done at regular intervals in close cooperation between the two companies. The previous flash smelting furnace rebuild was executed in 2016. The scope of this new order includes the delivery of new, advanced Outotec cooling elements and the related advisory services to support the rebuild project. Norofert invests over RON 6 million in new research laboratory Norofert, a research leader for regenerative agriculture in Romania, completed the first stage of a laboratory for research and multiplication of microorganisms for use in agriculture. The laboratory is located within the premises of the input factory in Filipestii de Padure, owned by the company, and is the only one of its kind in Romania. It has the capacity not only to produce raw materials needed for the factory but also to sell strains of microorganisms in liquid or solid form, with technologies adapted to the requirements of local and international markets. The company invested RON 3 million in the first stage of the project. The second stage will start towards the end of 2024, and the total value of the investment will amount to over RON 6 million. Photo: Metso rate of 17,69% and adding EUR 30 million in turnover to its 2021 performance when turnover reached EUR 170,3 million. The upward trajectory of sales was driven by popular product brands such as Lay’s, Ruffles, Doritos, Kinder, Lipton, and Pepsi. Loulis Mills, or under their new name Loulis Food Ingredients, is the biggest player and protagonist in the flour industry and the broader food sector. The consolidated turnover of the listed company in 2022 reached EUR 197,91 million, compared to EUR 134,91 million in 2021, marking an increase of 46,7%, part of which is attributed to price increases as a counterbalance to the unprecedented rise in the prices of raw materials, auxiliary materials, and energy costs. A prominent case is Kri Kri, which in 2023 was set to achieve a milestone by crossing the EUR 200 million threshold for the first time, up from EUR 171,8 million in 2022. An important growth factor for the company in the coming years is exports, which account for 47% and are primarily directed towards Italy (36%), the United Kingdom (35%), Ireland (3.5%), Sweden (3.2%), and other countries (22,3%), making up the company’s total exports. The value of the company’s exports in 2022 amounted to EUR 81 million in terms of its total turnover. Mondelez Hellas is a particularly notable force, with products such as Pavlidis chocolates. Specifically, the company’s turnover for the year ending on December 31, 2022, amounted to EUR 169,8 million, an increase of 44,05% compared to 2021’s EUR 117,9 million. The company’s gross profits reached EUR 30 million, marking a 61,15% increase compared to the EUR 18,6 million of the previous year. Pre-tax profits more than doubled (108,11%), reaching EUR 6,28 million from EUR 3 million in 2021. After-tax profits also saw a 47,85% increase, reaching EUR 3,3 million from EUR 2,2 million in 2021. It is worth noting that the American giant Mondelez International acquired Chipita at the beginning of 2022, paying approximately EUR 2 billion to Greek entrepreneur Spyros Theodoropoulos. The Yfantis Group holds a dominant position, with a turnover of EUR 163,2 million in 2021, maintaining diverse activities beyond cold cuts, including frozen vegetables. The group also has a presence abroad with a production facility for plant-based products in New Jersey, United States, through its subsidiary Esti Foods. MEVGAL, based in northern Greece, has been experiencing continuous growth in recent years. From a past marked by significant difficulties, the company has managed to fully recover and strengthen its position, both within and outside Greek borders. The company’s turnover in 2022 was EUR 153,8 million, marking an 18,68% increase. Another dairy company, Kolios, based in Kilkis, completes the picture. According to the company’s financial statements in 2022, its turnover reached EUR 119,92 million, up from EUR 102,34 million in 2021. Profitability saw a slight decline, with after-tax profits decreasing to EUR 1,59 million in 2022 compared to EUR 1,86 million in the immediately preceding year. The company has a strong export orientation, as sales in the Greek market amounted to EUR 44,66 million, with the rest of the turnover attributed to exports.

south-east european INDUSTRIAL MARKET 13 The machinery sector in Turkiye, including the machine tool segment, continues to be one of the main drivers of the local economy. Moreover, today Turkiye’s machine tool market is among the top 10 in the world, according to data of the German Machine Tool Builder’s Association (VDW) released during the highly successful latest edition of the leading international exhibition for metalworking and manufacturing technology EMO Hannover in September 2023. The fair is seen as a platform that makes significant contribution to the progress of the industry in Turkiye. The country’s leading companies have participated in EMO Hannover for years, experts from Hannover Fairs Turkey underline and add that Turkiye’s industry and production are expanding daily, and firms are attempting to gain a larger market share abroad by participating in leading international trade shows. Nearly 60 Turkish businesses took part in the biannual exhibition last year. The longstanding good relations between Turkiye and Germany and the active participation of Turkish companies at German industrial fairs have resulted in highly positive results in exports in the last more than two decades, Hannover Fairs Turkey calculate. The long-standing partnership between Turkiye and Germany Turkish businesses are currently developing many new industrial projects as the country’s economy is ranked among the top 20 in the globe, according to the Germany Trade and Invest Agency (GTAI). Germany is one of the nations with the most foreign investments in Turkiye, having undertaken significant initiatives in the local energy, transportation, and automotive sectors. Key client segments had plans to invest EUR 3 billion in the machine tool industry in Turkiye in 2023, according to Oxford Economics, VDW’s research partner. The automotive industry is getting a significant portion of this investment, statistics show. Turkiye’s machine tool market “In recent years, there has been a notable increase in the export of machine tools from Germany to Turkiye, showcasing the growing importance of this partnership. Turkiye has emerged as a significant player in the production of machine tools, particularly in the areas of forming and cutting tools. The Turkish machine tool industry relies on foreign trade, with a substantial portion of its production being exported. Additionally, Germany holds a significant position as a trading partner for machine tool imports in Turkiye”, VDW says in a current report. Besides German, numerous global machine building companies are present in Turkiye today, using the country as a regional hub to access nearby markets. The machine tool sector has been steadily growing over the past decade with approximately 5% CAGR, the Turkiye – Finland Business Council informs. Accounting for a 9% share of the total exports, machinery products are shipped to more than 200 countries. 60% of total machinery product exports are shipped to the USA and EU countries. Turkiye’s machine tool market – in the top 10 in the world With a volume of EUR 1,9 billion in 2022, Turkiye is the tenth largest machine tool market in the world, VDW’s latest report also states. “With its own production of more than one billion euros, the state also plays an important role as a manufacturer. Almost 90 percent of the demand was nevertheless imported from abroad. When it comes to imports, Turkish companies also rely on machine tools “Made in Germany”. Germany is the third most important import partner”, the Association said in an official publication. Turkiye received machine exports from the German machine tool industry in 2022 totaling about EUR 240 million, including parts and services. As a result, the export value may rise by 27% when compared to the same time last year. Additionally, Turkiye’s prominence as a purchasing nation has grown. In terms of the most significant export markets, the nation remained

south-east european INDUSTRIAL MARKET 14 in 14th place in 2021 but had moved up to 11th in 2022. In the previous year, Turkiye received about three percent of all German machine tool exports. Turkiye today is one of the most significant places in the world for machine tool production, VDF points out. The country produced machinery valued at precisely EUR 1,0 billion in 2022 (up 29% from the year before). It had the 12th position in the globe in terms of production volume. Particularly prominent among local manufacturers are companies who make shaping and cutting equipment. Approximately EUR 683 million, or 68% of the output value, is accounted for by this technology category. Approximately EUR 317 million, or 32% of the total, come from metal cutting technology, VDW also calculates. “The Turkish machine tool industry is heavily geared towards foreign trade. The export volume in 2022 was around EUR 784 million (plus 34 percent compared to the previous year). This meant that almost 80 percent of domestic production was destined for sale abroad. The main buyer countries for exports were Russia (EUR 106 million, share of 14 percent), the USA (EUR 71 million, 9 percent) and Germany (EUR 55 million, 7 percent)”, the Association’s data further shows. Again in 2022, machine tools worth EUR 1,7 billion (up 29% from the previous year) were imported by Turkish businesses. Germany is the third biggest trading partner for imports, after China (16%) and Taiwan (24%) with a 13 percent stake. Italy (9 percent), South Korea (10 percent), and Japan (12 percent) are Turkiye’s other major suppliers. The total volume of the Turkish machine tool market was around EUR 1,9 billion (plus 27 percent) in 2022, making it the tenth largest in the world. In relation to the individual machine groups, the market for machining centers (approximately EUR 491 million) was the largest. This is followed by lathes and turning centers (approximately EUR 378 million) as well as bending, folding and straightening machines (approximately EUR 195 million), VDW’s report also says. A strong machinery industry and an export-oriented market The machinery sector in Turkiye today provides direct employment for over 440 thousand people. When employment in supplier subsectors is taken into account, this number rises, the country’s Investment Agency reports. Turkish machinery sector, with a volume exceeding TL 357 billion and an export volume (including free zones) exceeding USD 23 billion, has an important place in the national economy. It includes 23 sub-branches, mostly involving smalland medium-sized enterprises, which produce a wide range of products. During times of international unrest like the COVID-19 pandemic, the industry provides national self-sufficiency and independence from outside markets, making it strategically significant. International clients are particularly interested in the sector’s firms’ export performance, their quality record in global marketplaces, and their adaptable and competitive structure. 60% of the sector’s exports are destined for markets with intense competition, such the US and the EU. More than 200 nations currently use Turkish machinery industry products in one manner or another. The Turkish machinery industry works hard to increase its value through sustainable ways, such as creating strategies and solutions to adjust to digitization and the sustainable green transformation, in collaboration with its numerous local and international stakeholders. An important pillar in this direction is the Twin Transition Project in the local machinery Sector, which is carried out under the coordination of the Turkish Machine Manufacturers Association (MIB) and was currently selected as one of the best practice examples for the industry by the Ministry of Trade of the Republic of Turkiye. In recent years, Turkish machinery industry growth rates are much higher than growth rates of Turkiye’s overall economy and industry. With its rapid development and the potential, it has, the Turkish Machinery industry is a sector increasing its share in the Turkish exports. Machinery is the second largest sector in Turkiye’s export”, the country’s Machinery Exporters’ Association informs.

south-east european INDUSTRIAL MARKET 15 According to latest data of the Association, in 2022, Turkiye’s machinery exports reached USD 25,5 billion. The machinery sector contributed to 10 percent of the country’s total exports. The exports of the industry increased by 11 percent in 2023 compared to 2022 to reach USD 28,1 billion last year. Investments in the machinery and equipment sector in Turkiye have witnessed continuous growth over 16 consecutive quarters, the Turkish Machinery Exporters Union (MAIB) reports. That continued growth enhances the export goal for 2024, which is USD 30 billion, despite the recession in Europe. Despite the Corona pandemic, the sector’s exports increased by approximately 75 percent in the past five years, the Union’s statistics show. “Over the last 22 years, machinery export has increased 17-fold. More than 200 countries around the world use Turkish machines. Machines come first in products that Germany and USA import from Turkiye. The country is the sixth-largest machine manufacturer in Europe, ranked 26th in the global machinery trade in 2022”, a MAIB’s current report also says. Another important aspect – the Turkish machinery industry places a high value on research and development. The proportion of R&D spending to GNP is steadily rising in Turkiye, official data shows. Turkish machinery leverages a wide range of systems engineering expertise to enable digital transformation. Advantages of the Turkish machine tool industry and market The machine tool manufactures in the country significantly benefit from developed engineering skills and quick adaptation to new technologies. In Turkiye there are sufficient production facilities (in the many industrial zones for example) and a suitable infrastructure. Other advantages are the advanced sub-industries, the rapid adoption of international manufacturing standards and the strong quality awareness, MIB further underlines. The sector gives place to many specialized, highly educated, and skilled middle and senior managers and the main part of the workforce is of comparatively young age. The machine tool market is strongly supported by a stable domestic supply of raw materials and the flexible structure of enterprises, as most of the companies in the machine tool manufacturing industry in Turkiye are SMEs. In addition, the sector benefits from the country’s geographical proximity to some of the highest growth markets in the machinery segment. Per the relevant laws and regulations, for a company to be an exporter in Turkiye it must also be a member of an exporters’ association operating in the respective industry. The Machinery Exporters’ Association (MAIB) is the only establishment for machinery and accessories exporters in Turkiye, and has 16 000 member companies, most of which are manufacturers. An important focus of the Turkish machine tool industry is the Fourth industrial evolution. In this context digitalization, artificial intelligence, digital twins, automation, and robotics become topics of greater and greater interest for the local manufacturing and exporting companies. Another key pillar of the industrial transformation is the strive towards sustainability and “green” technologies. These two megatrends of the world economy, strongly reflected in the Turkish manufacturing sector, allow the country to remain competitive on a global scale among many leaders such as Japan, USA and Germany. Today the machinery industry is the third largest manufacturing sector in Turkiye in terms of market size. Turkiye’s economy, which has expanded by an annual average of 6,3% in the period 2020 – 2023, has reached the top among OECD countries, and machinery investments contributed with an annual average growth rate of 18 percent. This was announced at the latest CECIMO General Assembly with the participation of the Turkish Machine Manufacturers Association (MIB) in Antalya. During this period the imports also increased at a similar rate, reaching USD 35 billion in 2022. More than 50 percent of Turkiye’s machinery exports go to the EU. In the machine tools and other related manufacturing technologies sector, exports amounted to USD 1,2 billion in 2022, MIB also informs. The organization represents EMO Hannover in Turkiye, as well as other important global exhibitions, like SIMTOS, which is held biannually in South Korea. MIB also supports numerous machinery fairs, organized in Turkiye, such as MAKTEK Avrasya, MAKTEK Izmir, MAKTEK Konya and Bumatech.

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