Recycling sector never allows you to stay idle, says Mr. Iosif Vangelatos, General Manager of INOSBALKAN.
The company was able to navigate through turbulent times in the Serbian waste market and is ready for the new era which will be brought by the implementation of EU Chapter 27.
Your business operations in Serbia are covering both internal and relatively huge external market. How are you satisfied with the business results in 2018 so far, and which markets contributed the most to the results?
— 2018 is a milestone year for Inos Balkan. Following a year with a record in our sales and leaving behind the non-tariff export burdens imposed to the export activities of our sector, we are able to execute our business plans based on solid financing capabilities, and under free trade principals. We are producing value for our shareholders by expanding our activities and preserving our corporate values for responsibility, integrity, efficiency, innovation and professionalism. Our sales are covering both external and internal Serbian market.
Did the partial regeneration of the country’s steel production and metallurgy affected your business or it is too early to assess the results of the privatization of the Smederevo still mill?
— A wide range of factors have influenced the recycling market significantly at the national and international levels. The liberalisation of the Serbian market in the 1990s, the emergence of China as a global manufacturing giant and the EU’s legislative framework on the recycling of special streams are just a few of them. The Serbian recycling market has attracted well-established international organisations, but was impacted severely by investments and dis-investments in the country’s steel production and metallurgical sector. The second privatization of Smederevo has for sure a positive effect on our business. The new owners are well reputed steel producers with solid financial status able to undertake all the necessary investments. It is rather early to assess the results of the privatization, but we may witness clear signs of rationalization in the recycling business.
Quality aspects as well commercial terms are clearly communicated on the market, creating the adequate business environment for healthy competition. What are the key challenges in managing a company in the industry like yours?
— Recycling sector never allows you to stay idle. I am serving this sector for almost 15 years and I had the chance to confirm the above with colleagues and partners all around the globe. Free trade conditions are fully applied and competitive landscape is on a constant change. If on all the above, you add the compliance with a constantly developing legal framework and the risk due to the fluctuation on the price of commodities, you may get a clear picture of the challenges we are dealing with, in our sector. This is also the reason why we employee in our company a team of people highly qualified in finance, engineering, environmental management and sales. A team of people that allow us the face all day to day challenges as well as to adequate plan our future steps.
The implementation of the EU chapter 27 will affect your business?
— The recycling sector in Serbia contributes € 120 million per year to the overall export potential of Serbia. In addition, our sector provides the local industry with secondary raw materials in the amount of € 135 million, securing regular flow and excellent quality. All over the world and especially in the EU, circular economic principles are dictating future business models. New products, infrastructure, equipment and services, are designed and delivered based on the principals of long-lasting design, maintenance, repair, reuse, refurbishing, and recycling. In the near future, Serbia will have to deal with environmental protection obligations arising from chapter 27 of the EU integration process and the required investments will be more than €15 billion. At Inos Balkan, we are anticipating those developments. With a solid financial status, modern management, and robust engineering resources, we are ready for the new era. The Serbian placement is of strategic importance for our group, and our 12 years of presence in the Serbian recycling market will be further enhanced. Chapter 27 of EU integration process will create new business opportunities for our sector. We do expect that the application of the polluter pays principle, will significantly alter the competitive landscape on our sector and particularly in the management of the so called special streams of waste, like End of Life Vehicles (ELVs) and Waste of Electric and Electronic Equipment (WEEE). The European acquis comprises values and principles that will allow the creation of a leveled playfield and subsequently free trade conditions will attract the necessary investments. In addition, water and air quality, municipality waste management, industrial pollution control and risk management, as well as noise prevention will be addressed and will potentially change the operating practices in the recycling sector as well as in the sector of industrial metallurgy. Serbian government has already realized the size of the necessary investments and is trying to create the adequate framework for Private and Public sector Partnerships (PPP) that will secure the necessary capital investments.