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1 page 1 Carlo Ardizzone is reports reflects only the opinions of the writer, does not committ OMG. Cerutti
2 Move from the West to the East Until 1989 Centralized economy 7 National States 1989-May 2004 Market economy, privatization 17 National States Globalization starts May 2004-now Eu membership page 2
3 page 3 Move from the West to the East Until After 2004 Economic zones
4 page 4 Move from the West to the East FORMER AND CURRENT LEADERS Country Czech and Slovakia Hungary Poland Yugoslavia, now separate States Status pre 1989 **** * * **** Current status ** * ***** *
5 page 5 Move from the West to the East In Poland gravure is very strong, since it is the only country of the group that developed a strong gravure industry in publication, it is in the top league in Europe in woodgrain, It is strong and developing in packaging.
6 page 6 Move from the West to the East Until 1989 Leipzig (at the time in the DDR) was an excellence centre for learning graphic arts, for all the countries that did belong to the same system. Today the opportunity to get a proper specialized training is reduced As a limiting factor in the future development we have to list the availability of skilled personnel Technischen Hochschule Leipzig
7 page 7 Move from the West to the East factors: The privatization process that was different in all the countries The competition from the West (European Community) The globalization The presence of Multinationals
8 Move from the West to the East Multinationals First food processors, with word brands, then with local brand, then converters came. Pros: A good logistic location Labour costs Environment in favour of investments Some risks page 8
9 page 9 Move from the West to the East COUNTRY Czech Republic Slovakia Multinationals Alcan Local OTK, Alinvest Chemosvit Hungary Poland Mondi, Nordenia ( flexo) Alcan, Nordenia, Amcor, Constantia, Mondi Grupa Kety
10 Move from the West to the East How long will continue the trend in Poland? Converting in Europe has changed very much, moving to the periphery. Converting multinationals were quick to follow this trend Local owned converters, local food producers may give stability page 10
11 page 11 Move from the West to the East Poland and its neighbours The demand for processed food grows by double digits BUT geographical location or the overall political situation makes a development more difficult in some countires. Converting in gravure may require big presses Poland has the advantage of a big local market and a favourable location
12 page 12 Move from the West to the East BALTIC COUNTRIES Some good converters Small size Small population Development seems geared in other directions
13 Move from the West to the East BELARUS Good tradition in converting, including gravure. Development may be related to Russia page 13 Political and economic situation needs still improvements
14 page 14 Move from the West to the East RUSSIA Huge country, big population. Good financial situation. Huge distances Poor logistics May be too dependent on oil and gas ( exchange rate favours imports). Technical and production staff not stable in big centres, where consumers live.
15 Move from the West to the East UKRAINE Size of the country An economic environment more favourable than Russia for converting projects Outside the EU Low personal income page 15
16 Move from the West to the East MOLDOVA Small country Small population On the periphery page 16
17 Move from the West to the East SLOVENIA Small size Small population Development seems geared in other directions Some good converters page 17
18 Move from the West to the East CROATIA Small size Small population Being outside EU may limit development Some good converters page 18
19 Move from the West to the East SERBIA & neighbours Most of the best converters of the Soviet area are located here If they grow, it may be mainly in flexo page 19 For each country small size, small population make local market small. Being outside EU, lack of capital will limit development.
20 Move from the West to the East RUMENIA, BULGARIA On the border of EU Lack of tradition in converting, lack of capital, the strong local presence of Greece and Turkey may limit opportunities May have good fundamentals for growth page 21
21 page 22 Thanks for your attention! Have a look at our site: At our products: R R 970 R At our news: carlo.ardizzone@cerutti.it
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