INTERVIEW: GENERAL MANAGER OF MS&WOOD MUHAMED PILAV
Interviewed by: Erdin Halimić
SARAJEVO, March 10 (ONASA) – General Manager of the company MS&WOOD Muhamed Pilav in the interview for the ONASA Agency among other things talks about operations of the company MS&WOOD in 2014, plans for the current year, current problems of the timber processing industry in BiH …
ONASA: With what business results did MS&WOOD finish 2014? Can you make a comparison with 2013?
PILAV:A detailed analysis of operations and statements of heads of finance in the former Žica found that “Žica” from its founding to the privatization operated with a loss, and it was surviving on the basis of loans and inflation. Final accounts of the company according to the popular practice in the former Yugoslavia were vaulted to the “break even”, fictitiously showing positive business operation of an enterprise. The company MS&WOOD (former Žica) for the first time since its founding in 1950 completed the business year with a positive result. Our strategic decision to enter into the restructuring of the company and to from the non-profitable and unprosperous wire production completely turn to the furniture production proved to be an excellent business move. In a short time we have been able to start production, establish a top quality standard, an environmental management system and gain the trust of the strongest brand in the world.
ONASA: How much of the total production MS&WOOD exports and to which markets? Who are your most important partners?
PILAV: We export finished products to the most demanding and developed markets, such as Germany, France, England, Austria, Canada, America, Sweden, Japan …
ONASA: Can you announce the opening of new markets?
PILAV: We are in discussions about opening of new markets. MS&WOOD exports over 90 percent of its total production. We are an export-oriented company and related to that, we plan our further expansion.
ONASA: You have announced a transition of business from the concept ”Made in BiH” to the concept ”Designed in BiH” during this year. At what stage is this project and namely, what is it about?
PILAV:We have designed our own products and in January they were shown at the largest furniture fair in the world, which was held in Cologne. For the first time we have exhibited products that were designed and manufactured in our company, and designs were done by renowned architects. Visits to our stand were outstanding and exceeded our expectations. We have achieved business contacts on the basis of which we are already getting orders. This is just the beginning of our presentation at international fairs and establishing cooperation with designers. In the future, our entire production will be based on products designed within the framework of our company.
ONASA: How many workers does MS&WOOD employ and can you announce new employment in 2015?
PILAV: Currently we employ 200 workers and in 2015 we plan to hire at least 100 new workers. On Friday, March 6, in the printed media was published a repeated ad for hiring of new workers in the furniture factory MS&WOOD in Fojnica. Offered jobs relate to, among other things, to the occupation of mechanical engineers, graduate economist, economic technologists and carpenters … The priority in employment will have candidates with longer work experience, and the company MS&WOOD at our expense, provides training for workers. To candidates who successfully complete probation and demonstrate the necessary skills and knowledge, the company will provide an apartment in Fojnica.
ONASA: What are problems you face when operating in BiH market? Do you have problems in securing raw materials?
PILAV: We face many problems. However, I would mention the high price of electricity, high taxes and contributions on salaries, and non-transparent and irrational system of distribution of expensive raw materials, which in BiH are more expensive than in neighboring countries.
ONASA:Can you name the most important projects you plan to realize in 2015? Do you plan some new investments?
PILAV: In the last two years we have had huge investments. We have invested five million KM in the equipment as well as the purchase of more productive and more modern equipment. If we manage to provide favorable loan funds we will invest and this year about two million KM in the removal of potential glitches in the production, as well as an increase in production.
ONASA: As the Head of the KS Association of Employers, can you say what you expect from a new government in terms of improving the environment for doing business in BiH?
PILAV: I am the Head of the KS Association of Employers, and from the new government I expect to implement recommendations of the FBiH Association of Employers, which were published in the book “How to achieve a favorable environment”. In particular, I expect the new government to promptly implement measures of economic policy which I have published in the media or that the government publicly offers better solutions. I think we urgently need reforms that would focus on overall improvement of the business environment. A way out is in the production, creation of new values, with special focus on the export. Our economy needs to finally become competitive, otherwise, consequences could be incalculable. Imports are higher than exports, and the main reason for this is the lack of protection of domestic producers. (end)