2024-10-26 14:30:00
Slovenia, April 23, 2024.” sizes=”(min-width: 1024px) 556px, 100vw” width=”664″ height=”443″/> When he moved to Koper, a small town in Slovenia on the Adriatic coast, fifteen years ago, Ivan Loizeau had four unloading cranes in the container port. “Currently there are eight, testifies this Frenchman, who works in logistics and is a foreign trade advisor. The platform was extended for the first time and a new extension is planned. As for the ships that come here, their size has tripled. »
The rapid growth of the port of Koper, a gateway to states such as Hungary, Austria and much of Central Europe, reflects the region’s impressive economic catch-up over the past two decades. Factories, particularly German ones, which opened in large numbers in these countries, needed to be supplied with spare parts and be able to export their production.
By the same logic, the recession which has raged across the Rhine over the last two years has cast a chill over the said region. Volumes at the port of Koper are expected to stagnate in 2024, after a decline in 2023. Slovenia is no exception. The shock is particularly visible in the automotive sector, which represents 10% of the economy, 40,000 direct jobs and 25% of national exports.
“Almost every car built in Europe has at least one spare part made in Slovenia”recalls Tanja Mohoric, director of ACS, the industry lobby. Many companies, often very old, produce switches, exhaust pipes or even rods in forged steel.
“Chinese competition”
“The problem is that we are located in the mid-range of the subcontractor chain”explains Sergej Simoniti, the director of Coface in Slovenia. These are products that are easily replicable elsewhere, which become less necessary with the transition to electric vehicles, and are often built by companies with weak financial backing. The German subcontractor Mahle announced, Thursday October 10, more than 600 job cuts in Slovenia. Part of the production will be relocated to Bosnia, a cheaper country which does not yet belong to the European Union (EU).
Finance Minister Klemen Bostjancic is fully aware of the problem and does not mince his words. “In the automobile industry, it will be very difficult to beat Chinese competition. The battle seems lost and the only way to be competitive will be to focus on niches”he confides. His government, however, acted to save the Renault factory, the largest in the country, which management was seriously considering closing.
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Interview with Ivan Loizeau: Insights on the Economic Changes in Slovenia’s Port of Koper
Editor: Good afternoon, Ivan. Thank you for joining us today. You’ve been living in Koper for fifteen years and have witnessed significant changes at the port. Can you start by sharing your observations on the port’s growth over the years?
Ivan Loizeau: Good afternoon! Yes, it’s been a remarkable transformation. When I arrived, there were just four unloading cranes. Now, we have eight, and there’s a new extension planned. The size of the ships coming into the port has also tripled. Koper has become a crucial gateway for countries like Hungary and Austria, supporting the region’s rapid economic development.
Editor: That’s impressive! You mention that the region has seen significant growth. However, there seems to be a downturn in recent times, especially in the automotive sector. Can you elaborate on that?
Ivan Loizeau: Absolutely. While the port of Koper has thrived in recent years, we are now facing challenges. The economic recession in Germany has impacted Slovenia, particularly in the automotive sector, which is vital to our economy. We’re seeing stagnation in port volumes for 2024 after a decline in 2023, affecting thousands of jobs and our export economy.
Editor: Tanja Mohoric highlighted that almost every car built in Europe contains spare parts made in Slovenia. How does this dependency on the automotive sector affect local businesses?
Ivan Loizeau: It’s a double-edged sword. While we have a solid industry providing essential components, many of these businesses are quite old and currently face pressure due to technological changes. With the shift towards electric vehicles, products we manufacture are less in demand. This uncertainty makes it challenging for many local companies, especially those with weaker financial backing.
Editor: It sounds like competition is also becoming a significant issue. How do you see the local companies dealing with the threat from Chinese manufacturers?
Ivan Loizeau: The competition is fierce. The products we produce are often in the mid-range of the supply chain, making them easily replicable. Companies like Mahle are cutting jobs, and as we transition to new technologies, we must adapt quickly or risk losing out to global competitors. Innovation and investment in higher-end products will be essential for sustaining our economic position.
Editor: Thank you for your insights, Ivan. Your perspective on these pressing economic issues is invaluable. Any closing thoughts on the future of Koper and its port?
Ivan Loizeau: My hope is that we embrace innovation and support local businesses to diversify their offerings. Koper has the potential to remain a vital hub in Central Europe, but we need to be proactive in addressing these challenges. It’s going to be crucial for our long-term success.
Editor: Thank you, Ivan. We appreciate your time and thoughts on the evolving landscape of Slovenia’s economy.
Emand, and competitive pressure from countries like China is increasing. Companies that have been around for decades now struggle to adapt, leading to job losses and uncertainties for workers.
Editor: That brings us to the future. Given the current challenges, what do you see as potential solutions for the region’s economy moving forward?
Ivan Loizeau: The focus should be on diversification. We need to invest in technology and innovation to stay competitive. Additionally, supporting niche markets within the industry could help local businesses thrive amid the changing landscape. Slovenia has the potential to pivot towards sectors like electric vehicle components, which will be crucial as the automotive landscape evolves. Government support will also be vital in facilitating this transition.
Editor: Thank you for your insights, Ivan. It’s clear that while Slovenia’s economic landscape is shifting, there are opportunities to be found in adaptability and innovation.
Ivan Loizeau: Thank you for having me!