Serbian Plastic Manufacturer Achieves 50-Year Milestone Amidst Growing Sustainability Efforts

Serbian Plastic Manufacturer Achieves 50-Year Milestone Amidst Growing Sustainability Efforts

(IN BRIEF) MNG Plastik Gogić, a family-owned plastic manufacturing company based in Indjija, Serbia, celebrates over 50 years of successful business operations. Specializing in plastic waste containers, bins, and stadium seats, the company exports to over 60 countries worldwide. With support from the European Bank for Reconstruction and Development (EBRD) and the European Union (EU), MNG Plastik Gogić has implemented energy-efficient production measures, contributing to its competitiveness and environmental sustainability. Through the SME Competitiveness Programme, the company accessed EBRD loans and EU grants, enabling investments in business enhancements aligned with EU standards. This initiative underscores the importance of financing and support in fostering the growth and sustainability of SMEs in Serbia’s economy.

(PRESS RELEASE) LONDON, 5-Mar-2024 — /EuropaWire/ — “One word – plastics.” This is a memorable line from the 1967 movie The Graduate, spoken by a middle-aged American businessman as a piece of career advice to the protagonist Benjamin Braddock (played by Dustin Hoffman).

Indeed, the 1960s and 1970s was a good time to start a business with plastic, and not just in the USA.

This was also the time when the Gogić family from Indjija, Serbia, set up a small company producing plastic, a business that they have successfully run for over 50 years now. MNG Plastik Gogić makes plastic waste containers, waste bins, round tubs for fruit and seats for sports stadiums and exports to more than 60 countries, including those in the Middle East, South America and South East Asia.

As a growing business, it requires continuous improvements and investment. One of its most recent, which was financed by the European Bank for Reconstruction and Development (EBRD), was to increase energy efficiency in production.

MNG Plastik Gogić is one of 419 Serbian companies that has improved its competitiveness thanks to a programme implemented by the EBRD with the financial support of the European Union (EU) and in cooperation with the Ministry of Economy of the Republic of Serbia.

The SME Competitiveness Programme, which has been running in Serbia since 2019 and is now in its final phase, offers small and medium-sized enterprises (SMEs) access to EBRD loans and EU grants, through local commercial banks, for investing in business improvements to reach EU standards and increase competitiveness.

With 218  employees MNG Plastik Gogić is one of the biggest employers in the area. The company uses recycled plastic in part of its production and also collects, transports and recycles non-hazardous plastic waste. To improve its overall productivity, the company invested in a centralised system for the transport of raw materials from silos to machines, securing financing through Intesa Leasing.

“With this investment, we have achieved not just greater productivity with significant reductions in waste and energy, but also improvements in terms of product quality and higher protection and safety at work,” says Goran Gogić, co-owner of the company.

The company uses more than 15,000 tonnes of raw material for its production every year, so even small savings in product waste have a great financial impact.

“We had been planning this investment for some time anyway, but the favourable financing conditions and the grant incentive gave us an additional push in this direction,” adds Goran.

In addition to the financial benefits that reduction of waste and energy consumption brings, the investment helps the company align with several EU environmental and health and safety directives, making it greener and more competitive in EU markets. Reduced energy consumption also resulted in lower CO2 emissions, thus reducing the company’s overall environmental footprint.

Improving access to finance for SMEs

Through the programme the EBRD has channelled €107 million in loans to local SMEs in Serbia, with an additional €9.5 million in incentive grants from the EU, secured from national and regional pre-accession funds.

As much as 90 per cent of the companies financed through the programme are located outside Belgrade, where access to financing is often more difficult.

Supported investments were in compliance with at least one EU directive in the areas of energy efficiency and environmental protection, health and safety, and product safety and quality.

“Access to financial support can encourage local firms to invest in strengthening their competitiveness, and we are pleased to see that our support has reached so many local companies in Serbia,” says Aleksandra Vukosavljević, EBRD Director for Financial Institutions, Western Balkans and Eastern Europe.

Martin Klaucke, Head of Operations Section, EU Delegation to Serbia, adds: “SMEs are vital for the Western Balkan economies. That is why, building on our longstanding cooperation with the EBRD in Serbia, we are continuing to support SMEs in strengthening their resilience and investing in sustainable growth. The EU-funded projects in Serbia promote job creation, economic and technological development and legislative framework improvements, all of which contribute to economic growth.”

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SOURCE: EBRD