Starting with 3rd August the ELKO Grupa JSC has decided to close the operation of ELKOTech Croatia and discontinue all distribution activities in Croatia, where it has been operating since 2000. Recently the market perspectives and growth in Croatia has been negatively affected by the current economic downturn and postponed accession process to the European Union. The decision has been made by evaluating the profitability and financial risks of Croatian operations.

 

Closing of the operation in Croatia will not have essential effect on the operational results of ELKO Grupa JSC and negative effect on our business in other countries. The turnover of ELKOTech Croatia accounted for 1.6% of total group sales during 2009. This decision will allow us to concentrate more of our resources in other markets, which will ensure further growth and development of the ELKO Group and its partners.

 

ELKO Grupa JSC