Zagreb Company Valves in European Factories and Oil Rigs

Lauren Simmonds

The metallurgical company was founded back in 1990 and currently employs 110 workers in both Zagreb and Čapljina, earning more than 70 million kuna.

As Darko Bicak/Poslovni Dnevnik writes on the 31st of July, 2018, while the Zagreb-based company OMV Indoil is less well-known to the general public in Croatia, it is making waves in the business world because of its know-how in the European process industry, the oil and gas industry, as well as the energy, petrochemical, pharmacy, and food industry, etc.

Although it carries the name as the Austrian oil company OMV, which until just last year retailed here in Croatia in order to sell its pumps to Crodux, it has nothing to do with them. Moreover, as they say from OMV Indoil, their company was founded way back in 1990 and draws its name from the initials of the names of its original founders. When the Austrian OMV (which was called ÖMV – Österreichische Mineralölverwaltung until 1994) arrived in Croatia in the mid 1990s, it actually had to seek OMV Indoil’s approval to register under that name in this country.

Today, OMV Indoil is the largest regional manufacturer of industrial valves. It has headquarters and production facilities in Zagreb, and back in 2007 they also expanded to Bosnia and Herzegovina when Energoinvest’s company Armature Čapljina was initially purchased. Today, the group employs 110 people, 70 of which are in Zagreb. Last year, they generated 71 million kuna in revenue, and this year they expect further revenue growth, as well as more growth in operations, especially when it comes to export markets. As was explained by Stipe Miličević, the CEO of OMV Indoil, since entering the EU, welcome exponential export growth has been achieved.

“In 2013, our exports amounted to 1.5 million kuna, last year it was 24 million kuna, and this year we expect up to 35 million kuna in revenue. Currently, more than 30% of revenues are from exports, but in the future this should be a lot more. Generally, our long-term business goals are for our revenue to reach 20 million euro in the next few years and remain stable at that level, of course most growth would come on/from foreign markets. As far as investment is concerned, it wouldn’t be possible to achieve such results without constant investment in equipment and personnel, we annually invest anything from 2.5 to 3.5 million kuna into machinery and equipment,” stated Miličević.

The Zagreb-based company’s valves are used by almost all of the largest European companies in the energy sector. The global valve market is worth around 60 billion dollars, and most of this ”cake” spills over onto several major global companies. In addition to the European Union, they are interested in the markets of ex-USSR countries, while the American market is interesting but logistically far away, and the Middle East market is more oriented to China and India.

“This is a highly demanding industry which is highly standardised and certified, with a huge focus on security and quality, a massive emphasis placed upon safety and quality, as well as compliance with all of the prescribed standards and certificates. Before a serious buyer buys something from you, there’s a deep business analysis, and that lasts weeks. When they’re convinced that you meet all of the quality standards in production, that you have all the procedures defined in all business processes, that you respect the highest ecological standards, as well as the standards of worker protection and equipment, and safety standards, then they get engaged in concrete negotiations with you,” Miličević concluded.


Click here for the original article by Darko Bicak for Poslovni Dnevnik


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