Croatia keen to attract Chinese investment

Some 30 kilometers north-west of the Croatian capital of Zagreb, a truck transports equipment to the construction site of a Chinese-owned and Austrian-based FACC company in Jakovlje. Workers here don't have time to waste, their project must be completed by next summer.

The project is the expansion of a factory that will be the workplace of an additional 350 workers who will produce parts for the interiors of Airbus, Boeing, and Chinese Comac aeroplanes. Currently, 250 workers already produce parts of the interior for many passenger jets. Interior panels, and overhead compartments are made here - everything besides the seats. And now, the market has demanded the expansion of their production.

Matija Ferić Chief Financial Officer of FACC in Croatia, explained the project to CGTN: "There are two motives for this expansion. The first is the increase of the capacity of the existing production, and the second is the increase of the production scope. We will be ready for the expected production increase by the aeroplane manufacturers and we will be able to produce more parts for them.”

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Many EU countries are looking to boost their relations with the world's second-largest economy. Croatia is one of those. After a period of economic slowdown caused by the COVID pandemic, Croatia is interested in attracting more Chinese investment.

This $23 million project in the aircraft parts industry is another example of successful Chinese investments in Croatia. The doors for Chinese businesses in Croatia were opened in 2018 by the CRBC, winning the tender for construction of the Pelješac bridge, the largest in Croatia. 

It was followed by Norinco's direct investment worth over $220 million in a wind farm in the town of Senj. But then the COVID struck, and things slowed a lot. Yet the Croatians invite the Chinese to continue where the pandemic stopped them.

"Croatia's attitude towards the Chinese investors is positive," Damir Novotny, Professor Doctor of Economic Sciences told CGTN. "I would say that it would be good for Chinese investors to check Croatian market potential, particularly in the areas of energy generation, infrastructure, logistics, and railways."

Professor Novotny admits that the atmosphere surrounding Croatia and Chinese collaboration is not as favorable as before, mostly due to the political shifts inside the EU. But he hopes that the summit in Beijing will help Croatia to embark on more joint projects with China, like this one at the FACC factory.

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