Donji Miholjac Experiences Economic Revival
In Donji Miholjac, a mid-sized town located along the Hungarian border in eastern Croatia, high unemployment and a poor business climate depressed incomes for many years.
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Mr. Josip Šelej, owner and general manager of Limex d.o.o. receives a city award from Donji Miholjac Mayor Eduard Šrajer
Photo Credit: Zrinski Pelajic, DAI |
Today, thanks to USAID-supported local government efforts, Donji Miholjac is a busy economic center. The Janjevci Business Zone pilot project was jointly launched by the Donji Miholjac local government and USAID in 2005 to boost new investment and generate 1000 new jobs over the subsequent five years, and has attracted new investors through local incentive packages, benefits and assistance.
Within the first year, 13 investors had enlisted, with a cumulative total investment valued at $39 million. Six of these investors have begun operations, creating 250 new jobs—marking the first decrease in local unemployment in five years. The profiles of those investing in the Business Zone are impressive. Limex, a well-established company with $40 million in annual sales and 700 employees exports 80% of its production to more than 35 countries worldwide, but has now also invested $6 million in a brand new 3600 m² production facility at the Janjevci Business Zone.
According to Limex General Manager, Mr. Šelej, “The book-to-bill ratio is excellent and the company is considering further expansion of production capacities and additional employment here. This never would have happened without the local government’s support to create a such a business-friendly environment that we were able to finish construction and start production in just three months.”
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