Kick Off Meeting : Partnership No: 8

1. Kick Off Meeting: Partnership No: 8 Developing a Cluster of Metal Manufacturers to meet the needs of the electro-energy sector in the Western Balkans

2. Partners Western Europe Sheffield Chamber of Commerce and Industry, UK www.scci.org.uk Oviedo Chamber of Commerce, Spain www.camara-ovi.es/mostrar.aspx?pag=558

3. Partners Western Balkans The Economy Chamber of Zenica Doboj Canton, Bosnia & Herzegovina www.pkzedo.baRegional Chamber of Economy Nis, Serbia www.rpknis.rs Sisak County Chamber, Croatiawww.hgk.hr/wps/portal/!ut/p/_s.7_0_A/7_0_PQ

4. Sector Background • Metal Manufacturing in the Western Balkans • Zenica-Doboj Canton • Major industry is electric energy, metallurgy, and metal production. • One of 2 thermo power stations in Bosnia & Herzegovina • Biggest steel factory in the Balkans – 2 million tonnes of steel • 3 Coal mines – 2 million tonnes of coal • Needs of investments of these sectors are very big, because of antiquated equipment for production and lack of sofisticated mechanisation, which in the most cases import (from abroad). • Sisak-Moslavina County • Iron and steel manufacture, metal work and construction • Power plant • Faculty of Metallurgy at Sisak • Nis • Most developed industrial center in south-east Serbia • Metal, electro-energy, and tobacco are major industries • There is also a principal university that comprises 17 faculties

5. Sector Focus This project will focus on working with metal manufacturers and processors supplying, or with the capability of supplying,the electro-energy sector. Improvements in efficiency and capability (and therefore cost) will naturally translate into supply chains for other market sectors such as construction and automotive.

6. Project Objective This project will ensure that a Cluster of businesses in the metal industries is developed that creates a favourable environment and acts as a focus for attracting Foreign Direct Investment

7. Project Activities • To identify a Balkan supply chain cluster for the electrical power generation industry in the region which has to be modernised by targeted investment in innovation and modern manufacturing techniques • Focus is on creating the environment for FDI, not the investment itself • Time and Finance limited • Identified best practice and knowledge transfer • To review exemplar models • To encourage cross border co-operation

8. Project Activities • Inception Visit • Held in November in Zenica • Meeting with all parties • Meeting with a Governmental Minister • Set project aims and objectives • Cluster Business identification • All parties will identify suitable businesses for inclusion within the Cluster project

9. Project Activities • Opening ceremony and first workshop • To be held in Nis, in January • Public authorities invited • Cluster businesses invited • Analysis of current position, strengths, weaknesses and objective position • Second workshop • To be held in Zenica in May • Co-ordinated diary with a large Metal industry fair being held in Zenica • “Fringe” event to the fair focussing on environmental best practice and green issues • Identifying how the cluster can become an exemplar model • Governmental involvement

10. Project Activities • Study visit to Western Europe • To be held in June • Visit to Oviedo in Spain, and Sheffield in the UK • Visits to existing large metal businesses • Meetings with public authorities • Attendance as VIP guests at the Sheffield International Economic Summit • Study tours of the Advanced Manufacturing Park, Special Metals Forum, and the National Metals Centre • Third workshop • To be held in Sisak in September • Reviewing the study visit • Developing implementation opportunities and plans for businesses

11. Expected Results • 10 delegates from business support organisations attending the workshops • Focussed marketing material promoting metal manufacturing industries in the Western Balkans • A website showcasing the activities and results of this project • A process of lobbying regional public authorities for improvements in infrastructure • Businesses included within the Cluster developing action plans for future development opportunities • A further project proposal for structural funds will be developed to further encourage FDI.

12. Other activities • Visibility actions: • Website will be developed to promote the Western Balkans Metal Cluster project • Press releases / conference after every activity • EU funding publicity requirements adhered to • Politicians and public authorities to be involved at all stages • Publicity material developed and distributed to the wider Chamber movement and businesses within those Chambers

13. Other activities • Visibility actions:

14. Other activities • Local Authority / Investment Agency involvement: • Ensuring involvement from local authorities and investment promotion agencies is key to ensuring the success of this project • Meetings have already been held with Bosnian Government Minister • Local Authorities will be invited to all workshops • Opportunities to develop constructive lobbying and representation relationships will be actively sought

15. Cluster activities after Project completion • Companies to continue being members of the Cluster, because of the benefits they recognize during the projects • Cluster to become self-sustainable through membership fees. • Cluster will coordinate overall visibility of market opportunities, communicate them to the members, and help to attract FDI. • Leverage lessons learnt into supply chains into other market sectors (aerospace, automotive, construction).