Annual report 2005 - Sava dd

13.
6 1 |
General Economic
Conditions
Since economic conditions had different effects we
present below the characteristics for each of the
divisions.
Rubber Manufacturing:
• competitiveness grows ever keener, thereby putting
pressure on sale prices;
• saturated in market Western European countries;
• a high price increase in strategic rubber raw materials;
• intensive horizontal and vertical concentration in the
branch;
• relocation of production of technologically less
complex products to Eastern Europe and Asia; and
• stricter environmental standards.
Chemicals:
• further pooling of distribution channels in the Slovene
market;
• entry of new competitors in the target markets; and
• a decline in economic conditions in certain target
markets.
| b u s i n e s s a n a l y s i s |
Economic movements in Slovenia in 2005 were characterised by a growth in domestic product, industrial
production, exports as well as an increase in raw materials prices, which had a particularly negative impact
on the operations of Sava Group companies.
Trade:
• Slovene trade as a whole successfully conducted
business;
• intensive presence of foreign producers and traders;
and
• pooling domestic companies increases price competitiveness.
Tourism:
• a 4 per cent increase in arrivals and 1 per cent more
overnight stays by foreign tourists at the level of
tourism operations in Slovenia;
• a 1 per cent decrease in arrivals and a 2 per cent
decrease in overnight stays by Slovene tourists at the
level of tourism operations in Slovenia;
• change in tourist streams in countries;
• more links within the tourism economy; and
• high dependence on the weather.
Real Estate:
• favourable trends in the building industry;
• increase in construction services; and
• an increase in the share of building houses, decrease in
the share of building other facilities.