Sustainability as the Key to a Successful Future for the Slovenian Economy

"Skaza is a pioneer in sustainability and sets industry standards. Their innovation and trend forecasting keep them ahead of the competition. I am confident that Skaza will continue to strengthen the power of the Slovenian economy," emphasized Matjaž Han, Minister of Economy, Sports, and Tourism, in his opening address at the conference "Sustainability as the Key to a Successful Future for the Slovenian Economy."

The transition to a green economy of the future, supported by digitalization and artificial intelligence, represents a fundamental geostrategic reshuffling of the global landscape. The Western world, particularly the European Union, faces an increasing lag behind China, with India quickly following suit. Unfortunately, Europe and Slovenia have largely been part of the problem rather than the solution up to now. This lag threatens our competitiveness, purchasing power, and standard of living and can lead to serious social and economic issues. To strengthen their international presence, Slovenian companies need strategic connections, technological advancement, and the development of strong brands and innovative teams. Emphasis on implementing sustainability and effective digitalization is crucial for success in this rapidly changing environment. Tanja Skaza, co-owner of Skaza and Director of the Skaza Institute, and Niko Medved, Assistant Director of Skaza, highlighted these key challenges and opportunities during one of the largest business conferences on sustainable economy.

Peter Dermol (Mayor of MO Velenje), Tanja Skaza (Co-owner of Skaza and Director of the Skaza Institute), and Matjaž Han (Minister of Economy, Tourism, and Sports)

In his keynote address, Matjaž Han, Minister of Economy, Sports, and Tourism, highlighted Skaza's successful transformation and commitment to sustainable development: "From a garage startup, they have evolved into a high-tech development company. Healthy organic growth gives them a solid foundation for operating in the complex global economy of the 21st century. Their over 47-year tradition, numerous awards for quality and design, and active involvement in local community welfare further attest to their excellence."

The manufacturer of injection-molded plastic products for various industries and its own brand, Plastika Skaza, has over 1,200 product variations in its portfolio. Annually, they produce 109 million items, including semi-finished products. "The projected nearly 30% growth in EBITDA and 23% growth in value added per employee this year is significantly driven by accelerated digitalization and Industry 4.0," highlighted Niko Medved in the introductory presentation.

Niko Medved, Deputy Director of Skaza, presented the company's awards.

"SPIRIT Slovenia welcomes Skaza's efforts for strategic networking, as Slovenia offers top companies that continuously innovate. Combining strengths and knowledge creates opportunities for growth and strengthens the competitiveness of the Slovenian economy. We are proud that Skaza is part of the national campaign 'I feel Slovenia. Green. Creative. Smart.', as their achievements and ambitions set new standards and prove that Slovenia truly stands out for its exceptional companies," said Rok Capl, Director of SPIRIT Slovenia.

Niko Medved (Deputy Director of Skaza), Lidija Vinković (SPIRIT), Nataša Prečko Primc (SPIRIT), Tamara Zajec Balažič (SPIRIT), Rok Capl (Director of SPIRIT), and Tanja Skaza (Co-owner of Skaza and Director of the Skaza Institute)

Skaza's products are present in 56 markets. Among their significant clients are multinational companies like Ikea, Landis+Gyr, Jabil, Celestica, ABB, Schneider Electric, Steelcase, Invacare, and others. "For the electrical and furniture industries and our own brand, we produce 37 million end products annually and aim to increase the proportion of recycled materials to 23%," said Medved.

Their product portfolio includes over 1,200 variations. Notable items include smart meter housings, distributors and distribution boards for electrical cabinets, electric vehicle charging station enclosures, pull-out drawer frames for kitchens, chairs, and award-winning products for their own brand such as Organko Daily and Bokashi Organko composters, including Red Dot and Big See awards, finalist at Plastics Recycling Awards Europe, and EQTM certification.

The recently revitalized Skaza brand appeals to modern consumers who value sustainability and responsible choices. With fresh colors in the kitchen tabletop program, innovative solutions, and products made from bio-based and recycled plastics, Skaza brings a new breeze to homes and gardens. This product line expansion is not just an aesthetic refresh but represents a decisive step by the company towards reducing its carbon footprint and responsible business practices.

"Our strategy for sustainable materials includes efficient production processes that reduce costs. This way, we ensure that our products remain affordable while aligning with our sustainability vision," said Niko Medved, outlining the anticipated effects of revitalizing their own brand:

• Every additional million euros in sales of their own brand, rather than in the industry, not only brings revenue from their products but also significantly reduces the carbon footprint by 190 tons of CO2 equivalent.
• Similarly, every ton of material used in their own brand products, instead of in the industry, reduces the carbon footprint by an additional 1.08 tons of CO2 equivalent.

Tomaž Berginc (Eti) in Jure Ojsteršek (Skaza) med ogledom proizvodnje. 

The company's strategic goal is to exceed 50 million euros in revenue in the 2024-2026 period and to increase it to over 65 million euros by 2030, Medved explained. This can be achieved through new strategic partnerships. Networking is effective when everyone recognizes the importance of strategic collaboration, shares knowledge, and aligns on common goals, enabling innovation and strengthening competitiveness. Therefore, key entrepreneurs tackled significant topics in panels to encourage such collaboration and contribute to collective success.

Panel: How to Succeed in Global Markets, Including Networking of Slovenian Companies, Brand Building, and the Impact of Digitalization on Competitiveness?

The panel explored strategies for succeeding in global markets, including the impact of digitalization on company competitiveness. Experts highlighted the importance of networking among Slovenian companies, brand building, and the use of digital tools for success on an international level. Discussions included adapting companies to diverse markets, maintaining identity, and increasing visibility in a competitive environment.

Niko Medved (Skaza), Polona Zrimec (Elan), Nuša Pavlinjek Slavinec (Roto), Alenka Potočnik Anžič (Hisens), Tomaž Berginc (Eti)

Panel: How to Succeed in Global Markets, Including Networking of Slovenian Companies, Brand Building, and the Impact of Digitalization on Competitiveness?

The panel explored strategies for succeeding in global markets, including the impact of digitalization on company competitiveness. Experts highlighted the importance of networking among Slovenian companies, brand building, and the use of digital tools for success on an international level. Discussions included adapting companies to diverse markets, maintaining identity, and increasing visibility in a competitive environment.

• Tomaž Berginc (ETI): "In foreign markets, we build on three foundations: ETI brand recognition, our own network of sales companies, and European production. The focus is always on setting trends."
• Polona Zrimec (Elan): "Key factors for competitiveness are innovation, increased productivity, and brand strength. Brand building requires consistency, credibility, clear messaging, and reliability. Digitalization of business processes is essential for increasing productivity."
• Nuša Pavlinjek Slavinec (ROTO): "At ROTO, we are committed to constant innovation, evidenced by developing three new products a week and being present in 65 markets worldwide. Our PeCycled brand, made from recycled plastic, clearly reflects our commitment to sustainability, and we are particularly proud of our collaboration with Olympic champion Benjamin Savšek, which enhances our product visibility. Digitalization has been a key part of our growth since 1984 – with automation and advanced technologies, we continue to set high standards in our industry."
• Alenka Potočnik Anžič (Hisense Europe): "Our multi-brand strategy includes brand recognition with a clear identity. We use market research, sports sponsorships, partnerships, and influencers to increase visibility. Investing in long-term projects and adapting to cultural differences is crucial."

The panel’s collective message is that companies must enhance their competitiveness in global markets with a thoughtful approach and innovative use of digital tools.

Panel: Why is Strong Organizational Culture and Team Cohesion Essential for Achieving Sustainable Growth and Long-Term Success?

The panel, led by Tanja Skaza, Director of the Skaza Institute and co-owner of Skaza, discussed key factors influencing long-term company success, focusing on strong organizational culture and team cohesion. Tanja Skaza highlighted the importance of building a healthy company culture that inspires and fosters growth on both business and personal levels. She emphasized that organizational culture is not accidental but is built through daily work and decisions.

Tanja Skaza, Minister Matjaž Han, Sabina Sobočan, Director of Varis Lendava, Dr. Iztok Seljak, Director of Hidria Holding, and                  Mayor Peter Dermol

• Tanja Skaza: "The strength of a leader is reflected in their ability to build relationships, create a connected culture, and inspire the team. Organizational culture is not something that happens by itself but is built with every action and decision. Leaders must focus on opportunities and face challenges together with their team."
• Dr. Iztok Seljak (Hidria): "To maintain competitiveness, we must elevate our ambitions and goals. This requires a clear visionary approach to innovation and close collaboration between the state, science, education, and industry. We must continually push boundaries and adapt to rapid changes. The only way to avoid falling behind is to stay ahead, so it’s high time to start running again; otherwise, we will need to run a marathon at a sprint pace, or it will be too late."

dr. Iztok Seljak, direktor Hidra holding in Tanja Skaza, solastnica Skaze in dir. Inštituta Skaza

• Matjaž Han (Minister of Economy, Sports, and Tourism): "Sustainability orientation and innovation in companies like Skaza are crucial for positioning Slovenia on the world map. A strong organizational culture that promotes dedication and innovation helps attract investments and develop valuable partnerships."
• Sabina Sobočan (Varis Lendava): "Organizational culture is the foundation for long-term success. At Varis Lendava, we believe that collaboration, transparency, and clear communication strengthen the team. A healthy work environment fosters innovation and sustainable development."
• Peter Dermol (Mayor of MO Velenje): "Organizational culture impacts the development of the local community. Promoting positive values and connecting with the local environment strengthens relations between the company and the community. Contributing to the common good, including supporting local initiatives and sustainability practices, is important."

Panelists agreed that the right culture in a company promotes growth, attracts investments, and contributes to sustainable development, which is essential for success in the rapidly changing global environment.

Peter Nakov, direktor Alset, Polona Zrimec, direktorica navtične divizije Elan in Tijan Skaza

The conference also included a tour of Skaza's production facility, where the finalists for the Factory of the Year 2024 mentioned that they produce 150,000 finished products per day in three shifts, and a total of 450,000 including semi-finished products. Annually, they produce 37 million finished products and 109 million including semi-finished products. They manufacture in batches ranging from two to three million pieces, as well as in smaller batches.

Minister Matjaž Han commented during the visit: “Skaza 5.0 was co-financed by our ministry. It is an excellent example of collaboration between the company and the state. This investment is part of the National Recovery and Resilience Plan and highlights the importance of sustainable investments in technological progress and the competitiveness of our economy.”

They have implemented numerous automation processes that contribute to efficiency and quality:

1. Automated Lines and Manual Workstations: Skaza uses 18 automated assembly and packaging lines and 22 standalone manual workstations. These lines enable rapid and precise assembly and packaging of products.

2. Robotized Lines: In the furniture industry, they introduced a robotized line where robotic arms stack sets of legs for kitchen elements.

3. Autonomous Guided Vehicle (AGV): The AGV transports up to 450 pallets of finished products per day.

4. Automated Wrapping and Palletizing: The pallet wrapping process is automated, reducing processing time from five minutes to one minute and saving 200 hours of manual labor monthly.

5. Collaborative Robots: Two collaborative robots have eliminated the need for manual handling of more than 3,000 products per shift. Skaza also uses over 30 industrial robots for various tasks.

6. Machine Vision with Artificial Intelligence: They have introduced machine vision supported by artificial intelligence (AI) in their quality control process. This system detects defects in smart meter housings and tracks production processes through QR codes.

7. Digital Twin of Production: The digital twin allows simulation of production processes, aiding in process optimization, cost reduction, and increased competitiveness. This includes planning machine relocations and reorganizing production cells.

8. Energy Management: The EMS system has optimized energy consumption, reducing costs by a fifth. The introduction of energy meters allows for more precise energy management and handling of electrical peak loads.

9. Financial Impact of Digitalization: Investments in digitalization and Industry 4.0 have resulted in nearly 30% EBITDA growth, a 23% increase in value added per employee, and a 15.5% reduction in carbon footprint.

Connecting companies, investing in digitalization, and continuously improving competitiveness are key to achieving long-term success. The conference confirmed that companies focusing on these approaches are laying the foundation for a sustainable and successful future.