RAVLIĆ GROUP: FROM LOGS TO ELECTRICITY
Đakovo Hrast completes construction of a power and heat production plant with a €16 million investment
The Slavonian company Đakovo Hrast, formerly known as the Geli wood industry, has completed an investment worth €16 million, fully establishing a “from logs to electricity” production cycle. At the beginning of the year, they completed the construction of a 3.3 MW cogeneration plant for electricity and 7.2 MW for thermal energy. Recently, they obtained the status of a privileged (incentivized) electricity producer and a permit for thermal energy production.
Part of the thermal energy will be used for internal needs – heating and drying wood in kilns and steaming chambers – while the rest is intended for other consumers in Đakovo.
– The City of Đakovo is currently preparing documentation for the construction of heating pipelines to supply public institutions, says director Mato Ravlić, son of the owner of Strizivojna Hrast, which also operates Croatia’s first cogeneration plant, launched seven years ago.
Group Expansion and Cogeneration Development
The Ravlić family now owns four cogeneration plants, forming a growing business group:
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Strizivojna Hrast, the first plant, is managed by Mato Ravlić.
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A second plant operates at the veneer and parquet factory Slavonija DI, led by his daughter Martina Ravlić Janković.
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The third one is in Đakovo Hrast, also managed by Mato.
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The fourth is in Sava, located in Nova Gradiška, which began operating last year.
Đakovo Hrast: Revitalization and Investments
Đakovo Hrast was established to revive production at the site of the former Geli wood industry, which went bankrupt five years ago. The Ravlić family took over the site two years ago. The company was registered in late 2014 and began operations in the second half of 2015.
In early 2016, they acquired the property in Đakovo’s industrial zone, which had been poorly maintained. Considerable investment and time were required to restore the facilities and begin full-scale production. That year, they invested nearly HRK 13 million in fixed assets, and another HRK 3.3 million last year – not including the cogeneration plant, which was financed through a bank loan and equity.
– We first renovated the sawmill, drying kilns, and steaming chambers, then launched production of wooden elements, panels, parquet, and small-scale furniture, explains Ravlić. The decision to build a cogeneration plant came after it became clear that the existing boiler room could not meet the facility’s thermal energy needs.
Focus on Modernization and Growth
Ravlić emphasizes that in recent years, the main priorities have been modernizing production lines, training workers, developing new products, and investing in cogeneration.
– We know this will yield results already this year, and especially in 2019, he says confidently.
Financials and Supply Challenges
Revenue grew from HRK 14.8 million in 2016 to HRK 15.9 million in 2017, while profit decreased from HRK 4.6 million to HRK 510,000.
This year, they plan to finalize all investments and hope to sign a supply contract with Croatian Forests, which would secure raw materials and stabilize production planning.
– So far, our company hasn’t had a supply contract with Croatian Forests. We depended on what could be found on the open market, which made production planning impossible, says Ravlić.
So far, 59 employees have been hired, and a future contract with Croatian Forests could enable further job creation.