Industrial Property Development - Production of Biodegradable and Compostable Materials

Executive Summary

Incorporated in 1992 as a limited liability company, Elstra d.o.o. has become one of the leading distributors of the popular Radenska Still mineral water bottled in 18.9 liter (5 gal.) containers mounted in water dispensers complete with a cooler. The company distributes also other types of drinks and coffee (Nestle) for vending machines and provides after-sale services (maintenance of coolers, refrigerators and vending machines). The majority of Elstra’s customers are located in the south-west of Slovenia.

Fully aware of the responsibility for the environmental impacts of manufacturing processes, materials and resource-use, Elstra invested in reduction, reuse and recycling practice for its products and launched in 2007 the production of biodegradable and compostable bags for organic waste collection. By producing household and industrial waste bags, dog waste bags, shopping bags, and agricultural mulch film, Elstra made a step further in complying with the EU legislation (landfills, source separation of materials …). Replacing the PE film with biodegradable film to contribute to separate collecting of organic waste should squeeze out the production of plastic shopping bags and other packaging materials (bags and film) and give impetus to biodegradable and compostable materials (biodegradable wastes).

Current status

Elstra  has invested in the construction  of a production plant located in the industrial zone OIC Hrpelje. The area of the plot is 3,330 m2 and the constructed area will have approximately 1,654 m2 with the possibility to add the floor area of 600 m2. The building will be 10 to 12 m high. The building is currently in the 3rd construction phase (see the photos). It is versatile building designed to serve as a production facility, a warehouse, etc.

Investment opportunity

Elstra seeks a developer/funder to complete the works. Elstra has purchased the plot in the industrial zone, completed the paperwork and partly constructed the building. Funding is needed for the engineering installations and finishing works, as well as for the purchase of machinery and equipment           

All the details and specifications will be available to the prospective investor afterwards.

Project advantage

The fact that the project is located within the boundaries of the Industry Zone Hrpelje (OIC Hrpelje) makes it highly interesting since Hrpelje lies at the cross-roads of very important transport routes connecting Ljubljana – Koper (Slovenia) and Triest (Italy) – Rijeka (Croatia) by land. The vicinity of three cargo ports in the North Adriatic Sea adds value to this geostrategic position. In addition to serving as a production plant, it is a convenient location for distributors and other types of businesses that wish to serve the nearby Italian and Croatian markets and expand operations to other markets of the Western Balkans. The fact that Croatia will become a  full-fledge EU member state in a couple of years and that no visa is required for the Balkan states is a guarantee of fast and smooth trade flows. Slovenia’s political and economic stability, a long industrial tradition, well-developed infrastructure and highly qualified workforce that speaks foreign languages are value for money by all standards.

OIC Hrpelje has the total area of 72,000 m2 with the potential to expand to 100,000 m2, it is just 200 m from the highway and 100 m from the rail station, the Port of Koper is 26 km away, Slovenia’s capital Ljubljana is 90 km away, Zagreb, the capital of Croatia

Is 230 km away and Triest is only 12 km away.