Croatian Prime Minister Andrej Plenkovic on Friday visited the Vrbovsko-based Cedar timber factory and said that it was important for the region of Gorski Kotar to have such businesses that can create jobs and generate economic growth.

“I am confident that the activity of Cedar, fully export-oriented company, will contribute to Vrbovsko, Gorski Kotar and parts of Lika,” Plenkovic said after he toured the company’s compounds, which include the state-of-the-art hardwood processing plant under construction, and other units as well as the biomass co-generation plant.

We have seen the modern factory which does business according to the best technological standards, Plenkovic said.

He added that he expected good cooperation between this company in the mountainous region of Gorski Kotar and the state-run national forest management company “Hrvatske Sume”.

The premier recalled that the government had made great headway with the legislation on the mountainous and hilly regions and on the regions entitled to special state aid.

The Cedar director Darko Prodan said that with the completion of the hardwood processing plant, this factory would be one of the top companies in that segment in Europe.

Currently, some 350 people are on Cedar’s payroll.

Cedar has to date invested more than EUR 70 million in its capacities, and the total value of the whole investment stands at €100 million.

Agriculture Minister Marija Vuckovic said that the ministry would work on making sure that as much raw material as possible be directed to timber factories with higher levels of finished products.