One of the results of The First Economic Forum of the Central European Initiative (CEI) is the declared common interest in economic co-operation within the association, influenced by the will to support the aspirations for the EU integration. The economic success of 15 EU member states makes from the EU a magnet which has a great attraction power to central European countries and is at the same time one of the driving forces of their development.

The fact that central European countries abandoned the planned economy, their transformation into a market economy and the accompanying privatisation decreased the difference between both parts of Europe, however not to such an extent that the great desire of central European countries for a close connection in an economic union was harmonised with the will of the EU to open itself.

Concerning this, The CEI's First Economic Forum emphasized that one of the basic condition of successful integration is the ability to compete, while the preparedness for recession and price cycles in individual economic sectors was mentioned as one of the crucial facts too. The problem of eastern economies is the price-based instead of quality-based competition strategy, while quality remains the decisive criterion especially during cyclic oscillations of prices. Adequate reaction to this situation is to invest into such technologies, which would enable the companies to produce products of higher quality, and thus also products with a greater ability to compete.

As far as the possibilities of investment to such technologies which, besides machines and equipment, include also links to internal quality of management and marketing, the companies in transforming economies are limited by possibilities and abilities to obtain investment resources. Several hundreds of millions invested by the EU countries are a ridiculous sum when compared to the amount which is necessary.

However, there are several exceptions to this model. From among Slovak companies, the North Slovakian Pulp and Paper Works (SCP), a.s., Ružomberok belongs to such exceptions. After its privatisation in 1996, the SCP became a company of European dimensions, which is on the 10th place in the chart of Europe's biggest producers of woodfree graphic papers. Thanks to extensive investments, the SCP is expected to reach the 8th place in 2000.

In 1998, the SCP put into force 88 investment actions in a value of Sk3.95 billion including the investments into their branch - Slovak Steam-Gas Company, a.s., Ružomberok. The planned investments were Sk2.358 billion. The investments focused on economic gains, ecological actions, safe labour conditions, fire protection and social programme. The most significant results of the investments are the concluded construction of steam-gas cycle, modernization and ecologisation of energy production and increasing the production volume of 7th paper machine.

The construction of steam-gas cycle, which commenced in 1997 and was concluded and put into operation in 1998, required Sk1.1 billion. The cycle is of great contribution to the steam and electricity production. It also enabled the company to discard two old boilers, which served at burning heavy heating oil.

Another significant measure greatly beneficent to ecology was modernization and ecologisation of energy production, which cost Sk1.2 billion. Increasing the production of 7th paper machine will require total investment costs of Sk2.3 billion, of which Sk1.125 billion were invested into the construction of finishing room and store. The second part of the measures is to be put in force in 1999. Small formats production line for required Sk200 million and enabled the company to increase the annual production of copying paper by more than 70 thousand tones.

The SCP continue their high investments, which enable them to increase the production quality, the number of products with high added value and at the same time comply with severe emission limits and thus provide for their ability to compete with major European producers. In 1997, Sk1.808 billion were invested, in 1999, the company accounts for investments exceeding Sk1.6 billion.

On January 8, 1999, Slovak Vice Premier Ľubomír Fogaš visited the SCP and the company's most modern production capacities, as new finishing room of the 7th paper machine and the 8th paper machine with its subordinate finishing capacities. In an interview with journalists, the Vice Premier appreciated the fact that in the period of 1996-1998, the SCP invested Sk6 billion into modernization of production technology and to actions beneficent to the environment.

"It is good to see that the SCP is a strong company that can effort these investments, that the banks trust the company and its employees who prove the fact that the SCP is able to develop itself. These investments can be summarized in one word - the future. It is extremely important that they be investments into technology. I consider them to be a natural process of renewing the Slovak economy and appreciate the fact that they take place also in such big factories," Fogaš said.

According to the Vice Premier, Slovakia is interested in joining the group of countries, which will support stabilised and peaceful development with a balanced economy. "It is impossible for us to compete on big markets without investments. Here, in Ružomberok I realized that the thus far investments lead to maintaining our ability to compete," Fogaš added.

Fogaš also emphasized that the Government welcomes every chance to be successful, Slovakia and its companies are offered. "The task of politicians, of the Government and the Parliament is to open the doors to our managers, whose task is then to establish themselves through suitable investments and production quality. The basic problem of the Slovak economy is the balance of foreign trade and therefore, I highly appreciate that the SCP is able to export 75 per cent of its total production. I know that he company produces paper of high quality, which means that this quality has already been acknowledged," Fogaš announced.

Slovak Trade FORUM