Summary of an Article
The Bekto Precisa factory is growing with 357 workers. The company deals with manufacture of car plastic parts for Porsche, Audi and BMW. The company also merged with Hella, a German company to make pars for street lamps and skis. Even though Bosnia has poor economy with high unemployment rate as well as unstable government, it has different industrial plants for example, the Gorazde that is located in eastern part of Bosnia.
The other plants include Tesanj, Visoko and Bijeljina. All the plant locations have entrepreneurs with links in Germany. Gorzade on the other hand has links within Germany. The Bosniak Muslim town was reconstructed since the beginning of the war. A pall of smoke is seen in Gorazde every evening as soon as the people light their stores using stoves.
The amount of labor as well as their location makes it part of the extended work bench in the Germany, a place where low-cost nations and German Companies tend to source for different parts from related companies. The average monthly salary is $864 slightly above the normal rate of Bosnia ranging at 421 Euros for a fraction of German wages. Workers sweat to make ends meet and they ensure that they attend all relevant shifts because the company runs throughout the day and throughout the year.
85 percent of the manufactured products are exported and the top destination is Germany followed by Austria. Based on recent advertisements from the company, it put up 30 positions applied for by 3000 job seekers thus, showing how prominent the company is.
When it comes to wages, the amount in China is relatively lower compared to Germany. The delivery time in Bosnia and other European markets is counted based on the number of days as opposed to weeks and the local merchandise is of the highest quality. This trend is seconded by comments from the executive director with Mosdorfer that spends 2million Euros from Bekto yearly decided to settle for production from Slovakia in relation to the price advantage as well as production quality.
The turnover by Bekto increased from 20.1m Euros in 2012 to 21.9m euros last year. ASA is one of the exporters in town and it makes car seat covers. Therefore, Bekto has to pay 8 percent of import duty because Bosnia is not part of the European Union. Other firms push for Bosnia’s integration as part of the European Union.
Additionally, Bosnian firms do not enjoy being exposed because of fear of political influence that ca easily lead to loss of cash through political extortion yet the companies are having a difficult time getting funds from the financial institutions because of expensive loans that even demand from foreign financial institutions is hard to come by according to officials of the banks.
Some local businesses according to DarioVins do not oppose poor governance policies in Bosnia. The companies within European Union instead outsource work to different companies in Bosnia, to utilize low pollution standards. Enisa Bekto, the director at the company on the other hand strongly believes that it would be easy if Bosnia merged with European Union and also believes that the leadership of women makes good contributions to Bosnian government.