Industry of Kosovo

Overview

Kosovo has several industry sectors, as the most developed ones are: Ferrous and Non-Ferrous, Metallurgy and Mining. In northern Kosovo, near the town of Mitrovica, sits a huge dilapidated industrial site known as the Trepca mining complex. During the 1980s, it employed 20,000 workers and accounted for 70 percent of all Yugoslavia's mineral wealth. One economist described Trepca as a "colossal conglomerate composed of more than forty mines, foundries, and subsidiary plants – which [at its height] generated 25 percent of the entire regional industrial production and figured among the principal exporters of the ex-Yugoslavia.' According to the same study, 'In the subsoil of Kosovo, one of the richest of Europe, enormous deposits are hidden of lignite, lead, zinc, non-ferric metals, gold, silver and petroleum," on top of 17 billion tons of coal.

Other developed industry sectors in Kosovo are Energy, Textile and Food Industries, Tourism, etc.

Kosovo Energy Corporation J.S.C (KEK) is the sole power corporation in the Republic of Kosovo. KEK is vertically integrated and was legally incorporated in 2005. KEK was part of the Yugoslavia power system, and focused in production of energy from coal, with power supplied from plants outside of Kosovo. By the late 1990s, the core business of the Corporation became the production of coal and energy in Kosovo, through two open-cast coal mines - the Mirash mine and Bardh mine - and two power plants, PP Kosova A power station and PP Kosova B power station, which cover the territory of Kosovo. There are approximately 400,000 customers and 8,000 employees in different sectors.

There was no privatization of other sectors; hence most of them are dysfunctional.

Before Kosovo War (1999)

In 1455, Novobërdë was completely destroyed by Turks who occupied it, when about 40,000 inhabitants were sent to Asia, as slaves.

The English bought concession in 1926, and the enterprise 'Trepca Mines Limited' existed under this name from 1927 until the end of the Second World War.

In the 1950s, the Kosovo's industry structure was poor. Non-ferrous metallurgy made the most effort and gave the most value to production and employed almost the half of employees in the mining industry. Construction materials made one eighth of it, as much as the coal, and half of it tobacco, wood and textile industry.

The industries which generated the most of the revenues in 1987 were: electricity, production of machinery, ferrous metallurgy, textile, electrical appliances, metal works, food processing industry, footwear and wood Industry through 1980 reached considerable development level but in the 1990s it had stagnation in the development, manufacturing, employment and export. This stage and the war contributed to nearly complete collapse of Kosovo industry.

Other production: In the period from 1965-1985, several factories for processing of metals were built, such as:

After Kosovo War (1999)

Kosovo was in very serious economic and social situation, i.e. it was in state of emergency. There was an immediate need for shelters, food, housing and refurbishment of houses and apartments. After the emergency phase, the commercialization process started in factories which failed to resume production in many factories (except few).

The privatization process started in 2003, but there were delays and it failed to function properly for many reasons.

Trepca Mine

The Trepca mining complex in Kosovo is a huge dilapidated industrial site near Mitrovice. For the first time in literature the name Trepca was specified in 1303 in some documents in archive of Dubrovnik.The first geological research started in 1924. The British, who built the plant in 1927 and supposedly secured a 50-year concession, terminated in 1941, are demanding compensation. In 1930, starts trial production of lead - zinc sulfide mineralization in this source. During World War II the Germans hold Trepca mine in working condition, but with a reduced level of production. From 1945 until 1990, the mine has been working non-stop, with an average production capacity of about 600,000 tons per year.

However, after the war, during the period 2000 - 2004, the mine has not produced, but has been researching and preparing for production workshops. So in 2005 the mine began producing Pb and Zn with minimum capacity.

The greatest success achieved by Trepca combine in 1983 was when Trepca exported goods worth of 103 million dollars, ranking the fifth in its own exporters in the former Yugoslavia. For 58 years of productive work, combine Trepca has produced 33 million tons of ore containing average 9% (Pb and Zn), or about 3 million tons of metal (Pb and Zn).

Trepca complex has 14.700 million tons of lignite reserves used for energy production in Kosovo, making Kosovo the fifth country in the world for lignite reserves. This mining complex comprises about 40 mines.

Mineral list contains entries from the region specified including sub-localities:

The Energy Industry

Kosovo Energy Corporation J.S.C (KEK) is the sole power corporation in the Republic of Kosovo. KEK is vertically integrated and was legally incorporated in 2005. KEK was part of the Yugoslavia power system, and focused in production of energy from coal, with power supplied from plants outside of Kosovo. By the late 1990s, the core business of the Corporation became the production of coal and energy in Kosovo, through two open-cast coal mines - the Mirash mine and Bardh mine - and two power plants, PP Kosova A power station (880 MW, 40 year old) in poor condition and is the worst single-point source of pollution in Europe that was proposed to be shut down and PP Kosova B power station (700 MW, 27 year old) needs rehabilitation to meet EU environmental standards, which cover the territory of Kosovo. 98% of electricity generation in Kosovo comes from these two old, inefficient and highly polluting lignite-fired power plants. There are approximately 1,900,000 customers and 60,000 employees in different sectors.

Automotive components industry

Shock Absorber Factory Prishtina and Ramiz Sadiku are the two best known flagships of automotive component industrialization in Kosovo, which produced primarily car seats and small vehicle parts, which produced shock absorbers for various well-known brands such as British Armstrong, German Susta as well as French Peugeot among others. Between 1989 and 1990 the Shock Absorber Factory employed over 1,500 workers and produced 3.3 million units each year.

Ferrous Industry

First industrial object was built in Peja (1968), 8,400 workers worked in this Industry (1987). In Prizren, Factory 'Famipa'- accessories for kitchen and sanitary fittings of gold and silver. In Gjakovë 'Metaliku', 'Metalac' in Janjevë, 'Vinex' in Viti and reinforcement steel factory in Podujevë. This industry produced metal packaging, stoves, and tin and steel constructions, aluminum utensils, etc.

Non-ferrous Industry

Given that Kosovo was rich in non-ferrous metals (magnesium, marl, cement, kaolin for tiles, clay, quartz, gravel, etc.)j. The quicklime and slaked lime were produced in Kaçanik and the cement was produced in Elez Han (240,000 tons per year). The bricks and tiles were produced in Pristina, Podujeve, Skenderaj, Pejë and Gjakova, and this Industry employed more than 12,000 workers (2014).

Paper Industry

Wood and paper industry were placed in some centres, where they produced planks, panel boards and plywood, parquet, doors, windows, chairs, tables, various furniture, paper, wrapping papers. City of Pejë, as an area rich in forests has prompted the development of this industry and had the most famous Factory 'Wood Combine and Furniture Factory'. In Deçan (parquet factory); 'Radusha' (doors and windows factory) in Istog; Wallpaper and Furniture Factory in Prishinë; 'Javor' – wood processing factory in Podujevë; paper and paperboard mill in Lipjan. This industry employed more than 8,000 workers.

Textile

With over 200 years of tradition, textiles were the second largest industrial sector in Kosovo, after mining. In the past, products from Kosovar manufacturers targeted the local market, as well as other markets throughout the former Yugoslavia, Western and Eastern Europe and the United States. At its peak around 1990, each of the 15 SOEs engaged in textile production employed more than 1,000 people and sales totaled some 600 million Euro.

The most renowned centres of this industry were 'Kosovka'in Prishitnë; 'Polet' in Vushtrri; 'Printex' and 'Sintelon' in Prizren; 'Emin Duraku' and 'Konfeksion' in Gjakovë; 'Integji' and 'Taftingi' in Gjilan. Production line consisted of, but not limited to: cotton, wool, synthetic fabrics, knitwear, apparel clothing, curtains, carpets, etc. Textile sector employed more than 14,000 workers and most of its products were exported abroad.

Recent developments in the region have frozen the primary trading links of the textile industry, causing lower production rates and resulting in a lack of competitiveness with foreign products. As a result, a major share of former SOE workers has become redundant. A minor part has, however, established private textile companies. Currently there are some 451 private companies engaged in textile production, out of which 90 percent are final product manufacturers. Although the textile industry has experienced a significant recovery during the past years, the majority of businesses are still small and take the form of micro enterprises. Consequently, they cater solely for the Kosovo market and are primarily geared towards a niche market.

Wine Industry

Grape-growing and wine culture has a long tradition in Kosovo. While local small-scale wine – production was introduced rampantly during the last twenty years, the wine industry in Kosovo became large-scale in the 1970s with the founding of the first larger SOEs. During its "glory days", the wine industry benefited from 9,000 ha vineyard area, divided into private and public ownership, and spread mainly throughout the south and west of Kosovo. The four state-owned wine production facilities were not as much "wineries" as they were "wine factories". Only the Rahovec facility that held app. 36 percent of the total vineyard area had the capacity of around 50 million liters annually. The major share of the wine production was intended for exports. At its peak in 1989, the exports from the Rahovec facility amounted to 40 million litres and were mainly distributed to the German market.

Vineyards and Wine

The art of grape growing and processing in Kosovo is similar to that of other Albanian and Balkans lands. Grape growing has an ancient history of more than 2000 years. The evidence for this is provided by historic data, various toponyms, proverbs, and many archaeological sites. Some of the most important archaeological pieces found include two slabs in the village of Reti, Municipality of Rahovec, with text inscriptions on grapevine, leaf, and cluster. Furthermore, a gravestone dating back in 2nd century AD found in the Helvetia Great Tekke in Rahovec, contains text in Latin and an engraved grapevine - a thousand years ancient evidence of grape growing. The Republic of Kosovo, with an area of 3.200 hectares of vineyards, is amongst the small winemaking countries of Europe. Vineyards are grown only in a limited number of municipalities. The grape and wine sector are of special economic importance to the municipalities where vineyards are grown. The biggest vineyard regions include Rahovec, Suhareka, Prizren, Gjakova, Malisheva, and other municipalities with grape growing and wine making potential.

Current Status of Viticulture

Based on the vineyards registry, the Republic of Kosovo has 3200 hectares of vineyards. The entire viticulture sector is privately owned. Two big enterprises operational in Rahovec (Stone Castle) and Suhareka (Agrokosova Holding) have been privatized by special spin off procedure, and currently have an active area of 850 hectares of vineyards, comprising 27% of the total area of active vineyards in Kosovo,Kuci.Y.-D.V.W.2016

Grape Cultivars

Grape cultivars/varieties in Kosovo mainly (around 65%) belong to red grape. The most represented cultivars are: Vranac, Smederevkë, Prokupë of autochthonous origin (Balkans), and parts of cultivars mainly of French origin: Gamay, Pino Noir, Merlot and Cabernet Sauvignon.

Climate Conditions

Kosovo has a mild continental climate, with Mediterranean influence affecting the Dukagjini Plain through the Drini i Bardhë Valley. Kosovo features cold winters and hot summers. The agro-climatic conditions are suitable for grape growing, in particular for early cultivars, whilst late ones may be problematic at the harvest time. Kosovo has 276 sunny days per year, thus helping grape to ripen and bringing Kosovo on equal par to some well-known wine making regions from this point of view. Grape is usually grown in steep hilly areas with good exposure to sun. The altitude in the areas where grape is grown in Kosovo ranges from 350 to 600 meters. The soil conditions are suitable for vineyard development, meaning that in many cases the soil is hardly used for other purposes. The geographical position of our country provides optimal Mediterranean climate conditions for grape growing with high production quantity and quality. The influence of the Drini i Bardhë Valley and the abundant rivers flow from East to West create a variety of climates and microclimates, making for a broad economic interest in growing vineyards. The plenty of light, the sufficient active temperatures, abundant precipitation in autumn, winter, and spring times that create sufficient water reserves beneath the soil, all contribute to the production of grape starting from mid July until mid October, with high consumption values.Kuci.Y.-D.V.W.2016

Production of Raki

Country's dispersed grape-growers and mass-oriented producers are well-suited for the Raki production (distilled grape brandy ) While uneven viticulture techniques among small grape-growers can impact the quality of wines, the distillation process that creates Raki can mask variations in quality of the grapes and still create a product that is potent and drinkable.

Tourism

The natural values of Kosovo represent quality tourism resources. The description of Country's potential in tourism is closely related to the geographic position of Kosovo. Its position in south-eastern Europe, with a central position in the Balkan Peninsula, represents a crossroad which historically dates back to Illyrian and Roman times. The mountainous south of Kosovo has great potential for winter tourism. Skiing, one of the most interesting opportunities for foreign investors in this region is the skiing resort Brezovica in the SharrMountains. It offers perfect weather and snow conditions for ski seasons from November to May.

Brezovica also includes three hotels with 680 rooms, two Restaurants and nine ski lifts with transport capacity of 10,000 skiers per hour. With close proximity to Prishtina Airport (60 km) and Skopje Airport (70 km), the resort is a possible destination for international tourists and has the potential to become the most desired winter tourism destination in the Balkans.

Also in the Sharr Mountains in the very south of the country, bordering Macedonia and Albania, Kosovo is offering for privatization about 22,000 hectares of largely untouched land in the mountainous area, belonging to the socially owned enterprise "Sharrprodhimi". The region offers excellent tourism opportunities, such as skiing, eco-tourism, paragliding, mountain biking, rock climbing, trekking, kayaking, horse riding, etc. The Sharrprodhimi land in the municipality of Dragash is stunningly beautiful. It is clearly a remarkable property for eco-tourism, and will only be sold to a proven investor who is committed to a sustainable and rational development program which will have strong local support.Apart from the above-mentioned tourism resorts, Kosovo is generally rich with mountains, artificial lakes and rivers and therefore also offers prime possibilities for hunting and fishing.