Montmontaza is the largest construction firm in Croatia, with operations across Central and Southeast Europe in the construction, development, engineering, recycling, energy trading and distribution sectors. The Montmontaza Group is the parent company of a suite of companies that began in 1950 under the name ‘Jugomontaza’ as a state owned company. Today, Montmontaza is a Public Limited Company and acts as a worldwide capital investment contractor for construction of individual plants, buildings and infrastructures. The company have increased their operations from their native Croatia to European countries (Germany, Netherlands), USA, Canada, Russia, Libya, UAE, Ghana and the Economic Community of West African States (ECOWAS).

Fully Integrated Solutions

Mr Bakir Krajina the company Chairman outlined the reasons for their success: “We began operating in the fields of industrial plants, buildings and infrastructures because they’re all promising markets, and this coupled with our operation both domestic and international markets has minimised our risks. We now have a world wide reputation and we have long acted as a leader in our fields, with strong capabilities to introduce solutions for our customers now, and in the future. We’ve also always been able to draw on strong financial backing and considerable resources.” A strong feature of the group is the way their composite companies can act together to provide integrated solutions. “A significant part of our construction is contracted between group members,” Mr Krajina tells us. “We have a policy to adhere to a wide range of internal procedures and control systems to ensure efficient execution of projects.” Keeping work within the group ensures these high standards are kept to.

The company’s corporate structure and organisation is based on a concept of project principle organisation of business activities, with many of the company’s composite businesses specialised for various activities. the individual companies are organised into divisions; Industrial Plant Construction, Building Construction, Hydro Engineering, Catering & Hotel Industry, Shipbuilding and Gas Distribution. A separate division is made up of the company’s foreign companies, the Companies Abroad division, with branches in Russia, Serbia, Germany, the Netherlands and Libya. In total, the divisions consist of approximately 2,000 people, including Civil, Mechanical, Mining and Electrical engineers, Pipe welders and fitters, crane and truck operators in the Industrial Plant sector and Carpenters, Electricians, Mechanics, Technicians, Masons and Foremen for the Building sectors.

The Montmontaza Group has a large range of services on offer. These include Feasibility studies, Design and engineering, Tender Document Preparation, Procurement Expediting and Testing services, Construction Erection and Installation, Commissioning and start-up activities, Management and Operating systems and Maintenance and Reconstruction capabilities. In addition, the company can offer a range of Contracting Modalities doe EPC and EPCM (Engineering Procurement, construction and Management), Turnkey, Product In Hand, Lump-sum, Unit Rates and Negotiated contracts.

These departments have helped Montmontaza in the Industrial construction sector on projects like Petrochemical and Chemical plants, Oil and Gas Processing and transport facilities, Power generating plants, Desalinisation plants, Ecological plants, Iron and Steel mining plants, Food processing plants, Cold storage, Mills and Silos. As well as industry, the company are active in the Building construction market on Apartment, High Rise, Hotel and Residential buildings. Recent examples include a wagon unloading site in Grusovaja which was built to have capacity for 60 tanker wagons and was built by the company using 200 tons of steel, 200 tons of technical equipment, 400 tons of pipelines and around 66,000m of cables. 

Building for the future

The group have utilised their capabilities in the past with involvement in numerous projects across the region. Mr Krajina recalled some notable past projects: “We have been involved with Gasification projects across Croatia and abroad, working on refineries and industrial facilities buildings as well as tanks for the storage of oil and gas.” The company also have a strong record in the construction of civil buildings such as hotels. Examples include the Hotel Milna in Brac and the Hotel Dujam and Student Hostel both in Split. In these latter developments, in addition to the buildings, we also worked on the outdoor sports facilities. Another recent project has been the Marina in Kasel Sucurac, which has facilities for 400 sea berths, a large area for over-wintering berths, 60 ton travel lift and a full range of technical services such as refuelling as well as facilities for guests.  

The company match this illustrious history with ambitious future plans. “Something we’ve done in the past and hope to continue working on in the future are Civil and Hydro engineering and construction,” states Mr Krajina. An example of a future Civil project is the building of a shopping centre in the Serbian capital, Belgrade. This is an ambitious project designated on a 141,800 m² plot near the Donau river and will consist of a centre for retail and warehouse purposes with adjacent car parking space. 

Montmontaza have a long history of projects in the civil sector, having worked on Ferry Quays, Marinas, Ports, Sewer Facilities and Systems, Under water pipelines, Water supply facilities and Road infrastructure. Another area the company will be looking to compete in the future is the Energy Distribution market, offering BOT Concessions for Gas System Construction and Gas Distributions and trade in Electric Energy.

What projects do the company expect to see increasing in frequency in the future? “Facilities dealing with waste water and recycling,” answers Mr Krajina. “We have dealt with several of these projects in the past and are currently in negotiations with the City of Zadar County in Croatia for a project to build a waste management and recycling facility.” This past experience stands Montmontaza in good stead to respond to new key trends in the construction market, a fact that has not gone unnoticed, as the company can boast customers such as INA and PLINACO in Croatia, Horizon Project, CRNL and Promec in Canada and numerous other in Europe and Russia. 

Protecting their assets

Operating in the building sector requires the company to be on the top of their game in terms of project management and quality assurance. Activities are streamlined and organised primarily towards fulfilling specific requirements of the project, and control is maintained at all times. “Project Managers have a comprehensive range of procedures and control systems to allow them to efficiently monitor, execute and control all our projects,” Mr Krajina outlines. “These control systems are tailored to be specific for each project and are invaluable in planning the task to be performed, resource allocation, monitoring work progress and expenditure, time management and making sure the necessary information is known for good decision making. Quality Assurance, Health, Safety and Environment project management systems are implemented on all our projects.”

Montmontaza’s approach to quality control is designed to emphasise the significance of the customer’s choice and is a continuous struggle to maintain and improve the quality of their service performance. “The organisation and scope of responsibility are firmly established. The quality department is an independent unit on the highest level of organisation,” outlines Mr Krajina. The quality department managers report directly to the highest levels of the company and have the authority to implement protocols for improving quality across the board, they are also responsible for forward planning. “Quality Plans are prepared and maintained for every project or contract in order to ensure that specified quality practices, resources and sequence of activities are met. Quality Plans are consistent with all other parts of Montmontaza Quality System.” The company’s quality philosophy is set out in their Quality Management Manual for employee reference and the company have a policy of preparing quality operating procedure plans in area they believe may benefit. In recognition of the company’s commitment and dedication to quality they have been certified to ISO 9001:2000 level by TÜV CERT Management services.

Working on construction sites can be a perilous business, so the company have employed stringent safety and security measures on active sites. The company see the health of their workers and customers as a personal responsibility and matter of trust and something that is integral to the smooth running of a construction site. The company have their own safety assurance standards plan which is prepared in accordance with pertinent Croatian safety laws and regulations, the client’s own safety regulations, contract execution in accordance with the provincial, territorial and municipal laws all in order to reduce risks to everyone involved. The company are also aware of their potential impact on the environment and take this into consideration when making future plans. “The environment is a legacy from us to future generations,” Mr Krajina says. “It’s our pledge to the next generation and one which Montmontaza is fully committed to.”

Solid foundations

Montmontaza have an international reputation in the construction industry but they are aiming to develop this further. “Our strategy is to be the leader in our chosen field of business and to realise in the long term, a basis for the return of invested capital, significantly higher than the original cost.” Mr Krajina outlines. “In this way, we aim to create value and provide the shareholders with a return on their investment commensurate with the risk involved. This will also help us to secure the continuity and independence of the corporation.”

In order to achieve this objective, the company have selected business activities focussed entirely on those markets and projects, which entail the groups existing core competencies. In this way the company can build on a solid base of commercial and technical expertise in areas where their potential customers, know of this proven track record. However this does not preclude the company from taking advantage of change. “In general our companies position themselves in accordance with the prevailing market conditions, focussing on the top and bottom ends of the market where new technology and innovation are necessary,” Mr Krajina states. “By increasing our market share we are at the same time limiting our competitors.”

In order to keep-up with the changing market the company closely follows global invention and technology advances, which they feel could help them conduct their business more efficiently. The company pursues this strategy through its own IT, Research & Development and Investment departments.  

With their extensive operations and facilities, Montmontaza have a proud history in developing infrastructure in Croatia and also further abroad. Croatia’s increasing status as a holiday destination – the country had 10 million tourists in 2005 – has led to increased needs for hotels and leisure facilities for divers and yacht owners along the scenic Dalmatian coast. Montmontaza’s status and abilities mean they will be right there to provide such services.