Investments Worth 1.6 billion Euros are on the Way

Investments Worth 1.6 billion Euros are on the Way


MK Group celebrates 40 years of business operations this year, and on that occasion the Company announced new investments in Serbia and the region of as much as 1.6 billion euros. The Director General of MK Group, Mihailo Janković spoke in which areas they will invest and what their plans are for the future.

These days we could see different MK Group projects in your jubilee campaign which is effective. You are celebrating four decades of business operations with hard work, but also with a very optimistic message that “the best is yet to come.”?

That’s right, our “Celebrating the Future” campaign is underway, through which we actually talk about the further development of MK Group, future projects and new investments. We have 40 years behind us, which have brought us to the position of one of the most successful regional investment companies with strong operations in agriculture, tourism and energy. In the year when we celebrate this significant anniversary, we have decided not to look at the past, but at the years ahead. It is characteristic of our vision of constant growth and development – to always look forward, to the future. On that occasion, we announced a large three-year investment cycle of 1.6 billion euros, precisely in these three key areas of our business that I mentioned. With this volume of investment in the business, as well as large investments in our 4,000 employees, we very justifiably and argumentatively say that “the best is yet to come”. I will give you an interesting piece of information, great for comparison: MK Group has invested exactly 1.6 billion euros in its development over the past 40 years – an amount equal to the investments we will make in the next three years. I think it speaks volumes about our ambitious plans for the future.

You are not worried about frequent crises, current unfavorable market trends and the fluctuating economic situation, not only in our region, but also in the whole world?

Frequent crises and disruptions in the market have, unfortunately, become a constant in business planning. But it’s a race we all run, where you have to be ready for both the marathon and the sprint. Our forty-year history confirms that MK Group is a marathoner that has successfully passed through numerous challenges and changes during this period, including a successful transition in management. Constant expansion and growth, despite the difficult economic conditions we are exposed to, are the best indicator that at the core of all our business operations is sustainable development and the creation of profitable business models. And when the moment comes for a sprint, we are supported by an efficient organization, a financially strong and stable system, as well as smart planning. This enables us to react quickly, make decisions quickly and implement them.

In what will MK Group invest within the announced 1.6 billion euros of investments?

The focus of a large part of the investment is the green agenda. By 2026, we will implement renewable energy projects with a total capacity of 1GW, worth 900 million euros. We remain committed to agriculture and the food industry, through investments of 350 million euros over the next three years – in digitalization, process automation and the application of artificial intelligence, but also capacity expansion and increased productivity. When it comes to tourism, with a three-year investment of 380 million euros, we will continue improving the content and services of our hotels, as well as expanding through new attractive real-estate projects. These are funds set aside for business development, and in the year of the jubilee we committed to allocate one million euros annually for social responsibility and the development of the local communities where we operate.

MK Group built the first wind farm in Serbia together with Fintel, and you currently have three operational wind farms in Vojvodina. Now you are announcing really big investments in green energy of 900 million euros. Specifically, which projects are involved?

In addition to the three existing wind farms in Vojvodina – Kula, La Piccolina and Košava, two more are under construction in this area – Kula 2 and Košava phase 2. By the end of this year, we will complete Krivača, the first wind farm in eastern Serbia, an investment worth 165 million euros. With a capacity of 105 MW and 22 wind turbines, it will produce 310 GWh of green energy annually, which is equivalent to the annual electricity needs of 75,000 households.

The large investment of 340 million euros in a solar power plant with a capacity of 660 MW stands out for its importance. It is the Agrosolar Kula project, which combines energy production and sustainable agricultural production, as the first of its kind in the Balkans and the largest in Europe. The solar panels will cover 770 hectares, and the planned annual production of green energy is about 832 GWh, which meets the needs of nearly 200,000 households.
Through independent and partner investments in green energy planned in the coming period, MK Group contributes to the achievement of the goal of the Republic of Serbia to increase the share of energy from renewable sources to at least 40 percent by 2040.

These are all investments in Serbia. Will you also invest in the region? Do you have plans to expand in Slovenia and Croatia?

As for green energy, as well as agriculture, we are talking about investments in the Serbian economy. And absolutely, within the investment cycle that we are announcing, there are also investments in the region, which are focused on tourism. Specifically in this area, MK Group entered the Slovenian and Croatian markets through the acquisition of two hotels – Kempinski Palace Portorož and Kempinski Adriatic in Savudrija, in which we are constantly investing so that they continue to be symbols of luxury hotels and promoters of the development of Istria as a destination.

Precisely in the Croatian part of Istria, in Savudrija, there is also our new tourist real-estate project, Petram Resort & Residences, which we will officially open at the end of June. This is currently the largest investment in tourism in Croatia, worth over 100 million euros, which we realized together with the Aleksandar Group company. This complex of 55 luxury villas and 197 modern apartments is unique in its combination of facilities and services. For example, in Petram there is the longest infinity rooftop pool in Europe, and with its 105m, it is the second longest in the world. So definitely, MK Group continues to bring world trends when it comes to tourism and real estate.