Yura: We have 5 factories in Europe, but Albania is the last for ease, bureaucracy is a problem

Lucas Nam, the representative of Yura Corporation in Albania speaks

The Koreans of Yura, based in Fier for several months, have begun intensive work on setting up the factory. The representative of the company, Lucas Nam, in an interview to Monitor, says the project is advancing, but the bureaucracy in Albanian institutions remains problematic.

According to him, part of the Korean staff has not yet received residence and work permits in Albania because of incomprehensible reasons. Regarding the facilities our state provides for the automotive industry, Nam points out that Yura has at least 5 factories in Europe, but Albania is the one with the weakest fiscal stimulus.

Nevertheless, the low cost of labor and geographical proximity to major markets such as the EU offers advantages to Albania. Yura's representative says the recruitment for the company has begun and that the training will begin soon between December 2019 and February 2020. The company will begin production in the first months of next year where it will produce an item of 11 thousand units per month for brand engines such as KIA and Hyundai.

In July Yura began civil works in the Fier area for the new plant. At what stage are you currently in?

We have currently assembled parts of prefabricated concrete slab walls, while other processes are underway.

Have you had any problems with the bureaucracy of institutions or is everything going well?

In fact, bureaucracy is still problematic. For example, some of our Korean staff have not yet received work and residence permits for reasons we do not understand.

Have you started the process of employee recruitment?

We are just getting started with job vacancies and we are doing this on the internet as well as on local television in the Fier area. We are also taking advantage of the opportunity offered by the National Employment Service.

When do you expect the Yura plant to start operating here in Albania?

We will launch the initial production from January 2020 as projected in our plan.

Can you give us any details on employee training at the company?

Training is an important part of our work and enhancing the skills of our staff. They will be trained in Serbia, and we will send at least 26 employees to Yura's factory in Serbia to develop workflow skills. So the same Korean engineers will come to Albania for wider training. This training will take place from December 2019 to February 2020.

What is the volume of production you anticipated in the first year of operation at the plant?

After the training period, we anticipate producing an item known as a power cord, with an initial level of 11,000 units per month.

What will be your final product at the factory? What will Yura produce exactly?

We will produce electric cable units for simple passenger cars. We will produce cable units for the KIA and Hyundai engines for the first year 2020.

How are the fiscal facilities offered in Albania for this type of industry compared to other countries in the region?

We have benefited from the facilities that have rented the land for 60 years, but only so. Nothing else. We have factories in five countries in Europe but unfortunately, Albania's incentives are weak.

Where does Albania stand in terms of costs, business climate and labor costs in relation to the region?

The cost of production is low due to the low labor cost. But other costs are high, including energy, logistics or various aspects. But there is something else, export to the European Union is shorter and easier. So if the business climate improves, the automotive industry will come more to Albania.

Why in Albania are coming just companies that perform simple processes without any great added value in Albania? We always talk about the automotive industry. Is it due to incentives or lack of knowledge in this sector?

Manufacturers also need other conditions, as the low cost of labor is not everything. Infrastructure, local suppliers, logistics and political stability are important elements that influence decision-making. Larger capital intensive producer groups need other conditions that make them have clearer business plans and long-term security.
Yura: We have 5 factories in Europe, but Albania is the last for ease, bureaucracy is a problem Yura: We have 5 factories in Europe, but Albania is the last for ease, bureaucracy is a problem Saturday, November 16, 2019 Rating: 5
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