The “EverRest Production” company was founded in 2012 in Novi Sad as the result of a joint venture of the Danish company “EverRest” and the Chinese company “Healthcare Co.Ltd” which is the world’s leading producer of memory foam, therefore this investment has an immeasurable significance for the strengthening of Serbian economy.

Serbia was chosen as the regional production center due to its strategic position, and the new production plant in Ruma will supply the European market, Russia, Middle East, and North America. The production of memory foam for pillows and mattresses is ecologically safe, and the factory will use raw materials from the domestic market.

The registered office of Healthcare Co.Ltd is located in Rugao, Jiangsu province of the People’s Republic of China. Healthcare Co. Ltd. mostly produces pillows, mattresses, and sofas made of memory foam, but it also produces polyurethane cutting machines. During the last several years, Healthcare Co. Ltd. has strengthened its position in China with the help of the MLILY brand. During the past years, Healthcare has doubled in size and it currently has several thousand employees in China in various areas of business.

The registered office of EverRest ApS is in Aarhus, Denmark. The owner of the company is Christian Frismodt. EverRest produces and sells pillows and mattresses for large retail objects in Europe. EverRest is the largest sales representative of Healthcare Co. in Europe. EverRest products are sold in nearly 17 European countries which comprises 30% of the total production scope of the Healthcare company. In addition to Europe, it is also present on the American market via its subsidiary in California.

Mr. Aleksandar Andersen Podravac, CEO of HealthCare Europe speaks to PROFIT magazine.

1. MrPodravac, where were you born, and where did you grow up and finish your schooling?

I was born in Copenhagen in 1977; my mother is Danish and my father Serbian. Shortly after my birth, my family returned to Novi Sad, and in 1988 we moved to Hamburg, Germany because of my father’s job. We spent three years there, and it was an opportunity to learn another major language through my schooling. After the conflict broke out in the Former Yugoslavia, we moved to Denmark. Because of all of this, I grew up in three countries, which gave me insight into three different cultures from an early age, and meant a lot to me later in my formation as a business man. I started primary school in Serbia, and finished school in Denmark. I completed my higher education at a university and academy in Denmark. Life in three different countries has contributed to the fact that I feel like a citizen of the world, and fluently speak 5 European languages. And that I feel good wherever I am. Unfortunately, I cannot talk to you about the differences between life in these countries, since I lived, slept and spoke in all of the languages at the same time and was not aware where one began and another finished, and this of course applies to the people.

2. What did the course of your career look like prior to you becoming director of HealthCare Europe?

My career has been very multi-coloured, I learned the craft of shipbuilding in Denmark and for some time I worked in shipyards and on oil platforms, which is something completely different to what I do today. After two years on platforms, I decided to study economics. After my studies I worked in HILTI in positions from account manager to large account manager. In 2010 I founded a firm in Serbia, which operates under the umbrella of Forsco Group Denmark, of which I am a co-owner. The Forsco group is majority-owned by Christian Frismodt, who is one of the long-term partners of James Ni, owner of Healthcare Co. Ltd from China. Years of working together birthed the idea of a European branch of Healthcare, which was a logical consequence of its enormous growth after its establishment. Because of the need to supply the European market, in terms of logistics and the quality of delivery, the location of the factory in Serbia was deliberately chosen due to its good strategic positioning and the ability to deliver within three days. This gave us an enormous advantage over our competitors and opened new doors of success, and this was the reason for my position as head of the company from the start. Of course, my Serbian origin had a significant impact on James and Christian’s decision to put their confidence in me and give me the opportunity to independently form a team and begin building the factory. The knowledge of local laws, the mentality, financial flows, and written and unwritten rules made my job of running the firm easier.

3.The company EverRest production was founded in 2012 in Novi Sad as the result of a joint investment between the Danish company Everrest and the Chinese company Healthcare Co. Ltd, which is a world leader in producing memory foam. Tell us more about it.

Memory foam is a relatively new product that has been used commercially since the late 90s. In the early 2000s there was a sudden boom in memory foam. The parent company Healthcare began producing memory foam at the beginning of that boom and literally developed from being in a garage in the Chinese province of Jiangsu to becoming an international player within 15 years. With annual growth of 100%, today we are one of the market leaders. Besides the production of memory foam pillows and mattresses, today Healthcare also produces CNC machines and furniture. Everrest, the other partner in the joint venture, functions as an agent to Scandinavia, Northern Europe and certain American states. The joint venture between Everrest and HealthCare Co. Ltd in a factory in Serbia is a reflection of the needs of a growing market in these countries, as well as the growing market in China. One of the main aims of building a factory in Serbia was to free our capacity for the domestic market in China.

In 2012 we established a firm in Novi Sad and made preparations for building a factory. With the support of the government, SIEPA and the local authorities in Ruma, we were able to find adequate solutions, from the plot where the factory will be positioned to incentives for jobs and various tax incentives. With carefully chosen associates and building contractorsin this project, we succeeded in raising a factory in only 7 months, which was 2 months before the deadline.

4.The Danish-Chinese company EverRest production opened a factory for the production of memory foam in Ruma, which will be a regional centre of production. What kind of investment are we talking about and what is the area of the manufacturing plant?

The total investment in the manufacturing plant is about 15 million euros, when everything is taken into account. So far, a manufacturing hall of 29,880 m² has been built. The plan is to expand the investment by an additional 30,000 m². We also plan to build 3000 m² of office space with a modern show room. Doubling the capacity of the factory will enable the expansion of our production program and open new markets where we do not yet have a presence.

By signing a Memorandum of Understanding with the Government of Serbia and the Municipality of Ruma, we have already ensured the implementation of this plan, i.e. the second phase of development.

5. How many phases does the project have, how much will the total investment be, how many workers will be employed in the near future and what results do you expect?

For now, 2 phases have been planned: the one which has just been completed and another which, according to the plan, should begin by the end of the year. In this phase we plan to employ 350 workers, which is 125 more than in the business plan, and which illustrates the speed of our growth. In 2012 we signed a contract with the Ministry of the Economy, which obligates us to employ 225 workers and build 8000 m², but while preparing for construction, our needs grew. The current plan is to invest about 50 million euros and employ 1,200 people in total. But I think that we will exceed this figure. We are hoping for constant growth and development.

Tell us more about the Danish-Chinese cooperation that Serbia has brought together. Why was Serbia chosen as the regional centre of production?

This is an interesting story, and although Serbia has a good strategic position for companies such as ours, and can deliver to any major European town within a couple of days, it was chosen for other reasons. A strange set of circumstances and human stories are the reason for the choice of Serbia as the regional centre. The owner of Healthcare, James Ni, should have gone to America in 1999 to begin his post-graduate studies, however, after the bombing of the Chinese Embassy, the student exchange was terminated and he found himself in a situation in which, in the end, he had to start his own business. Together with his brother, in his garage, he began what today is Healthcare Co.Ltd, and so in his eyes, his road to success began here in 1999. The Danish part of the story is connected with the fact that I had worked for 8 years in various companies owned by the famous Danish entrepreneur, Christian Frismodt, owner of several companies. In addition, he is very active in the social sphere and in humanitarian work. This of course impacts us and our future, as a socially aware company that not only looks towards its profits, but also helps the development of the community.

7. Which markets will the new production plant in Ruma supply? Where will you obtain your raw materials from and are the memory foam products for pillows and mattresses environmentally safe? Who are your products intended for?

The European branch based in Ruma will supply the entire European market, America and Russia. These markets are demanding in terms of quality and continuity of supply, and so our European factories have a focus on quality and speed. The policy of our company is to obtain raw materials, as far as possible, in the domestic market. Memory foam products are absolutely safe; a lot of our capacity is used in certifying our products. We carry the labels Certi Pur and Oeko Tex, and from the start of production we have respected the highest industrial standards and legislative requirements both in Serbia and in the EU.

Social responsibility and environmental protection are important segments of each company. What measures do you take to make your company socially responsible?

Social responsibility and environmental protection are extremely important because as a supplier to world famous brands, we must take care of the safety of our workers, the environment, the working environment and other social parameters. No serious company today wants a bad reputation, since the market punishes this immediately. Consumers today are very aware, and no western company we work with would allow itself any kind of scandal related to the supplier. Consequently they have rigorous rules that are more stringent in some matters than Serbian and EU law. But in addition, I believe that the responsibility for the environment in which we operate is itself a matter of common sense.

Since we will employ a lot of people with different qualifications, from those with higher education qualifications to others without qualifications, will try to employ and offer opportunities to those who might otherwise find it difficult to find work, such as single parents, and those with lower qualifications, and we will do as much as we can to educate our employees, in cooperation with the municipality of Ruma, and with other interested institutions. The intention is to obtain the necessary workforce primarily from the local area, to stand as a partner, and to invest our resources in the training necessary for working in our factories.

In your opinion, how significant is this investment to the development of the Serbian economy, and to the development of the municipality of Ruma?

The Serbian economy is small and weak and does not have enough width. So, any increase in production and export is immediately measurable, especially with investments such as ours. For example, our production belongs to the textile industry, and if I remember correctly, the figure for the GDP for this industry is some 450 million USD. When we finish our investment cycle we hope for a turnover of 150 million USD. So this will certainly be felt in the development of the Serbian economy. And it is also significant for Ruma that 350 people will gain employment this year, followed by 1200 in the coming period. Ruma had a high rate of unemployment, with more than 6,000 unemployed, which our arrival will change; and such a large investment and our success will certainly not go unnoticed by other investors, some of whom have already expressed interest in investing. It is important to note that our investment was the first private Chinese investment in Serbia, which opens the door for other private Chinese investors, apart from those important investments in Serbia already made by the Chinese government.

12. How long were the preparations for the project and construction of the factory? How many people were involved in the project team? Did foreign or domestic experts work on the team?

The project started at the strategic level in 2011, and we entered into negotiations with the municipality in 2012. In the same year, we signed a memorandum of understanding with the then Ministry of the economy and with the municipality of Ruma. In 2014, after preparations, the process of design began, and in the second half of 2014, works on the complex began. Exclusively domestic experts worked on the project, and our team is made up of 11 people. The works were carried out by local contractors before the agreed deadline, despite the difficulties which occurred during the floods in Serbia. This project showed that there are people and firms in Serbia capable of carrying out such works, and completing a very serious project, despite the challenges.

13. Your job is dynamic, but demanding. How do you manage to overcome the daily stress?

Stress has become the daily experience of every working individual, and is something I cope with, as do, I believe, the majority of people in a similar position, by finding pleasure in small things, like spending time in the countryside, which in Serbia is fantastic; I also make occasional trips to Denmark, where my parents live. Still the best stress eliminator is socializing, both in the company, in which we have developed an excellent atmosphere, very characteristic of, for example, Scandinavian firms, which do not look for work hard, but rather work smart, an approach which looks for evidence of progress, not simply spending time at work, and also outside of work with family and friends.

14. What do you do in your free time? Where do you go out?

I especially like the type of farm found in the area around Novi Sad, and sometimes I like to go to Kopaonik during the summer, as I find warm weather difficult, since I was not used to it in Denmark. Of course, it’s not possible to miss out on outings to listen to local tambura music, which I like more than other music.

15. If you were able to, what would you change in your career so far?

I would not change anything, because I think a man is the sum of his good and bad experiences, which form his personality and lead to some results, with which I am personally satisfied, but I also think that a person learns and develops throughout his whole life, and so I see a person’s career as a pyramid which one can never reach the top of, but can enjoy every step along the way.