Setting up a modern technical distribution and training centre in Bosnia Wildkamp B.V., daughter company of applicant Jarola Holding B.V., is a technical wholesale company with 45 affiliates and a state-of-the-art distribution centre in Coevorden, with just-in-time deliveries to customers all around the Netherlands. In 2004 Wildkamp B.V. set up a Bosnian daughter company (Wiltehnik) for the coordination of purchasing products from 27 Bosnian SME producers. Together with two Bosnian suppliers, local partner Plamingo doo and partner Kovan M.I., Wildkamp B.V. wants to improve the output, knowledge and production efficiency of the other 25 Bosnian SMEs, supplying Wildkamp B.V.. They want to do this by setting up a joint venture for a local distribution and trainings centre in Sarajevo. All 25 SMEs will be upgraded by intensive training. Besides the joint venture itself, at least 4 companies will be certified ISO 9001 and Eco-label, within the scope of this project. Others will follow in the years thereafter. Besides the distribution and training centre, the joint venture will also set up and run a production line for the production of 650,000 compression fittings per year, which will be located in Plamingo’s production hall for plastic products in Gracanica. Wildkamp B.V. currently imports these compression fittings from Germany. The distribution and training centre should result in better organisation, logistics and product quality from the Bosnian SMEs, which would increase their chances both on the local market as well as for supplying more and better products to Wildkamp B.V.. The project will introduce Dutch knowledge on logistics and distribution to the sector in Bosnia and Herzegovina.Corporate Social Responsibility (CSR)Within the project SME suppliers will be trained in ISO 9001 and Eco-label and two of them achieve certification. The production facility will achieve ISO 9001. Given the attitude regarding environmental issues at all partners, one can only expect that the environment will be kept in mind while setting up the production.Salaries in the joint venture will be 10% above average.Impact•	Employment and working conditionsSalaries will be 10% above average, employees will receive a lot of training. Good and safe working conditions are a priority, and will be a main training subject, both for joint venture staff and SMEs. Fringe benefits will include free of charge fruit for all employees, a canteen where simple and healthy meals can be ordered, reduced tariffs in a local fitness centre and the ergonomic situation for each worker will be considered on a frequent basis.•	Innovation/Transfer of knowledgeThe production of compression fittings is new for Bosnia and so is the set-up of a distribution and training centre within this sector, which will help upgrade the supplying SMEs. Because of the involvement of 25 SMEs, apart from the two Bosnian partners, a bigger part of the sector will benefit. The logistics involved in the distribution centre are very new for Bosnia and Herzegovina, with the possibility of introducing just-in-time deliveries once the market demands this. At the moment delivery times of 3 to 4 days are very acceptable within the market and internet orders will be possible.•	Chain effectsThe project will have a very positive impact on the Bosnian partners and the other 25 local SMEs who will sell to the joint venture. The PP and POM, raw materials for the compression fittings, will have to be imported, because it is not available locally.The majority of the sales will be export, yet 25% to 30% is expected to be sold locally. The joint venture staff will be trained, so they will have a lot of product knowledge, which customers will benefit from.•	Impact on the sectorThe project will cooperate with the local mechanical school in Gracanica, which Plamingo doo is already doing. They installed some technical software there, so students can learn to work with it.•	EnvironmentSME training will include Safety and Environment training with topics like Energy saving, Noise reduction and Waste minimisation. At least 4 SMEs will achieve Eco-label during the project period.•	Position of womenThe project will hire 10 women in medium-/high-level jobs. Setting up a joint venture for the production of 650,000 compression fittings per year, as well as a distribution and trainings centre which will source technical products from 27, partially newly trained, SMEs for sales to Wildkamp and the local market.