Production of flexible packaging products in Kosovo Applicant Kivo Plastic Verpakkingen B.V. and local partner VM3 L.L.C. want to start a production facility for flexographic packaging materials in Kosovo. This kind of advanced technology currently does not exist in this country, moreover the demand for printed flexible packaging materials (now imported) is expected to grow due to economic development of Kosovo. VM3 as an outdoor advertising and printing company also recognises this business potential as imported goods are increasingly substituted by domestic goods. However, lacking any expertise about this special technology, they have contacted Kivo via the Matchmaking Facility in 2012. Kivo is very experienced in flexible printed packaging solutions. At the moment, Kivo is market leader in the Netherlands for printed plastic bread bags. These products are manufactured in their own factory in Volendam and part of production volume is outsourced to other machinery contractors, as Kivo lacks the production capacity to do it themselves. Furthermore, Kivo is confronted with low-cost competitors from East Europe in this product segment, hence Kivo would like to start an additional production facility in Kosovo. This implies, that current outsourcing of production volume to other contractors is terminated and at the same time they will be able to compete better with low-cost manufacturers in the future. This project would make their overall cost base in this product segment significantly more flexible. All in all, project partners decided to produce plastic bread bags for Kivo's existing customers and waste bags for the Kosovar market at first and at a later stage produce other flexible printed packaging materials for various local clients given the still weak local demand for these packaging materials. Project partners will set up a joint venture and the project will be located in the geographically strategic town of Kacanik, near a new highway from Skopje to Pristina and close to the border of Macedonia. The factory will consist of 3,200 m2 and will employ thirty persons in a poor part of Kosovo.Corporate Social Responsibility (CSR)The joint venture will be a reliable partner for its staff, suppliers, clients and other stakeholders. They will create an extensive CSR policy for the project, which includes high employment standards, workplace safety, personal development, gender policy, freedom of labour, non-discrimination policy, environmental management, quality control and employee participation. Certification of international standards like e.g. ISO 9001 will be used to achieve this CSR plan.Impact•	Employment and working conditionsThey employ 23 FTE basic-level jobs in printing, sealing and warehousing. 7 FTE medium-/high-level jobs in technology & quality, sales & business development and finance. All employees receive wages at least 25% above minimum wages in Kosovo, i.e. 300 euro for basic-level and 450 euro to 750 euro for medium-/high-level jobs per month. Additional benefits include 40 hours workweek, compensated transport and meals costs, healthcare insurance and bonus system.•	Innovation / Transfer of knowledgeThe project is innovative in terms of the product and technology, which involves cutting, printing, sealing of plastic bread bags. Flexographic packaging materials are not made in Kosovo, they are imported from Greece, Macedonia and Turkey. These materials do not match the quality of Kivo, which has developed so-called ‘reduced thickness’ plastic packaging materials. This also implies its ability to withstand low temperatures, which is necessary for its Dutch end-user’s habit to freeze loaves of bread in the freezer. The project will introduce this new technology of flexographic printing in Kosovo.•	Chain effectsImpact on local suppliersThe joint venture will prefer to purchase locally in order to save on transport costs. Extrusion activities will be performed in the Netherlands and other quality components like ink will be purchased at existing suppliers of Kivo.Impact on local customers or consumersInitially, the project focuses on existing client base in Western Europe. Hence no big impact is expected. Except for the garbage bags the Kosovo consumers will no benefit directly from the project. In the future this technology allows the joint venture to offer more attractive packaging materials for domestic producers of food, chips & snack products etc.•	Impact on the sectorNo intended impact, however their state-of-the-art technology could catalyse other new developments in this sector, e.g. competition is trying to keep up with them with new hardware, services etc.•	EnvironmentPositive impact, by offering cheap garbage bags, this could improve the waste collection services in Kosovo, especially in urban areas. Furthermore, 100% reuse of plastic waste materials is intended, which will be recycled in the Netherlands.•	Position of womenThey will employ 4 FTE women. The partners want to start a production facility for flexible printed packaging materials in Kosovo, producing 300 million plastic bread bags and 25 million garbage bags per year.