Decentralised heating and ventilation system production in Bosnia The applicant, ClimaRad Holding B.V. is currently producing their ClimaRads in China, using moulds that are owned by daughter company and partner ClimaRad B.V.. ClimaRad is a decentralised ventilation system with heat recovery, an environmentally friendly and CO2 reducing product. They want to move this production from China to Bosnia and Herzegovina, together with the parts of the production process still done in the Netherlands, mainly to be able to take advantage of Bosnia's technical knowledge to produce a better product with less quality problems. Once the production is taking place in Bosnia and Herzegovina, it will be easier to extend the product line with new innovative products. After knowledge transfer to Bosnia and Herzegovina, they expect to be able to speed up product development and introduce new products faster. This fits nicely into ClimaRads strategy to become a system supplier rather than a product supplier. ClimaRad Holding B.V. will set up this Bosnian production facility together with local partner EGW d.o.o., with whom they will set up a joint venture in Sarajevo. The owners of both companies have known each other for 15 years, when they were partners in a joint venture for the first time. For EGW Sarajevo d.o.o., which is going through a difficult time business-wise, the project provides an opportunity to add some new activities to their current ones, taking advantage of their expertise and available office and production space.Corporate Social Responsibility (CSR)Salaries will be definitely be above average, say at least 5%, comparing to the Bosnian average salary of 860 KM, which includes government workers' salaries. Both partners intend to implement CSR principles. ClimaRad Holding B.V. does their product development in line with the cradle-to-cradle principles.Impact•	Employment and working conditionsSalaries will be above average and employees will get a permanent contract, with a 2 month probation period, right away. People working in the painting section will be provided with milk. Transport and a meal are provided to all employees. Furthermore, a profit sharing scheme will be implemented.•	Innovation  / Transfer of knowledgeThe project introduces new products and a new production method (1,200 tons injection moulding machine) into Bosnia.•	Chain effectsThe joint venture will source many raw materials (PP and Talc) as well as parts within Bosnia. In year 7 they expect this represent about 60% of the total sourcing value, by the end of the project just short of 50%.All products will be exported.•	Impact on the sectorThe project will cooperate with Sarajevo University, just like EGW Sarajevo d.o.o. used to do in the past. No specific plans have been made yet, although intentions appear sincere. Mr Tanovic mentioned the option to have the University test ClimaRad systems in a very different climate than the Netherlands.•	EnvironmentEGW Sarajevo d.o.o. is the only building in the area that is connected to the sewerage system and his its own separation system for waste water. The joint venture will use this as well. Plastic can be recycled and will be brought back into the production process.•	Position of womenThe joint venture will hire a total of 10 women, out of 17 positions and one of the two medium-/high-level positions will be a woman. Setting up a production facility for the production of 5,000 ClimaRads as well as 5,000 EPMaxBox (ClimaRad fans) and 100 complete ClimaRad systems for sales to ClimaRad BV in the Netherlands.