13 May Interview with Mr. Miloš Hranisavljević, CEO, Novkol, Serbia
How would you assess the current state of the construction sector in Serbia and how does it compare to other regional markets?
For nearly 30 years, little progress was made due to political challenges and the breakup of Yugoslavia, with other republics advancing faster. Yet in the last decade, Serbia has undergone significant changes, particularly in the past two to three years. As the largest State in the former Yugoslav republic, Serbia is strategically positioned at the crossroads of East and West, making it a historical hub for regional developments. Over the past decade, political and economic stability has improved significantly, creating a favorable environment for growth. With a strengthened financial system and increasing foreign investment, Serbia has made remarkable progress. Yet, there is still great potential for growth, as the country continues to catch up with other European nations. Today, Serbia presents excellent opportunities for investors looking to establish and expand their businesses.
Serbia’s construction industry once thrived, with companies leading major projects in Africa, Iraq and Iran during the 1970s. Traditionally, we had strong ties with Germany, a well-established construction market. However, during economic downturns, the industry declined due to a lack of local demand. When the market rebounded, Serbian companies faced a challenge — strong traditional expertise but a gap in modern technologies and methods, particularly in foundation and geotechnical work. Unlike the West, which had advanced significantly, we had to catch up quickly.
At NOVKOL, we recognized this early. Although we are a relatively young company in foundation work with only 20 years, our success comes from adapting swiftly. We studied leading global firms, adopted their best practices and integrated the latest technologies and techniques. Today, NOVKOL operates on par with top Western companies, proving that rapid adaptation and openness to innovation are key to success in this evolving industry. Companies that adapt quickly and adopt proven methods thrive. Over the past decade, growth was slow at first but has accelerated significantly in the last two years. Early investors who recognized the opportunity and overcame challenges elsewhere were the first to benefit, creating even greater potential for expansion.
Can you share some insights into the company’s journey, from its beginnings to its current position as an industry leader?
Until 2004, NOVKOL was a strong local company focused on infrastructure. That changed in 2004 when VINCI Construction acquired 70% of our shares, initiating our transformation under a global leader. Everything progressed well until the 2008 financial crisis, which led VINCI to exit the region. NOVKOL’s three original partners, including myself, repurchased shares, shifting ownership to 52% local and 48% VINCI. The following years were challenging due to the global downturn, but in 2013, foreign investors began arriving, starting with Israeli company Astron. Their project, a shopping center in Belgrade’s historic district, was complex due to foundation depth and preservation requirements, but it was a success.
We then worked with Greek investors on Metropol Hotel and later took on Belgrade Waterfront with Eagle Hills. At the time, we were the only company capable of meeting the high-quality standards required. A key milestone was working on a building that is part of the Belgrade Waterfront and designed by Skidmore, Owings & Merrill (SOM), implementing strict American standards. This was a challenge initially, but we adapted, strengthening our expertise and reputation. Since then, growth has accelerated and advancedtechnology enables us to deliver efficiently.
What sets NOVKOL apart from local competitors is not just our use of the latest global technologies, but also our strong in-house design department. We provide investors with complete know-how from start to finish and are the only Serbian company operating this way. This has positioned us as a market leader in foundations and geotechnical work. Following our success with the Belgrade Waterfront, we attracted numerous international investors, leading to many new projects.
After Gazprom acquired the oil company, we took on several projects in the energy sector. When the Chinese invested in Kostolac’s thermal power plant, we handled the entire foundation. Our expertise has been tested by a wide range of international investors, from the UAE to China and Greece to Israel. We also worked on major shopping mall projects with Israeli investors. A key milestone in our expansion was Expo, one of Belgrade and Serbia’s largest investments. As foundation work comes first, we were among the earliest contractors, collaborating with Chinese builders and Spanish designers to resolve key challenges. We completed the Expo foundation 10 months ago and are now finalizing work on the National Stadium, which was even more complex. While smaller projects remain, most of our work is done, though it’s all underground and won’t be seen.
What role do international partnerships play in NOVKOL’s growth and its ability to successfully complete large-scale projects both in Serbia and abroad?
Our biggest opportunity will come with the construction of the Belgrade Metro, which the government plans to start soon. This massive investment will drive our growth, as the tight schedule demands fast execution. The metro project has two main components: tunnels and stations. While tunneling isn’t our core business, we see a major opportunity in metro station construction. Given Belgrade’s challenging geology — soft ground near the rivers and rocky terrain in the city center — only experienced companies will be selected. We are well-positioned for this role. To take on such large-scale projects, we recognize the need for new talent, additional investment and a stronger organizational structure. Partnering with an international firm could help us scale up.
Beyond the metro, Serbia urgently needs at least five new bridges on the Danube, especially in the east, where tourism and industry are expanding. While we could start metro work tomorrow, our current capacity allows us to handle two stations at a time, far below the full scope of 52 stations. Expanding our resources will be key to taking on a larger share of these projects. If investigations and designs are completed, the metro project could start in a few months. The timeline depends on political factors and finalizing electromechanical work, which involves French companies. Currently, we are focused on Line 1, but there are plans for Lines 2 and 3, making this a long-term project. Our role will be crucial, especially in constructing the foundations for the stations, as much of the work will be underground. This will be key to the success of the metro system.
Several factors make Serbia an attractive destination for investment. The stability and orderliness of the region are key, along with an educated workforce open to international opportunities. Serbian culture is similar to European norms and many people speak English. The country offers a welcoming atmosphere for investors in various sectors, including construction, industry, agriculture and tourism. While not part of the EU, Belgrade feels like a European city with strong investment potential. Its strategic location on the Danube, with good transport connections to Europe, the Middle East and beyond, adds to its appeal.
What steps is NOVKOL taking to integrate digital tools and eco-friendly practices and technologies in its operations and how does it benefit your project execution and marketing efforts?
When we started, we had no experience with foundations, only infrastructure works like deep trenches and pump stations. We quickly educated ourselves, exploring piling technologies and studying soil conditions in Belgrade, similar to North Italy, South France and England. We adopted Italian geotechnical practices and introduced technologies like continuous flight augering which was new to the region.
Over time, we became leaders in using advanced technologies from Germany, France and England, staying at the forefront of industry innovations. We strive to stay ahead of European companies, as demonstrated by our experience with SOM. We use slurry with natural polymers in piling and diaphragm walls, a practice uncommon in Europe but used in the US for its environmental benefits. Although Serbian laws don’t require it, we choose to adopt these practices to show our commitment to the environment. We aim to incorporate the best global innovations while keeping our engineers involved in conferences and staying updated with the latest technologies.
How do you see the future of NOVKOL and the construction industry as a whole in the next 5-10 years, especially with significant large-scale projects happening in the country?
My two partners are retired, but I’m still actively working. NOVKOL is like our child and we are focused on ensuring its continued growth and success in the face of upcoming changes. We’ve committed all our resources to this goal. As large projects are near, we are looking for an international partner to join us, not just as a shareholder, but as an active business partner. While we know the local market well, we need support from a larger company to succeed in big projects like Metro, Expo and future bridges and highways. It’s my responsibility to ensure NOVKOL thrives in the long term.
What is your final message to the readers of USA TODAY?
Come to Serbia — you will enjoy it. Belgrade has historically been a regional hub for neighboring countries like Hungary, Romania, Austria and Macedonia. It’s a great base for anyone looking to start a business in Southeast Europe and expand into neighboring markets. Once the war in Ukraine ends, the demand for construction will rise. Serbian workers are well-suited to assist in regional projects, offering an advantage over labor from other countries. Investors should consider not only Belgrade and Serbia, but also the broader region, including Hungary, Romania, Macedonia and Bosnia, as potential markets.