“Risk management at Metalac today is not an isolated function but an integral part of our culture.”
Radmila Trifunović, General Director, Metalac
Metalac has been a long-standing client of GrECo Serbia for 20 years. To celebrate our relationship of long-term trust and shared values, Miša Rakić, Sales Director at GrECo Serbia met with Radmila Trifunović, General Director at Metalac to hear the company’s story of perseverance, resilience and growth over the last 60+ years.
Company History and Values
Over more than six decades of operation, the company Metalac from Gornji Milanovac has evolved in a complex, dynamic, and often unpredictable environment. Our story began in 1959 during the intense post-war industrialisation of former Yugoslavia, when Gornji Milanovac was becoming one of the centres of economic development. Although initially technologically and organisationally weaker, lacking skilled personnel and market recognition, the company gradually built its identity thanks to clear values – responsibility, hard work, and solidarity.
Early Challenges and Recovery
In those early years, as part of the metal industry complex, we faced challenges such as unfair competition, sales difficulties, and business losses, which led to recovery programmes. Nevertheless, the vision and dedication of our employees enabled us to emerge from that period stronger and ready for further development. The first significant market breakthroughs and investments came in the following decades, but the late 1980s and early 1990s tested us once again.
Surviving the 1990s
The 1990s were perhaps the most difficult period for industry in Serbia, including Metalac. Sanctions, the collapse of the Yugoslav market, hyperinflation, political instability, and a complete breakdown of the supply chain all affected operations. Markets closed, raw materials became unavailable, and consumer purchasing power plummeted. Yet, in that chaos, Metalac preserved production, jobs, and most importantly, people’s trust. These were years when business success was not measured by revenue growth, but by the ability to survive.
Adapting to the 2000s
In the 2000s, we faced a new kind of challenge – strong competition from China and Turkey, market liberalisation, digitalization, and changing consumer habits. We decided that our response would not be price competition, but values. We chose to be recognised for the quality of domestic products, safe and healthy materials, and a responsible attitude toward the community. On these foundations, we continued to grow.
Navigating the 2008 Global Economic Crisis
The global economic crisis of 2008 once again highlighted the importance of diversified operations and the ability to adapt quickly. The crisis affected purchasing power worldwide, but thanks to our diversification (production and trade in nearly equal measure) and export orientation, we managed to maintain stability.
Growth and Diversification
During this period of restructuring and growth, other key pillars of the Metalac Group also developed. Metalac Bojler became one of the leading domestic water heater manufacturers, focusing on safety, energy efficiency, and long product life. Metalac Inko, a producer of stainless steel and granite sinks, as well as countertops, furniture, and equipment made from Granmatrix composite materials, secured a presence in demanding regional and European markets with precise craftsmanship and modular solutions. Metalac Print gradually evolved from technical support for the parent company into a strong market player capable of meeting diverse demands in cardboard packaging and decal decoration for cookware. Metalac FAD, specialising in auto parts, symbolises successful industrial revitalisation. After emerging from crisis and joining the Metalac Group, it has seen continuous growth through equipment modernisation, portfolio expansion, and export-oriented business.
Strategic Investments in Domestic Trading
Alongside production capacity development, Metalac strategically invested in opening domestic trading companies. Through a network of retail outlets and specialised stores across Serbia, we strengthened direct contact with consumers, enhanced brand recognition, and improved product availability in local communities. This channel plays a key role not only in sales but also in market education, brand value promotion, and customer support. The Group operates five domestic trading companies: Metalac Market with over 80 specialised stores across Serbia, Metalac Trade (formerly Sigma) focused on wholesale kitchen products, home decor, and small appliances, Metalac Home Market Novi Sad, Metalac Metpor, and the well-known local retail chain Proleter with 46 stores in Gornji Milanovac, Kraljevo, Čačak, and Ljig. In addition to domestic companies, the Metalac Group includes four foreign trading companies responsible for distributing Metalac products in Montenegro, Croatia, Russia, and Ukraine.
Responding to the COVID-19 Pandemic
The COVID-19 pandemic brought an entirely new type of risk. Health threats, supply chain disruptions, market closures, and great uncertainty in consumer behaviour required swift and decisive action. We reorganised production in record time, preserved all jobs, shifted communication to digital channels, and ensured deliveries even under the most challenging circumstances. The pandemic tested our resilience and trust – and we responded with maturity and thoughtfulness.
Recent Challenges and Responses
In recent years, we have faced the war in Ukraine, rising inflation, record interest rates, and surging energy and raw material prices. These factors directly impact profitability, material availability, and product pricing. Our response has been multifaceted: investments in energy efficiency, process rationalisation, building our own logistics, and market diversification. At the same time, rising prices and consumer caution have affected demand, but through investments in new products, design, and campaigns, we have maintained customer interest.
Workforce Development and Technological Changes
One of the long-term challenges is workforce fluctuation, especially due to migration and an aging population. That’s why we were among the first to introduce systemic support for dual education, internal training, and employee development, as well as creating a work environment that fosters dignity, security, and motivation.
In terms of technological changes, our sector has undergone several major revolutions – the development of enameling, the introduction of stainless steel, the emergence of non-stick coatings, and most recently, induction technology. In each of these shifts, Metalac has not only kept pace but led the way – developing its own cookware lines tailored to new needs while maintaining safety and quality.
Risk Management as a Cultural Pillar
Risk management at Metalac today is not an isolated function but an integral part of our culture. Property, supply chain, receivables, and IT security insurance have become standard, while scenario planning and market signal analysis are daily practices. We’ve learned that risk cannot be eliminated – but it can be anticipated, understood, and systematically managed. Key factors in our success in this regard are process flexibility, decision-making speed, and strong internal communication.
Future Outlook and Innovation
Looking ahead, we know challenges will persist. Changes in consumer habits, environmental and regulatory demands, climate risks, and increasingly pronounced issues with knowledge retention and workforce stability will become even more significant. Our response remains the same – a combination of a stable foundation and constant innovation. We develop products that suit modern lifestyles, promote healthy eating through enameled cookware, follow ESG standards, and invest in market education.
Partnership with GrECo Group
In all of this, having reliable and expert partners is crucial. The GrECo Group, as our support in risk management, plays an extremely important role in our ability to remain safe and stable – both in times of growth and during major challenges. Their understanding of our needs, expertise, and commitment to long-term relationships make them an invaluable partner.
Congratulations to GrECo Group
That’s why we sincerely congratulate the GrECo Group on its centennial anniversary. This century of existence is not just a symbol of tradition but a testament to consistency, trust, and expertise. We are proud to share part of that journey and to be united by the same idea – that success is not built quickly, but through dedication, knowledge, and responsibility toward everyone we work with.
About Metalac Group
Metalac Group is a Serbian joint-stock company, founded in 1959 and based in Gornji Milanovac. It consists of 16 subsidiaries, including manufacturing and trading companies, and is best known for its cookware. With over 2,000 employees, Metalac exports products to more than 30 countries.
