The two companies signed a EUR 2 million deal on Thursday ahead of a business forum in Gothenburg, which was opened by Croatian President Kolinda Grabar-Kitarovic and the Governor of Vast Gotland province, Lisbeth Schultze.
The forum presented investment opportunities in Croatia, and about 20 Croatian and 40 Swedish business people attempted, through direct contacts, to revive neglected economic relations between the two countries.
Tehnika, which has been cooperating with Tuve Bygg for a while, will build a new complex for this company consisting of an administration building, a garage, a service centre and a car park. Work starts in April, and about 20 Croatian workers will be involved in the project.
This is Tehnika's fourth project in Sweden. It is already building a primary school, a pre-fab garage and 380 apartments in several cities, said Ernest Salihadzic of Tehnika, one of Croatia's leading building construction companies with 700 employees.
Gotland province has a chronic shortage of apartments and needs 75,000 new housing units until 2025, especially cheaper ones for rent, Schultze said. Our construction sector cannot cope with this and we need companies and workers from abroad. That's why this forum comes at the right time, she added.
There are 5,000 homeless people in Gotland province and there is a chronic shortage of apartments in 44 of its 49 municipalities.
Grabar-Kitarovic said at the forum that Croatia had improved its investment climate and expected greater investments from Swedish companies, including those already operating in Croatia. The most significant of them is Ericsson Nikola Tesla, a branch of telecoms giant Ericsson, which employs 3,000 people, mostly young Croatian specialists.
We need new jobs and investments, especially in high technology, IT and innovation, the Croatian president said, adding that this is the best way for Croatia to keep its young people in the country and attract back those who emigrated in search of a better life.
According to information provided by the Croatian Chamber of Commerce, last year Croatian exports to Sweden increased by 78.2 percent and imports rose by 20.3 percent, while total trade reached EUR 255.7 million.
Between 1993 and the end of 2015, Swedish investments totalled EUR 557.1 million, accounting for 2 percent of total foreign investment in Croatia, which makes Sweden the 13th largest investor in Croatia.
Gothenburg was the second stop, after Stockholm, of Grabar-Kitarovic's five-day official visit to Sweden. She next travels to the southern cities of Malmo and Lund which have sizeable Croatian communities.