The Umka Cardboard Mill boasts a rich tradition dating all the way back to 1939, when it was first established to produce paper and cardboard. It is today a leader of the domestic and regional markets, notes company GM Nikola Pejović
Like all other industrial sectors, the cardboard market faces challenges that range from economic fluctuations to increasing competition. However, thanks to significant investments and a commitment to both product quality and environmentally friendly production, Umka has managed to maintain a high level of customer trust and continues to expand its capacities. Here we discuss environmental protection and investments in the community, among other topics, with Nikola Pejović, general manager of the Umka Cardboard Mill.
Your company’s journey spans 85 years and many changes to the factory. Where does Umka stand today?
— Company has faced numerous challenges over the decades, but has also achieved remarkable progress, adapting to market changes and meeting the needs of customer. Since 2003, the factory has been operating within the Kappa Star Group, which marked the launch of significant investments in modernisation.

We are today recognised as a market leader in the production of coated cardboard, both domestically and regionally, equipped with advanced infrastructure and the latest technologies.
The cardboard we produce is used across a wide range of industries, including the food, pharmaceuticals, chemical and textile sectors. Its versatility and ecofriendly qualities make it an ideal solution for various market needs, from packaging to industrial applications.
Our mill has a current annual production capacity of approximately 220,000 tonnes. However, thanks to investments realised and future development plans, we expect to increase our annual capacity to 250,000 tonnes over the coming years, thus enabling us to meet market demands even more efficiently.
Thanks to investments realised and future development plans, we expect to increase our annual capacity to 250,000 tonnes over the coming years
Our dedication to high product quality and environmentally sustainable production allows us to maintain a high level of customer trust. We currently collaborate with more than 40 countries across Europe and are simultaneously expanding to markets in North Africa, the Middle East and Latin America, thus strengthening our global position significantly.
Around €95 million has been invested in modernising production technology over the past five years. Are there plans for a new investment cycle?
— Absolutely, because investing in the modernising of production technologies is a key factor in enhancing our capacity, achieving higher standards of quality and strengthening our environmental responsibility. Since 2019, total investments in state-of-the-art equipment, technologies and facilities from globally recognised manufacturers in the paper industry have exceeded €95 million, positioning the factory among Europe’s most advanced production companies of this type.

We have invested in upgrading production processes, including replacing the main cardboard production machine, which represents one of the most significant investments in the factory’s history. This modernisation has enabled a substantial increase in our capacity to process recycled paper, from 100,000 to 250,000 tonnes annually.
We laid the groundwork last year for the upgrading of our biological water treatment system, which we plan to complete by year’s end 2026. Investments will undoubtedly continue, with a focus on the further optimising of production processes, reducing our environmental footprint and increasing energy efficiency.
Setting Umka apart from the competition is the fact that you exclusively use waste paper as the primary raw material to produce European-quality cardboard. Does this make you an environmentally friendly company?
— Definitely! Utilising waste paper as the primary raw material for the production of cardboard reflects our commitment to preserving natural resources. Furthermore, our cardboard is completely biodegradable, meaning it doesn’t linger as waste in nature. We process approximately 220,000 tonnes of waste paper each year, making us the largest recycler in Serbia. This process has a multifaceted positive impact on the environment—we help conserve forests, reduce carbon dioxide emissions and save resources like water and energy.We thereby not only contribute to preserving natural resources, but also actively combat negative environmental impacts.
The factory holds numerous certificates that confirm our dedication to environmental standards and sustainable operations. Through our continuous innovations and the aforementioned investments in modernisation, we have become synonymous with high-quality, eco-friendly products.
You head the company that was the first in Serbia to receive SA8000 certification! What does this say about your commitment to high standards of social responsibility and working conditions, as well as ethical practices?
— Our SA8000 certification is a result of our dedication to high standards of social responsibility, the protection of workers’ rights and ethical business practices. By implementing this certification, we have laid solid foundations for fair and safe working conditions, respecting employee rights and ensuring that our business partners and customers are aware that we operate in line with the highest ethical standards.
Another aspect of our social responsibility is our commitment to the community. We collaborate strategically with numerous local education institutions.
Our SA8000 certification is a result of our dedication to high standards of social responsibility, the protection of workers’ rights and ethical business practices
Through our dual education and work-based learning programme, we have spent the past four years offering young people the opportunity to acquire practical skills at our factory and enhance their professional goals. Investing in education and creating employment opportunities for young people in our factory represents a significant step in terms of developing the community and strengthening its potential.
You have managed to adapt to market changes and customer needs despite numerous challenges, and you continue to do so. What are your expectations for growth and expansion over the coming years?
— Like any other industrial sector, the cardboard market faces challenges ranging from economic fluctuations to increasing competition. Nevertheless, our continuous growth is based on adapting to market changes and improving product quality consistently, as well as providing solutions that meet the specific needs of our clients.
We expect to achieve further growth over the coming years through market expansion, both regionally and globally. Our focus on innovation, environmental initiatives and product quality enables us to compete on the global market and overcome any challenges that come our way.