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Management is an art that combines knowledge, experience and intuition. During decades of work in the paper industry, Dr. Heinz Zinner has had a complicated life and career path – from an immigrant and an ordinary sales representative to a doctor of economics and a top manager of large international companies. He is currently the head of Pulp Mill Holding GmbH (Austria), which manages Kyiv Cardboard Pulp and Paper Mill.  Under his leadership, the mill stabilized its operations during a period of uncertainty.

We are starting our acquaintance with the top executives of Kyiv Cardboard and Paper Mill by meeting Dr. Heinz Zinner, a scientist and practitioner with over 60 years of experience in the European pulp and paper industry. In the open talk, the CEO of Pulp Mill Holding GmbH told us about his post-war childhood and career, as well as the prospects of the new “Marshall Plan” for the Ukrainian industry.

You graduated from the University of Vienna with a doctorate degree. What are your research interests and what do you rely on while making management decisions?

My specialization during my studies was economics and audit. I was constantly faced with various business cases in practice, as I was engaged in exporting products to many countries, and my scientific activities gave me a good theoretical basis.

In many situations, I had asked myself the question: why, with similar resource potential, do some countries have economic prosperity and stability, while others have continuous problems? What exactly is going wrong? I can say that effective management is a combination of knowledge, experience and intuition when making any decision.

You have worked for many European companies in the pulp and paper industry (Bunzl & Biach AG, Raccolta, Ekman, Wilfried Heinzel AG, etc.): how has the industry changed over the decades?

The industry 50-60 years ago cannot be compared with the current level of development. At that time Scandinavia and the United States were the industry leaders. Brazil, Southeast Asia, and especially China were out of the question. In recent years, these regions have grown incredibly technologically and economically, and production centres are shifting there.

The product orientation has also changed completely in a few decades. Newspaper printing is almost disappearing, as well as coated paper containing wood. Artistic printing is losing its relevance. Packaging products, as well as products containing waste paper and fabric fibres, are now at the cutting edge.

In your youth, you had the opportunity to observe how the post-war Europe recovered after the Second World War. How this experience could be useful for the Ukrainian industry?

I came to Austria at the age of seven. The big cities were heavily damaged due to bombing. We with other children played on the ruins. Neither our parents nor we even dreamt of today`s prosperity. The older generation had no choice: the only thing they could do was to work constantly.

That`s why success at school and university was important to me. Good grades increased the chances of finding a good job.

In my opinion, for Ukraine`s long-suffering population and economy, there is no other way than the one taken by the devastated countries of Europe and the former USSR after World War II.

I hope that Ukraine will be able to receive similar aid as Western Europe at those times. I mean the Marshall Plan, which provided for reconstruction, increased productivity and restored investor trust, which ultimately stimulated business growth and economic prosperity in these countries.

In 2003 you were awarded the “Decoration for Services to the Republic of Austria”. What does this mean to you?

Yes, I was awarded the “Great Silver Medal of Honour for Services to the Republic of Austria” and I am very proud of it.  After all, with the support of a professional team of employees, I managed to turn a small trading company into an international, profitable corporation that has been known worldwide. For a first-generation refugee like me to become a partner and leader of such a company is very valuable.

In the past, you had experience working with Russian companies. When and why did you decide to suspend economic cooperation with Russia? In your opinion, what is the main difference between doing business in Ukraine and Russia?

I have not had any negative experience in any country. The refusal to cooperate with Russian companies is the result of political circumstances that made this step inevitable. Of course, the scale of production of paper, cardboard and pulp (which is not produced in Ukraine at all) is very different. The Ukrainian industry is more focused on the production of recycled products for the domestic market and is likely to maintain this focus in the future.

You headed up Pulp Mill Holding, the parent company of Kyiv CPM, during the war in Ukraine. How does the company adapt to external challenges?

I headed up Pulp Mill Holding during the full-scale war. I believe that this clearly demonstrated how close the mill`s future is to me. In my opinion that in today`s realities, a private owner is able to ensure the future development of the enterprise better than, perhaps, the state authorities.

Unfortunately, we faced unexpected obstacles that prevented us from implementing all the necessary anti-crisis measures. These include logistics problems and limited sources of funding. Eurobanks are leaving the Ukrainian market, as well as subsidiaries of international companies – I hope this is temporary. This means that we have to rely only on our own resources and strength.

These challenges had to be quickly overcome in order to recognize the new economic reality. Today, the mill is operating sustainably in the current environment. We pay taxes (according to the reporting data, in 2023, Kyiv CPM paid almost UAH 1.5 billion to the budgets of all levels – ed.) and salaries to several thousand employees in full, we meet all our social obligations.

I hope that success will continue to be with us and that the company will not have any losses due to the war.

Pulp Mill Holding is doing its best to eliminate external threats and solve the mill`s problems in a legal manner. In today`s realities, this can be compared to the labour of Hercules.

In your opinion, what is the attitude of large Austrian businesses towards future investments in Ukraine?

Many Austrian companies have stayed in Ukraine despite the war (last year 25 Austrian manufacturers provided more than 20,000 workplaces and total investments of over EUR 1.6 billion – ed.) The country has great potential in many aspects. Representatives of European business are interested in deepening cooperation in Ukrainian economic reconstruction.

Of course, in times of war, entrepreneurs are less ready to make risky investments. However, I am sure that when the situation stabilizes, these investments will pay off.

Could you tell us about your daily life? It is known that in your spare time you grow apples and produce craft cider – can this hobby turn into a new profitable business?

I do not have many hobbies other than my everyday work. Growing apples is a bit more than just a hobby. Currently, this area does not bring me any profit, but I get great pleasure from growing high quality, healthy fruit and being able to offer it to people. Moreover, thanks to this activity, I spend a lot of time outside.

You have extensive management and life experience. How do you pass it on to the next generations? Do you have any plans to publish a guidebook?

I do not plan to write a book yet, but you are never sure what your future brings to you. However, I discuss many issues with my team every day, and we find solutions together. I hope I am a good teacher.

Based on the materials of delo.ua

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